-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SFOBNEz0hNON9gqojda7ROvgD8Y3UQEjm/ic5c9iCXN3mP2en5G2sXWLG7Od4lZH W4dQLXrm8W/zRKq4UMuLgg== 0000853566-98-000005.txt : 19980720 0000853566-98-000005.hdr.sgml : 19980720 ACCESSION NUMBER: 0000853566-98-000005 CONFORMED SUBMISSION TYPE: 10-K405 PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980714 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOSTON CAPITAL TAX CREDIT FUND II LTD PARTNERSHIP CENTRAL INDEX KEY: 0000853566 STANDARD INDUSTRIAL CLASSIFICATION: OPERATORS OF APARTMENT BUILDINGS [6513] IRS NUMBER: 043066791 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-K405 SEC ACT: SEC FILE NUMBER: 000-19443 FILM NUMBER: 98665657 BUSINESS ADDRESS: STREET 1: ONE BOSTON PLACE #2100 STREET 2: C/O BOSTON CAPITAL PARTNERS INC CITY: BOSTON STATE: MA ZIP: 02210 BUSINESS PHONE: 6176248900 MAIL ADDRESS: STREET 1: ONE BOSTON PLACE STREET 2: STE 2100 CITY: BOSTON STATE: MA ZIP: 02108-4406 10-K405 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K [X] Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended March 31, 1998 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) Massachusetts 04-3066791 - -------------------------------- - ------------------------------- (State of other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) One Boston Place, Suite 2100 Boston, MA 02108-4406 - ---------------------------------------------- - ----------------------- (Address of Principal executive offices) (Zip Code) Partnership's telephone number, including area code: (617)624-8900 - ------------- Securities registered pursuant to Section 12(b) of the Act: Name of each exchange Title of each class on which registered -------------------- - ---------------------- None None Securities registered pursuant to Section 12(g) of the Act: Beneficial Assignee Certificates -------------------------------- (Title of Class) Indicate by check mark whether the Partnership (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 twelve months (or for such shorter period that the Partnership was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO ----- ----- Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. __ |XX| DOCUMENTS INCORPORATED BY REFERENCE ----------------------------------- The following documents of the Partnership are incorporated by reference: Form 10-K Parts Document --------- -------- Parts I, III October 25, 1989 Prospectus, as supplemented Parts II, IV BOSTON CAPITAL TAX CREDIT FUND II LIMITED PARTNERSHIP Form 10-K ANNUAL REPORT FOR THE YEAR ENDED MARCH 31, 1998 TABLE OF CONTENTS PART I Item 1. Business Item 2. Properties Item 3. Legal Proceedings Item 4. Submission of Matters to a Vote of Security-Holders PART II Item 5. Market for the Registrant's Limited Partnership Interests and Related Partnership Matters Item 6. Selected Financial Data Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations Item 8. Financial Statements and Supplementary Data Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure PART III Item 10. Directors and Executive Officers of the Partnership Item 11. Executive Compensation Item 12. Security Ownership of Certain Beneficial Owners and Management Item 13. Certain Relationships and Related Transactions PART IV Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K Signatures PART I ------ Item 1. Business Organization - ------------ Boston Capital Tax Credit Fund II Limited Partnership (the "Partnership") is a limited partnership formed under the Delaware Revised Uniform Limited Partnership Act as of June 28, 1989. The General Partner of the Partnership is Boston Capital Associates II Limited Partnership, a Delaware limited partnership. Boston Capital Associates, a Massachusetts general partnership, whose only two partners are Herbert F. Collins and John P. Manning, the principals of Boston Capital Partners, Inc., is the sole general partner of the General Partner. 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 wholly-owned by Herbert F. Collins and John P. Manning. The Assignor Limited Partner was formed for the purpose of serving in that capacity for the Partnership and will not engage in any other business. Units of beneficial interest in the Limited Partnership Interest of the Assignor Limited Partner have been assigned by the Assignor Limited Partner by means of beneficial assignee certificates ("BACs") to investors and investors are entitled to all the rights and economic benefits of a Limited Partner of the Partnership including rights to a percentage of the income, gains, losses, deductions, credits and distributions of the Partnership. A Registration Statement on Form S-11 and the related prospectus, as supplemented (the "Prospectus") was filed with the Securities and Exchange Commission and became effective October 25, 1989 in connection with a public offering ("Offering") in series 7, 9 through 12, and 14. The Partnership raised $186,337,517 representing a total of 18,679,738 BACs. In 1991, BACs were offered and sold to certain residents of the Commonwealth of Pennsylvania. The provisions of Section 201 of the Pennsylvania Securities Act of 1972, relating to the registration of securities, may not have been complied with, in connection with, the offer or sale of some of the securities. Accordingly, the Partnership offered to repurchase these securities, at the investors option. Three investors holding 6,100 BACs representing $61,000 accepted the Partnership's offer to repurchase. In 1993 the Partnership repurchased the BAC's with an effective date of December 31, 1992. The Partnership completed sales of BACs in all Series on January 27, 1992. Description of Business - ----------------------- The Partnership's principal business is to invest as a limited partner in other limited partnerships (the "Operating Partnerships"), each of which owns or leases and operates an Apartment Complex exclusively or partially for low- and moderate-income tenants. Each Operating Partnership in which the Partnership invested owns Apartment Complexes which are completed, newly-constructed, under construction or rehabilitation, or to-be constructed or rehabilitated, and which are expected to receive Government Assistance. 1 Each Apartment Complex has qualified for the low-income housing tax credit under Section 42 of the Code (the "Federal Housing Tax Credit"), thereby providing tax benefits over a period of twelve years in the form of tax credits which investors may use to offset income, subject to certain strict limitations, from other sources. Certain of the Apartment Complexes also qualified for the historic rehabilitation tax credit under Section 48 of the Code (the "Rehabilitation Tax Credit"). The Federal Housing Tax Credit and the Government Assistance programs are described on pages 67 to 92 of the Prospectus, as supplemented, under the caption "Government Assistance Programs," which is incorporated herein by reference. Section 236 (f) (ii) of the National Housing Act, as amended, in Section 101 of the Housing and Urban Development Act of 1965, as amended, each provide for the making by HUD of rent supplement payments to low income tenants in properties which receive other forms of federal assistance such as Tax Credits. The payments for each tenant, which are made directly to the owner of their property, generally are in such amounts as to enable the tenant to pay rent equal to 30% of the adjusted family income. Some of the Apartment Complexes in which the Partnership has invested are receiving such rent supplements from HUD. HUD has been in the process of converting rent supplement assistance to assistance paid not to the owner of the Apartment Complex, but directly to the individuals. At this time, the Partnership is unable to predict whether Congress will continue rent supplement programs payable directly to owners of the Apartment Complex. As of March 31, 1998, the Partnership had invested in a total of 310 Operating Partnerships; 15 Operating Partnerships on behalf of Series 7, 55 Operating Partnerships on behalf of Series 9, 46 Operating Partnerships on behalf of Series 10, 40 Operating Partnerships on behalf of Series 11, 53 Operating Partnerships on behalf of Series 12, and 101 Operating Partnerships on behalf of Series 14. A description of these Operating Partnerships is set forth in Item 2 herein. The business objectives of the Partnership are to: (1) preserve and protect the Partnership's capital; (2) provide current tax benefits to Investors in the form of (a) Federal Housing Tax Credits and Rehabilitation Tax Credits, which an Investor may apply, subject to certain strict limitations, against his federal income tax liability from active, portfolio and passive income, and (b) passive losses which an Investor may apply to offset his passive income (if any); (3) provide capital appreciation (except with respect to the Partnership's investment in certain Non-Profit Operating Partnerships) through increases in value of the Partnership's investments and, to the extent applicable, equity buildup through periodic payments on the mortgage indebtedness with respect to the Apartment Complexes; (4) Provide cash distributions (except with respect to the Partnership's investment in certain Non-Profit Operating Partnerships) from a Capital Transaction as to the Partnership. The Operating Partnerships 2 intend to hold the Apartment Complexes for appreciation in value. The Operating Partnerships may sell the Apartment Complexes after a period of time if financial conditions in the future make such sales desirable and if such sales are permitted by government restrictions; and (5) provide, on a current basis and to the extent available, cash distributions from the operations of the Apartment Complexes (no significant amount of which is anticipated). The business objectives and investment policies of the Partnership are described more fully on pages 44 to 52 of the Prospectus, as supplemented, under the caption "Business Objectives and Investment Policies, " which is incorporated herein by reference. Item 2. Properties The Partnership has acquired a Limited Partnership Interest in each of the three hundred ten Operating Partnerships in six series identified in the table set forth below. In each instance the Apartment Complex owned by each of the Operating Partnerships is eligible for the Federal Housing Tax Credit. Occupancy of a unit in each Apartment Complex which initially complied with the Minimum Set-Aside Test (i.e., occupancy by tenants with incomes equal to no more than a certain percentage of area median income) and the Rent Restriction Test (i.e., gross rent charged tenants does not exceed 30% of the applicable income standards) is referred to hereinafter as "Qualified Occupancy." Each of the Operating Partnerships and each of the respective Apartment Complexes are described more fully in the Prospectus or applicable Report on Form 8-K filed during the past fiscal year. The General Partner believes that there is adequate casualty insurance on the properties. Please refer to Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" for a more detailed discussion of operational difficulties experienced by certain of the Operating Partnerships. 3 Boston Capital Tax Credit Fund II Limited Partnership - Series 7 PROPERTY PROFILES AS OF March 31, 1998 Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ---------- The Bowditch School Lodging Jamaica Plain, House MA 50 $1,630,968 12/89 12/89 100% $ 606,390 Briarwood Cameron, Apartments MO 24 624,427 12/89 12/89 100% 157,254 Buckner Buckner, Properties MO 24 619,396 12/89 3/89 100% 146,287 Creekside Vandergrift, Apartments PA 30 1,091,361 6/89 9/89 100% 247,790 Deer Hill Huntersville, II Apartments NC 40 1,479,045 2/90 5/89 100% 333,370 Hillandale Lithonia, Commons GA 132 3,152,333 12/89 1/90 100% 1,138,907 Leo A. Meyer Senior Citizen King City, Housing CA 44 1,658,088 6/90 11/89 100% 893,708 Lebanon Properties Lebanon II MO 24 573,502 12/89 7/89 100% 136,440 New Holland Danville, Apartments IL 53 951,963 5/90 8/90 100% 800,434 Oak Grove Oak Grove, Estates MO 20 485,264 12/89 9/89 100% 113,188 Oakview Delta, Apartments OH 38 1,128,782 12/89 10/89 100% 258,264 Metropole Miami Beach, Apartments FL 42 2,194,490 12/89 12/89 100% 694,581 4 Boston Capital Tax Credit Fund II Limited Partnership - Series 7 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - --------- Rosenberg Santa Rosa, Apartments CA 77 $1,824,673 2/90 1/92 100% $1,943,360 Westwood Square Moore Head City, Apartments NC 36 1,413,403 7/90 7/90 100% 117,286 Winfield Properties Winfield, II MO 24 609,884 12/89 5/89 100% 142,525 5 Boston Capital Tax Credit Fund II Limited Partnership - Series 9 PROPERTY PROFILES AS OF March 31, 1998 Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - --------- Azalea Village Crawford, Apartments GA 24 $ 640,656 5/90 5/90 100% $ 143,206 Beaver Brook Pelham, Commons NH 24 1,185,213 4/90 5/90 100% 290,403 Bent Creek Crest View, Apartments II FL 24 724,343 6/90 5/90 100% 164,534 Big Lake Big Lake, Seniors TX 20 560,504 4/94 6/95 100% 141,072 Blanco Blanco, Senior Apts. TX 20 519,876 12/93 9/94 100% 98,561 Breezewood Village Kissimmee, Phase I FL 86 2,801,426 4/90 4/90 100% 831,650 Breezewood Kissimmee, Village II FL 42 1,429,634 5/90 5/90 100% 416,268 Cambridge Madison, Manor FL 36 1,135,178 4/90 1/90 100% 268,523 Corinth Senior Corinth, Housing NY 40 1,491,978 4/90 2/90 100% 384,000 Cotton Mill Stuart, Apartments VA 40 1,482,385 10/92 7/93 100% 271,351 Country Cedar Rapids, Hill Apts. IA 166 4,401,632 4/90 6/90 100% 3,471,607 Country Blakely, Lane Apts. GA 32 947,599 5/90 5/90 100% 211,916 6 Boston Capital Tax Credit Fund II Limited Partnership - Series 9 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - --------- Fawn River Sturgis, Apartments MI 100 $3,701,144 10/90 10/90 96% $971,446 Garden Lake Immokalee, Apartments FL 65 2,194,651 5/90 5/90 100% 577,529 Glenwood Porterville, Hotel CA 36 744,109 6/90 6/90 100% 383,100 Grand Princess St. Croix, Manor USVI 24 1,493,133 6/90 8/90 100% 374,766 Grand Princess St. Croix, Villa USVI 24 1,492,136 6/90 8/90 100% 276,203 Greenwich Senior Greenwich, Housing NY 36 1,484,611 4/90 2/90 100% 340,000 Grifton Grifton, Manor Apts. NC 40 1,259,126 9/93 2/94 100% 261,645 Hacienda Villa Firebaugh, Apartments CA 120 3,911,182 4/90 1/90 100% 1,343,294 Haines City Haines City, Apartments FL 46 1,440,156 4/90 2/90 100% 339,465 Hamlet Newfane, Square NY 24 992,883 10/92 9/92 100% 193,830 Hill St. South Paris, Commons ME 25 1,490,168 11/92 10/92 100% 301,064 Kristin Park Las Vegas, Apartments NM 44 1,392,250 3/90 6/90 100% 313,200 7 Boston Capital Tax Credit Fund II Limited Partnership - Series 9 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ---------- Le Grand Le Grand, Apts. CA 34 $1,741,818 11/92 10/93 100% $ 419,011 Longmeadow Skowhegan, Apartments ME 28 1,482,082 8/90 8/90 100% 284,000 Magnolia Lane Bloomingdale, Apartments GA 48 1,481,407 5/90 3/90 100% 321,908 Maywood Corning, Apartments CA 40 1,502,617 3/90 7/90 100% 365,280 Meadowcrest Southfield, Apartments MI 83 2,896,927 9/90 10/90 100% 1,116,284 Mill Pond Brooklyn, Apartments MI 36 1,108,471 5/90 5/90 100% 250,175 New Holland Danville, Apartments IL 53 951,963 5/90 8/90 100% 565,622 Pinewoods Springfield, Apartments IL 168 3,830,348 6/90 6/91 100% 1,258,700 Pine Ridge Polkton, Place NC 16 645,313 1/94 12/93 100% 114,730 Pleasanton Pleasanton, Seniors Apts.TX 24 623,730 12/93 7/93 100% 144,839 Port Portage, Crossing IN 160 3,214,268 3/90 4/90 100% 2,733,580 Putney Putney, Meadows Apts VT 28 1,422,624 12/92 5/93 100% 374,495 Quail Hollow Homerville, Apartments GA 54 1,471,814 5/90 1/90 100% 363,353 8 Boston Capital Tax Credit Fund II Limited Partnership - Series 9 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - --------- Quail Hollow Raleigh II NC 36 $ 1,406,357 7/90 9/90 100% $ 313,521 Rainbow Gardens Dunnellon, Apartments FL 36 1,218,609 12/92 6/93 100% 236,763 Raitt Santa Ana, Street Apts. CA 6 800,404 5/93 8/93 100% 416,200 School St. Marshall, Apts. II WI 24 804,966 6/93 6/93 100% 652,967 Scottsville Scottsville, Hollow NY 36 1,427,651 5/90 5/90 100% 304,060 Somerset Antioch, Apartments CA 156 5,418,004 3/90 3/90 100% 3,920,000 St. Paul's St. Paul, Apartments NC 32 1,266,317 5/90 9/90 100% 263,165 Surry Village Surry, II VA 24 776,903 5/90 1/90 100% 157,002 Tappahannock Tappahannock, Greens Apts. VA 40 1,507,692 3/94 5/94 100% 293,486 Telluride Telluride, Apartments CO 30 1,472,029 9/90 11/90 100% 300,033 The Warren St. Lodging Boston, House MA 19 721,934 3/90 5/90 100% 460,900 Twin Oaks Raeford, Apartments NC 28 1,140,589 5/90 5/90 100% 275,894 9 Boston Capital Tax Credit Fund II Limited Partnership - Series 9 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ---------- Ventura Hernando, Village FL 53 $ 1,486,882 6/90 7/90 100% $ 473,300 Vilage Live Oak, Oaks FL 24 751,472 6/90 2/90 100% 164,291 Apartments II Warrensburg Warrensburg, Estates MO 32 793,526 4/90 4/90 100% 181,849 Westside Providence, Apartments RI 40 2,434,577 6/90 12/90 100% 1,777,738 Westwood Square Moorehead City, Apartments NC 36 1,413,403 7/90 7/90 100% 195,391 Wilmington Wilmington, Housing NY 24 1,052,377 8/90 8/90 100% 237,279 10 Boston Capital Tax Credit Fund II Limited Partnership - Series 10 PROPERTY PROFILES AS OF March 31, 1998 Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ----------- Athens Park Athens, Apartments AL 48 $1,337,761 8/90 6/90 100% $ 354,144 Autumn Lane Washington, Apartments GA 24 734,854 8/89 11/90 100% 168,234 Baytree Richlands, Apartments NC 24 958,217 11/88 7/90 100% 210,999 Benchmark China Grove, Apartments NC 24 951,918 11/88 7/90 100% 223,328 Berkshire Wichita, Apartments II KS 66 1,749,221 7/90 7/90 100% 1,183,452 Brentwood Eunice, Apartments LA 32 955,769 11/90 10/90 100% 205,470 Briarwood Middleburg, Apartments FL 52 1,484,144 8/90 8/90 100% 509,251 Butler Manor Morgantown, Apartments KY 16 504,089 12/90 2/91 100% 119,952 Campbell Creek Dallas, Apartments GA 80 1,681,994 12/91 10/90 100% 735,000 Candlewick Monroeville, Place AL 40 1,259,859 12/92 10/92 100% 241,600 Cedarstone Poplarville, Apts. MS 24 774,097 5/93 5/93 100% 180,800 Charlton Court Folkston, Apartments GA 40 1,203,241 12/92 1/93 100% 263,520 11 Boston Capital Tax Credit Fund II Limited Partnership - Series 10 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - - - ----------------------------------------------------------------- - ---------- Chuckatuck Suffolk Square VA 42 $1,448,269 11/90 2/90 100% $ 320,900 Cloverleaf Bishopville, Apartments SC 24 856,728 11/90 4/90 100% 153,900 Cloverleaf Apts., Bishopville, Phase II SC 24 875,981 11/90 4/90 100% 160,761 Connellsville Connellsville, Heritage Apts. PA 36 1,370,451 11/90 3/90 100% 325,460 Freedom Ford City, Apartments PA 28 1,051,305 11/90 9/90 89% 262,791 Hartway Munfordville, Apts. KY 32 914,599 7/90 6/90 100% 239,041 Hilltop Kingsland, Terrace GA 54 1,489,722 8/90 7/90 100% 455,851 Indian Run S. Kingston Village RI 114 2,215,559 4/93 7/93 100% 604,867 Ironton Ironton, Estates MO 24 625,640 5/93 1/93 100% 157,976 Lambert Square Lambert, Apts. MS 32 1,001,895 11/92 12/92 100% 192,347 Longview Maysville, Apartments NC 24 872,593 11/88 8/90 100% 195,837 Maidu Roseville, Village CA 81 2,160,267 3/91 12/91 100% 470,000 12 Boston Capital Tax Credit Fund II Limited Partnership - Series 10 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ---------- Mann Indianapolis, Estates IN 132 $3,263,900 7/90 10/90 100% $ 1,980,000 Meadowbrook Lane Americus, Apartments GA 50 1,480,487 9/90 3/90 100% 336,264 Melrose Lane Great Falls, Apartments SC 24 875,089 11/90 10/90 100% 203,645 Mercer Mercer, Manor PA 26 909,802 11/90 8/90 96% 220,450 46 North Connecticut Atlantic City, Ave. NJ 13 1,013,314 1/93 12/92 100% 559,000 Pecan Village Ellaville, Apartments GA 30 788,440 7/90 2/90 100% 221,856 Piedmont Forsyth, Hills GA 50 1,459,281 7/90 9/90 100% 439,958 Pine View Perry, Apartments FL 29 962,572 9/90 12/90 100% 277,405 Pines by the Newnan, Creek Apts. GA 96 2,002,390 12/90 10/90 100% 890,000 Pine Grove Ackerman, Apts. MS 24 594,681 9/93 6/94 100% 169,926 Pinetree Manor Centreville, Apts. MS 32 981,648 11/92 1/93 100% 191,500 Rosewood Village Willacoochee, Apartments GA 24 650,109 7/90 7/90 100% 147,480 13 Boston Capital Tax Credit Fund II Limited Partnership - Series 10 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ---------- Springwood Park Durham, Apartments NC 100 $ 3,048,644 3/91 5/91 100% $ 1,000,000 Stockton Stockton, Estates MO 20 516,325 2/93 1/93 100% 120,352 Stratford Square Brundidge, Apartments AL 24 752,528 10/92 2/93 100% 145,036 Summer Glen Immokalee, Apartments FL 45 1,486,693 11/92 3/93 100% 246,230 Summerwood West Des Moines, Apartments IA 86 2,368,447 7/90 7/90 100% 2,015,183 Sunmark Morgantown, Apartments KY 24 770,290 8/90 12/90 100% 176,669 Village Lawton, Commons MI 58 1,489,938 11/90 6/90 100% 323,665 Washington Heights Apartments, Bismarck, IV ND 24 440,862 11/90 7/90 100% 381,010 Woods Hollow Centreville, Apartments MI 24 634,272 11/90 2/90 100% 132,700 Woodside Lisbon, Apartments ME 28 1,482,940 12/90 11/90 100% 397,630 14 Boston Capital Tax Credit Fund II Limited Partnership - Series 11 PROPERTY PROFILES AS OF March 31, 1998 Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ------------ Academy Hill Ahoskie, Apartments NC 40 $1,378,688 2/91 2/91 100% $ 319,224 Aspen Square Tazewell, Apartments VA 60 1,836,234 11/90 11/90 100% 356,495 Bridgeview Emlenton, Apartments PA 36 1,366,398 12/90 12/89 100% 327,257 Buckeye Senior Buckeye, Apartments AZ 41 1,343,157 12/90 8/90 100% 311,480 Campbell Creek Dallas, Apartments GA 80 1,681,994 12/90 10/90 100% 142,000 Cambridge Manor Macon, Apartments MS 47 1,630,712 5/93 4/93 100% 356,356 Church Hill Church Point, Apartments LA 32 956,659 12/90 1/91 100% 205,750 Copper Creek Lebanon, Apartments VA 36 1,176,259 11/90 9/90 100% 237,647 Coronado Tuscon, Hotel AZ 42 492,369 3/91 3/91 100% 614,050 Crestwood St. Cloud, Apartments FL 216 4,319,614 1/91 6/91 100% 5,636,484 El Dorado El Dorado Springs, Springs Est. MO 24 581,964 11/90 9/90 100% 133,790 Eldon Est. Eldon, II MO 24 582,238 12/90 11/90 100% 131,340 15 Boston Capital Tax Credit Fund II Limited Partnership - Series 11 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ---------- Eldon Eldon, Manor MO 24 $ 560,336 12/90 11/90 100% $ 241,980 Elmwood Manor Eutaw, Apartments AL 47 1,626,292 5/93 12/93 100% 333,440 Fairridge Lane Denmark, Apartments SC 24 819,126 11/90 6/90 100% 209,326 Fairridge Village Denmark, Apartments SC 24 771,233 11/90 6/90 100% 186,381 Farmerville Farmerville, Square Apts. LA 32 968,487 1/91 4/91 100% 212,280 Forest Glade Wauchula, Apartments FL 50 1,484,300 12/90 12/90 100% 420,565 Franklin Great Falls, School MT 40 1,265,208 10/90 12/91 100% 1,453,270 Hilltop Los Lunas, Apts. NM 40 1,424,053 1/93 11/92 100% 258,455 Holland Holland, Meadows NY 24 900,050 11/90 6/90 100% 213,880 Holley Holley, Grove NY 24 918,527 11/90 10/90 100% 207,360 Ivan Woods Delta Township, Senior Apts. MI 90 2,198,430 2/91 4/91 100% 1,184,275 Kaplan Manor Kaplan, Apartments LA 32 926,987 12/90 12/90 100% 198,460 16 Boston Capital Tax Credit Fund II Limited Partnership - Series 11 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ---------- Lakewood Village Lake Providence, Apartments LA 32 $ 954,715 1/91 5/91 100% $ 223,827 Licking Licking, Apartments MO 16 406,367 11/91 3/92 100% 90,436 London Miami Beach, Arms FL 58 2,654,248 12/90 12/90 100% 937,961 Maidu Roseville, Village CA 81 2,160,267 3/91 12/91 100% 530,000 Nevada Nevada, Manor MO 24 648,793 11/90 10/90 100% 143,270 Oatka Warsaw, Meadows NY 24 920,064 11/90 6/90 100% 206,670 Osage Arkansas City, Place KS 38 1,233,570 12/90 12/90 100% 522,999 Pines by the Creek Newnan, Apartments GA 96 2,002,390 12/90 10/90 100% 245,000 Sandy Pines Punta Gorda, Manor FL 44 1,482,191 12/90 7/90 100% 399,977 Sierra Springs Tazewell, Apartments VA 36 1,176,939 11/90 11/90 100% 299,634 South Fork South Fork, Heights CO 48 1,448,759 2/91 2/91 100% 343,358 Twin Oaks Allendale, Apartments SC 24 782,923 12/90 9/90 100% 206,888 17 Boston Capital Tax Credit Fund II Limited Partnership - Series 11 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ----------- Walnut Village Manning, Apartments SC 24 $ 841,061 11/90 11/90 100% $ 183,244 Washington Manor Washington, Apartments LA 32 958,686 1/91 3/91 100% 216,990 Wildridge Jesup, Apartments GA 48 1,548,630 1/91 4/91 100% 329,130 Windsor Metter, Apts. GA 52 1,474,127 12/92 5/93 100% 248,207 18 Boston Capital Tax Credit Fund II Limited Partnership - Series 12 PROPERTY PROFILES AS OF March 31, 1998 Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ---------- Bowman Village Bowman, Apartments GA 24 $ 666,199 6/91 10/91 100% $ 139,879 Brandywood Oak Creek, Apartments WI 54 1,752,028 12/91 9/91 100% 1,532,506 Brentwood Manor Clarkson, Apartments KY 24 750,032 6/91 7/91 100% 173,969 Briarwick Nicholasville, Apartments KY 40 1,253,406 4/91 4/91 100% 323,941 Bridgerun Cannon Falls, Townhomes MN 18 572,558 6/91 7/91 100% 458,800 Bucksport Park Bucksport, Apartments ME 24 1,387,118 6/91 8/91 100% 334,600 Campbell Creek Dallas, Apartments GA 80 1,681,994 3/91 10/90 100% 593,000 Cananche Creek Norton, Apartments VA 36 1,236,724 5/91 6/91 100% 276,695 Carson Village Wrightsville, Apartments GA 24 653,315 10/91 6/92 100% 161,452 Clymer House Clymer, Apartments PA 26 1,083,630 6/91 10/91 100% 254,097 Corcoran Garden Corcoran, Apartments CA 38 1,526,248 2/91 11/90 100% 432,438 Cornish Cornish, Park ME 25 1,456,823 6/91 6/91 100% 333,000 19 Boston Capital Tax Credit Fund II Limited Partnership - Series 12 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ---------- Crescent City Senior Crescent City, Apartments CA 38 $1,867,066 3/91 3/91 100% $ 474,536 Earlimart Senior Earlimart, Apartments CA 35 1,347,429 6/91 6/91 100% 364,515 Evanwood Hardinsburg, Apartments KY 24 757,044 6/91 5/91 100% 167,221 Fox Run Jesup, Apartments GA 24 631,506 12/91 7/92 100% 150,033 Franklin House Liberty, Apts. MO 21 305,487 5/93 1/88 100% 137,836 Hamilton Village Preston, Apartments GA 20 570,376 10/91 3/92 100% 140,948 Hunters Park Tarboro, Apartments NC 40 1,412,014 5/91 4/91 100% 320,175 Ivan Woods Senior Delta Township, Apartments MI 90 2,198,430 2/91 4/91 100% 778,688 Keenland Burkesville, Apartments KY 24 735,262 6/91 9/91 100% 164,246 Lakeridge Eufala, Apartments AL 30 917,823 3/91 4/91 100% 186,780 Laurel Village Wadley, Apartments GA 24 662,922 10/91 5/92 100% 149,058 20 Boston Capital Tax Credit Fund II Limited Partnership - Series 12 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ----------- Los Caballos Hatch, II Apts. NM 24 $ 773,138 7/91 8/91 100% $ 164,740 Marlboro Place Bennettsville, Apartments SC 24 837,163 3/91 2/91 100% 192,779 Melville Plaza Melville, Apartments LA 32 894,250 7/91 10/91 100% 178,564 Nanty Glo House Nanty Glo, Apartments PA 36 1,477,706 6/91 7/91 100% 353,000 Newport Franklin, Village VA 48 1,488,528 4/91 11/90 100% 355,000 Oakleigh Abbeville, Apartments LA 32 915,249 8/91 3/92 100% 178,716 Oak Street Scott City, Apartments MO 24 599,332 6/91 11/91 100% 138,149 Oakwood Mamou, Apartments LA 32 911,682 8/91 1/92 100% 180,819 Pines by the Creek Newnan, Apartments GA 96 2,001,179 3/91 10/90 100% 645,000 Pinewoods Springfield, Apartments IL 168 3,830,348 7/91 6/91 100% 2,880,000 Portales Portales, Estates NM 44 1,441,485 7/91 7/91 100% 365,100 21 Boston Capital Tax Credit Fund II Limited Partnership - Series 12 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ---------- Prairie West West Fargo, Apts. III ND 24 $ 472,796 3/91 3/91 100% $ 360,698 Ridgeway Court III Bemidji, Apartments MN 24 894,407 4/91 1/91 100% 180,186 River Crystal River, Reach Apts. FL 41 1,367,782 5/91 5/91 100% 351,421 Rockmoor Banner Elk, Apartments NC 12 438,306 5/91 3/91 100% 95,818 Shawnee Ridge Norton, Apartments VA 20 668,146 5/91 5/91 100% 145,606 Springwood Park Durham, Apartments NC 100 3,048,644 3/91 5/91 100% 374,349 Spring Mountain Pahrump, Apartments NV 33 1,366,344 5/91 4/91 100% 290,406 Stonegate Perry, Manor FL 36 1,010,946 5/91 12/90 100% 274,321 Summit Ridge Palmdale, Apartments CA 304 8,934,496 10/92 12/93 100% 3,674,306 Turner Lane Ashburn, Apartments GA 24 722,375 5/91 7/91 100% 147,090 Union Baptist Plaza Springfield, Apartments IL 24 507,995 5/91 4/91 100% 432,648 22 Boston Capital Tax Credit Fund II Limited Partnership - Series 12 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ---------- Uptown Salyersville, Apartments KY 16 $ 522,178 5/91 3/91 100% $ 121,700 Villas of Eufala, Lakeridge AL 18 532,695 3/91 3/91 100% 96,868 Waynesboro Village Waynesboro, Apartments TN 48 1,372,681 4/91 1/91 100% 310,510 Windsor Windsor, Court II VA 24 732,003 4/91 11/90 100% 169,347 Woodcrest Manor Woodville, Apartments MS 24 711,744 6/91 11/91 100% 138,579 Woodlawn Village Abbeville, Apartments GA 36 1,035,970 10/91 4/92 100% 229,601 Woodside Grove City, Apartments PA 32 1,156,864 4/91 3/91 93% 229,291 Yorkshire Townhome Fort Smith, Apts. AR 50 1,039,337 9/93 8/94 100% 874,069 23 Boston Capital Tax Credit Fund II Limited Partnership - Series 14 PROPERTY PROFILES AS OF March 31, 1998 Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ----------- Ada Village Ada, Apts. OK 44 $1,048,982 1/93 11/93 100% $ 158,976 Amherst Amherst, Village VA 48 1,602,927 1/92 1/92 100% 322,796 Belmont Village Belmont, Court NY 24 929,502 1/92 12/91 100% 201,300 Bethel Park Bethel, Apartments ME 24 1,491,698 12/91 3/92 100% 324,100 Blanchard Senior Blanchard, Apts. II LA 24 598,621 10/91 9/91 100% 143,628 Blanchard Blanchard, Village Apts. OK 8 218,258 1/93 7/93 100% 32,954 Brantwood Lane Centreville, Apartments AL 36 1,144,296 7/91 9/91 100% 237,873 Breckenridge McColl, Apartments SC 24 867,880 1/92 3/92 100% 186,065 Briarwood Apartments Middleburg, Ph II FL 50 1,494,414 2/92 4/92 100% 293,694 The Bridge New York, Building NY 15 N/A 1/92 12/91 100% 1,037,770 Buchanan Warren, Court PA 18 726,197 7/91 11/90 94% 160,600 Burnt Ordinary Toano, Village VA 22 710,789 7/91 7/91 100% 159,400 24 Boston Capital Tax Credit Fund II Limited Partnership - Series 14 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ----------- Carleton Court Providence, Apartments RI 46 $2,712,472 12/91 12/91 100% $1,496,922 Carriage Run Emporia, Apartments VA 40 1,329,397 10/91 4/92 100% 259,980 Cedar View Brinkley, Apartments AR 32 1,271,185 5/92 10/92 100% 254,016 Cedarwood Pembroke, Apartments NC 36 1,419,039 10/91 1/92 100% 326,310 Chapparral Kingman, Apartments AZ 20 696,420 8/91 7/91 100% 198,275 College Chili, Green NY 110 3,781,020 3/95 8/95 100% 755,771 Colorado City Seniors Colorado City, Apartments TX 24 542,805 10/91 10/91 100% 98,721 Cottonwood Cottonport, Apts. II LA 24 655,114 10/91 7/91 100% 152,664 Country Meadows Sioux Falls, Apartments SD 44 1,086,827 11/91 10/91 100% 922,350 Countryside Fulton, Manor MS 24 665,122 10/91 8/91 100% 151,868 Davis Village Davis, Apts. OK 44 1,176,194 1/93 9/93 100% 180,452 Devenwood Ridgeland, Apartments SC 24 874,134 7/92 1/93 100% 186,000 25 Boston Capital Tax Credit Fund II Limited Partnership - Series 14 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ---------- Duncan Village Duncan, Apts. OK 48 $1,148,821 1/93 11/93 100% $ 172,005 Edison Village Edison, Apartments GA 42 1,200,486 7/91 2/92 100% 274,144 Ethel Bowman Tionesta, Proper HousePA 36 1,431,388 2/92 1/92 88% 334,160 Excelsior Springs Excelsior Springs, Properties MO 24 624,169 2/92 4/91 100% 150,651 Fairground Bedford, Place Apts. KY 19 695,155 3/95 8/95 100% 176,963 Four Oaks Village Four Oaks, Apartments NC 24 894,429 3/92 6/92 100% 179,900 Franklin Vista Anthony, III Apts. NM 28 930,247 1/92 4/92 100% 179,685 Friendship Bel Air, Village MD 32 1,440,395 1/92 6/91 100% 226,000 Glenhaven Merced, Park CA 12 399,865 1/94 6/90 100% 125,000 Glenhaven Merced, Park II CA 15 494,773 1/94 6/89 100% 365,925 Glenhaven Merced, Park III CA 15 497,333 1/94 12/89 100% 225,500 26 Boston Capital Tax Credit Fund II Limited Partnership - Series 14 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ---------- Glenhaven Merced, Estates CA 13 $ 688,873 1/94 6/89 100% $ 134,000 Green Village Standardsville, Apts. II VA 16 586,746 4/92 11/91 100% 99,100 Greenleaf Bowdoinham, Apartments ME 21 1,129,745 11/91 8/92 100% 295,085 Hughes Springs Seniors Hughes Springs, Apartments TX 32 788,584 10/91 8/91 100% 183,674 Harrison City Penn Township, Apts. PA 38 1,482,136 7/92 9/92 89% 311,775 Hessmer Village Hessmer, Apartments LA 32 911,466 12/91 4/92 100% 186,503 Hillmont Village Micro, Apartments NC 24 886,023 9/91 1/92 100% 184,900 Hunters Run Douglas, Apartments GA 50 1,448,179 12/91 2/92 100% 322,368 Independence Mt. Pleasant, Apartments PA 28 1,086,435 8/91 6/91 96% 223,100 Indian Creek Kilmarnock, Apartments VA 20 765,470 7/91 4/91 100% 174,400 Jarratt Village Jarratt, Apartments VA 24 833,930 10/91 12/91 100% 159,140 Kingfisher Village Kingfisher, Apts. OK 8 170,418 1/93 12/93 100% 24,365 27 Boston Capital Tax Credit Fund II Limited Partnership - Series 14 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ----------- La Gema del Santa Ana, Barrio Apts. CA 6 $ 670,201 6/92 8/92 100% $ 458,000 Lafayettee Gardens Scott, Apartments LA 56 568,088 10/91 11/91 100% 437,688 Lake Isabella Senior Lake Isabella, Apartments CA 46 1,995,709 9/91 1/92 100% 442,457 Lakeview Battle Creek, Meadows MI 53 1,573,891 1/92 6/92 100% 1,018,808 Lakewood Terrace Lakeland, Apts. FL 132 3,873,540 11/93 8/89 100% 725,312 Lana Lu Lonaconing, Apartments MD 30 1,487,952 12/91 9/92 100% 303,261 Lexington Village Lexington, Apts. OK 8 211,259 1/93 11/93 100% 32,178 Maidu Roseville, Village CA 81 2,160,267 1/92 12/91 100% 1,096,199 Marion Manor Marion, Apartments LA 32 1,007,304 2/92 6/92 100% 199,708 Maysville Village Maysville, Apts. OK 8 219,376 1/93 10/93 100% 33,726 Montague Place Caro, Apartments MI 28 1,141,805 12/91 12/91 100% 432,320 Navapai Prescott Valley, Apartments AZ 26 883,977 6/91 4/91 100% 207,330 28 Boston Capital Tax Credit Fund II Limited Partnership - Series 14 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ----------- Nevada City Senior Grass Valley, Apartments CA 60 $3,550,848 1/92 10/92 100% $ 839,300 Newellton Place Newellton, Apartments LA 32 947,371 2/92 4/92 100% 190,600 New River Overlook Radford, Apartments VA 40 1,486,762 8/91 2/92 100% 285,371 Northridge Arlington, Apartments TX 126 1,700,400 1/92 2/92 98% 741,300 Oak Ridge Crystal Springs, Apartments MS 40 1,305,442 1/92 1/92 100% 308,578 Oakland Village Littleton, Apts. NC 24 851,583 5/92 8/92 100% 161,939 Okemah Village Okemah, Apts. OK 30 696,231 1/93 5/93 100% 119,832 Pineridge McComb, Apartments MS 32 1,005,726 10/91 10/91 100% 238,995 Pineridge Walnut Cove, Elderly NC 24 991,848 10/91 3/92 100% 199,311 Pittsfield Park Pittsfield, Apartments ME 18 1,047,764 12/91 6/92 100% 237,300 Plantation Richmond Hill, Apartments GA 49 1,422,194 12/91 11/91 100% 320,858 Portville Square Portville, Apartments NY 24 924,798 3/92 3/92 95% 198,100 29 Boston Capital Tax Credit Fund II Limited Partnership - Series 14 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ---------- Prague Village Prague, Apts. OK 8 $ 120,244 1/93 3/93 100% $ 21,373 Rainbow Commons Marshfield, Apartments WI 48 1,186,524 9/91 6/91 100% 1,126,901 Rainier Manor Mt. Rainier, Apartments MD 104 2,690,165 3/92 1/93 100% 1,190,350 Rosenberg Santa Rosa, Hotel CA 77 1,824,673 12/91 1/92 100% 1,850,000 Rosewood Manor Ellenton, Apartments FL 43 1,440,474 12/91 11/91 100% 302,250 San Jacinto Senior San Jacinto, Apartments CA 46 2,374,792 1/92 10/91 100% 588,965 Lakeside Manor Schroon Lake, Apartments NY 24 1,089,005 11/91 1/92 95% 249,349 Smithville Smithville, Properties MO 48 1,246,529 2/92 5/91 100% 285,384 Snow Hill Ridge Raleigh, Apartments NC 32 1,211,580 10/91 12/91 100% 307,524 Somerset Antioch, Apartments CA 156 5,418,004 8/92 3/90 100% 1,026,542 Spring Creek Derby, Village KS 72 1,851,036 6/91 9/91 100% 1,634,760 30 Boston Capital Tax Credit Fund II Limited Partnership - Series 14 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ----------- Spring Valley Lexington Park, Apartments MD 128 $4,847,218 11/91 12/92 100% $ 2,777,811 Springwood Park Durham, Apartments NC 100 3,048,644 10/91 5/91 100% 374,349 Summer Lane Santee, Apartments SC 24 861,833 7/91 11/91 100% 176,291 Summit Ridge Palmdale, Apartments CA 304 8,934,496 10/92 12/93 100% 1,236,600 Titusville Titusville, Apartments PA 30 1,242,340 12/91 1/92 100% 280,829 Townview St. Mary's, Apartments PA 36 1,381,297 9/91 10/91 97% 315,700 Tyrone House Tyrone, Apartments PA 36 1,487,044 12/91 1/92 100% 349,800 Valley Ridge Senior Central Valley, Apartments CA 38 1,827,871 1/92 12/91 100% 456,600 Victoria Victoria, Place VA 39 1,402,517 1/92 6/92 100% 287,736 Villa West Topeka, Apts. IV KS 60 1,539,129 8/91 1/91 100% 1,392,873 Village Raleigh, Green NC 42 721,253 5/92 9/91 100% 581,446 Washington Abingdon, Court VA 39 1,189,091 7/91 8/91 100% 295,250 31 Boston Capital Tax Credit Fund II Limited Partnership - Series 14 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/97 Date Comp. 3/31/98 3/31/98 - ----------------------------------------------------------------- - ---------- Wesley Village Martinsburg, Apartments WV 36 $1,316,210 10/91 6/92 100% $ 266,253 Westside Louisville, Apartments MS 33 826,809 3/92 1/92 100% 191,014 Wildwood Terrace Wildwood, Apartments FL 40 1,265,615 10/91 10/91 100% 281,647 Woodside Belleview, Apartments FL 41 1,214,509 11/91 10/91 100% 268,500 Wynnewood Village Wynnewood, Apts. OK 16 410,877 1/93 11/93 100% 67,443 Yorkshire Delevan, Corners NY 24 925,121 8/91 9/91 100% 191,500 Zinmaster Minneapolis, Apartments MN 36 1,855,115 1/95 1/88 100% 150,000 32 Item 3. Legal Proceedings None. Item 4. Submission of Matters to a Vote of Security Holders None. 33 PART II ------- Item 5. Market for the Registrant's Partnership Interests and Related Partnership Matters (a) Market Information The Partnership is classified as a limited partnership and thus has no common stock. There is no established public trading market for the BACs and it is not anticipated that any public market will develop. (b) Approximate number of security holders As of March 31, 1998, the Partnership has 11,710 registered BAC holders for an aggregate of 18,679,738 BACs which were offered at a subscription price of $10 per BAC. The BACs were issued in series. Series 7 consists of 812 investors holding 1,036,100 BACs, Series 9 consists of 2,260 investors holding 4,178,029 BACs, Series 10 consists of 1,641 investors holding 2,428,925 BACs, Series 11 consists of 1,412 investors holding 2,489,599 BACs, Series 12 consists of 1,932 investors holding 2,972,795 BACs, and Series 14 consists of 3,653 investors holding 5,574,290 BACs at March 31, 1998. (c) Dividend history and restriction The Partnership has made no distributions of Net Cash Flow to its BAC Holders from its inception, June 28, 1989 through March 31, 1998. The Partnership Agreement provides that Profits, Losses and Credits will be allocated each month to the holder of record of a BAC as of the last day of such month. Allocation of Profits, Losses and Credits among BAC Holders will be made in proportion to the number of BACs held by each BAC Holder. Any distributions of Net Cash Flow or Liquidation, Sale or Refinancing Proceeds will be made within 180 days of the end of the annual period to which they relate. Distributions will be made to the holders of record of a BAC as of the last day of each month in the ratio which (i) the BACs held by such Person on the last day of the calendar month bears to (ii) the aggregate number of BACs outstanding on the last day of such month. Partnership allocations and distributions are described on pages 107 to 112 of the Prospectus, as supplemented, which are incorporated herein by reference. 34 Item 6. Selected Financial Data The information set forth below presents selected financial data of the Partnership for each of the five years in the period ended March 31, 1998. Additional detailed financial information is set forth in the audited financial statements listed in Item 14 hereof. March 31, March 31, March 31, March 31, March 31, 1998 1997 1996 1995 1994 -------- -------- -------- -------- - -------- Operations - ---------- Interest & other Inc $ 42,913 $ 155,501 $ 65,468 $ 78,723 $ 385,315 Share of Loss of Operating Partnerships (8,573,433) (10,464,997) (12,992,069) (14,053,018) (15,080,553) Operating Exp (2,783,041) (2,781,444) (2,852,335) (2,876,048) (3,021,320) --------- --------- --------- --------- - --------- Net Loss $(11,313,561) $(13,090,940)$(15,778,936)$(16,850,343)$(17,716,558) ========== ========== =========== =========== =========== Net Loss per BAC $ (.40) $ (.69)$ (.84) $ (.89)$ (.94) ========== ========== =========== =========== =========== Balance Sheet - ------------- Total Assets $64,633,488 $ 73,382,875 $ 85,486,212 $ 99,601,389 $114,309,046 =========== ========== =========== =========== =========== Total Liab $14,605,906 $ 12,041,732 $ 11,054,129 $ 9,390,370 $ 7,247,684 Partners' =========== ========== =========== =========== =========== Capital $50,027,582 $ 61,341,143 $ 74,432,083 $ 90,211,019 $107,061,362 =========== ========== =========== =========== =========== Other Data - ---------- Credit per BAC for the Investors Tax Year, for the twelve months ended, December 31, 1997, 1996, 1995, 1994 and 1993* $ 1.40 $ 1.40 $ 1.39 $ 1.35 $ 1.16 ========== =========== =========== =========== =========== * Credit per BAC is a weighted average of all the Series. Since each Series has invested as a limited partner in different Operating Partnerships the Credit per BAC will vary slightly from series to series. For more detailed information refer to Item 7. Results of Operations. 35 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity - --------- The Partnership's primary source of funds was the proceeds of its Public Offering. Other sources of liquidity include (i) interest earned on capital contributions unpaid as of March 31, 1998 and on working capital reserves and (ii) cash distributions from operations of the Operating Partnerships in which the Partnership has invested. 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 is currently accruing the annual partnership management fee to enable each series to meet current and future third party obligations. During the fiscal year ended March 31, 1998 the Partnership accrued $2,509,932 in annual partnership management fees. As of March 31, 1998 the accrued partnership management fees totaled $14,113,128. Pursuant to the Partnership Agreement, such liabilities will be deferred until the Partnership receives sale or refinancing proceeds from Operating Partnerships, and at that time proceeds from such sales or refinancing will be used to satisfy such liabilities. The Partnership anticipates that there will be sufficient cash to meet future third party obligations. The Partnership does not anticipate significant cash distributions in the long or short term from operations of the Operating Partnerships. An affiliate of the general partner has advanced $111,400 to the Partnership to pay certain third party operating expenses and to fund advances to operating partnerships. Of this amount, $64,500 was advanced during the fiscal year ended March 31, 1998. The amounts advanced, in total, to two of the six series are as follows: $61,900 to Series 7; and $49,500 to Series 12. These, and any additional advances, will be paid, without interest, from available cash flow, reporting fees, or the proceeds of the sale or refinancing of the Partnership's interest in Operating Partnerships. The Partnership anticipates that as the Operating Partnerships continue to mature, more cash flow and reporting fees will be generated. Cash flow and reporting fees will be added to the Partnership's working capital and will be available to meet future third party obligations of the Partnership. The Partnership is currently pursuing, and will continue to pursue, available cash flow and reporting fees and anticipates that the amount collected will be sufficient to cover third party operating expenses. Total interest income for the fiscal year ended March 31, 1998 has decreased from the fiscal year March 31, 1997. For the fiscal year ended March 31, 1997, the Partnership earned $155,501 in interest, the majority of which was earned as tax exempt interest in an escrow account holding capital contributions due to the Operating Partnership Lexington Park Associates Limited Partnership. During the year ended March 31, 1997, the funds were released pursuant to the escrow agreement. Interest income earned during the fiscal year ended March 31, 1998 is now consistent with interest earned by the Partnership in prior years. 36 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 $186,337,517 representing 18,679,738 BACs from investors admitted as BAC Holders in Series 7, 9 through 12 and 14 of the Partnership. Offers and sales of BACs in Series 7, 9 through 12, and 14 of the Partnership were completed and the last of the BACs in Series 14 were issued by the Partnership on January 27, 1992. (Series 7). The Partnership commenced offering BACs in Series 7 on November 14, 1989. The Partnership had received and accepted subscriptions for $10,361,000, representing 1,036,100 BACs from investors admitted as BAC Holders in Series 7. Offers and sales of BACs in Series 7 were completed and the last of the BACs in Series 7 were issued by the Partnership on December 29, 1989. As of March 31, 1998 the net proceeds from the offer and sale of BACs in Series 7 had been used to invest in a total of 15 Operating Partnerships in an aggregate amount of $7,774,651. The Partnership has completed payment of all installments of its capital contributions to all Operating Partnerships. Series 7 net offering proceeds in the amount of $7,134 remains in working capital. (Series 9). The Partnership commenced offering BACs in Series 9 on February 1, 1990. The Partnership had received and accepted subscriptions for $41,574,518, representing 4,178,029 BACs from investors admitted as BAC Holders in Series 9. Offers and sales of BACs in Series 9 were completed and the last of the BACs in Series 9 were issued by the Partnership on April 30, 1990. During the fiscal year ended March 31, 1998, the Partnership did not use any of Series 9's net offering proceeds to pay installments of its capital contributions to the Operating Partnerships. As of March 31, 1998 the net proceeds from the offer and sale of BACs in Series 9 had been used to invest in a total of 55 Operating Partnerships in an aggregate amount of $31,605,286, and the Partnership had completed payment of installments of its capital contributions to 54 of the 55 Operating Partnerships. Series 9 net offering proceeds in the amount of $267,915 remains to be used by the Partnership to pay additional installments of capital contributions to Operating Partnerships and in working capital. (Series 10). The Partnership commenced offering BACs in Series 10 on May 7, 1990. The Partnership had received and accepted subscriptions for $24,288,997 representing 2,428,925 BACs from investors admitted as BAC Holders in Series 10. Offers and sales of BACs in Series 10 were completed and the last of the BACs in Series 10 were issued by the Partnership on August 24, 1990. 37 As of March 31, 1998 the net proceeds from the offer and sale of BACs in Series 10 had been used to invest in a total of 46 Operating Partnerships in an aggregate amount of $18,555,455. The Partnership has completed payment of all installments of its capital contributions to all of the Operating Partnerships. Series 10 net offering proceeds in the amount of $41,484 remains in working capital. (Series 11). The Partnership commenced offering BACs in Series 11 on September 17, 1990. The Partnership had received and accepted subscriptions for $24,735,002, representing 2,489,599 BACs in Series 11. Offers and sales of BACs in Series 11 were completed and the last of the BACs in Series 11 were issued by the Partnership on December 31, 1990. During the fiscal year ended March 31, 1998, the Partnership used $5,000 of Series 11 net offering proceeds to pay additional installments of its capital contributions to one Operating Partnership. As of March 31, 1998 the net proceeds from the offer and sale of BACs in Series 11 had been used to invest in a total of 40 Operating Partnerships in an aggregate amount of $18,894,372, and the Partnership had completed payment of all installments of its capital contributions to 39 of the 40 Operating Partnerships. Series 11 net offering proceeds in the amount of $38,800 remains to be used by the Partnership to pay additional installments of capital contributions to Operating Partnerships and in working capital. (Series 12). The Partnership commenced offering BACs in Series 12 on February 1, 1991. The Partnership had received and accepted subscriptions for $29,649,003, representing 2,972,795 BACs in Series 12. Offers and sales of BACs in Series 12 were completed and the last of the BACs in Series 12 were issued by the Partnership on April 30, 1991. During the fiscal year ended March 31, 1998, the Partnership did not use any of Series 12's net offering proceeds to pay additional installments of its capital contributions to the Operating Partnerships. As of March 31, 1998 the net proceeds from the offer and sale of BACs in Series 12 had been used to invest in a total of 53 Operating Partnerships in an aggregate amount of $22,356,179, and the Partnership had completed payment of all installments of its capital contributions to 51 of the 53 Operating Partnerships. Series 12 net offering proceeds in the amount of $21,827 remains to be used by the Partnership to pay additional installments of capital contributions to Operating Partnerships and in working capital. (Series 14). The Partnership commenced offering BACs in Series 14 on May 20, 1991. The Partnership had received and accepted subscriptions for $55,728,997, representing 5,574,290 BACs in Series 14. Offers and sales of BACs in Series 14 were completed and the last of the BACs in Series 14 were issued by the Partnership on January 27, 1992. 38 During the fiscal year ended March 31, 1998, the Partnership used $13,000 of Series 14 net offering proceeds to pay additional installments of its capital contributions to one Operating Partnership. As of March 31, 1998 the net proceeds from the offer and sale of BACs in Series 14 had been used to invest in a total of 101 Operating Partnerships in an aggregate amount of $42,034,328, and the Partnership had completed payment of all installments of its capital contributions to 86 of the 101 Operating Partnerships. Series 14 net offering proceeds in the amount of $316,591 remains to be used by the Partnership to pay additional installments of capital contributions to Operating Partnerships and in working capital. Results of Operations - --------------------- The Partnership incurs an annual partnership management fee payable to the General Partner 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 certain partnership management and reporting fees paid by the Operating Partnerships. The annual partnership management fee charged to operations for the fiscal years ended March 31, 1998 and 1997 was $2,314,373 and $2,273,826, respectively. The amount is anticipated to decrease in subsequent fiscal years as the Operating Partnerships begin to pay annual partnership management fees and reporting fees to the Partnership. In all series, the tax credits provided to the investors from the tax years ended December 31, 1996 to December 31, 1997 either increased or were consistent with the prior year. The increase is due to properties reaching stabilized operations during the fiscal year ended March 31, 1998. 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). As of March 31, 1998 and 1997, the average Qualified Occupancy for the series was 100% for both years. For the tax years ended December 31, 1997 and 1996, the series, in total, generated $809,263 in passive income tax losses and $2,805,455 in passive income that were passed through to the investors, and also provided $1.20 and $1.24, respectively, in tax credits per BAC to the investors. The series generated passive income in 1996 due to the fact that the Operating Partnership Rosenberg reflected income from cancellation of indebtedness caused by debt restructuring during the tax year ended December 31, 1996. As of March 31, 1998 and 1997, the Investments in Operating Partnerships for Series 7 was $1,485,326 and $1,771,367, respectively. Investments in Operating Partnerships was affected by the way the Partnership accounts for such investments, the equity method. By using the equity method the Partnership adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. 39 For the years ended December 31, 1997 and 1996 Series 7 reflects a net loss from Operating Partnerships of $108,083 and $3,087,808, respectively, adjusted for depreciation which is a non-cash item. The decrease in loss from the prior year is the result of a one time non-cash impairment loss incurred by two operating partnerships, Rosenberg and New Holland at December 31, 1996. Rosenberg also had income from a gain on reduction of debt. This debt reduction occurred without a loss in ownership or tax credits. When adjusted for the impairment loss and gain on reduction of debt, the Operating Partnerships reflected a net loss of $125,508 for 1996. Rosenberg Building Associates, Limited Partnerships (Rosenberg Apartments) refinanced in 1996 which resulted in a one-time gain as a result of the debt reduction. In 1997 the property realized positive operating cash flows as a result of the lower debt service payments and continued strong occupancies. As of March 31, 1998 Rosenberg Apartment's occupancy was 100%. (Series 9). As of March 31, 1998 and 1997, the average Qualified Occupancy for the series was 99.9% for both years. The series had a total of 55 properties as of March 31, 1998, of which 54 were at 100% qualified occupancy. For the tax years ended December 31, 1997 and 1996, the series, in total, generated $3,209,445 and $2,146,637, respectively, in passive income tax losses that were passed through to the investors, and also provided $1.36 per year for 1997 and 1996 in tax credits per BAC to the investors. The increase in passive losses from December 31, 1996 to December 31, 1997 was due to an adjustment made at December 31, 1996 for incorrect loss reported at December 31, 1995. As of March 31, 1998 and 1997, the Investments in Operating Partnerships for Series 9 was $10,821,707 and $12,528,610, respectively. Investments in Operating Partnerships was affected by the way the Partnership accounts for such investments, the equity method. By using the equity method the Partnership adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. For the years ended December 31, 1997 and 1996 Series 9 reflects a net Income (loss) from Operating Partnerships of $673,107 and $(1,958,157), respectively, adjusted for depreciation which is a non cash item. The prior year loss is the result of a one time non-cash impairment loss incurred by one of the Operating Partnerships, New Holland. This is in accordance with SFAS No. 121. When adjusted for the impairment loss, the Operating Partnerships reflected net income of $385,843 for 1996. The Operating General Partner of School Street II Limited Partnership (School Street Apts. II) pledged his general partnership interest in the Operating Partnership as collateral for another loan. As this was a violation of the terms of the partnership agreement, the Operating General Partner was removed and replaced during 1997. In the transition, occupancies suffered and as a result, a leasing agent has been hired by the new Operating General Partner to rent the vacant units. It is anticipated that all units will be fully leased by the end of the third quarter. In addition, the general partner hired a new managing agent in the second quarter of 1998, and will be filing refinancing applications with the lender by year end to further improve operations. 40 (Series 10). As of March 31, 1998 and 1997, the average Qualified Occupancy for the series was 99.7% and 99.5%, respectively. The series had a total of 46 properties at March 31, 1998, of which 44 were at 100% qualified occupancy. For the tax years ended December 31, 1997 and 1996 the series, in total, generated $1,670,004 and $1,794,818, respectively, in passive income tax losses that were passed through to the investors, and also provided $1.46 per year for 1997 and 1996 in tax credits per BAC to the investors. As of March 31, 1998 and 1997, the Investments in Operating Partnerships for Series 10 was $8,211,459 and $9,224,595, respectively. Investments in Operating Partnerships was affected by the way the Partnership accounts for such investments, the equity method. By using the equity method the Partnership adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. For the years ended December 31, 1997 and 1996 Series 10 reflects net income from Operating Partnerships of $1,015,795 and $1,050,780, respectively, adjusted for depreciation which is a non cash item. North Connecticut Avenue L.P. (46 North Connecticut Avenue) is operating at a deficit due to high operating expenses. The general partner was seeking a loan modification from the loan holder, however the holder was reluctant to grant the request. The loan holder is in discussion with the general partner on a deed-in-lieu of foreclosure. The existing general partner is diligently working to locate a non-profit general partner acceptable to both the loan holder and the Investment Limited Partner. (Series 11). As of March 31, 1998 and 1997, the average Qualified Occupancy for the series was 100% for both years. The series had a total of 40 properties at March 31, 1998, all of which were at 100% qualified occupancy. For the tax years ended December 31, 1997 and 1996, the series, in total, generated $1,878,254 and $1,660,788, respectively, in passive income tax losses that were passed through to the investors, and also provided $1.32 per year for 1997 and 1996 in tax credits per BAC to the investors. As of March 31, 1998 and 1997, the Investments in Operating Partnerships for Series 11 was $9,872,942 and $11,085,975, respectively. Investments in Operating Partnerships was affected by the way the Partnership accounts for such investments, the equity method. By using the equity method the Partnership adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. For the years ended December 31, 1997 and 1996 Series 11 reflects net income from Operating Partnerships of $922,140 and $2,892,360, respectively, adjusted for depreciation which is a non-cash item. The decrease in net income is the result of a one time non-cash gain on reduction of debt by the Operating Partnership Franklin School at December 31, 1996. This debt reduction occurred without a loss in ownership or tax credits. When adjusted for the gain on reduction of debt, the Operating Partnerships reflected net income of $982,179 for 1996. 41 (Series 12). As of March 31, 1998 and 1997, the average Qualified Occupancy for the series was 99.9% for both years. The series had a total of 53 properties at March 31, 1998, of which 52 were at 100% qualified occupancy. For the tax years ended December 31, 1997 and 1996, the series, in total, generated $2,395,934 and $2,418,461, respectively, in passive income tax losses that were passed through to the investors, and also provided $1.46 per year for 1997 and 1996 in tax credit per BAC to the investors. As of March 31, 1998 and 1997, the Investments in Operating Partnerships for Series 12 was $10,585,841 and $11,946,248, respectively. Investments in Operating Partnerships was affected by the way the Partnership accounts for such investments, the equity method. By using the equity method the Partnership adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. For the years ended December 31, 1997 and 1996 Series 12 reflects net income from Operating Partnerships of $609,135 and $497,680, respectively, adjusted for depreciation which is a non cash item. California Investors VII Limited Partnership (Summit Ridge Apartments/Longhorn Pavillion) continues to operate at a deficit due to high operating expenses and a competitive rental market. The Operating Partnership closed on a debt refinancing in the fourth quarter of 1996 which had a a material affect on a debt service in 1997. The reduction in debt service, slowly improving occupancy and management's efforts to control operating expenses should permit the property to positively cash flow in 1998. During 1997, the Operating General Partner of Brandywood Limited Partnership (Brandywood Apts) and the affiliated management company improved the average occupancy of the property to 89.66%, up from 84% during 1996. Through May of 1998, management has maintained and average occupancy of 99%. During 1997, the property operated under a forbearance agreement with the permanent mortgage lender, making payments on debt service based on cash flow. The loan is anticipated to be refinanced with the lender in the third quarter of 1998 at a lower rate. The restructuring of the loan will improve the financial feasibility of the property. In addition, a capital needs assessment was recently completed and identified items will be addressed going forward. (Series 14). As of March 31, 1998 and 1997, the average Qualified Occupancy for the series was 99.6% and 99.4%, respectively. The series had a total of 101 properties at March 31, 1998. Out of the total, 94 were at 100% qualified occupancy. For the tax years ended December 31, 1997 and 1996, the series, in total, generated $4,856,228 and $2,821,765, respectively, in passive income tax losses that were passed through to the investors, and also provided $1.44 and $1.43, respectively, in tax credits per BAC to the investors. The variance in passive income tax losses generated for the tax years ended December 31, 1996 and 1997 is due to the fact that the Operating Partnership Rosenberg reflected income from cancellation of indebtedness caused by debt restructuring during the tax year ended December 31, 1996. 42 As of March 31, 1998 and 1997, the Investments in Operating Partnerships for Series 14 was $19,862,702 and $22,915,969, respectively. Investments in Operating Partnerships was affected by the way the Partnership accounts for such investments, the equity method. By using the equity method the Partnership adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. For the years ended December 31, 1997 and 1996 Series 14 reflects a net Income (loss) from Operating Partnerships of $1,278,786 and $(386,762), respectively, adjusted for depreciation which is a non-cash item. The prior year loss is a result of a one time non-cash gain on reduction of debt and a one time impairment loss of the Operating Partnership Rosenberg. The debt reduction occurred without a loss in ownership or tax credits and the impairment loss is in accordance with the newly adopted SFAS No. 121. When adjusted for both the gain and loss, the Operating Partnerships reflect net income of $951,538 for 1996. California Investors VII Limited Partnership (Summit Ridge Apartments/Longhorn Pavillion) continues to operate at a deficit due to high operating expenses and a competitive rental market. The Operating Partnership closed on a debt refinancing in the fourth quarter of 1996 which had a material affect on a debt service in 1997. The reduction in debt service, slowly improving occupancy and management's efforts to control operating expenses should permit the property to positively cash flow in 1998. Glenhaven Park Partners, A California L.P. (Glenhaven II) continues to suffer from high operating expenses and occupancy issues. Management has said that the rental market is soft with an oversupply of housing. As of March 31, 1998, physical occupancy was 80%. Management will continue to actively conduct outreach to generate new interest in the property along with working towards reducing the operating expenses. Rosenberg Building Associates, Limited Partnership (Rosenberg Apartments) refinanced in 1996 which resulted in a one-time gain as a result of the debt reduction. In 1997 the property realized positive operating cash flows as a result of the lower debt service payments and continued strong occupancies. As of March 31, 1998 Rosenberg Apartment's occupancy was 100%. Woodfield Commons Limited Partnership (Rainbow Commons Apartments) is in receipt of a 60-Day letter issued by the IRS stating that the partnership has not met certain IRC Section 42 requirements. The finding was the result of an IRS audit of the partnership's tenant files. The IRS has proposed an adjustment that would disallow the partnership from utilizing certain past or future credits. The Operating General Partner and its counsel are in the process of filing an appeal to the finding of the IRS, and do not anticipate an outcome that will have a material effect on the financial statements and accordingly, no adjustment has been made in the accompanying financial statements. 43 Recent Accounting Statements Not Yet Adopted - --------------------------------------------- On March 31, 1997, the partnership adopted Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings per Share" and SFAS No. 129, "Disclosure of Information about Capital Structure." SFAS No. 128 provides accounting and reporting standards for the amount of earnings per share. SFAS No. 129 requires the disclosure in summary form within the financial statements of pertinent rights and privileges of the various securities outstanding. The implementation of these standards has not materially affected the partnership's financial statements. In June 1997, the Financial Accounting Standards Board issued SFAS No. 130, "Reporting Comprehensive Income" and SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information." In February 1998, the Financial Accounting Standards Board issued SFAS No. 132, "Employees' Disclosures about Pensions and Other Post-retirement Benefits." SFAS No. 130 is effective for years beginning after December 15, 1997. SFAS No. 131 and No. 132 are effective for years beginning after December 31, 1997 and early adoption is encouraged. The partnership does not have any items of other comprehensive income, does not have other segments of its business or when to report, and does not have any pensions or other post-retirement benefits. Consequently, these pronouncements are expected to have no effect on the partnership's financial statements. Boston Capital and its management have reviewed the potential computer problems that may arise from the century date change known as the "Year 2000"or "Y2K" problem. We are currently in the process of taking the necessary precautions to minimize any disruptions. The majority of Boston Capital's systems are "Y2K" compliant. For all remaining systems we have contacted the vendors to provide us with the necessary upgrades and replacements. Boston Capital is committed to ensuring that the "Y2K" issue will have no impact on our investors. Item 8. Financial Statements and Supplementary Data The information required by this item is contained in Part IV, Item 14 of this Annual Report on Form 10-K. Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None. 44 PART III -------- Item 10. Directors and Executive Officers of the Registrant (a), (b), (c), (d) and (e) The Partnership has no directors or executives officers of its own. The following biographical information is presented for the partners of the General Partners and affiliates of those partners (including Boston Capital Partners, Inc. ("Boston Capital")) with principal responsibility for the Partnership's affairs. Herbert F. Collins, age 68, is co-founder and Chairman of the Board of Boston Capital Corporation. Nominated by President Clinton and confirmed by the United States Senate, Mr. Collins served as the Republican private sector member of the Thrift Depositor Protection Oversight Board. During 1990 and 1991 he served as Chairman of the Board of Directors for the Federal Home Loan Bank of Boston, a 314-member, $12 billion central bank in New England. Mr. Collins is the co-founder and past President of the Coalition for Rural Housing and Development. In the 1980s he served as Chairman of the Massachusetts Housing Policy Commission to evaluate current programs and recommend future housing policy. Additionally, he served as a member of the Board of Directors of the Metropolitan Boston Housing Partnership and on the Mitchell- Danforth Task Force, which helped structure the 1990 federal Tax Credit legislation. Mr. Collins also is a past Member of the Board of Directors of the National Leased Housing Association and has served as a member of the U. S. Conference of Mayors Task Force on "HUD and the cities: 1995 and Beyond." Mr. Collins also was a member of the Fannie Mae Housing Impact Advisory Council and the Republican Housing Opportunity Caucus. He is Chairman of the Business Advisory Council and a member of the National Council of State Housing Agencies Tax Credit Commission. Mr. Collins graduated from Harvard College. President Bush appointed him to the President's Advisory Committee on the Arts at the John F. Kennedy Center for the Performing Arts. He is a leader in the civic community, serving on the Boards of Youthbuild Boston, the Pine Inn and I Have a Dream Foundation. John P. Manning, age 50, is co-founder, President and Chief Executive Officer of Boston Capital Partners, Inc., where he is responsible for strategic planning, business development and corporate investor relations. In addition to his responsibilities at Boston Capital, Mr. Manning is a proactive leader in the industry. He served in 1990 as a member of the Mitchell-Danforth Task Force, to review and reform the Low Income Housing Tax Credit. He was the founding President of the Affordable Housing Tax Credit Coalition, is a member of the board of the National Leased Housing Association and sits on the Advisory Board of the publication Housing and Development Reporter. During the 1980s he served as a member of the Massachusetts Housing Policy Committee, as an appointee of the Governor of Massachusetts. In addition, Mr. Manning has testified before the U.S. House Ways and Means Committee and the U.S. Senate Finance Committee, on the critical role of the private sector in the success of the Low Income Housing Tax Credit Program. In 1996, President Clinton appointed him to the President's Advisory Committee on the Arts at the John F. Kennedy Center for the Performing Arts. Mr. Manning also is a leader in the civic community, serving on the Boards of Youthbuild Boston and the Pine Street Inn. Mr. Manning is a graduate of Boston College. 45 Richard J. DeAgazio, age 53, is Executive Vice President of Boston Capital Partners, Inc., and is President of Boston Capital Services, Inc. Mr. DeAgazio serves on the national Board of Governors of the National Association of Securities Dealers (NASD), was the Vice Chairman of the NASD's District 11 Committee, and serves on the NASD's national Business Conduct Committee, the State Liaison Committee and the Direct Participation Program Committee. He is a founder and past President of the National Real Estate Investment Association, past President of the Real Estate Securities and Syndication Institute (Massachusetts Chapter) and the Real Estate Investment Association. Prior to joining Boston Capital in 1981, Mr. DeAgazio was the Senior Vice President and Director of the Brokerage Division of Dresdner Securities (USA), Inc., an international investment banking firm owned by four major European banks, and was a Vice President of Burgess & Leith/Advest. He has been a member of the Boston Stock Exchange since 1967. He is a leader in the community and serves on the Business Leaders Council of the Boston Symphony, Board of Advisors for the Ron Burton Training Village and is on the Board of Corporators of Northeastern University. He graduated from Northeastern University. Christopher W. Collins, age 43, is an Executive Vice President and principal of Boston Capital Partners, Inc., and is responsible for, among other areas, overseeing the investment portfolio of funds sponsored by Boston Capital and the acquisition of real estate investments on behalf of such funds. Mr. Collins has had extensive experience in real estate development activities, having founded and directed the American Development Group, a comprehensive real estate development firm, and has also had extensive experience in the area of acquiring real estate investments. He is on the Board of Directors of the National Multi-Housing Council and a member of the Massachusetts Housing Finance Agency Multi-Family Advisory Committee. He graduated from the University of New Hampshire. Anthony A. Nickas, age 38, is Chief Financial Officer of Boston Capital Partners, Inc., and serves on the firm's Operating Committee. He has twelve years of experience in the accounting and finance field and has supervised the financial aspects of Boston Capital's project development and property management affiliates. Prior to joining Boston Capital in 1987, he was Assistant Director of Accounting and Financial Reporting for the Yankee Companies, Inc., and was an Audit Supervisor for Wolf & Company of Massachusetts, P.C., a regional certified public accounting firm based in Boston. He graduated with honors from Norwich University. (f) Involvement in certain legal proceedings. None. (g) Promoters and control persons. None. Item 11. Executive Compensation (a), (b), (c), (d) and (e) The Partnership has no officers or directors. However, under the terms of the Amended and Restated Agreement and Certificate of Limited 46 Partnership of the Partnership, the Partnership has paid or accrued obligations to the General Partner and its affiliates for the following fees during the 1998 fiscal year: 1. An annual partnership management fee based on .5 percent of the aggregate cost of all Apartment Complexes acquired by the Operating Partnerships, less the amount of certain partnership management and reporting fees paid or payable by the Operating Partnerships, has been accrued as payable to Boston Capital Asset Management Limited Partnership. The annual partnership management fee accrued during the year ended March 31, 1998 was $2,509,932. Accrued fees are payable without interest as sufficient funds become available. 2. The Partnership has reimbursed, or accrued to, an affiliate of the General Partner a total of $103,239 for amounts charged to operations during the year ended March 31, 1998. The reimbursement includes, but may not be limited to postage, printing, travel, and overhead allocations. Item 12. Security Ownership of Certain Beneficial Owners and Management (a) Security ownership of certain beneficial owners. As of March 31, 1998, 18,679,738 BACs had been issued. No person is known to own beneficially in excess of 5% of the outstanding BACs in any of the Series. (b) Security ownership of management. The General Partner has a 1% interest in all Profits, Losses, Credits and distributions of the Partnership. The Partnership's response to Item 12(a) is incorporated herein by reference. (c) Changes in control. There exists no arrangement known to the Partnership the operation of which may at a subsequent date result in a change in control of the Partnership. There is a provision in the Limited Partnership Agreement which allows, under certain circumstances, the ability to change control. Item 13. Certain Relationships and Related Transactions (a) Transactions with management and others. The Partnership has no officers or directors. However, under the terms of the public offering, various kinds of compensation and fees are payable to the General Partner and its Affiliates during the organization and operation of the Partnership. Additionally, the General Partner will receive distributions from the Partnership if there is cash available for distribution or residual proceeds as defined in the Partnership Agreement. The amounts and kinds of compensation and fees are described on pages 32 to 33 of the Prospectus under the caption "Compensation and Fees", which is incorporated herein by reference. See Note B of Notes to Financial Statements in Item 14 of this Annual Report on Form 10-K for 47 amounts accrued or paid to the General Partner and its affiliates during the period from April 1, 1995 through March 31, 1998. (b) Certain business relationships. The Partnership response to Item 13(a) is incorporated herein by reference. (c) Indebtedness of management. None. (d) Transactions with promoters. Not applicable. 48 PART IV ------- Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K (a) 1 and 2. Financial Statements and Financial Statement Schedules Independent Auditors' Report Balance Sheets, March 31, 1998 and 1997 Statement of Operations, Years ended March 31, 1998, 1997, and 1996. Statements of Changes in Partners' Capital, Years ended March 31, 1998, 1997 and 1996. Statements of Cash Flows, Years ended March 31, 1998, 1997 and 1996. Notes to Financial Statements, March 31, 1998, 1997 and 1996. Schedule III - Real Estate and Accumulated Depreciation Notes to Schedule III Schedules not listed are omitted because of the absence of the conditions under which they are required or because the information is included in the financial statements or the notes hereto. (a) 3. Exhibits (listed according to the number assigned in the table in Item 601 of Regulation S-K) Exhibit No. 3 - Organization Documents. a. Certificate of Limited Partnership of Boston Capital Tax Credit Fund II Limited Partnership. (Incorporated by reference from Exhibit 3 to the Partnership's Registration Statement No. 33-30145 on Form S-11 as filed with the Securities and Exchange Commission on October 25, 1989.) 49 Exhibit No. 4 - Instruments defining the rights of security holders, including indentures. a. Agreement of Limited Partnership of Boston Capital Tax Credit Fund II Limited Partnership. (Incorporated by reference from Exhibit 4 to the Partnership's Registration Statement No. 33-30145 on Form S-11 as filed with the Securities and Exchange Commission on October 25, 1989.) Exhibit No. 10 - Material contracts. a. Beneficial Assignee Certificate. (Incorporated by reference from Exhibit 10A to the Partnership's Registration Statement No. 33-30145 on Form S-11 as filed with the Securities and Exchange Commission on October 25, 1989.) Exhibit No. 28 - Additional exhibits (b) Reports on Form 8-K ------------------- (c) Exhibits -------- The list of exhibits required by Item 601 of Regulation S-K is included in Item (a)(3). (d) Financial Statement Schedules ----------------------------- See Item (a) 1 and 2 above. (e) Independent Auditors' Reports for Operating Limited Partnerships. --------------------------------------------------- 50 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: Boston Capital Associates Date: July 14, 1998 By: /s/ John P. Manning ------------------- John P. Manning By: /s/ Herbert F. Collins ---------------------- Herbert F. Collins 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: July 14, 1998 SIGNATURE: TITLE: General Partner and /s/ John P. Manning Principal Executive ------------------- Officer, Principal John P. Manning Financial Officer and Principal Accounting Officer of Boston Capital Associates General Partner and /s/ Herbert F. Collins Principal Executive --------------------- Officer, Principal Herbert F. Collins Financial Officer and Principal Accounting Officer of Boston Capital Associates 51 FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS REPORT BOSTON CAPITAL TAX CREDIT FUND II LIMITED PARTNERSHIP - SERIES 7, 9 THROUGH 12, AND 14 MARCH 31, 1998 AND 1997 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 TABLE OF CONTENTS PAGE INDEPENDENT AUDITORS REPORT F-3 FINANCIAL STATEMENTS BALANCE SHEETS F-5 STATEMENTS OF OPERATIONS F-12 STATEMENTS OF CHANGES IN PARTNERS CAPITAL F-19 STATEMENTS OF CASH FLOWS F-23 NOTES TO FINANCIAL STATEMENTS F-37 SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION F-71 NOTES TO SCHEDULE III Schedules not listed are omitted because of the absence of the conditions under which they are required or because the information is included in the financial statements or the notes thereto. Reznick Fedder & Silverman Certified Public Accountants * A Professional Corporation 4520 East-West Highway * Suite 300 * Bethesda, MD 20814-3319 (301) 652-9100 * Fax (301) 652-1848 INDEPENDENT AUDITORS REPORT To the Partners Boston Capital Tax Credit Fund II Limited Partnership We have audited the accompanying balance sheets of Boston Capital Tax Credit Fund II Limited Partnership, including Boston Capital Tax Credit Fund II Limited Partnership - Series 7, Series 9 through 12, and Series 14, in total and for each series as of March 31, 1998 and 1997 and the related statements of operations, changes in partners capital and cash flows, for the total partnership and for each of the series, for each of the three years in the period ended March 31, 1998. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We did not audit the financial statements of certain operating partnerships in which Boston Capital Tax Credit Fund II Limited Partnership owns a limited partnership interest. Investments in such partnerships comprise the following percentages of the assets as of March 31, 1998 and 1997 for Series 7, Series 9 through 12 and Series 14, and the limited partnership loss for each of the three years in the period ended March 31, 1997 for Series 7, Series 9 through 12, and Series 14: Total, 31% and 32% of the assets and 22%, 11% and 21% of the partnership loss; Series 7, 4% and 4% of the assets and 7%, 5% and 17% of the partnership loss; Series 9, 33% and 38% of the assets and 27%, 26% and 21% of the partnership loss; Series 10, 36% and 31% of the assets and 7%, 4% and 5% of the partnership loss; Series 11, 43% and 18% of the assets and 34%, 10% and 31% of the partnership loss; Series 12, 30% and 26% of the assets and 32%, 24% and 28% of the partnership loss; and Series 14, 25% and 16% of the assets and 18%, 15% and 20% of the p artnership loss. The financial statements of these partnerships were audited by other auditors, whose reports have been furnished to us, and our opinion, insofar as it relates to information relating to these partnerships, is based solely on the reports of the other auditors. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements of each series. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits and the reports of the other auditors provide a reasonable basis for our opinion. F-3 In our opinion, based on our audits and the reports of the other auditors, the financial statements referred to above present fairly, in all material respects, the financial position of Boston Capital Tax Credit Fund II Limited Partnership, including Boston Capital Tax Credit Fund II Limited Partnership - Series 7, Series 9 through 12, and Series 14, in total and for each series as of March 31, 1998 and 1997 and the results of its operations and its cash flows for the total partnership and for each of the series for each of the three years in the period ended March 31, 1998, in conformity with generally accepted accounting principles. We and other auditors have also audited the information included in the related financial statement schedule listed in Form 10-K, Item 14(a) of Boston Capital Tax Credit Fund II Limited Partnership Series 7, Series 9 through 12, and Series 14 as of March 31, 1998. In our opinion, the schedule presents fairly, the information required to be set forth therein, in conformity with generally accepted accounting principles. Bethesda, Maryland July 8, 1998 F-4 McGLADREY & PULLEN, LLP Certified Public Accountants and ConsultantsINDEPENDENT AUDITOR'S REPORTTo the PartnersDeer Hill II Limited Partnership Greensboro, North Carolina We have audited the accompanying balance sheets of Deer Hill II Limited Partnership as of December 31, 1997 and 1996, and the related statements of income, partners' deficit, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Deer Hill II Limited Partnership as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 20, 1998 on our consideration of Deer Hill II Limited Partnership's internal control and a report dated January 20, 1998 on its compliance with laws and regulations. Greensboro, North Carolina January 20, 1998 LAMORENA & CHANG CERTIIIED PUBLIC ACCOUNTANTS 22 BATTERY STREET, SUITE 412 TELEPHONE: 415.781.8441 SAN FRANCISCO, CALIFORNIA 94111 FACSIMILE: 415.781.8442 INDEPENDENT AUDITORS'REPORT To the Partners King City Elderly Housing Associates (a California Limited Partnership) Salinas, California We have audited the accompanying balance sheet of the King City Elderly Housing Associates (a California Limited Partnership) as of December 31, 1997 and 1996, and the related statements of operations, partners' equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the King City Elderly Housing Associates (a California Limited Partnership) as of December 31, 1997 and 1996, and the results of its operations changes in partner's equity (deficit), and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages and is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. January 25, 1998 BLOOM, GETTIS, HABIB, SILVER & TERRONE, P.A.CERTIFIED PUBLIC ACCOUNTANTS SUITE 1450 2601 SOUTH BAYSHORE DRIVE MIAMI, FLORIDA 33133-9893 TELLEPHONE (305) 858-6211 FACSIMILE (305) 858-9696 BURT R. BLOOM, C.P.A., C.V.A. LAWRENCE W. GETTIS, C.P.A. STEVEN M. HABIB, C.P.A. MICHAEL A. SILVER, C.P.A. ROGER J. TERRONE, C.P.A. CURT A. ROSNER, C.P.A. MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS To the PartnersMetropole Apartments Associates, Ltd.Boston, Massachusetts INDEPENDENT AUDITORS' REPORT We have audited the accompanying Balance Sheets of Metropole Apartments Associates, Ltd. (a Florida Limited Partnership), as of December 31, 1997 and 1996, and the related Statements of Operations, Partners' Deficit and Cash Flows for the years then ended. These financial statements are the responsibility of the Metropole Apartments Associates, Ltd.'s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Metropole Apartments Associates, Ltd. as of December 31, 1997 and 1996, and the results of its operations, the changes in partners' deficit and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit Procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. January 22, 1998 Dulin, Ward & DeWald, Inc.Certified Public Accountants Michael R. DeWald Robert F. Meyer James R. Doty J. Nelson Coats Michael J. O'Brien Jeff A. Taner Mark S.WesterhausenJames E. Hindle, Jr. (1949 - 1994) Offices Located in Fort Wayne and Marion, Indiana INDEPENDENT AUDITOR'S REPORT To the Partners of Oakview Limited (A Limited Partnership) Corunna, Indiana We have audited the accompanying balance sheets of Oakview Limited (A Limited Partnership) as of December 31, 1997 and 1996, and the related statements of income, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States and the U.S. Department of agriculture, Fanners Home Administration "Audit Program." Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Oakview Limited (A Limited Partnership) as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose forming an opinion on the basic financial statements taken as a whole. The accompanying expense analysis is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. In accordance with Government Auditing Standards, we have also issued a report dated January 22, 1998 on our consideration of Oakview Limited's internal control structure and a report dated January 22, 1998 on its compliance with laws and regulations. Fort Wayne, Indiana Our mission is to assist businesses, organizations and individuals in measuring, controlling and managing their financial success. 1610 Spy Run Avenue, Fort Wayne, Indiana 46805 219-423-2414 / 800-232-8913 219-423-2419 (Fax) McGLADREY & PULLEN, LLPCertified Public Accountants and Consultants INDEPENDENT AUDITOR'S REPORTTo the Partners Westwood Square Limited Partnership Greensboro, North Carolina We have audited the accompanying balance sheets of Westwood Square Limited Partnership as of December 31, 1997 and 1996, and the related statements of income, partners' deficit, and cash flows for the years then ended. These financial statement are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Westwood Square Limited Partnership as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 20, 1998 on our consideration of Westwood Square Limited Partnership's internal control and a report dated January 20, 1998 on its compliance with laws and regulations. Greensboro, North Carolina January 20, 1998 CERTIFIED PUBLIC ACCOUNTANTS A PROFESSIONAL CORPORATION 56 COURT STREET - P.0 BOX 705 - KEENE, NEW HAMPSHIRE 03431 - (603) 357-4882 To the Partners of Beaver Brook Housing Associates Limited Partnership Independent Auditors' Report We have audited the accompanying balance sheets of Beaver Brook Housing Associates (a Limited Partnership) (Case No. 34-06-020424443) as of December 31, 1997 and 1996 and the related statements of income and expense, partners' equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Beaver Brook Housing Associates (a Limited Partnership) at December 31, 1997 and 1996 and the results of its operations, its partners' equity (deficit) and its cash flows for the years then ended in conformity with generally accepted principles. In accordance with Government Auditing Standards, we have also issued our reports dated January 21, 1998 on our consideration of Beaver Brook Housing Associates' internal control structure and on its compliance with laws and regulations. January 21, 1998 Dulin, Ward & DeWald, Inc.Certified Public Accountants Michael R. DeWald Robert F. Meyer James R. Doty J. Nelson Coats Michael J. O'Brien Jeff A. Taner Mark S. WesterhausenJames E. Hindle, Jr. (1949 - 1994) Offices Located in Fort Wayne and Marion, Indiana INDEPENDENT AUDITOR'S REPORT To the Partners ofBrooklyn Limited (An Indiana Limited Partnership) Corunna, Indiana We have audited the accompanying balance sheets of Brooklyn Limited (An Indiana Limited Partnership) as of December 31,1997 and 1996, and the related statements of income, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of agriculture, Farmers Home Administration "Audit Program." Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion the financial statements referred to above present fairly, in all material respects, the financial position of Brooklyn Limited (An Indiana Limited Partnership) as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 9 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. In accordance with Government Auditing Standards we have also issued a report dated January 22, 1998 on our consideration of Brooklyn Limited's internal control structure and a report dated January 22, 1998 on its compliance with laws and regulations. Fort Wayne, Indiana January 22, 1998 Our mission is to assist businesses, organizations and individuals in measuring, controlling and managing their financial success. 1610 Spy Run Avenue, Fort Wayne, Indiana 46805 219-423-2414 / 800-232-8913 219-423-2419 (Fax) INDEPENDENT AUDITORS'REPORT To the Partners Corinth Housing Redevelopment Company We have audited the accompanying balance sheet of Corinth Housing Redevelopment Company as of December 31, 1997, and the related statements of operations, partners' equity, and cash flows for the year then ended. The financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Corinth Housing Redevelopment Company as of December 31, 1997, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. The 1996 financial statements of Corinth Housing Redevelopment Company were audited by other accountants whose report dated January 21, 1997, stated that they were not aware of any material modifications that should be made to those statements in order for them to be in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued reports dated February 2, 1998, on our consideration of the Program's internal control structure and it's compliance with laws and regulations. February 2, 1998 Albany, New York FECTEAU & COMPANY, P.C. Flegal & Tibbitts Certified Public Accountants May K. Flegal, CPA Jana L. Tibbitts, CPA To the Partners Fawn River Apartments INDEPENDENT AUDITORS' REPORT We have audited the accompanying balance sheet of Fawn River Apartments (a partnership) Project 026078-382856293 as of December 31, 1997 and related statement of operations, partners' equity and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations, Programs, Activities. and Functions issued by the U.S. General Accounting Office. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Fawn River Apartments Project #26-078-382856293 as of December 31, 1997, and its operations, cash flows and its changes in partners' equity for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards. We have also issued a report dated February 19, 1998, on our consideration of Fawn River Apartments Project #26-078-382856293 internal control structure and a report dated February 19, 1998, on its compliance with laws and regulations. February 19, 1998 The Waters Edge, Second Floor5930 Lovers Lane Portage, Michigan 49002 Phone (616) 383-1900 FLEGAL & TIBBITTS 227 Hubbard Street Allegan, Michigan 49010 Phone (616) 673-2222 SMITH, MILES & COMPANY, L.C. CERTIFIED PUBLIC ACCOUNTANIS 1230 AIRPORT ROAD P.O. BOX 1177PANAMA CITY, FLORIDA 32402Phone: (850) 785-0261Fax: (850) 785-2078 INDEPENDENT AUDITORS' REPORTTo the PartnersFountain Green Apartments, Ltd.Panama City, FloridaWe have audited the accompanying balance sheets of Fountain Green Apartments, Ltd., FmHA Project No: 09-46-592948719, as of December 31, 1997 and 1996, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Fountain Green Apartments, Ltd., as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Panama City, Florida January 27, 1998 INDEPENDENT AUDITORS'REPORT To the Partners Greenwich Housing Redevelopment Company We have audited the accompanying balance sheet of Greenwich Housing Redevelopment Company as of December 31, 1997, and the related statements of operations, partners' equity, and cash flows for the year then ended. The financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Greenwich Housing Redevelopment Company as of December 31, 1997, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. The 1996 financial statements of Greenwich Housing Redevelopment Company were audited by other accountants whose report dated January 15, 1997, stated that they were not aware of any material modifications that should be made to those statements in order for them to be in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued reports dated February 2, 1998, on our consideration of the Program's internal control structure and it's compliance with laws and regulations. Fecteau & Company, P.C. February 2, 1998 Albany, New York OSCAR N. HARRIS & ASSOCIATES, P.A. Certified Public Accountants OSCAR N. HARRIS, C.P.A. SHERRY S. JOHNSON, C.P.A. KENNETH E. MILTON, C.P.A. CONNIE P. STANCIL, C.P.A. MEMBERS: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOLINTANTS NORTH CAROLINA ASSOCIATION OFCERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT To the Partners of Grifton Housing Associates, A NC Limited Partnership Charlotte, North Carolina We have audited the balance sheets of Grifton Housing Associates, A NC Limited Partnership as of December 31, 1997 and 1996, and the related statements of partners, capital, income, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Grifton Housing Associates, A NC Limited Partnership as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 6, 1998 on our consideration of Grifton Housing Associates, a NC Limited Partnership's internal control structure and a report dated February 6, 1998 on its compliance with laws and regulations. 100 EAST CUMBERLAND STREET, P.O. BOX 578, DUNN, N.C. 28335 (910) 892-1021 FAX (910) 892-6084 Grifton Housing Associates, A NC Limited Partnership Page Two Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. Schedules 1, 2, 3, and 4 on pages 15, 16, 17, and 18 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Oscar N. Harris & Associates, P.A. Certified Public Accountants February 6, 1998 LOUIS YOUNG C.P.A. INC. 2630 E. ASHLAN - FRESNO, CALIFORNIA 93726 (209) 224-5141 INDEPENDENT AUDITORIS REPORT The Partners Hacienda Villa Associates Firebaugh, California We have audited the accompanying balance sheet of Hacienda Villa Associates (A Limited Partnership) as of December 31, 1997, and the related statements of operations, partners' capital and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hacienda Villa Associates (a Limited Partnership) as of December 31, 1997, and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 14 and 15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Louis Young CPA Inc. Fresno, California February 26, 1998 DUGGAN, JOINER, BIRKENMEYER, STAFFORD & FURMAN, RA. Certified Public Accountants MAICOIM R. DUGGAN, JR. C.P.A. C.D. JOINER, JR., C.P.A., Retired WAYNE J.BIRKENMYER, C.P.A. FRANK E.STAFFORD, JR C.P.A. EDWARD J.FURMAN, C.P.A. O.H. DANIELS, JR, C.P.A. R.PHILLIP BLEDSOE, C.P.A. CAROLE A.WRIGHT, C.P.A. ANNETTE C. FURMAN, C.P.A. DAVID A.YOUNG, JR., C.P.A. MEMBERS: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT February 6, 1998 To the Partners Haines City Apartments, Ltd. We have audited the accompanying basic fina.cial statements of Haines City Apartments, Ltd., as of and for the year ended December 31, 1997 and 1996, as listed in the table of contents. These basic financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Govermnent Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of Haines City Apartments, Ltd. as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 6, 1998 on our consideration of Haines City Apartments, Ltd's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information presented on pages 9 to 15 is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The information on pages 9 to 14 has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The information on page 15, which is of a nonaccounting nature, has not been subjected to auditing procedures applied in the audits of the basic financial statements, and we express no opinion on it. BOWMAN & COMPANY, LLP Certified Public Accountants Herbert H.Bowman, Bruce G. Bentz, Taylor M.Weltz, Kathleen D.O'Brien, Gary R.Daniel Daniel E. Phelps Telephone: 209/473-1040 LODI: 209/333-0540 Fax: 209/ 473-9771 2431 West March Lane, Suite 100 Stockton California, 95207-6598 INDEPENDENT AUDITORS'REPORT To the Partners Glennwood Hotel Investors (A California Limited Partnership) Sacramento, Califomia We have audited the accompanying balance sheets of Glennwood Hotel Investors (A California Limited Partnership) as of December 31, 1997 and 1996, and the related statements of income, partners' equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility ofthe Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Glennwood Hotel Investors (A California Limited Partnership) as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Stockton, Califomia January 14, 1998 INDEPENDENT AUDITORS'REPORT To the Partners Greenwich Housing Redevelopment Company We have audited the accompanying balance sheet of Greenwich Housing Redevelopment Company as of December 31, 1997, and the related statements of operations, partners' equity, and cash flows for the year then ended. The financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Greenwich Housing Redevelopment Company as of December 31, 1997 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. The 1996 financial statements of Greenwich Housing Redevelopment Company were audited by other accountants whose report dated January 15, 1997, stated that they were not aware of any material modifications that should be made to those statements in order for them to be in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued reports dated February 2, 1998, on our consideration of the Program's internal control structure and it's compliance with laws and regulations. FECTEAU & COMPANY, P.C. February 2, 1998 Albany, New York FECTEAU & COMPANY, P.C. McGEE & Associates, P.C. CERTIFIED PUBLIC ACCOUNTANTS Independent Auditors' Report To the Partners Kristin Park Apartments, Ltd. and Rural Development We have audited the accompanying balance sheets of Kristin Park Apartments, Ltd. (a limited partnership) as of December 31, 1997 and 1996, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Kristin Park Apartments, Ltd. as of December 31, 1997 and 1996, and the results of its operations and the changes in partners' equity and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 16, 1998, on our consideration of Kristin Park Apartments, Ltd.'s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Our audits were conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental information included in the report is presented for purposes of additional analysis and is not a required part of the financial statements of Kristin Park Apartments, Ltd. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. January 16, 1998 Farmington, New Mexico BURKE & REA CERTIFIED PUBLIC ACCOUNTANTS EDWARD T. BURKE, C.P.A. BERNARD E. REA, C.P.A. INDEPENDENT AUDITORS' REPORT To the Partners Maywood Associates, Ltd. (A California Limited Partnership) Cheyenne, WY We have audited the accompanying balance sheets of Maywood Associates, Ltd. (A California Limited Partnership), USA Rural Development Case No. 04-052- 680184284, as of December, 31, 1997 and 1996, and the related statements of income, partners' equity, and cash flows for the years the ended. These financial statements are the responsibility of the Partnership's management. Our, responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Maywood Associates, Ltd. (A California Limited Partnership) as of December 31, 1997 and 1996, and the results of its operation, and its cash flows for then years ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated March 13, 1998 on our consideration of Maywood Associates, Ltd.'s internal control structure and a report dated March 13, 1998 on its compliance with laws and regulations. Stockton, California. March 13, 1998 - - 1 - P.O. BOX 4632,STOCKTON, CA 95204 TELEPHONE 209/933-9113 FAX 2091933-9115 FLOYD & COMPANY Certified Public Accountant 132 Stephenson Avenue, Suite 202 Post Office, Box, 14251 Savannah, Georgia 31406 Savannah, Georgia 31416 Phone: (912) 355-9969 INDEPENDENT AUDITORS' REPORT To the General Partners of Meadow Run Limited Partnership We have audited the accompanying balance sheets of Meadow Run Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the related statements of operations, partners' equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Meadow Run Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1998 Dauby O'Connor & Zaleski A Limited Liability Company Certified Public Accountants Independent Auditors' Report To the Partners Pedcor Investments 1989-VIII, L.P. We have audited the accompanying balance sheets of Pedcor Investments 1989- VIII, L.P. as of December 31, 1997 and 1996, and the related statements of loss, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Pedcor Investments 1989- VIII, L.P. as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. The accompanying information is presented for additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the same auditing procedures applied in the audits of the basic financial statements and, in our opinion, is presented fairly in all material respects in relation to the basic financial statements taken as a whole. Indianapolis, Indiana January 23, 1998 Dauby O'Connor & Zaleski, LLC Certified Public Accountants 698 Pro Med Lane, Carmel, Indiana 46032 317-848-5700 Fax: 317-815-6140 STANCIL & COMPANY INDEPENDENT AUDITORS' REPORT To the Partners of Quail Hollow of Warsaw Limited Partnership Raleigh, North Carolina We have audited the accompanying balance sheets of Quail Hollow of Warsaw Limited Partnership as of December 31, 1997 and 1996 and the related statements of operations, partners' capital, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Quail Hollow of Warsaw Limited Partnership as of December 31, 1997 and 1996 and the results of its operations, changes in partners' capital and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 12 through 16 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. In accordance with Government Auditing Standards, we have also issued a report dated February 4, 1998 on our consideration of Quail Hollow of Warsaw Limited Partnership's internal control and a report dated February 4, 1998 on its compliance with laws and regulations applicable to the financial statements. Raleigh, North Carolina February 4, 1998 CERTIFIED PUBLIC ACCOUNTANTS MANAGEMENT CONSULTANTS Schonwit & Associates Certified Public Accountants 575 Anton Boulevard, Suite 500, Costa Mesa, California 92626 (714) 437-1025 FAX (714) 957-1678 INDEPENDENT AUDITOR'S REPORT To the PartnersRaitt Street Apartments, A California Limited Partnership I have audited the accompanying balance sheet of Raitt Street Apartments, A California Limited Partnership, as of December 31, 1997, and the related statements of operations, partners' equity, and cash flows for the year then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audit. I have previously audited and reported on the financial statements for the preceding year. I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion the accompanying financial statements referred to above present fairly, in all material respects, the financial position of Raitt Street Apartments, A California Limited Partnership as of December 31, 1997, and the results of its operations, the changes in partners' equity, and cash flows for the year then ended in conformity with generally accepted accounting principles. My audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 6 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. SCHONWIT & ASSOCIATES January 27, 1998 Suby, Von Haden& Associates, S.C.CERTIFIED PUBLIC ACCOUNTANTS Business and Management Consultants INDEPENDENT AUDITOR'S REPORT To the Partners School Street Limited Partnership II Madison, Wisconsin We have audited the accompanying balance sheets of School Street Limited Partnership II as of December 31, 1997 and 1996, and the related statements of loss, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of School Street Limited Partnership II as of December 31, 1997 and 1996, and the results of its operations, changes in partners' equity and its cash flows for the years then ended in conformity with generally, accepted accounting principles. The accompanying financial statements have been prepared assuming that the partnership will continue as a going concern. As discussed in Note I to the financial statements, the partnership has incurred recurring operating losses and anticipates that this condition will continue. This factor raises substantial doubt about the partnership's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note I. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. January 22, 1998 1221 John Q. Hammons Dr. - P.O. Box 44966 - Madison, WI 53744-4966 - (608) 831-8181 - FAX (608) 831-4243MADISON - MILWAUKEE - ROCKFORD BAKER NEWMAN & NOYESCERTIFIED PUBLIC ACCOUNTANTSINDEPENDENT AUDITORS' REPORT To the PartnersSouth Paris Heights Associates(A Maine Limited Partnership)We have audited the accompanying balance sheets of South Paris Heights Associates (A Maine Limited Partnership) as of December 31, 1997 and 1996, and the related statements of operations and changes in accumulated deficit and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of South Paris Heights Associates (A Maine Limited Partnership) at December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our reports dated February 12, 1998 on our consideration of the internal control over financial reporting of South Paris Heights Associates (A Maine Limited Partnership) and our tests of its compliance with certain provisions of laws and regulations. 1 To the Partners South Paris Heights Associates (A Maine Limited Partnership) page 2 Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying additional information is presented solely for the use of the U.S. Department of Agriculture - Rural Housing and Community Development and is not a required part of the basic financial statements. Part I of the Multiple Family Housing Borrower Balance Sheet, Form FmHA 1930-8 and Column 2 (Actual), Parts I, II and III of the Multiple Family Housing Project Budget, Form FmHA 1930-7, have been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. We have not audited Parts IV, V, and VI, and Columns 1 and 3 (Current Budget and Proposed Budget) of Parts I, II and III of Form FmHA 1930-7, and, accordingly, express no opinion thereon. February 12, 1998 Baker Newman & Noyes Limited Liability Company BENDER, WELTMAN THOMAS & CO CERTIFIED PUBLIC ACCOUNTANTS 1067 NORTH MASON ROAD, SUITE 7 ST. LOUIS, MISSOURI 63141-6341 (314) 576-1350 FAX (314) 576-9650 William J. Bender Joel W. Weltman James E. Thomas Gerald D. Magruder INDEPENDENT AUDITORS' REPORT To The Partners Springfield Housing Associates, L.P. Springfield, Illinois We have audited the accompanying balance sheets of Springfield Housing Associates, L.P., a (limited partnership), as of December 31, 1997 and 1996, and the related statements of operations, partners' capital, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. These standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Springfield Housing Associates, L.P., (a limited partnership), as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. BENDER, WELTMAN, THOMAS & CO., CPA'S February 13, 1998 Members: American Institute of Certified Public Accountants Missouri Society of Certified Public Accountants Thomas C. Cunningham, CPA PC 23 MOORE STREET BRISTOL, VIRGINIA 24201 (540) 669-5531 INDEPENDENT AUDITOR'S REPORT To the Partners, Tappahannock Greens Limited Partnership I have audited the accompanying balance sheet of Tappahannock Greens Limited Partnership as of December 31, 1997 and 1996, and the related statements of operations, partner' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Tappahannock Greens Limited Partnership as of December 31, 1997 and 1996, and the results of its operations, changes in partners' equity, and its cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying information on pages 15 to 17 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. In accordance with Government Auditing Standards, I have also issued a report dated February 18, 1998 on my consideration of Tappahannock Green. Limited Partnership's internal control and a report dated February 18, 1998 on its compliance with laws and regulations applicable to the financial statements. THOMAS C. CUNNINGHAM, CPA P.C. February 18, 1998 SMITH, MILES & COMPANY, L.C. CERTIFIED PUBLIC ACCOUNTANTS 1230 AIRPORT ROADP.O. BOX 1177PANAMA CITY, FLORIDA 32402Phone: (850) 785- 0261Fax: (850) 785-2078 INDEPENDENT AUDITORS' REPORTTo the Partners Village Oaks Apartments II, Ltd. Panama City, Florida We have audited the accompanying balance sheets of Village Oaks Apartments, II, Ltd., FmHA Project No: 09-061-0592884971, as of December 31, 1997 and 1996, and the related statements of operations, partners, equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our-audits in accordance with generally accepted auditing standards and Government issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Village Oaks Apartments II, Ltd., as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Panama City, Florida January 29, 1998 Coopers & LybrandReport of Independent AccountantsTo the PartnersWilmington Housing Redevelopment CompanyWe have audited the accompanying statements of financial position of Wilmington Housing Redevelopment Company (A Limited Partnership), as of December 31, 1997 and 1996, and the related statements of operations and partners' capital (deficit), changes in partners' capital (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Wilmington Housing Redevelopment Company as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated January 21, 1998 on our consideration of Wilmington Housing Redevelopment Company's internal control structure and a report dated January 21, 1998 on its compliance with laws and regulations.. Rochester, New York January 21, 1998 FLOYD & COMPANY Certified Public Accountant 132 Stephenson Avenue, Suite 202 Post Office, Box, 14251 Savannah, Georgia 31406 Savannah, Georgia 31416 Phone: (912) 355-9969 INDEPENDENT AUDITORS' REPORT To the General Partners of Autumn Lane Limited Partnership We have audited the accompanying balance sheets of Autumn Lane Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the related statements of operations, partners' equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Autumn Lane Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1998 DANIEL G. DRANE CERTIFIED PUBLIC ACCOUNTANT Telephone (502)756-5704 FAX (502)756-5927 e-mail dgdepa@bbtel.com 209 East Third Street - P. 0. Box 577 Hardinsburg, Kentucky 40143 INDEPENDENT AUDITORS REPORT To the Partners Butler Properties, Limited Leitchfield, Kentucky I have audited the accompanying balance sheets of Butler Properties, Limited (a Kentucky limited partnership), RHS Project No.: 20-016- 0611166123, as of December 31, 1997 and 1996, and the related statements of operations, partners' capital, and cash flows for the years then ended. These financial statements are the responsibility ofthe partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits, as of and for the years ended December 31, 1997 and 1996, in accordance with generally accepted auditing standards and Govemment Auditing Standards, issued by the Comptroller General of the United States. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opirdon. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Butler Properties, Limited, as of December 31, 1997 and 1996, and the results of its operations, the changes in its partners' capital and its cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 14 and 15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Daniel G. Drane Certified Public Accountant March 10, 1998 FLOYD & COMPANY Certified Public Accountant 132 Stephenson Avenue, Suite 202 Post Office, Box, 14251 Savannah, Georgia 31406 Savannah, Georgia 31416 Phone: (912) 355-9969 INDEPENDENT AUDITORS' REPORT To the General Partners of Ellaville Properties Limited Partnership We have audited the accompanying balance sheets of Ellaville Properties Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the related statements of operations, partners, equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Ellaville Properties Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1998 DANIEL G. DRANIF, Telephone CERTIFIED PUBLIC ACCOUNTANT 209 East Third Street - P. 0. Box 577 Hardinsburg, Kentucky 40143 (502)756-5704 FAX (502)756-5927 e-mail dgdcpa@bbtel.com INDEPENDENT AUDITORS REPORT To the Partners Hart Properties, Limited Leitchfield, Kentucky I have audited the accompanying balance sheets of Hart Properties, Limited (a Kentucky Limited partnership), RHS Project No.: 20-050-611135226, as of December 31, 1997 and 1996, and the related statements of operations, partners' capital/deficit, and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits, as of and for the years ended December 31, 1997 and 1996, in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hart Properties, Limited, as of December 31, 1997 and 1996, and the results of its operations, the changes in its partners' capital/deficit and its cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 13 and 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Daniel G. Drane Certified Public Accountant March 10, 1998 Byrd, Smalley, Evans, Adams & Johnson, P.C.CERTIFIED PUBLIC ACCOUNTANTS TELEPHONE (205) 353-1611 FAX (205) 353-1578 237 Johnston Street S.E. Post Office Box 2179, Decatur, AL 35602-2179Independent Auditor's ReportTo the PartnersHousing Investors, Athens II, LTD.Decatur, AlabamaWe have audited the accompanying balance sheet of Housing Investors Athens II, Ltd. (a partnership) as of December 31, 1997 and 1996, and the related statements of operations, partners' capital, and cash flows for the year then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as Financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Housing investors Athens -II, Ltd., as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. February 25, 1998 BURKE & REA EDWARD T. BURKE, C.P.A. BERNARD E. REA, C.P.A. INDEPENDENT AUDITORS' REPORT To the Partners Maidu Properties (A California Limited Partnership) Rocklin, California CERTIFIED PUBLIC ACCOUNTANTS We have audited the accompanying balance sheets of Maidu Properties (A California Limited Partnership), as of Deceber 31, 1997 and 1996, and the related statements of income, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Maidu Properties (A California Limited Partnership) as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information for the years ended December 31, 1997 and 1996, on pages 13 and 14, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Stockton, California March 20, 1998 P.O. BOX 4632 STOCKTON, CA 95204 TELEPHONE 209/933-9113 FAX 209/933-9115 FLOYD & COMPANY Certified Public Accountant 132 Stephenson Avenue, Suite 202 Post Office, Box, 14251 Savannah, Georgia 31406 Savannah, Georgia 31416 Phone: (912) 355-9969 INDEPENDENT AUDITORS' REPORT To the General Partners of Meadowbrook Properties II Limited Partnership We have audited the accompanying balance sheets of Meadowbrook Properties II Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the related statements of operations, partners, equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Meadowbrook Properties II Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1998 DANIEL G. DRANE CERTIFIED PUBLIC ACCOUNTANT 209 East Third Street - P. 0. Box 577 Hardinsburg, Kentucky 40143 INEPENDENT AUDITORS REPORT To the Partners Morgantown Properties, Limited Leitchfield, Kentucky Telephone (502)756-5704 FAX (502)756-5927 e-mail dgdcpa@bbtcl-com I have audited the accompanying balance sheets of Morgantown Properties, Limited (a Kentucky limited partnership), RHS Project No.: 20-016- 0611149787, as of December 31, 1997 and 1996, and the related statements of operations, partners' capital/deficit, and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits, as of and for the years ended December 31, 1997 and 1996, in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Morgantown Properties, Limited, as of December 31, 1997 and 1996, and the results of its operations, the changes in its partners' capital/deficit and its cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 14 and 15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Daniel G. Drane Certified Public Accountant March 10, 1998 Dauby O'Connor & Zaleski A Limited Liability Company Certified Public Accountants Independent Auditors' Report To the Partners of Pedcor Investments - 1989 - X, L.P. (An Indiana Limited Partnership) We have audited the accompanying balance sheet of Pedcor Investments - 1989 - - X, L.P. (an Indiana Limited Partnership) as of December 31, 1997, and the related statements of profit and loss and changes in partners, equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We.believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly in all material respects the financial position of Pedcor Investments - 1989 - X, L.P. as of December 31, 1997, and the results of its operations and changes in partners' equity (deficit) and cash flows for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditincr Standards, we have also issued a report dated January 23, 1998, on our consideration of the Partnership's internal controls and a report dated January 23, 1998, on its compliance with laws and regulations. 698 Pro Med Lane Carmel, Indiana, 46032 317-848-5700 Fax: 317-815-6140 Pedcor Investments - 1989 - X, L.P. Page Two The accompanying supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to auditing procedures applied in the audit of the basic financial statements and in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. Indianapolis, Indiana January 23, 1998 Dauby O'Connor & Zaleski, LLC Certified Public Accountants FLOYD & COMPANY Certified Public Accountant 132 Stephenson Avenue, Suite 202 Post Office, Box, 14251 Savannah, Georgia 31406 Savannah, Georgia 31416 Phone: (912) 355-9969 INDEPENDENT AUDITORS' REPORT To the General Partners of Rosewood Village Limited Partnership We have audited the accompanying balance sheets of Rosewood Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the related statements of operations, partners' equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Rosewood Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1998 KOSTIN, RUFFKESS & COMPANY, LLCCERTIFIED PUBLIC ACCOUNTANTS To the partners South Farm Limited Partnership RIHMFC #HIP-023 INDEPENDENT AUDITORS' REPORT We have audited the accompanying balance sheet of South Farm Limited Partnership, as of March 31, 1998, and the related statements of income and expense, changes in partners' capital and cash flows for the year then ended. These financial statements are the responsibility of the Project's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards, and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of South Farm Limited Partnership at March 31, 1998, and the results of its operations and cash flows for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards and the Consolidated Audit Guide for Audits of HUD Programs, issued by the U.S. Department of Housing and Urban Development, we have also issued a report dated April 30, 1998, on our consideration of South Farm Limited Partnership's internal control and reports dated April 30, 1998, on its compliance with laws and regulations, specific requirements applicable to major HUD programs and specific requirements applicable to Fair Housing and Nondiscrimination. South Farm Limited Partnership Page Two Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The supplementary information contained in Schedules 1 through 24 is presented for the purpose of additional analysis and is not a required part of the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, the supplementary information is fairly presented in all material respects in relation to the basic financial statements taken as a whole. West Hartford, Connecticut April 30, 1998 345 North Main Street West Hartford, CT 06117-2521 (860) 236-1975 Toll Free: (800) 286-5726 FAX: (860) 236-1783 260 U.S. Route #1 Bank Building New London, CT 06320-0166 Members of the Firm: Jerrold M. Gold, CPA Lawrence Marziale, CPA Joseph W. Sparveri, Jr., CPA Peter K. Askham, CPA Richard V. Kretz, CPA Edmund S. Kindelan, CPA Michael T. Novosel, CPA John S. Pavlik, CPA Kimberly O. Nordone, CPA Daniel Donofrio, CPA McGLADREY & PULLEN,LLP Certified Public Accountants and Consultants INDEPENDENT AUDITOR'S REPORT To the Partners Academy Hill Limited Partnership Greensboro, North Carolina We have audited the accompanying balance sheets of Academy Hill Limited Partnership as of December 31, 1997 and 1996, and the related statements of income, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Academy Hill Limited Partnership as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 20, 1998 on our consideration of Academy Hill Limited Partnership's internal control and a report dated January 20, 1998 on its compliance with laws and regulations. Greensboro, North Carolina January 20, 1998 GWEN WARD, P.C. Certified Public Accountant 609 University Drive, Fort Worth, Texas 76107 (817) 336-5880 Member American Institute of Certified Accountants Member Texas Society of Certified Public Accountants Independent Auditor's Report To the Partners of Aspen Square, L.P. Tazewell, Virginia I have audited the accompanying balance sheets of Aspen Square, L.P., as of December 31, 1997 and 1996, and the related statements of operations, partners, equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly in all material respects, the financial position of Aspen Square, L.P., as of December 31, 1997 and 1996, and the results of its operations, changes in partners, equity (deficit) and cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of fo=ing an opinion on the basic financial statements taken as a whole. The supplemental information on page I-17 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Fort Worth, Texas March 28, 1998 I-3 McGEE & Associates, P.C.CERTIFIED PUBLIC ACCOUNTANTSIndependent Auditors' ReportTo the PartnersBuckeye Senior, Ltd.and Rural Development We have audited the accompanying balance sheets of Buckeye Senior, Ltd. (a limited partnership) as of December 31, 1997 and 1996, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Buckeye Senior, Ltd. as of December 31, 1997 and 1996, and the results of its operations and the changes in partners' equity (deficit) and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 16, 1998, on our consideration of Buckeye Senior, Ltd.'s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Our audits were conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental information included in the report is presented for purposes of additional analysis and is not a required part of the financial statements of Buckeye Senior, Ltd. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. January 16, 1998 Farmington, New Mexico GWEN WARD, P.C. Certified Public Accountant 609 University Drive, Fort Worth, Texas 76107 (817) 336-5880 Member American Institute of Certified Accountants Member Texas Society of Certified Public Accountants To the Partners of Copper Creek, L.P. Independent Auditor's Report I have audited the accompanying balance sheets of Copper Creek, L.P. as of December 31, 1997 and 1996, and the related statements of operations, partners, equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of-Copper Creek, L.P. as of December 31, 1997 and 1996, and the results of its operations, changes in partners' equity (deficit) and cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page I-17 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements as a whole. Fort Worth, Texas March 27, 1998 Clifton Gunderson L.L.C. Certified Public Accountants & Consultants Independent Auditor's Report To the Partners Coronado Housing Limited Partnership We have audited the accompanying balance sheets of Coronado, Housing Limited Partnership as of December 31, 1997 and 1996 and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Coronado Housing Limited Partnership as of December 31, 1997 and 1996 and the results of its Federations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The accompanying supplemental information for the years ended December 31, 1997 and 1996 has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Tucson, Arizona February 25, 1998 I - 3 KAY L. Bowen & Associates CERTIFIED PUBLIC, ACCOUNTANT, PC. Phone- (801) 627-0825 - FAX (801) 627-0829 - 1-800-573-0609 3710 QUINCY AVENUE OGDEN, UTAH 84403 KAY L BOWEN PRESIDENT SHARI B. JOHNSON CPA JAMES L HAWKINS INDEPENDENT AUDITOR'S REPORT To the Partners Franklin School Associates Franklin School Apartments Great Falls, Montana We have audited the accompanying balance sheet of Franklin School Associates, as of December 31, 1997 and 1996, and the related statements of income and cash flows and change in partners' equity for the years then ended. These financial statements are the responsibility of Franklin School Associates' management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Franklin School Apartments, as of December 31, 1997 and 1996, and the results of its operations, change in partners, equity, and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supporting information included in the report (shown on pages 13 to 15) are presented for the purposes of additional analysis and are not a required part of the basic financial statements of Franklin School Associates. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. In accordance with Government Auditing Standards, we have also issued a report dated February 12, 1998, on our consideration of Franklin School Associates I internal controls and a report dated February 12, 1998, on its compliance with laws and regulations. Ogden, Utah February 12, 1998 Kay L. Bowen, CPA, President Kay L. Bowen & Associates, P.C. Federal I.D. #87-0448933 Page 1 James L. Caughren Certified Public Accountant P.O. Box 36014 Albuquerque, NM 87176 Report of Independent Certified Public Accountants To the Partners Hilltop Apartments Limited Partnership We have audited the balance sheet of Hilltop Apartments Limited Partnership (a New Mexico limited partnership) as of December 31, 1997 and 1996, and the related statements of operations, partners' capital, and cash flows for the years then ended. All information included in these financial statements is the responsibility of the Company's management. Our responsibility is to express an opinion on the financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hilltop Apartments Limited Partnership as of December 31, 1997 and 1996, and the results of its operations and cash flows for the years then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our reports dated March 7, 1998 on our consideration of Hilltop Apartments Limited Partnership internal control and on its compliance with laws and regulations. March 7, 1998 The Gautreau Group, L.L.C. Certified Public Accountants John C.Gautreau, II, CPA J. Curt Gautreau CPA Crissie Head, CPA Kati M.Williamson A Professional Accounting Operation INDEPENDENT AUDITORS' REPORT To the Partners of Lakewood Village Partnership We have audited the accompanying balance sheets of Lakewood Village Partnership (A Louisiana Partnership in Commendam) as of December 31, 1997 and 1996, and the related statements of operations, changes in partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibilltv is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made bv management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lakewood Village Partnership as of December 31. 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 19, 1998 on our consideration of Lakewood Village Partnership's internal control and a report dated Februarv 19, 1998 on its compliance with laws and regulations. Februarv 19, 1998 P.O. Box 82430 \ 8641 United Plaza Boulevard, Suite 202 \ Baton Rouge, Louisiana 70884-2430 \ Telephone (504) 924-6744 \ FAX (504) 929-6916 MUELLER, WALLA & ALBERTSON, P.C. Certified Public Accountants 10714 Manchester Road, Suite 202, Kirkwood, Missouri 63122 (314) 822-6575 INDEPENDENT AUDITORS'REPORT The Partners Licking Associates II, L.P. Licking, Missouri We have audited the accompanying balance sheets of Licking Associates II, L.P. (a limited partnership) as of December 31, 1997 and 1996, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on response these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Licking Associates II, L.P. as of December 31, 1997 and 1996, and the results of its operations, changes in partners' capital and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information included on page 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. Mueller, Walla & Albertson, P.C. Certified Public Accountants January 15, 1998 MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS MISSOURI SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS BLOOM, GETTIS, HAEBIB, SILVER & TERRONE, P.A. CERTIFIED PUBLIC ACCOUNTANTS SUITE 1450 2601 SOUTH BAYSHORE DRIVE MIAMI, FLORIDA 33133-9893 TELLEPHONE (305) 858-6211 FACSIMILE (305) 858-9696 BURT R. BLOOM, C.P.A., C.V.A. LAWRENCE W. GETTIS, C.P.A. STEVEN M. HABIB, C.P.A. MICHAEL A. SILVER, C.P.A. ROGER J. TERRONE, C.P.A. CURT A. ROSNER, C.P.A. MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS To the PartnersLondon Arms/Lyn Mar Limited Partnership Boston, Massachusetts INDEPENDENT AUDITORS' REPORT We have audited the accompanying Balance Sheets of London Arms/Lyn Mar, Ltd. (a Florida Limited Partnership), as- of December 31, 1997 and 1996, and the related Statements of Operations, Partners, Deficit and Cash Flows for the years then ended. These financial statements are the responsibility of the management of London Arms/Lyn Mar Limited Partnership. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial -statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of London Arms/Lyn Mar Limited Partnership as of December 31, 1997 and 1996, and the results of its operations, the changes in partners, equity and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, on our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. January 23, 1998 BURKE & REAEDWARD T. BURKE, C.P.A.BERNARD E. REA, C.P.A. CERTIFIED PUBLIC ACCOUNTAN7S INDEPENDENT AUDITORS' REPORT To the Partners Maidu Properties (A California Limited Partnership) Rocklin, California We have audited the accompanying balance sheets of Maidu Properties (A California Limited Partnership), as of December 31, 1997 and 1996, and the related statements of income, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Maidu Properties (A California Limited Partnership) as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information for the years ended December 31, 1997 and 1996, on pages 13 and 14, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Stockton, California March 20, 1998 FLOYD & COMPANY Certified Public Accountant 132 Stephenson Avenue, Suite 202 Post Office, Box, 14251 Savannah, Georgia 31406 Savannah, Georgia 31416 Phone: (912) 355-9969 INDEPENDENT AUDITORS' REPORT To the General Partners of Manning Properties Limited Partnership We have audited the accompanying balance sheets of Manning Properties Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the related statements of operations, partners, equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Manning Properties Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1998 Charles Bailly & Company L.L.P. Certified Public Accountants - Consultants INDEPENDENT AUDITOR'S REPORT The Partners RPI Limited Partnership #18 St. Paul, Minnesota We have audited the accompanying balance sheets of RPI Limited Partnership #18, RHS Project Number: 18-18-411649005, as of December 31, 1997 and 1996, and the related statements of operations, partners, equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of RPI Liited Partnership #18 as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 3, 1998 on our consideration of RPI Liited Partnership #18's internal control and a report dated February 3, 1998 on its compliance with laws and regulations. Fargo, North Dakota February 3, 1998 GWEN WARD, P.C. Certified Public Accountant 609 University Drive Fort Worth, Texas 76107 (817) 336-5880 Member American Institute of Certified Public Accountants Member Texas Society of Certified Accountants To the Partners of Sierra Springs, L.P. Independent Auditor's Report I have audited the accompanying balance sheets of Sierra Springs, L.P. as of December 31, 1997 and 1996, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sierra Springs, L.P. as of December 31, 1997 and 1996, and the results of its operations, changes in partners' capital and cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages I-17 and I-18 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Fort Worth, Texas March 28, 1998 I-3 Thompson, Derriq, Slovacek & Craig, P.C. A Professional Corporation of Certified Public Accountants 4500 Carter Creek Parkway, Suite 201 Bryan, Texas 77802-4456 (409) 260-9696 Fax (409) 260-9683 INDEPENDENT AUDITORS'REPORT March 6, 1998 To the Partners South Fork Heights Limited Partnership We have audited the accompanying balance sheets of South Fork Heights Limited Partnership (a Colorado limited partnership), as of December 31, 1997 and 1996 and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of South Fork Heights Limited Partnerships as of December 31, 1997 and 1996 and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 15 through 29 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information presented in the Year End Report/Analysis (USDA Form RD 1930-8) and Parts I through III of the Project Budget (USDAFormRD1930-7) for year ended December 3l, 1997, is presented for purposes of complying with the requirements of the United States Department of Agriculture and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. THOMPSON, DERRIG, SLOVACEK & CRAIG, P.C. Certified Public Accountants SMITH, MILES & COMPANY, L.C. CERTIFIED PUBLIC ACCOUNTANTS P.O. BOX 1177 PANAMA CITY, FLORDDA 32402 Phone: (850) 785-0261 Fax: (850) 785-2078 INDEPENDENT AUDITORS' REPORT To the Partners Wildridge Apartments, Ltd. Panama City, Florida We have audited the accompanying balance sheets of Wildridge Apartments, Ltd., Project No: ll:-51-592863964, as of December 31, 1997 and 1996, and the related statements of operations, partners, deficit and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Wildridge Apartments, Ltd., as of December 31, 1997,and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Panama City, Florida February 6, 1998 Fraley, Miller & Company Certified Public Accountants 374 Main Street, West Liberty, Kentucky, 41472 Telephone (606)743-7420 Fax (606) 743-7444 Partners: Robert A. Fraley Mickey F. Miller Associates: Kim Whitley Horton Brenda K.Ball To the Partners of B B & L Enterprises, Ltd. INDEPENDENT AUDITORS'REPORT We have audited the accompanying balance sheets of B B & L Enterprises, Ltd. (a Kentucky limited partnership) as of December 31, 1997, 1996, and 1995, and the related statements of results of operations, changes in partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General ofthe United State's, and the provisions of the United States Department of Agriculture, Rural Economic and Community Development audit program. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In accordance with Government Auditing Standards, we have also issued a report dated February 23, 1998, on our consideration of B B & L Enterprises, Ltd.'s internal control structure and a report dated February 23, 1998, on its compliance with laws and regulations. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of B B & L Enterprises, Ltd. as of December 31, 1997, 1996, and 1995, and the results of its operations, changes in partners' capital and its cash flows for the year then ended in conformity with generally accepted accounting principles. February 23, 1998 Main Office Located at 101 Fraley - Miller Plaza, Suite 101, Grayson, Kentucky 41143 Telephone (606) 474-6608 - Fax (606) 474-7094 FLOYD & COMPANY Certified Public Accountant 132 Stephenson Avenue, Suite 202 Post Office, Box, 14251 Savannah, Georgia 31406 Savannah, Georgia 31416 Phone: (912) 355-9969 INDEPENDENT AUDITORS' REPORT To the General Partners of Bowman Village Limited Partnership We have audited the accompanying balance sheets of Bowman Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the related statements of operations, partners' equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Bowman Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1998 Suby, Von Haden & Associates, S.C. CERTIFIED PUBLIC ACCOUNTANTS Business and Management Consultants INDEPENDENT AUDITOR'S REPORT To the Partners Brandywood Limited Partnership Madison, Wisconsin We have audited the accompanying balance sheets of WHEDA Project No. 01 1/001 136 of Brandywood Limited Partnership as of December 31, 1997 and 1996, and the related statements of loss, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Brandywood Limited Partnership as of December 31, 1997 and 1996, and the results of its operations, changes in partners' equity and its cash flows for the years then ended in conformity with generally accepted accounting principles. January 13, 1998 - - 1 - 1221 John Q. Hammons Dr. - P.O. Box 44966 - Madison, WI 53744-4966 - (608) 831-8181 - FAX (608) 831-4243 MADISON - MILWAUKEE - ROCKFORD Fraley, Miller & Company Certified Public Accountants 374 Main Street, West Liberty, Kentucky, 41472 Telephone (606)743-7420 Fax (606) 743-7444 Partners: Robert A. Fraley Mickey F. Miller Associates: Kim Whitley Horton Brenda K.Ball To the Partners of Briarwick Apartments, Ltd. INDEPENDENT AUDITORS' REPORT We have audited the accompanying balance sheets of Briarwick Apartments, Ltd. (a Kentucky limited partnership) as of December 31, 1997, 1996, and 1995, and the related statements of results of operations, changes in partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our respopsibility is to express an opinion on these financial statements based on our audit. We conducted our audits in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General ofthe United States, and the provisions of the United States Department of Agriculture, Rural Economic and Community Development audit program. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In accordance with Government Auditing Standards, we have also issued a report dated February 12, 1998, on our consideration of Briarwick Apartments, Ltd's internal control structure and a report dated February 12, 1998, on its compliance with laws and regulations. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Briarwick Apartments, Ltd. as of December 31, 1997, 1996, and 1995, and the results ofits operations, changes in partners' capital and its cash flows for the years then ended in conformity with generally accepted accounting principles. February 12, 1998 Main Office Located at 101 Fraley - Miller Plaza, Suite 101, Grayson, Kentucky 41143 Telephone (606) 474-6608 - Fax (606) 474-70 GWEN WARD, P.C. Certified Public Accountant 609 University Drive, Fort Worth, Texas 76107 (817) 336-5880 Member American Institute of Certified Accountants Member Texas Society of Certified Public Accountants Independent Auditor's Report To the Partners of Cananche Creek, L.P. I have audited the accompanying balance sheets of Cananche Creek, L.P., as of December 31, 1997 and 1996, and the related statements of operations, partners, equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cananche Creek, L.P., as of December 31, 1997 and 1996, and the results of its operations, changes in partners' equity (deficit) and its cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page I-17 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Fort Worth, Texas March 27, 1998 I-3 DANIEL G. DRANETelephone (502)756-5704 CERTIFIED PUBLIC ACCOUNTANT FAX (502)756-5927 209 East Third Street - P. 0. Box 577 e-mail dgdcpa@bbtel.com Hardinsburg, Kentucky 40143 INDEPENDENT AUDITORS REPORT To the Partners Clarkson Properties, Limited Leitchfield, Kentucky I have audited the accompanying balance sheets of Clarkson Properties, Limited (a Kentucky Limited partnership), RHS Project No.: 20-043- 0611167952, as of December 31, 1997 and 1996, and the related statements of operations, partners' capital/deficit, and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits, as of and for the years ended December 31, 1997 and 1996, in accordance with generally accepted auditing standards and Govemment Auditing Standards, issued by the Comptroller General of the United States. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Clarkson Properties, Limited, as of December 31, 1997 and 1996, and the results of its operations, the changes in its partners' capital/deficit and its cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 14 and 15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Daniel G. Drane Certified Public Accountant March 10, 1998 DANIEL G. DRANETelephone (502)756-5704 CERTIFIED PUBLIC ACCOUNTANT FAX (502)756-5927 209 East Third Street - P. 0. Box 577 e-mail dgdcpa@bbtel.com Hardinsburg, Kentucky 40143 INDEPENDENT AUDITOR'S REPORT To the Partners Evanwood Properties, Limited Leitchfield, Kentucky I have audited the accompanying balance sheets of Evanwood Properties, Limited (a Kentucky limited partnership), RHS Project No.: 20-014- 0611145803, as of December 31, 1997 and 1996, and the related statements of operations, partners' capital, and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits, as of and for the years ended December 31, 1997 and 1996, in accordance with generally accepted auditing standards and Govemment Auditing Standards, issued by the Comptroller General of the United States. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the arnounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Evanwood Properties, Limited, as of December 31, 1997 and 1996, and the results of its operations, the changes in its partners' capital and its cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 13 and 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Daniel G. Drane Certified Public Accountant March 10, 1998 McCartney & Company, P.C.Certified Public Accountants2121 University Park Drive, Suite 150Okemos, Michigan 48864 Telephone (517) 347-5000 Fax (517) 347-5007 March 6, 1998PartnersIvan Woods Limited Partnership Okemos, Michigan Independent Auditor's Report We have audited the accompanying balance sheets of Ivan Woods Limited Partnership as of December 31, 1997 and 1996, and the related statements of revenue, expenses and partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Ivan Woods Limited Partnership as of December 31, 1997 and 1996, the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The schedules of renting, administrative, operating, maintenance, taxes and insurance expenses on page 8 are presented for the purpose of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. OKEMOS BRECKENRIDGE MARQUETTE HOLDEN, MOSS, KNOTT, CLARK & TAYLOR, P.A. CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT To the Partners Hunters Park Limited Partnership We have audited the accompanying balance sheet of Hunters Park Limited Partnership as of December 31, 1997, and the related statement of operations, partners' equity, and cash flows for the year then ended. These financial statements are the responsibflity of Hunters Park Limited Partnership management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of Hunters Park Limited Partnership as of December 31, 1996 were audited by other auditors whose report dated January 17, 1997, expressed an unqualified opinion on those statements. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Govemment Auditinia Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in afl material respects, the financial position of Hunters Park Limited Partnership as of December 31, 1997, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated January 28, 1998 on our consideration of Hunters Park Limited Partnership's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 10, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is presented fairly in all material respects in relation to the basic financial statements taken as a whole. Certified Public Accountants Henderson, North Carolina January 28, 1998 SMITH, MILES & COMPANY, L.C. CERTIFIED PUBLIC ACCOUNTANTS 1230 AERPORT ROAD P.O. BOX 1177 PANAMA CITY, FLORIDA 32402 Phone: (850) 785-0261 Fax: (850) 785-2078 INDEPENDENT AUDITORS' REPORT To the Partners Lakeridge Apartments of Eufaula, Ltd. Panama City, Florida We have audited the accompanying balance sheets of Lakeridge Apartments of Eufaula, Ltd., FmHA Project No: 01-0030592933800, as of December 31, 1997 and 1996, and the related statements of operations, partners' deficit and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lakeridge Apartments of Eufaula, Ltd., as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Panama City, Florida February 2, 1998 FLOYD & COMPANYCertified Public Accountant132 Stephenson Avenue, Suite 202 Savannah, Georgia 31406 Post Office Box 14251 Savannah, Georgia 31416 Phone: (912) 355-9969 INDEPENDENT AUDITORS' REPORT To the General Partners of Laurel Village Limited Partnership We have audited the accompanying balance sheets of Laurel Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the related statements of operations, partners' equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Laurel Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1998 McGEE & Associates, P.C.CERTIFIED PUBLIC ACCOUNTANTSIndependent Auditors' ReportTo the PartnersLos Caballos II, Ltd.and Rural Development We have audited the accompanying balance sheets of Los Caballos II, Ltd. (a limited partnership) as of December 31, 1997 and 1996, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Los Caballos II, Ltd. as of December 31, 1997 and 1996, and the results of its operations and the changes in partners' equity and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 22, 1998, on our consideration of Los Caballos II, Ltd.'s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Our audits were conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental information included in the report is presented for purposes of additional analysis and is not a required part of the financial statements of Los Caballos II, Ltd. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. January 22, 1998 Farmington, New Mexico BURKE & REA EDWARD T. BURKE, C.P,A BERNARD E. REA, C.P.A. Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners, Nye County Associates (A California Limited Partnership) Cheyenne, WY We have audited the accompanying balance sheets of Nye County Associates (A California Limited Partnership), USDA Rural Development Case No. 33-019- 680192750, as of December 31, 1997 and 1996, and the related statements of income, partners, equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material isstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Nye County Associates (A California Limited Partnership) as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we havee also issued a report dated March 13, 1998 on our consideration of Nye County Associates' internal control structure and a report dated March 13, 1998 on its compliance with laws and regulations. Stockton, California March 13, 1998 P.O. BOX 4632 STOCKTON, CA 95204 TELEPHONE 209/933-9113 FAX 209/933-9115 MUELLER, WALLA & ALBERTSON, PC. Certified Public Accountants 10714 Manchester Road Suite 202, Kirkwood, Missouri 63122 (314)822-6575 INDEPENDENT AUDITORS'REPORT The Partners Scott City Associates III, L.P. Scott City, Missouri We have audited the accompanying balance sheets of Scott City Associates III, L.P. (a limited partnership) as of December 31, 1997 and 1996, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Scott City Associates III, L.P. as of December 31, l997 and 1996, and the results of its operations, changes in partners' capital and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information included on page 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. Mueller, Walla & Albertson, P.C. Certified Public Accountants January 15, 1998 Charles Bailly & Company L.L.P. Certified Public Accountants - Consultants INDEPENDENT AUDITOR'S REPORT The Partners RPI Limited Partnership #22 St. Paul, Minnesota We have audited the accompanying balance sheets of RPI Limited Partnership #22, MHFA Project Number 90-002, as of December 31, 1997 and 1996, and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of RPI Limited Partnership #22, as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accept accounting principles. Fargo, North Dakota February 3, 1998 GWEN WARD, P.C. Certified Public Accountant 609 University Drive, Fort Worth, Texas 76107 (817) 336-5880 Member American Institute of Certified Accountants Member Texas Society of Certified Public Accountants Independent Auditor's Report To the Partners of Shawnee Ridge, L.P. I have audited the accompanying balance sheets of Shawnee Ridge, L. P. as of December 31, 1997 and 1996, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Shawnee Ridge, L.P. as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages I-16 and I-17 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Fort Worth, Texas March 28, 1998 FLOYD & COMPANY Certified Public Accountant 132 Stephenson Avenue, Suite 202 Post Office, Box, 14251 Savannah, Georgia 31406 Savannah, Georgia 31416 Phone: (912) 355-9969 INDEPENDENT AUDITORS' REPORT To the General Partners of Turner Lane Limited Partnership We have audited the accompanying balance sheets of Turner Lane Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the related statements of operations, partners' equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Turner Lane Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1998 HUMISTON, SKOKAN, WARREN & EICHENBERGER, P.C. Certified Public Accountants West Des Moines, Iowa INDEPENDENT AUDITORS' REPORT To the Partners Union Baptist Plaza, Limited Partnership West Des Moines, Iowa We have audited the accompanying balance sheets of UNION BAPTIST PLAZA, LIMITED PARTNERSHIP as of December 31, 1997 and 1996, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Union Baptist Plaza, Limited Partnership as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. January 16, 1998 SMITH, MILES & COMIPANY, L.C. CERTIFIED PUBLIC ACCOUNTANTS 1230 AIRPORT ROAD P.O. BOX 1177 PANAMA CITY, FLORIDA 32402 Phone: (850) 785-0261 Fax: (850) 785-2078 IMDEPENDENT AUDITORS' REPORT To the Partners Villas of Lakeridge, Ltd. Panama City, Florida We have audited the accompanying balance sheets of Villas of Lakeridge, Ltd., FmHA Project No: 01-0030592930819, as of December 31, 1997 and 1996, and the related statements of operations, partners' deficit and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Villas of Lakeridge, Ltd., as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Panama City, Florida January 28, 1998 YORK, DILLINGHAM & COMPANY, P.L.L.C. CERTIFIED PUBLIC ACCOUNTANTS P.O. Box 551 1708 Alpine Drive Columbia, Tennessee 38402-0551 Telephone (931) 388-0517 Fax (931) 388-3440 INDEPENDENT AUDITORS' REPORT To the Partners Waynesboro Associates, Limited We have audited the accompanying balance sheets of Waynesboro Associates, Limited (a Tennessee limited partnership) d/b/a Waynesboro Village Apartments, RHS Project No.: 48-091-621385326, as of December 31, 1997 and 1996, and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Waynesboro Associates, Limited (a Tennessee limited partnership) d/b/a Waynesboro Village Apartments, RHS Project No.: 48-091-621385326, as of December 31, 1997 and 1996, and the results of its operations, the changes in partners' equity and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 16, 1998 on our consideration of Waynesboro Associates, Limited's internal control structure and a report dated February 16, 1998 on its compliance with laws and regulations. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Co1umbia, Tennessee February 16, 1998 LITTLE, SHANEYFELT, MARSHALL & CO. CERTIFIED PUBLIC ACCOUNTANTS PROSPECT BUILDING 1501 N. UNIVERSITY, SUITE 300 LITTLE ROCK, ARKANSAS 72207-5232 TELEPHONE 501-666-2879 FAX NO. 501-666-5260 BENTON, ARKANSAS OFFICE 210 W. SEVIER STREET BENTON, ARKANSAS 72015 TELEPHONE 501-378-7746 INDEPENDENT AUDITOR'S REPORT To the Partners Beckwood Manor Six Limited Partnership We have audited the accompanying balance sheets of Beckwood Manor Six Limited Partnership, RD Project No. 03-048-0710677265 (the Partnership), as of December 31, 1997 and 1996, and the related statements of profit (loss), changes in partners, equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Beckwood Manor Six Limited Partnership as of December 31, 1997 and 1996, and its results of operations, changes in partners' equity (deficit), and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated March 18, 1998 on our consideration of the Partnership's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. March 18, 1998 Little, Shaneyfelt, Marshall & Co. OSCAR N. HARRIS & ASSOCIATES, P.A. CERTIFIED PUBLIC ASSOCIATES OSCAR N. HARRIS, C.P.A. SHERRY S. JOHNSON, C.P.A. KENNETH E. MILTON, C.P.A. CONNIE P. STANCIL, C.P.A. Members: American Institute of Certified Public Accountants North Carolina Association of Certified Accountants INEPENDENT AUDITORS' REPORT To the Partners of Brantwood Lane Limited Partnership Charlotte, North Carolina We have audited the balance sheets of Brantwood Lane Limited Partnership as of December 31, 1997 and 1996, and the related statements of partners' capital, income, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Brantwood Lane Limited Partnership as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 6, 1998 on our consideration of Brantwood Lane Limited Partnership's internal control structure and a report dated February 6, 1998 on its compliance with laws and regulations. 100 EAST CUMBERLAND STREET, P.O. BOX 578, DUNN, N.C. 28335 (910) 892-1021 FAX (910) 892-6084 Brantwood Lane Limited Partnerhsip Page Two Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. Schedules 1, 2, 3, and 4 on pages 14, 15, 16, and 17 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Oscar N. Harris & Associates, P.A. Certified Public Accountants February 6, 1998 Crisp Huges Evans LLP Certified Public Accountants & Consultants Affiliates worldwide through AGN International Independent Auditors' Report To The Partners Breckenridge Apartments, Limited Partnership We have audited the accompanying balance sheets of Breckenridge Apartments, Limited Partnership as of December 31, 1997 and 1996, and the related statements of operations, partners' capital (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards, and with Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Breckenridge Apartments, Limited Partnership as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 27, 1998 on our consideration of Breckenridge Apartments, Limited Partnership's internal control over financial reporting and our consideration of its compliance with certain provisions of laws, regulations, contracts, and grants. January 27, 1998 1 Creekview Court PO Box 25849 Greenville, SC 29616 864 288 554 Fax 864 458 8519 www.che-llp.com N. CHENG & CO., P.C. Certified Public Accountants Independent Auditors' Report To the Partners Bridge Coalition Limited Partnership New York, New York We have audited the accompanying balance sheet of Bridge Coalition Limited Partnership as of December 31, 1997 and the related statements of operations, changes in partners, equity and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of bridge Coalition Limited Partnership as of December 31, 1997 and the results of its operations and cash flows for the year then ended, in conformity with generally accepted accounting principles. New York, New York February 4, 1998 40 Exchange Place, Suite 1206 New York, New York 10005 Tel (212) 785-0100 - Fax (212) 785-9168 Two Gramatan Avenue Mount Vernon, New York 10550 Tel (914) 668-8010 - Fax (914) 668-8048 Witt, Mares & Company, PLC Certified Public Accountants and Consultants INDEPENDENT AUDITOR'S REPORT The Partners Carriage Run Limited Partnership We have audited the accompanying balance sheets of Carriage Run Limited Partnership (a Virginia Limited Partnership), as of December 31, 1997 and 1996, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. The financial statements as of December 31, 1996, were audited by Graham Carter & Jennings, PLC, who merged with Witt, Mares & Company, PLC as of December 1, 1997, whose report dated February 3, 1997 expressed an unqualified opinion on those statements. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Carriage Run Limited Partnership as of December 31, 1997 and 1996, and the results of its operations, changes in partner's equity and cash flows for the years then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated February 12, 1998 on our consideration of Carriage Run Limited Partnership's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 18 and 19 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements take as a whole. Newport News, Virginia February 12, 1998 LAURIE A. LEE Certified Public Accountant 5446 Birchbrook Court, Las Vegas, Nevada 89120 Telephone: (702) 456-2162 INDEPENDENT AUDITORS REPORT To the Partners of Chaparral Associates: I have audited the balance sheet. of Chaparral Associates, a Limited Partnership (the "Partnership") as of December 31, 1997 and 1996, and the related statements of operations, partners' capital and cash flow for the years then ended. These financial statements are the responsibility of the Partnership's management. My responsibility is to express an opinion on these financial statements; based on my audits. I conducted my audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States, and the US Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Partnership as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, I have also issued my reports dated February 14, 1998 on my consideration of the Partnership's internal control and on its compliance with laws and regulations. The accompanying supplementary information (beginning on page 10) is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. February 14, 1998 Member: American institute of Certified Public Accountants and Nevada Society of Certified Public Accountants. Coopers & Lybrand L.L.P. Report of Independent Accountants To the Partners College Greene Rental Associates, L.P. We have audited the accompanying balance sheets of College Greene Rental Associates, L.P. (A Limited Partnership), as of December 31, 1997 and 1996, and the related statements of operations and partners' capital, changes in partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of College Greene Rental Associates, L.P., as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Rochester, New York February 9, 1998 Crisp Hughes Evans LLP Certified Public Accountants & Consultants Affiliated worldwide through AGN International Independent Auditors' Report To The Partners Devenwood Apartments, A Limited Partnership We have audited the accompanying balance sheets of Devenwood Apartments, A Limited Partnership as of December 31, 1997 and 1996, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards, and with Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Devenwood Apartments, A Limited Partnership as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 27, 1998 on our consideration of Devenwood Apartments, A Limited Partnership's internal control over financial reporting and our consideration of its compliance with certain provisions of laws, regulations, contracts, and grants. January 27, 1998 1 Creekview Court PO Box 25849 Greenville, SC 29616 864 288 5544 Fax 864 458 8519 FLOYD & COMPANY Certified Public Accountant 132 Stephenson Avenue, Suite 202 Post Office, Box, 14251 Savannah, Georgia 31406 Savannah, Georgia 31416 Phone: (912) 355-9969 INDEPENDENT AUDITORS' REPORT To the General Partners of Four Oaks Limited Partnership We have audited the accompanying balance sheets of Four Oaks Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the related statements of operations, partners' equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Four Oaks Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1998 McGEE & Associates, P.C. CERTIFIED PUBLIC ACCOUNTANTS Independent Auditors' Report To the Partners Franklin Vista III, Ltd. and Rural Development We have audited the accompanying balance sheets of Franklin Vista III, Ltd. (a limited partnership) as of December 31, 1997 and 1996, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Franklin Vista III, Ltd. as of December 31, 1997 and 1996, and the results of its operations and the changes in partners' equity and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 13, 1998, on our consideration of Franklin Vista III, Ltd.'s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Our audits were conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental information included in the report is presented for purposes of additional analysis and is not a required part of the financial statements of Franklin Vista III, Ltd. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. January 13, 1998 Farmington, New Mexico REGARDIE, BROOKS & LEWIS CHARTERED CERTIFIED PUBLIC ACCOUNTANTS JEROME P. LEWIS, CPA NATAN J. ROSEN, CPA JESSE A. KAISER, CPA PAUL J.GNATT, CPA CELSO T. MATAAC, JR, CPA PHILIP R. BAKER, CPA DOUGLAS A. DOWUNG, CPA BRLAN J. GIGANTI, CPA DAVID A. BROOKS, CPA CONSULTANT BENJAMIN F. REGARDIE(1897-1973) 7101 WISCONSIN AVENUE - BETHESDA, MARYLAND 20814 TEL (301) 654-9000 FAX (301) 656-3056 INDEPENDENT AUDITOR'S REPORT February 21, 1998 To the Partners, Friendship Village Limited Partnership Bethesda, Maryland We have audited the accompanying balance sheets of Friendship Village Limited Partnership as of December 31, 1997 and 1996, and the related statements of income, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards, Government Auditing Standards issued by the Comptroller General of the United States and the U. S. Department of Agriculture, - Farmers Home Administration Audit Program. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Friendship village Limited Partnership as of December 31, 1997 and 1996, and the results of its operations, changes in partners, capital, and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our reports dated February 21, 1998 on our consideration of Friendship Village Limited Partnership's internal controls and on its compliance with laws and regulations. Certified Public Accountants - - I - FLOYD & COMPANY Certified Public Accountant 132 Stephenson Avenue, Suite 202 Post Office, Box, 14251 Savannah, Georgia 31406 Savannah, Georgia 31416 Phone: (912) 355-9969 INDEPENDENT AUDITORS' REPORT To the General Partners of Hillmont Village Limited Partnership We have audited the accompanying balance sheets of Hillmont Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the related statements of operations, partners' equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hillmont Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1998 Schonwit & AssociatesCertified Public Accountants 575 Anton Boulevard, Suite 500, Costa Mesa, California 92626 (714) 437-1025 FAX (714) 957-1678 INDEPENDENT AUDITOR'S REPORT To the PartnersLa Gema Del Barrio, A California Limited Partnership I have audited the accompanying balance sheet of La Gema Del Barrio, A California Limited Partnership, as of December 31, 1997, and the related statements of operations, partners' equity, and cash flows for the year then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audit. I have previously audited and reported on the financial statements for the preceding year. I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion the accompanying financial statements referred to above present fairly, in all material respects, the financial position of La Gema Del Barrio, A California Limited Partnership as of December 31, 1997, and the results of its operations, the changes in partners' equity, and cash flows for the year then ended in conformity with generally accepted accounting principles. My audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 6 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. SCHONWIT & ASSOCIATES January 29, 1998 PLANTE & MORAN, LLP 1111 Michigan Avenue P.O. Box 2500 East Lansing, Michigan 48826-2500 Certified Public Accountants Management Consultants 517-332-6200 FAX 517-332-8502 Independent Auditor's Report To the PartnersLakeview Meadows Limited Dividend Housing Association Limited Partnership We have audited the accompanying balance sheet of Lakeview Meadows Limited Dividend Housing Association Limited Partnership (a Michigan limited partnership) MSHDA Development No. 874, as of December 31, 1997 and 1996, and the related statements of profit and loss, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lakeview Meadows Limited Dividend Housing Association Limited Partnership as of December 31, 1997 and 1996, and its profit and loss, partners' equity, and its cash flows for the years then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 16, 1998, on our consideration of the Partnership's internal controls and a report dated February 16, 1998, on its compliance with laws and regulations. February 16, 1998 Maner, Costerisan & Ellis, P.C. Certified Public Accountants Jack E. Powers, David M.Raeck Lawrence C.Kowalk, Robert E.Miller, Jr. Gary W.Brya, Steven B.Robbins, Lamonte T.Lator, Bruce J.Dunne Jeffrey C.Stevens, Walter P.Maner,Jr Linda I.Schirmer, Floyd L. Costerisan Steven W.Scott, Leon A.Ellis(1933 - 1988) INDEPENDENT AUDITORS'REPORT To the Partners February 20, 1998 Montague Place Limited Partnership Lansing, Michigan We have audited the accompanying balance sheet of Montague Place Limited Partnership as of December 31, 1997, and the related statements of net loss, partners' equity and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of Montague Place Limited Partnership as of December 31, 1996, were audited by other auditors whose report dated February 4, 1997, expressed an unqualified opinion on those statements. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in ail material respects, the financial position of Montague Place Limited Partnership as of December 31, 1997, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 20, 1998 on our consideration of the Partnership's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. 6105W St. Joseph Highway - Suite 202 -Lansing, Michigan, 48917-4848 - (517) 323-7500 -Fax (517) 323-6346 LAURIE A. LEE Certified Public Accountant 5446 Birchbrook Court, Las Vegas, Nevada 89120 Telephone: (702) 456-2162 INDEPENDENT AUDITORS REPORT To the Partners of Navapai Associates: I have audited the balance sheets of Navapai Associates, a Limited Partnership (the "Partnership") as of December 31, 1997 and 1996, and the related statements of operations, partners' capital, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. My Responsibility is to express an opinion on these financial statements based on my audit. I conducted my audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes accessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Partnership as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, I have also issued my reports dated February 14, 1998 on my consideration of the Partnership's internal control and on its compliance with laws and regulations. The accompanying supplementary information (beginning on page 10) is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statement. and, in my opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. February 14, 1998 Member: American institute of Certified Public Accountants and Nevada Society of Certified Public Accountants FLOYD & COMPANY Certified Public Accountant 132 Stephenson Avenue, Suite 202 Post Office, Box, 14251 Savannah, Georgia 31406 Savannah, Georgia 31416 Phone: (912) 355-9969 INDEPENDENT AUDITORS' REPORT To the General Partners of Oakland Village Limited Partnership We have audited the accompanying balance sheets of Oakland Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the related statements of operations, partners' equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Oakland Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1998 ROBERT ERCOLINI & COMPANY LLPCertified Public Accountants, Business Consultants INDEPENDENT AUDITOR'S REPORTTo the Partners ofRosenberg Building Associates Limited Partnership Boston, Massachusetts We have audited the accompanying balance sheets of Rosenberg Building Associates Limited Partnership as of December 31, 1997 and 1996, and the related statements of operations, partners' capital, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits statements are free of obtain reasonable assurance about whether the finance the amounts and material misstatement. An audit includes examining, on a test basis, evidence supporting disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Rosenberg Building Associates Limited Partnership as of December 31, 1997 and 1996, and the results of its operations, changes in partners' capital, and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information included in this report (shown on pages 19 and 20) is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. February 4, 1998 FIFFY-FIVE SUMMER STREET - BOSTON, MA 02110-1007 - TELEPHONE 617-482-5511 - Fax 617-426-5252 Coopers & Lybrand L.L.P. Report of Independent Accountants To the Partners Schroon Lake Housing Redevelopment Company We have audited the accompanying statements of financial position of Schroon Lake Housing Redevelopment Company (A Limited Partnership), as of December 31, 1997 and 1996, and the related statements of operations and partners' capital, changes in partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on the financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Schroon Lake Housing Redevelopment Company as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated January 19, 1998 on our consideration of Schroon Lake Housing Redevelopment Company's internal control structure and a report dated January 19, 1998 on its compliance with laws and regulations. Rochester, New York January 19, 1998 FRIEDMAN & FULLER, PC Certified Public Accountants Management Consultants 2400 Research Boulevard Suite 250 Rockville, Maryland 20850-3243 Telephone (301) 921-8000 INDEPENDENT AUDITOR'S REPORT To the Partners Stanardsville Village Limited Partnership RHS No. 54-48-541523939 North Main Street Stanardsville, Virginia 22973 We have audited the accompanying balance sheets of Stanardsville Village Limited Partnership, RHS No. 54-48-541523939 as of December 31, 1997 and 1996, and the related statements of operations, partners' capital (deficiency) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards and the Audit Program require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Stanardsville Village Limited Partnership, RHS No. 54-48-541523939 as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on pages 10 and 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. February 4, 1998 FLOYD & COMPANY Certified Public Accountant 132 Stephenson Avenue, Suite 202 Savannah, Georgia 31406 Post Office Box 14251 Savannah, Georgia 31416 Phone: (912) 355-9969 INDEPENDENT AUDITORS' REPORT To the General Partners of Summer Lane Limited Partnership We have audited the accompanying balance sheets of Summer Lane Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the related statements of operations, partners' equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Summer Lane Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1998 Witt, Mares & Company, PLC Certified Public Accountants and Consultants INDEPENDENT AUDITOR'S REPORT The Partners Victoria Limited Partnership We have audited the accompanying balance sheets of Victoria Limited Partnership (a Virginia Limited Partnership), as of December 31, 1997 and 1996, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. The financial statements as of December 31, 1996, were audited by Graham Carter & Jennings, PLC, who merged with Witt, Mares & Company, PLC as of December 1, 1997, whose report dated February 3, 1997 expressed an unqualified opinion on those statements. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Victoria Limited. Partnership as of December 31, 1997 and 1996, and the results of its operations, changes in partner's equity and cash flows for the years then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated February 12, 1998 on our consideration of Victoria Limited Partnership's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 17 and 18 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements take as a whole. Newport News, Virginia February 12, 1998 STANCIL & COMPANY INDEPENDENT AUDITORS' REPORT To the Partners of Village Terrace Limited Partnership Raleigh, North Carolina We have audited the accompanying balance sheets of Village Terrace Limited Partnership as of December 31, 1997 and 1996 and the related statements of operations, partners' capital, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Village Terrace Limited Partnership as of December 31, 1997 and 1996 and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Raleigh, North Carolina February 5, 1998 CERTIFIED PUBLIC ACCOUNTANTS MANAGEMENT CONSULTANTS STIENESSEN - SCHLEGEL & CO. LIMITED LIABILITY COMPANY CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's Report To the Partners Woodfield Commons Limited Partnership We have audited the accompanying balance sheets of Woodfield Commons Limited Partnership as of December 31, 1997 and 1996, and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Woodfield Commons Limited Partnership, as of December 31, 1997 and 1996, and the results of its operations, changes in partners' equity, and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 13 and 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. CERTIFIED PUBLIC ACCOUNTANTS January 26, 1998 2411 N. HILLCREST PARKWAY, P.O. BOX 810, EAU CLAIRE, WI 54702-0810 - PHONE(715) 832-3425 - FAX(715) 832-1665 - -I- CERTIFIED PUBLIC ACCOUNTANTS MAHONEY ULBRICH CHRISTIANSEN RUSS P.A. Suite 800 Capital Centre 386 North Wabasha Saint Paul, Minnesota 55102 To the Partners Zinsmaster Limited Partnership Minneapolis, Minnesota INDEPENDENT AUDITORS' REPORT We have audited the accompanying balance sheets of Zinsmaster Limited Partnership A Project No. 88-R-029) as of December 31, 1997 and 1996, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Zinsmaster Limited Partnership as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 11 through 17 is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Saint Paul, Minnesota January 23, 1998 Dulin, Ward & DeWald, Inc. Certified Public Accountants Offices located in Fort Wayne & Marion, Indiana Michael R. DeWeld Robert F. Meyer James R. Doty J. Nelson Coats Michael J. O'Brien Jeff A. Tanner Mark S. Westerhausen James E. Hindle, Jr. (1949 - 1994) INDEPENDENT AUDITOR'S REPORT To the Partners of Oakview Limited (A Limited Partnership) Corunna, Indiana We have audited the accompanying balance sheets of Oakview Limited (A Limited Partnership) as of December 31, 1996 and 1995, and the related statements of income, partners equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partner- ship's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by, the Controller General of the United States, and the U.S. Department of agriculture, Farmers Home Administration "Audit Program." Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as overall as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion the financial statements referred to above present fairly, in all material respects, the financial position of Oakview Limited (A Limited Partnership) as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the vears then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying expense analysis is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to The basic financial statements taken as a whole. In accordance with Government Auditing Standards, we have also issued a report dated January 23, 1997 on our consideration of Oakview Limited's internal control structure and a report dated January 23, 1997 on its compliance with laws and regulations. Fort Wayne, Indiana January 23, 1997 Our mission is to assist businesses, organizations and individuals in measuring, controlling and managing their financial success. 1610 Spy Run Avenue, Fort Wayne, Indiana 46805 219-423-2414 800-232-8913 219-423-2419 (Fax) McGLADREY & PULLEN,LLP Certified Public Accountants and Consultants INDEPENDENT AUDITOR'S REPORT To the Partners Westwood Square Limited Partnership Greensboro, North Carolina We have audited the accompanying balance sheets of Westwood Square Limited Partnership as of December 31, 1996 and 1995, and the related statements of income, partners' equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Westwood Square Limited Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 21, 1997 on our consideration of Westwood Square Limited Partnership's internal control structure and a report dated January 21, 1997 on its compliance with laws and regulations. Greensboro, North Carolina January 21, 1997 MCGLADREY & PULLEN, LLP Certified Public Accountants and Consultants INDEPENDENT AUDITOR'S REPORT To the Partners Deer Hill II Limited Partnership Greensboro, North Carolina We have audited the accompanying balance sheets of Deer Hill II Limited Partnership as of December 3 1, 1996 and 1995, and the related statements of income, partners' equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. e conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Deer Hill II Limited Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 21, 1997 on our consideration of Deer Hill II Limited Partnership's internal control structure and a report dated January 21, 1997 on its compliance with laws and regulations. Greensboro, North Carolina January 21, 1997 John G. Burk and Associates Certified Public Accountants A Professional Corporation 56 Court Street P.O. Box 705 Keene, New Hampshire 03431 (603) 357-4882 To the Partners of Beaver Brook Housing Associates Limited Partnership INDEPENDENT AUDITORS' REPORT We have audited the accompanying balance sheets of Beaver Brook Housing Associates (a Limited Partnership) (Case No. 34-06-020424443) as of December 31, 1996 and 1995 and the related statements of income and expense, partners' equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for-our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Beaver Brook Housing Associates (a Limited Partnership) at December 31, 1996 and 1995 and the results of its operations, its partners' equity (deficit) and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our reports dated January 22, 1997 on our consideration of Beaver Brook Housing Associates' internal control structure and on its compliance with laws and regulations. January 22, 1997 Dulin, Ward & DeWald, Inc Certified Public Accountants Offices Located in Fort Wayne and Marion, Indiana Michael R. DeWald Robert R. Meyer James R. Doty Nelson Coats Micheal J. O'Brien Jeff A. Tanner Mark S. Westerhausen James E. Hindle, Jr. (1949-1994) INDEPENDENT AUDITOR'S REPORT To the Partners of Brooklyn Limited (An Indiana Limited Partnership) Corunna, Indiana We have audited the accompanying balance sheets of Brooklyn Limited (An Indiana Limited Partnership) as of December 31, 1996 and 1995, and the related statements of 'income, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration "Audit Program." Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Brooklyn Limited (An Indiana Limited Partnership) as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 9 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. In accordance with Government Auditing Standards, we have also issued a report dated January 23, 1997 on our consideration of Brooklyn Limited's internal control structure and a report dated January 23, 1997 on its compliance with laws and regulations. Fort Wayne, Indiana January 23, 1997 Our mission is to assist businesses, organizations and individuals in measuring, controlling and managing their financial success. 1610 Spy Run Avenue, Fort Wayne, Indiana 46805 219-423-2414/800- 232-8913 219-423-2419 (Fax) Mary K. Flegal Certified Public Accountant INDEPENDENT AUDITOR'S REPORT To the Partners Fawn River Apartments I have audited the accompanying balance sheets of Fawn River Apartments (a partnership) Project #26-078-382856293 as of December 31, 1996 and 1995, and the related statements of operations, partners' deficit and cash flows for the years ended December 31, 1996 and 1995. These financial statements are the responsibility of the Project's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards and standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations, Programs, Activities and Functions, Issued by the U.S. General Accounting Office. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. The financial statements include only the assets, liabilities and operations of Fawn River Apartments Project #26-078-382856293 and do not include any other assets, liabilities or operations of the Partnership. In my opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities and partners' deficit of Fawn River Apartments Project #26-078-382856293 as of December 31, 1996 and 1995, and its operations, partners' deficit and cash flows for the years ended December 31, 1996 and 1995. In accordance with Government Auditing Standards, I have also issued a report dated January 17, 1997, on my consideration of Fawn River Apartments Project #26-078-38285693 internal control structure and a report dazed January 17, 1997, on its compliance with laws and regulations. MARY K. FLEGAL January 17, 1997 The Waters Edge, Second Floor - 5930 Lovers Lane Portage, Michigan 49002 Phone (616) 383-1900 SMITH, MILES & COMPANY, L.C. 1230 AERPORT ROAD CERTIFIED PUBLIC ACCOUNTANTS P.O. BOX 1177 PANAMA CITY, FLORIDA 32402 Phone:(904) 785-0261 Fax: (904) 785-0263 INDEPENDENT AUDITORS' REPORT To the Partners Fountain Green Apartments, Ltd. Panama City, Florida We have audited the accompanying balance sheets of Fountain Green Apartments, Ltd., Project No: 09-46-592948719, as of December 31, 1996 and 1995, and the related statements of operations, partners I equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Fountain Green Apartments, Ltd., as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information is presented for purposes of additional analysis and is not- a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Panama City, Florida February 6, 1997 BOWMAN & COMPANY, LLP Certified Public Accountants Herbert H. Bowman Telephone: 209/473-1040 Bruce G. Bentz Lodi: 209/333-0540 Taylor M. Welz Fax: 209/473-9771 Kathleen D. O'Brien 2431 West March Lane Gary R. Daniel Suite 100 Daniel E. Phelps Stockton, California 95207-6598 Member Of Aicpa Division Of Firms Private Companies Practice Section INDEPENDENT AUDITORS'REPORT To the Partners Glennwood Hotel investors (A California Limited Partnership) Sacramento, California We have audited the accompanying balance sheets of Glennwood Hotel Investors (A California Limited Partnership) as of December 31, 1996 and 1995, and the related statements of income, partners' equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Glennwood Hotel Investors (A California Limited Partnership) as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Stockton, California January 27, 1997 OSCAR N. HARRIS & ASSOCIATES, P.A. Certified Public Accountants Oscar N. Harris, C.P.A. Sherry S. Johnson, C.P.A. Kenneth E. Milton, C.P.A. Connie P. Stancil, C.P.A. Members: American Institute of CPAs - North Carolina Association of CPAs INDEPENDENT AUDITOR?S REPORT To the Partners of Grifton Housing Associates, A NC Limited Partnership Charlotte, North Carolina We have audited the balance sheets of Grifton Housing Associates, A NC Limited Partnership as of December 31, 1996 and 1995, and the related statements of partners, capital, income, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards, Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Grifton Housing Associates, A NC Limited Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 31, 1997 on our consideration of Grifton Housing Associates, a NC Limited Partnership's internal control structure and a report dated January 31, 1997 on its compliance with laws and regulations. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. Schedules 1, 2, 3, and 4 on pages 15, 16, 17, and 18 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Certified Public Accountants January 31, 1997 100 EAST CUMBERLAND STREET, P.O. BOX 578 DUNN, N.C. 28335 (910) 892-1021 FAX (910) 892-6084 LOUIS YOUNG C.P.A. INC. 2630 E. ASHLAN - FRESNO, CALIFORNIA 93726 (209) 224-5141 INDEPENDENT AUDITOR'S REPORT The PartnersHacienda Villa AssociatesFirebaugh, California We have audited the accompanying balance sheet of Hacienda Villa Associates (A Limited Partnership) as of December 31, 1996, and the related statements of operations, partners' capital and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In cur opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hacienda Villa Associates (a Limited Partnership) as of December 31, 1996, and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 14 and 15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Louis Young CPA Inc. Fresno, California February 14, 1997 LOUIS YOUNG C.P.A. INC. 2630 E ASHLAN, FRESNO, CALIFORNIA 93726 (209) 224-5141 Louis Young CPA Jason Liao CPA INDEPENDENT AUDITOR'S REPORT The Partners Hacienda Villa Associates Firebaugh, California We have audited the accompanying balance sheet of Hacienda Villa Associates (A Limited Partnership) as of December 31, 1995, and the related statements of operations, partners' capital and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hacienda Villa Associates (a Limited Partnership) as of December 31, 1995, and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 14 and 15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Louis Young CPA Inc. Fresno, California February 15, 1996 McGee & Associates, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners Kristin Park Apartments, Ltd. and Rural Housing Service We have audited the accompanying balance sheets of Kristin Park Apartments, Ltd. (a limited partnership) as of December 31, 1996 and 1995, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Kristin Park Apartments, Ltd. as of December 31, 1996 and 1995, and the results of its operations, changes in partners' equity and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 16, 1997, on our consideration of the Partnership's internal control structure and a report dated January 16, 1997, on its compliance with laws and regulations. Our audits were conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental information included in the report is presented for purposes of additional analysis and is not a required part of the financial statements of Kristin Park Apartments, Ltd. Such information has been subjected to the auditing procedures applied in the audits of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. January 16, 1997 Farmington, New Mexico Burke & Rea Edward T. Burke, C.P.A Bernard E. Rea, C.P.A To the Partners Maywood Associates, Ltd (A California Limited Partnership) Cheyenne, WY We have audited the accompanying balance sheets of Maywood Associates, Ltd. (A California Limited Partnership), USDA Rural Development Case No. 04-052-680184284, as of December 31, 1996 and 1995 and the related statements of income, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and accounting principles used and significant estimates made by management as well as evaluting the overall financial statement presentation. We believe that our audits provide a reasonable basis of our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Maywood Associates, Ltd. (A California Limited Partnership) as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated March 25, 1997 on our consideration of Maywood Associates, Ltd.'s internal control structure and a report dated March 25, 1997 on its compliance with laws and regulations. Burke & Rea Stockton, California March 25, 1997 P.O. Box 4632 Stockton, CA 95204 Telephone 209/933-9113 Fax 209/933-9115 FLOYD & COMPANY Certified Public Accountant 306 Commercial Drive, Suite 202 Post Office Box 14251 Savannah, Georgia 31406 Savannah, Georgia 31416 Phone: (912) 355-9969 INDEPENDENT AUDITORS' REPORT To the General Partners of Meadow Run Limited Partnership We have audited the accompanying balance sheets of Meadow Run Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the related statements of operations, partners equity deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. The financial statement information for the year ending December 31, 1995 was audited by another independent certified public accountant who expressed an unqualified opinion dated March 16, 1996. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects the financial position of Meadow Run Limited Partnership p a Georgia Limited Partnership,), as of December 31, 1996 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1997 Dauby O'Connor & Zaleski A Limited Liability Company Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners Pedcor Investments 1989-VIII, L.P. We have audited the accompanying balance sheets of Pedcor Investments 1989- VIII, L.P. as of December 31, 1996 and 1995, and the related statements of loss, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Pedcor Investments 1989-VIII, L.P. as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. The accompanying information is presented for additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the same auditing procedures applied in the audits of the basic financial statements and, in our opinion, is presented fairly in all material respects in relation to the basic financial statements taken as a whole. Indianapolis, Indiana Dauby O'Connor & Zaleski, LLC January 14, 1997 Certified Public Accountants 8395 Keystone Crossing, Suite 203 Indianapolis, Indiana 46240 317-259-6857 Fax: 317-259-6861 STANCIL & COMPANY INDEPENDENT AUDITORS' REPORT To the Partners of Quail Hollow Associates Raleigh, North Carolina We have audited the balance sheets of Quail Hollow Associates (a limited partnership) as of December 31, 1996 and 1995 and the related statements of income (loss), partners' capital (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Quail Hollow Associates as of December 31, 1996 and 1995 and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 14, 1997 on our consideration of Quail Hollow Associates' internal control structure and a report dated February 14, 1997 on its compliance with laws and regulations. Our audits was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 11 through 16 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Raleigh, North Carolina February 14, 1997 CERTIFIED PUBLIC ACCOUNTANTS - MANAGEMENT CONSULTANTS 1055 Dresser Court Raleigh, North Carolina 27609 Tel: 919/872-1260 Fax: 919/872-6182 Jack M. Stancil Reginald L. Dupree Henry L. White Schonwit & Associates Certified Public Accountant 575 Anton Boulevard, Suite 500 Costa Mesa, California 92626 (714) 437-1025 Fax (714) 957-1678 INDEPENDENT AUDITOR'S REPORT To the Partners Raitt Street Apartments, A California Limited Partnership I have audited the accompanying balance sheet of Raitt Street Apartments, A California Limited Partnership, as of December 31, 1996, and the related statements of operations, partners' equity, and cash flows for the year then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audit. The financial statements of Raitt Street Apartments, A California Limited Partnership, for the year ended December 31, 1995, as presented herein, were examined by another auditor whose report dated April 4, 1996, expressed an unqualified opinion on those statements. I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion the accompanying financial statements referred to above present fairly, in all material respects, the financial position of Raitt Street Apartments, A California Limited Partnership as of December 31, 1996, and the results of its operations, the changes in partners' equity, and cash flows for the year then ended in conformity with generally accepted accounting principles. My audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 6 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to theauditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. SCHONWIT & ASSOCIATES February 14, 1997 Virchow, Krause & Company, LLP Certified Public Accountants & Consultants INDEPENDENT AUDITORS' REPORT To the Partners School Street Limited Partnership II Madison, Wisconsin We have audited the accompanying balance sheet of School Street Limited Partnership II as of December 31, 1995, and the related statements of loss, partners' equity and cash flows for the year then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of School Street Limited Partnership 11 as of December 31, 1995, and the results of its operations, changes in partners' equity and cash flows for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental information found on page 12, included in the report, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is presented fairly in all material respects in relation to the basic financial statements taken as a whole. Page 1 To the Partners School Street Limited Partnership II The financial statements of School Street Limited Partnership II for the year ended December 31, 1994 were audited by other accountants, whose report dated January 24, 1995 stated that they were not aware of any material modifications that should be made to those statements in order for them to be in conformity with generally accepted accounting principles. VIRCHOW, KRAUSE & COMPANY, LLP Madison, Wisconsin January 18, 1996 BAKER NEWMAN & NOYES Limited Liability Company Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners South Paris Heights Associates (A Limited Partnership) We have audited the accompanying balance sheets of South Paris Heights Associates (A Limited Partnership) as of December 31, 1996 and 1995, and the related statements of operations, changes in partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of South Paris Heights Associates (A Limited Partnership) as of December 31, 1996 and 1995, and the results of its operations, and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 23, 1997 on our consideration of the internal control structure of the Partnership and a report dated January 23, 1997 on its compliance with laws and regulations. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying additional information is presented solely for the use of the Farmers Home Administration and is not a required part of the basic financial statements. Part I of the Multiple Family Housing Borrower Balance Sheet, Form FmHA 1930-8 and Column 2 (Actual), Parts I, II and III of the Multiple Family Housing Project Budget, Form FmHA 1930-7, have been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. We have not audited Parts IV, V, and VI, and Columns 1 and 3 (Current Budget and Proposed Budget) of Parts I, II and III of Form FmHA 1930-7, and, accordingly, express no opinion thereon. January 23, 1997 Limited Liability Company One Hundred Middle Street, P.O. Box 507, Portland, Maine 04112 Telephone 207-879-2100 Telefax 207-774-1793 Bender, Weltman, Thomas & Co. Certified Public Accountants 1067 North Mason Road, Suite 7 St. Louis MI. 63141-6341 (314) 576-1350 Fax (314) 576-9650 WILLIAM J.BENDER JOEL W.WELTMAN JATAES R.THOIAAS GERALD O.MAGRUOER Independent Auditors Report To The Partners Springfield Housing Associates, L.P. Springfield, Illinois We have audited the accounting balance sheets of Springfield Housing Associates, L.P., a (limited partnership) as of December 31, 1996 and 1995, and the related statements of operations, partners' capital, and cash flows for the years then ended. These statements are the responsibility of the Partnership's management. We conducted an audit in accordance with generally accepted auditing standards. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Springfield Housing Associates, L.P. (A limited partnership), as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Bender, Weltman, & Thomas & Co., CPA February 24, 1997 THOMAS C. CUNNINGHAM, CPA PC 23 Moore Street Bristol, Virginia 24201 (540)669-5531 (540)669-5576 fax INDEPENDENT AUDITOR'S REPORT To the Partners Tappahannock Greens Limited Partnership I have audited the accompanying balance sheets of Tappahannock Greens Limited Partnership, FmHA Case No.: 54-036-0541621981, as of December 31, 1996 and 1995, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant. estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Tappahannock Greens Limited Partnership, as of December 31, 1996 and 1995 and the results of its operations, changes in partners' equity and cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. In accordance with Government Auditing Standards, I have also issued a report dated February 15, 1997 on my consideration of Tappahannock Greens Limited Partnership's internal control structure and a report dated February 15, 1997 on its compliance with laws and regulations applicable to the financial statements. Thomas C. Cunningham, CPA PC Bristol, Virginia February 15, 1997 SMITH, MILES & COMPANY, L.C. 1230 RT ROAD CERTIFIED PUBLIC ACCOUNTANS P.O. BOX 1177 PANAMA CITY, FLORIDA 32402 Phone:(904) 785-0261 Fax: (904) 785-0263 INDEPENDENT AUDITORS' REPORT To the Partners Village Oaks Apartments II, Ltd. Panama City, Florida We have audited the accompanying balance sheets of Village Oaks Apartments, II, Ltd., FMRA Project No: 09-061-0592884971, as of December 31, 1996 and 1995, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership I s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditors Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Village Oaks Apartments II, Ltd., as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in :relation to the basic financial statements taken as a whole. Panama City, Florida February 6, 1997 FLOYD & COMPANY Certified Public Accountant 306 Commercial Drive, Suite 202 Georgia 31406 Post Office Box 14251 Savannah, Georgia 31416 Phone: (912) 355-9969 INDEPENDENT AUDITORS' REPORT To the General Partners of Autumn Lane Limited Partnership We have audited the accompanying balance sheets of Autumn Lane Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the related statements of operations, partners equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnerships management. our responsibility is to express an opinion on these financial statements based on our audits. The financial statement information for the year ending December 31, 1995 was audited by another independent certified public accountant who expressed and unqualified opinion dated March 16, 1996. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Autumn Lane Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1997 FLOYD & COMPANY Certified Public Accountant 306 Commercial Drive, Suite 202 Georgia 31406 Post Office Box 14251 Savannah, Georgia 31416 Phone: (912) 355-9969 INDEPENDENT AUDITORS' REPORT To the General Partner; of Ellaville Properties Limited Partnership We have audited the accompanying balance sheets of Ellaville Properties Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the related statements of operations, partners, equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statement information for the year ending December 31, 1995 was audited by another independent certified public accountant who expressed and unqualified opinion dated March 16, 1996. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles- used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Ellaville Properties Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Flood & Company, CPA February 28, 1997 Byrd, Smalley, Evans, Adams, & Johnson, P.C. Certified Public Accountants 237 Johnson Street S.E. P.O. Box 2179 Decatur, AL 35602-2179 (205) 353-1611 Fax (205) 353-1578 Larry O. Byrd, CPA Timothy Smalley, CPA Stan A. Evans, CPA John R. Adams, CPA Ray Johnson, CPA James A. Craig, CPA Penny L. Smith, CPA Lisa A. Nuss, CPA Julie S. Redmond, CPA Angie A. Harris, CPA Laura S. Berry, CPA Kerry A. Burroughs, CPA We have audited the accompanying balance sheets of Housing Investors Athens II, Ltd Partnership as of December 31, 1996 and 1995, and the related statements of operations, partners, capital, and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget Circular A-133, "Audits of Institutions of Higher Education and Other Nonprofit institutions.,, Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, an a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Housing investors Athens II, Ltd., as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 28, 1997 on our consideration of Housing Investors Athens II, Ltd's internal control structure and a report date February 28, 1997 an its compliance with laws and regulations. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplementary information is presented for purposes of additional analysis and is not a recruited part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. February 28, 1997 Burke & Rea Edward T. Burke, C.P.A Bernard E. Rea, C.P.A To the Partners Maidu Properties (A California Limited Partnership) Rocklin, California We have audited the accompanying balance sheets of Maidu Properties (A California Limited Partnership), as of December 31, 1996 and 1995 and the related statements of income, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis of our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Maidu Properties (A California Limited Partnership) as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information for the years ended December 31, 1996 and 1995, on pages 13 and 14, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Burke & Rea Stockton, California April 4, 1997 P.O. Box 4632 Stockton, CA 95204 Telephone 209/933-9113 Fax 209/933-9115 FLOYD & COMPANY Certified Public Accountant 306 Commercial Drive, Suite 202 Georgia 31406 Post Office Box 14251 Savannah, Georgia 31416 Phone: (912) 355-9969 INDEPENDENT AUDITORS' REPORT To the General Partners of Meadowbrook Properties II Limited Partnership We have audited the accompanying balance sheets of Meadowbrook Properties II Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the related statements of operations, partners, equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statement information for the year ending December 31, 1995 was audited by another independent certified public accountant who expressed and unqualified opinion dated March 16, 1996. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Meadowbrook Properties II Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1997 Dauby O'Connor & Zaleski A Limited Liability Company Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners Pedcor Investments 1989-X, L.P. We have audited the accompanying balance sheets of Pedcor Investments 1989-X, L.P. as of December 31, 1996 and 1995, and the related statements of loss, partners, equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Pedcor Investments 1989-X, L.P. as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. The accompanying information is presented for additional analysis and is not a required part of the basic financial statements. Such Information has been subjected to the same auditing procedures applied in the audits of the basic financial statements and, in our opinion, is presented fairly in all material respects in relation to the basic financial statements taken as a whole. Indianapolis, Indiana Dauby O'Connor & Zaleski, LLC January 17, 1997 Certified Public Accountants 8395 Keystone Crossing, Suite 203 Indianapolis, Indiana 46240 317-259-6857 Fax: 317-259-6861 FLOYD & COMPANY Certified Public Accountant 306 Commercial Drive, Suite 202 Georgia 31406 Post Office Box 14251 Savannah, Georgia 31416 Phone: (912) 355-9969 INDEPENDENT AUDITORS' REPORT To the General Partners of Rosewood Village Limited Partnership We have audited the accompanying balance sheets of Rosewood Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the related statements of operations, partners' equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. The financial statement information for the year ending December 31, 1995 was audited by another independent certified public accountant who expressed and unqualified opinion dated March 16, 1996. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Rosewood Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd Company, CPA February 28, 1997 KOSTIN, RUFFKESS & COMPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS 345 North Main Street West Hartford, CT 06117-2521 (860) 236-1975 Toll Free: (800) 286-5726 FAX: (860) 236-1783 260 U.S. Route #1 Bank Building New London, CT 06320-2608 (860) 447-1235 FAX: (860) 442-0166 To The PartnersSouth Farm Limited PartnershipRIHMFC #HIP-023 INDEPENDENT AUDITORS'REPORT We have audited the accompanying balance sheet of South Farm Limited Partnership, as of March 31, 1997, and the related statements of income and expense, changes in partners' capital and cash flows for the year then ended. These financial statements are the responsibility of the Project's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of South Farm Limited Partnership at March 31, 1997, and the results of its operations and cash flows for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards and the Consolidated Audit Guide for Audits of HLTD Programs, issued by the U.S. Department of Housing and Urban Development we have also issued a report dated May 9, 1997 on our consideration of South Farm Limited Partnership's internal control structure and a report dated May 9, 1997 on its compliance with laws and regulations. South Farm Limited Partnership Page Two Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The supplementary information contained in Schedules 1 through 20 is presented for the purpose of additional analysis and is not a required part of the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, the supplementary information is fairly presented in all material respects in relation to the basic financial statements taken as a whole. West Hartford, Connecticut May 9, 1997 KOSTIN, RUFFKESS & COMPANY, LLCCERTIFIED PUBLIC ACCOUNTANTS 345 North Main Street West Hartford, CT 06117-2521 (860) 236-1975 Toll Free: (800) 286-5726 FAX: (860) 236-1783 To The PartnersSouth Farm Limited PartnershipRIHMFC #HIP-023 INDEPENDENT AUDITORS' REPORT We have audited the accompanying balance sheet of South Farm Limited Partnership, as of March 31, 1996, and the related statements of income and expense, changes in partners' capital and cash flows for the year then ended. These financial statements are the responsibility of the Project's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of South Farm Limited Partnership at March 31, 1996, and the results of its operations and cash flows for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards and the Consolidated Audit Guide for Audits of HUD Programs, issued by the U.S. Department of Housing and Urban Development, we have also issued a report dated June 4, 1996 on our consideration of South Farm Limited Partnership's internal control structure and a report dated June 4, 1996 on its compliance with laws and regulations. South Farm Limited PartnershipPage Two Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The supplementary information contained in Schedules 1 through 19 is presented for the purpose of additional analysis and is not a required part of the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, the supplementary information is fairly presented in all material respects in relation to the basic financial statements taken as a whole. West Hartford, Connecticut June 4, 1996 GWEN WARD, P.C. CERTIFIED PUBLIC ACCOUNTANT 609 UNIVERSITY DRIVE FORT WORTH, TEXAS 76107 (817) 336-588 MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS TEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's Report To the Partners of Aspen Square, L. P. Tazewell, Virginia I have audited the accompanying balance sheets of Aspen Square, L.P., as of December 31, 1996 and 1995, and the related statements of operations, partners, equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Aspen Square, L.P., as of December 31, 1996 and 1995, and the results of its operations, changes in partners' equity (deficit) and cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page I-17 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material re in relation to the basic financial statements taken as Fort Worth, Texas March 21, 1997 I-3 McGee & Associates, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners Buckeye Senior, Ltd. and Rural Housing Service We have audited the accompanying balance sheets of Buckeye Senior, Ltd. (a limited partnership) as of December 31, 1996 and 1995, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Buckeye Senior, Ltd. as of December 31, 1996 and 1995, and the results of its operations, changes in partners' equity and cash flows for the years then ended in conformity with generally accepted accounting principles. In Accordance with Government Auditing Standards, we have also issued a report dated January 13, 1997, on our consideration of the Partnership's internal control structure and a report dated January 13, 1997, on its compliance with laws and regulations. Our audits were conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental information included in the report is presented for purposes of additional analysis and is not a required part of the financial statements of Buckeye Senior, Ltd. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. January 13, 1997 Farmington, New Mexico GWEN WARD, PC. CERTIFIED PUBLIC ACCOUNTANT 609 UNIVERSITY DRIVE FORT WORTH TEXAS 76107 (817) 336-5880 MEMBER TEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's Report To the Partners of Copper Creek, L.P. I have audited the accompanying balance sheets of Copper Creek, L.P. as of December 31, 1996 and 1995, and the related statements of operations, partners equity (deficit) and cash flows or the years then ended. These financial statements are the responsibility of the partnership' s management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Copper Creek, L.P. as of December 31, 1996 and 1995, and the results of its operations, changes in partners I equity (deficit) and cash f lows f or the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page I-17 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Fort Worth, Texas March 21, 1997 Clifton Gunderson L.L.C. Certified Public Accountants & Consultants INDEPENDENT AUDITOR'S REPORT To the Partners Coronado Housing Limited Partnership We have audited the accompanying balance sheets of Coronado Housing Limited Partnership as of December 31, 1996 and 1995 and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Coronado Housing Limited Partnership as of December 31, 1996 and 1995 and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The accompanying supplemental information for the years ended December 31, 1996 and 1995 has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Tucson, Arizona February 4, 1997 Members of Nexia International American Institute Of Certified Public Accountants Arizona Colorado Illinois Indiana Iowa Maryland Missouri Ohio Texas Virginia Wisconsin Kay L. Bowen & Associates Certified Public Accountant, P.C. Phone (801) 627-0825 Fax (801) 627-0829 3710 Quincy Avenue Ogden, Utah 84403 Kay L. Bowen, President Shari B. Johnson, CPA Member of the American Institute of Certified Public Accountants INDEPENDENT AUDITOR?S REPORT We have audited the accompanying balance sheet of Franklin School Associates, as of December 31, 1996 and 1995, and the related statements of income and cash flows and change an partners' equity for the years then ended. These financial statements are the responsibility of the project's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides reasonable basis for our opinion. In our opinion, the financial statements referred to present fairly, in all material respects, the financial position of Franklin School Apartments, as of December 31, 1996 and 1995, and the results of its operations, change in partners' equity, and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards and the Consolidated Audit Guide for Audits of HUD Programs issued by the U.S. Department of Housing and Urban Development, we have also issued a report dated March 5, 1997, on our consideration of Franklin School Associate's internal control structure, and reports dated March 5, 1997, on its compliance with specific requirements applicable to non-major HUD programs and specific requirements applicable to Affirmative Fair Housing. Ogden, Utah March 5, 1997 Kay L. Bowen, CPA, President Kay L. Bowen & Associates, P.C. Federal I.D. #87-0448933 TAMA AND BUDAJ, P.C. Certified Public Accountants 32783 Middlebelt Road Farmington Hills, Michigan 48334-1726 (810) 626-3800 Fax (810) 626-2276 ELY TAMA, CPA JEFFREY F. BUDAJ. CPA BARTON A. LOWEN, CPA EMIL A. RAAB, CPA DIANE L. ISAACS, CPA JOHN W. WEIPERT, CPA SEAN M. DONOVAN, CPA American, Michigan, Florida & South Carolina Institutes of CPAs INDEPENDENT AUDITOR'S REPORT To the Partners of The Harbor View Group, Ltd. We have audited the accompanying balance sheet of THE HARBOR VIEW GROUP, LTD. as of December 31, 1996 and 1995, and the related statements of operations, changes in partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the general partner and management of the partnership. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly in all material respects, the financial position of THE HARBOR VIEW GROUP, LTD., as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying information listed in the table of contents is presented for the purpose of p additional analysis and is not a required part of the basic financial statements. This accompanying information is the responsibility of the partnership's management. Such information, except for the portion marked "unaudited" on which we express no opinion, has been subjected to the auditing procedures applied in our audit of the basic financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole. TAMA AND BUDAJ, P.C. Farmington Hills, Michigan January 31, 1997 James L. Caughren Certified Public Accountant P.O. Box 36014 Albuquerque, NM 87176 Report of Independent Certified Public Accountants To the Partners Hilltop Apartments Limited Partnership We have audited the balance sheet of Hilltop Apartments Limited Partnership (a New Mexico limited partnership) as of December 31, 1996 and 1995, and the related statements of operations, partners I capital, and cash f lows f or the years then ended. All information included in these financial statements is the responsibility of the Company's management. Our responsibility is to express an opinion on the financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards Require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hilltop Apartments Limited Partnership as of December 31, 1996 and 1995, and the results of its operations and cash flows for the years then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our reports dated May 30, 1997 on our consideration of Hilltop Apartments Limited Partnership internal control and on its compliance with laws and regulations. May 30, 1997 MUELLER, WALLA & ALBERTSON, P.C. Certified Public Accountants 10714 Manchester Road Suite 202 Kirkwood, Missouri 63122 (314) 822-6575 INDEPENDENT AUDITORS' REPORT The Partners Licking Associates II, L.P. Licking, Missouri We have audited the accompanying balance sheets of Licking Associates II, L.P. (a limited partnership) as of December 31, 1996 and 1995, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Licking Associates II, L.P. as of December 31, 1996 and 1995, and the results of its operations, changes in partners' capital and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information included on page 12 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. Mueller, Walla & Albertson, P.C. Certified Public Accountants January 16, 1997 Burke & Rea Edward T. Burke, C.P.A Bernard E. Rea, C.P.A To the Partners Maidu Properties (A California Limited Partnership) Rocklin, California We have audited the accompanying balance sheets of Maidu Properties (A California Limited Partnership), as of December 31, 1996 and 1995 and the related statements of income, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis of our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Maidu Properties (A California Limited Partnership) as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information for the years ended December 31, 1996 and 1995, on pages 13 and 14, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Burke & Rea Stockton, California April 4, 1997 P.O. Box 4632 Stockton, CA 95204 Telephone 209/933-9113 Fax 209/933-9115 FLOYD & COMPANY Certified Public Accountant 306 Commercial Drive, Suite 202 Savannah, Georgia 31406 Post Office Box 14251 Savannah, Georgia 31416 Phone:(912) 355-9969 INDEPENDENT AUDITORS' REPORT To the General Partners of Manning Properties Limited Partnership We have audited the accompanying balance sheets of Manning Properties Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the related statements of operations, partners equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. The financial statement information for the year ending December 31, 1995 was audited by another independent certified public accountant who expressed and unqualified opinion dated March 16, 1996. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Manning Properties Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1997 Charles Bailly & Company P.L.L.P. Certified Public Accountants Consultants INDEPENDENT AUDITOR?S REPORT The Partners RPI Limited Partnership #18 St. Paul, Minnesota We have audited the accompanying balance sheets of RPI Limited Partnership #18, FmHA Project Number: 18-18-411649005, as of December 31, 1996 and 1995, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United states. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates-made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion the financial statements referred to above present fairly, in all material respects, the financial position of RPI Limited Partnership #18 as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 12, 1997 on our consideration of RPI Limited Partnership #18?s internal control structure and a report dated February 12, 1997 on its compliance with laws and regulations. Fargo, North Dakota February 12, 1997 GWEN WARD, P.C. CERTIFIED PUBLIC ACCOUNTANT 609 UNIVERSITY DRIVE FORT WORTH TEXAS 76107 (817) 336-5880 MEMBER MEMBER AMERICAN INSTITUTE OF TEXAS SOCIETY OF CERTIFIED CERTIFIED PUBLIC ACCOUNTANTS PUBLIC ACCOUNTANTS Independent Auditor's Report To the Partners of Sierra Springs, L.P. I have audited the accompanying balance sheets of Sierra Springs, L.P. as of December 31, 1996 and 1995, and the related statements of operations, partners, equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements ref erred to above present fairly, in all material respects, the financial position of Sierra Springs, L.P. as of December 31, 1996 and 1995, and the results of its operations, changes in partners' equity (deficit) and cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages I-17 and I-18 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Fort Worth, Texas March 24, 1997 Thompson, Derrig & Slovacek A Professional Corporation of Certified Public Accountants 4500 Carter Creek Parkway Suite 201 Bryan, Texas 77802-4456 (409)260-9696 - FAX (409)260-9683 Woody Thompson, CPA/CFP Andrea Derrig, CPA Ed Slovacek, CPA/CFP Sharla Akin, CPA Alline Briers, CPA Gay Vick Craig, CPA Ronnie Craig, CPA Alice Monroe, CPA Marian Rose Varisco, CPA INDEPENDENT AUDITORS' REPORT February 26, 1997 To the Partners South Fork Heights Limited Partnership We have audited the accompanying balance sheets of South Fork Heights Limited Partnership (a Colorado limited partnership), as of December 31, 1996 and 1995 and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan, and perform the audits to obtain reasonable assurance about whether the financial statements are free of "Material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of South Fork Heights Limited Partnership as of December 31, 1996 and 1995 and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 16 through 27 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information presented in the Year End Report/Analysis (Form FmHA 1930-8) Parts I through III and Project Budget(Form FmHA 1930-7) for year ended December 31, 1996, is presented for purposes of complying with the requirements of the Farmers Home Administration and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Thompson, Derrig & Slovacek, P.C. Certified Public Accountants Smith, Miles & Company, L.C. 1230 Airport Road P.O. BOX 1177 PANAMA City, Florida 32402 Phone:(904) 785-0261 Fax:(904) 795-0263 INDEPENDENT AUDITORS' REPORT To the Partners Wildridge Apartments, Ltd. Panama City, Florida We have audited the accompanying balance sheets of Wildridge Apartments, Ltd., Project No: 11-51-592863964, as of December 31, 1996 and 1995, and the :related statements of operations, partners, equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also Includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Wildridge Apartments, Ltd., as of December 31, 1996 and 1995, and the results of Its operations and Its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, In our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Panama City, Florida January 30, 1997 McGLADREY & PULLEN, LLP Certified Public Accountants and Consultants INDEPENDENT AUDITOR'S REPORT To the Partners Academy Hill Limited Partnership Greensboro, North Carolina We have audited the accompanying balance sheets of Academy Hill Limited Partnership as of December 31, 1995 and 1994, and the related statements of income, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes e g, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Academy Hill Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 23, 1996 on our consideration of Academy Hill Limited Partnership's internal control structure and a report dated January 23, 1996 on its compliance with laws and regulations. Greensboro, North Carolina January 23, 1996 FLOYD & COMPANY Certified Public Accountant 306 Commercial Drive, Suite 202 Savannah, Georgia 31406 Phone:(912) 355-9969 Post Office Box 14251 Savannah, Georgia 31416 INDEPENDENT AUDITORS' REPORT To the General Partners of Bowman Village Limited Partnership We have audited the accompanying balance sheets of Bowman Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the related statements of operations, partners' equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to ex an opinion on these financial statements based on our audits. The financial statement information for the year ending December 31, 1995 was audited by another independent certified public accountant who expressed and unqualified opinion dated March 16, 1996. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Bowman Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1997 GWEN WARD, P.C. CERTIFIED PUBLIC ACCOUNTANT 609 UNIVERSITY DRIVE FORT WORTH TEXAS 76107 (817) 336-5880 MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER TEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's Report To the Partners of Cananche Creek, L.P. I have audited the accompanying balance sheets of Cananche Creek, L.P., as of December 31, 1996 and 1995, and the related statements of operations, partners, equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cananche Creek, L.P., as of December 31, 1996 and 1995, and the results of its operations, changes in partners' equity (deficit) and its cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page I-17 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material in relation to the basic financial statements taken as a whole. Fort Worth, Texas March 21, 1997 STEWART AND KERR, PA Certified Public Accountants 6817 Falls of Neuse Road, Suite 106 Raleigh, North Carolina 27615 (919) 676-3115 Fax: (919)676-3866 Robert E. Stewart Duncan J. Kerr Jayne D. Jungen Stanley I. Hofmeister American Institute of CPAs - North Carolina Association of CPAs INDEPENDENT AUDITORS REPORT To the Partners of Partners Hunters Park Limited Partnership Raleigh, North Carolina We have audited the accompanying balance sheets of Hunters Park Limited Partnership, as of December 31, 1996 and 1995 and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hunters Park Limited Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 17, 1997 on our consideration of Hunters Park Limited Partnership's internal control structure and a report dated January 17, 1997 on its compliance with laws and regulations. Our audits were conducted for the purpose of forming an opinion on the 1996 and 1995 financial statements taken as a whole. The accompanying information on pages 11-12 is presented for the purpose of additional analysis and is not a required part of the financial statements of Hunters Park Limited Partnership. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly presented in all material respects in relation to the financial statements taken as a whole. Raleigh, North Carolina January 17, 1997 SMITH, MILES & COMPANY, L.C. CERTIFIED PUBLIC ACCOUNTANTS 1230 AIRPORT ROAD P.O. BOX 1177 PANAMA CITY, FLORIDA 32402 Phone:(904) 785-0261 Fax (904) 785-0263 INDEPENDENT AUDITORS' REPORT To the Partner's Lakeridge Apartments of Eufaula, Ltd. Panama City, Florida We have audited the accompanying balance sheets of Lakeridge Apartments of Eufaula, Ltd., Project No: 01-0030592933800, as of December 31, 1996 and 1995, and the related statements of operations, partnership equity (deficit) and cash flows for the years then ended. These financial statements axe the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits In accordance with generally accepted auditing standards and Government Auditing Standards Issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit Includes mining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also Includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lakeridge Apartments of Eufala, Ltd. as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in Conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the account procedures applied In the audit of the basic financial statements and, In our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Panama City, Florida February 7, 1997 FLOYD & COMPANY Certified Public Accountant 306 Commercial Drive, Suite 202 Savannah, Georgia 31406 Phone:(912) 355-9969 Post Office Box 14251 Savannah, Georgia 31416 INDEPENDENT AUDITORS' REPORT To the General Partners of Laurel Village Limited Partnership We have audited the accompanying balance sheets of Laurel Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the related statements of operations, partners' equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. The financial statement information for the year ending December 31, 1995 was audited by another independent certified public accountant who expressed and unqualified opinion dated March 16, 1996. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Laurel Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1997 McGEE & Associates, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners Los Caballos II, Ltd. and Rural Housing Service We have audited the accompanying balance sheets of Los Caballos II, Ltd. (a limited partnership) as of December 31, 1996 and 1995, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Los Caballos II, Ltd. as of December 31, 1 996 and 1 995, and the results of its operations, changes in partners' equity and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards we have also issued a report dated January 17, 1997, on our consideration of the Partnership's internal control structure and a report dated January 17, 1997, on its compliance with laws and regulations. Our audits were conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental information included in the report is presented for purposes of additional analysis and is not a required part of the financial statements of Los Caballos II, Ltd. Such information has been subjected to the auditing procedures applied in the audits of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. January 17, 1997 Farmington, New Mexico Burke & Rea Edward T. Burke, C.P.A Bernard E. Rea, C.P.A To the Partners Nye County Associates (A California Limited Partnership) Cheyenne, WY We have audited the accompanying balance sheets of Nye County Associates (A California Limited Partnership), USDA Rural Development Case No. 33-019-680192750, as of December 31, 1996 and 1995 and the related statements of income, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis of our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Nye County Associates (A California Limited Partnership) as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated March 25, 1997 on our consideration of Nye County Associates' internal control structure and a report dated March 25, 1997 on its compliance with laws and regulations. Burke & Rea Stockton, California March 25, 1997 P.O. Box 4632 Stcokton, CA 95204 Telephone 209/933-9113 Fax 209/933-9115 Charles Bailly & Company P.L.L.P. Certified Public Accountants - Consultants INDEPENDENT AUDITORIS REPORT The Partners Ridgeway Court III, A Limited Partnership Fargo, North Dakota We have audited the accompanying balance sheets of Ridgeway Court III, A Limited Partnership, FmHA Project Number: 27-04- 411633960, as of December 31, 1996 and 1995, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Ridgeway Court III, A Limited Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Fargo, North Dakota February 3, 1997 MUELLER, WALLA & ALBERTSON, PC. Certified Public Accountants 10714 Manchester Road, Suite 202 Kirkwood, Missouri 63122 (314) 822-6575 INDEPENDENT AUDITORS' REPORT The Partners Scott City Associates III, L.P. Scott City, Missouri We have audited the accompanying balance sheets of Scott City Associates III, L.P. (a limited partnership) as of December 31, 1996 and 1995, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion'. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Scott City Associates III, L.P. as of December 31, 1996 and 1995, and the results of its operations, changes in partners' capital and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information included on page 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. Mueller, Walla & Albertson, P.C. Certified Public Accountants January 14, 1997 Members American Institute Of Certified Public Accountants Missouri Society Of Certified Public Accountants GWEN WARD, P.C. CERTIFIED PUBLIC ACCOUNTANT 609 UNIVERSITY DRIVE FORT WORTH TEXAS 76107 (817) 336-5880 MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER TEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's Report To the Partners of Shawnee Ridge, L.P. I have audited the accompanying balance sheets of Shawnee Ridge, L.P. as of December 31, 1996 and 1995, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership, s management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opine on, the financial statements ref erred to above present fairly, in all material respects, the financial position of Shawnee Ridge, L.P. as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages I-17 and I-18 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. March 22, 1997 Fort Worth, Texas I-3 BENDER,WELTMAN,THOMAS & CO. CERTIFIED PUBLIC ACCCOUNTANTS 1067 NORTH MASON ROAD. Suite 7 St. LOUIS MO 63141-634l (314) 576-1350 Fax (314) 576-9650 WILLIAM J. Bender Joel Weltman James E. Thomas Gerald E. McGruder Independent Auditor?s Report To The Partners Springfield Housing Associates, L.P. Springfield, Illinois We have audited the accompanying balance sheets of Springfield Housing Associates, L.P., a (limited partnership) as of December 31, 1996 and 1995, and the related statements of operations, partners, capital, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership?s management. Our responsibility is to express an opinion on these financial statements based an our audit. We conducted our audit in accordance with generally accepted auditing standards. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used, and significant estimates made by the management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Springfield Housing Associates, L.P. (a limited partnership), as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Bender, Weltman, Thomas & Co., CPA?s February 24, 1997 Members Institute of Certified Public Accountants Missouri Society of Certified Public Accountants FLOYD & COMPANY Certified Public Accountant 306 Commercial Drive, Suite 202 Savannah, Georgia 31406 Phone:(912) 355-9969 Post Office Box 14251 Savannah, Georgia 31416 INDEPENDENT AUDITORS' REPORT To the General Partners of Turner Lane Limited Partnership We have audited the accompanying balance sheets of Turner Lane Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the related statements of operations, partners' equity (deficit) and cash flows f or the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. The financial statement information for the year ending December 31, 1995 was audited by another independent certified public accountant who expressed and unqualified opinion dated March 16, 1996. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Turner Lane Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1997 Humiston, Skokan, Warren & Eichenberger A Professional Corporation - Certified Public Accountants West Des Moines, Iowa INDEPENDENT AUDITORS' REPORT To the Partners Union Baptist Plaza, Limited Partnership West Des Moines, Iowa We have audited the accompanying balance sheets of UNION BAPTIST PLAZA, LIMITED PARTNERSHIP as of December 31, 1996 and 1995, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Union Baptist Plaza, Limited Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. January 13, 1997 SMITH, MILES & COMPANY, L.C. Certified Public Accountants 1230 AERPORT ROAD P.O. BOX 1177 Panama City, Florida 32402 Phone:(904) 785-0261 Fax:(904) 785-0263 INDEPENDENT AUDITORS' REPORT To the Partners Villas of Lakeridge, Ltd. Panama City, Florida We have audited the accompanying balance sheets of Villas of Lakeridge, Ltd., FMHA Project No: 01-0030592930819, as of December 31, 1996 and 1995, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership I s management. our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements ref erred to above present fairly, in all material respects, the financial position of Villas of Lakeridge, Ltd., as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information is presented for purposes of additional analysis and is .not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic' financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Panama City, Florida February 7, 1997 YORK, DILLINGHAM & COMPANY, P.L.L.C. Certified Public Accountants P.0. Box 551 1708 Alpine Drive Columbia, Tennessee 38402-0551 Telephone (615) 388-0517 Fax (615) 381-3440 Branch Offices: 219 N Military Ave. Lawrenceburg, TN (615) 762-6877 147 Linden Hwy. Centerville, TN (615) 729-3229 120 N. Second St. Pulaski, TN (615) 424-9063 Larry W. York John M. Dillingham Members: American Institute Of CPAs - Tennessee Society Of CPAs INDEPENDENT AUDITORS' REPORT To the Partners Waynesboro Associates, Limited We have audited the accompanying balance sheets of Waynesboro Associates, Limited (a Tennessee limited partnership) d/b/a Waynesboro Village Apartments, FMHA Project No. : 48-091-621385326, as of December 31, 1996 and 1995, and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Waynesboro Associates, Limited (a Tennessee limited partnership) d/b/a Waynesboro Village Apartments, FMHA Project No.: 48-091-621385326, as of December 31, 1996 and 1995, and the results of its operations, the changes in partners' equity and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 7, 1997 on our consideration of Waynesboro Associates, Limited's internal control structure and a report dated February 7, 1997 on its compliance with laws and regulations. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Columbia, Tennessee February 7, 1997 DIXON, ODOM & CO., L.L.P Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners Rockmoor Associates of Banner Elk Raleigh, North Carolina We have audited the accompanying balance sheets of Rockmoor Associates of Banner Elk (a limited partnership) as of December 31, 1995 and 1994 and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Rockmoor Associates of Banner Elk as of December 31, 1995 and 1994 and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as whole. January 23, 1996 A member of Moores Rowland International An association of independent accounting firms throughout the world 1829 Eastchester Drive P.O. Box 2646 High Point, NC 27261-2646 910-889-5156 Fax 910-889-6168 Casey, Menden & Co., P.A. Certified Public Accountants 8000 Town Line Avenue South, Suite 202 Bloomington, Minnesota 55438-1000 (612) 946-7900 Fax (612) 946-7901 Michael A. Casey, C.P.A. John F. Menden, C.P.A. Douglas J. Faust, C.P.A. John C. Nelson, C.P.A. Donald G. Langewisch, C.P.A. Janet E. Casey Paula M. Meidl Stephen J. Devries Debra K. Campbell Michael A. Casey, Jr. Jennifer A. Caspers Minnesota Society of CPAs - American Institute of CPAs INDEPENDENT AUDITOR?S REPORT To the Partners RPI Limited Partnership #22 St. Paul, Minnesota We have audited the accompanying balance sheets of RPI Limited Partnership #22 as of December 31, 1995 and 1994, and the related statements of operations, partners, equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States and OMB Circular A-128, "Audits of State and Local Governments.? Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of RPI Limited Partnership #22 as of December 31, 1995 and 1994, and the results of its operations, changes in partners I equity (deficit) and cash flows for the years then ended in conformity with generally accepted accounting principles. The supplemental information on pages 10 through 17 is not a required part of the basic financial statements of RPI Limited Partnership #22 but is supplemental information required by the Minnesota Housing Finance Administration. We have applied certain limited procedures, which consisted principally of inquiries of partnership management regarding the methods of measurement and presentation of the supplemental information. However, we did not audit the supplemental information and express no opinion on it. January 19, 1996 Oscar N. Harris & Associates, P.A. Certified Public Accountants OSCAR N. HARRIS, C.P.A. SHERRY S. JOHNSON, C.P.A. KENNETH E. MILTON, C.P.A. CONNIE P. STANCIL, C.P.A. MEMBERS: American Institute of CPAs - North Carolina Association of CPAs INDEPENDENT AUDITOR'S REPORT To the Partners of Brantwood Lane Limited Partnership Charlotte, North Carolina We have audited the balance sheets of Brantwood Lane Limited Partnership as of December 31, 1996 and 1995, and the related statements of partners' capital, income, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards, and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Brantwood Lane Limited Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards we have also issued a report dated January 31, 1997 on our consideration of Brantwood Lane Limited Partnership's internal control structure and a report dated January 31, 1997 on its compliance with laws and regulations. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. Schedules 1, 2, 3, and 4 on pages 13, 14, 15, and 16 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Certified Public Accountants January 31, 1997 100 EAST CUMBERLAND STREET, P.O. BOX 578, DUNN, N.C. 28335 (910) 892-1021 FAX (910) 892-6084 CRISP HUGHES & CO., L.L.P Certified Public Accountants and Consultants INDEPENDENT AUDITORS' REPORT To The Partners Breckenridge Apartments, Limited Partnership We have audited the accompanying balance sheets of Breckenridge Apartments, Limited Partnership as of December 31, 1996 and 1995, and the related statements of operations, changes in partners' capital (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with gene rally accepted auditing standards, and with Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Breckenridge Apartments, Limited Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 11, 1997 on our consideration of Breckenridge Apartments, Limited Partnership's internal control structure and a report dated February 11, 1997 on its compliance with laws and regulations. February 11, 1997 1 Creekview Court P.O. Box 25849 Greenville, South Carolina 29616 (864) 288-5544 FAX (864) 458-8519 Other Offices.- Asheville, Boone, Burnsville, Charlotte, Durham, Sylva, NC Member of The American Institute of CPAs, The Continental Association of CPA Firms, Inc., The Intercontinental Accounting Associates and The North Carolina and South Carolina of CPAs SADLER & LEBOWITZ Certified Public Accountants 3000 Marcus Avenue Lake Success, N.Y. 11042 516-352-0400 Fax 516-352-0494 MEMBERS - ------- AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS NEW YORK SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS Robert B. Lebowitz, CPA Melvin R. Sadler, CPA INDEPENDENT AUDITORS' REPORT - ---------------------------- To the Partners Bridge Coalition Limited Partnership We have audited the balance sheet of Bridge Coalition Limited Partnership as of December 31, 1995 and 1994, and the related statements of operations, partners' equity and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly in all material respects, the financial position of Bridge Coalition Limited Partnership as of December 31, 1995 and 1994 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Lake Success, New York May 1, 1996 GRAHAM & JENNINGS, PLC Certified Public Accountants Harold D. Carter (1931-1993) Jack G. Jennings Walter H. Graham Michael J. Carter INDEPENDENT AUDITOR?S REPORT To the Partners Carriage Run Limited Partnership We have audited the accompanying balance sheets of Carriage Run Limited Partnership (a Virginia limited partnership), FmHA Project No.: 54-049-621449686, as of December 31, 1996 and 1995, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Carriage Run Limited Partnership, FmHA Project No.: 54-049621449686, as of December 31, 1996 and 1995, and the results of its operations, the changes in partners' equity (deficit) and cash flows for the years then ended in conformity with generally accepted accounting principles. As described in Note G, Carriage Run Limited Partnership is a defendant in a wrongful death action alleging negligence and claiming compensatory and punitive damages. The ultimate outcome of the lawsuit is not presently determinable. Accordingly, no provision for liability, if any, has been made in the financial statements. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 12 and 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. February 1997 601 Thimble Shoals Boulevard Suite 201 Newport News, Virginia 23606 (757) 873-0767 Fax (757) 873-6938 DIXON, ODOM & CO., L.L.P Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners Cedarwood Apartments Limited Partnership Raleigh, North Carolina We have audited the accompanying balance sheets of Cedarwood Apartments Limited Partnership as of December 31, 1996 and 1995 and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cedarwood Apartments Limited Partnership as of December 31, 1996 and 1995 and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 22, 1997 on our consideration of Cedarwood Apartments Limited Partnership's internal control structure and a report dated January 22, 1997 on its compliance with laws and regulations. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on pages 10 and 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. January 22, 1997 A member of Moores Rowland International An Association of independent accounting firms throughout the world 1829 Eastchester Drive P.O. Box 2646 High Point, NC 27261- 2646 910-889-5156 Fax 910-889-6168 LAURIE A. LEE Certified Public Accountant 5446 Birchbrook Court Las Vegas, Nevada 89120 Telephone:(702) 456-2162 INDEPENDENT AUDITOR?S REPORT To the Partners of Chaparral Associates: I have audited the balance sheets of Chaparral Associates, a Limited Partnership (the "Partnership") as of December 31, 1996 and 1995, and the related statements of operations, partners' capital, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards and Government Auditing standards issued by the Comptroller General of the United States, and the US Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, I have also issued our reports dated February 14, 1997 on my consideration of the Partnership's internal control and on its compliance with laws and regulations. The accompanying supplementary information (beginning on page 10) is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. February 14, 1997 Member: American Institute Of CPAs - Nevada Society Of CPAs CRISP HUGHES & CO., L.L.P. INDEPENDENT AUDITORS' REPORT To The Partners Devenwood Apartments, A Limited Partnership We have audited the accompanying balance sheets of Devenwood Apartments, A Limited Partnership as of December 31, 1996 and 1995, and the related statements of operations, changes m partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted' auditing standards, and with Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the account' principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Devenwood Apartments, A Limited Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 11, 1997 on our consideration of Devenwood Apartments, A Limited Partnership's internal control structure and a report dated February 11, 1997 on its compliance with laws and regulations. February 11, 1997 1 Creekview Court P.O. Box 25949 Greenville, South Carolina 29616 (864) 288-5544 FAX (864) 458-8519 Other Offices. Asheville, Boone, Burnsville, Charlotte, Durham, Sylva, NC Member of: The American Institute of CPAs, The Continental Association of CPA Firms, Inc. - The Intercontinental Accounting Associates and The North Carolina and South Carolina Associates of CPAs McGEE & Associates, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners Franklin Vista 111, Ltd. and Rural Housing Service We have audited the accompanying balance sheets of Franklin Vista, III, Ltd. (a limited partnership) as of December 31, 1996 and 1995, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Franklin Vista III, Ltd. as of December 31, 1996 and 1995, and the results of its operations, changes in partners' equity and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards we have also issued a report dated January 17, 1997, on our consideration of the Partnership's internal control structure and a report dated January 17, 1997, on its compliance with laws and regulations. Our audits were conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental information included in the report is presented for purposes of additional analysis and is not a required part of the financial statements of Franklin Vista III, Ltd. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. January 17, 1997 Farmington, New Mexico FLOYD & COMPANY, CPA Certified Public Accountant 306 Commercial Drive, Suite 202 Savannah, Georgia 31406 Phone: (912) 355-9969 Post Office Box 14251 Savannah, Georgia 31416 INDEPENDENT AUDITORS' REPORT To the General Partners of Four Oaks Limited Partnership We have audited the accompanying balance sheets of Four Oaks Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the related statements of operations, partners' equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. The financial statement information for the year ending December 31, 1995 was audited by another independent certified public accountant who expressed and unqualified opinion dated March l6, 1996. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform -the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Four Oaks Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1997 REGARDIE, BROOKS & LEWIS Certified Public Accountants JEROME P. LEWIS, CPA JESSE A. KAISER, CPA CHARTERED NATHAN J. ROSEN, CPA PAUL J. GNATT, CPA CELSO T MATAAC, JR., CPA PHILIP R. BAKER. CPA 7101 WISCONSIN AVENUE - BETHESDA, MARYLAND 20814 DOUGLAS A. DOWUNG, CPA TEL (301) 654-9000 FAX (301) 656-3056 BRIAN J. GIGANTI, CPA DAVID A. BROOKS, CPA CONSULTANT BENJAMIN F. REGARDIE (1897-1973) February 21, 1997 INDEPENDENT AUDITOR'S REPORT To the Partners Friendship Village Limited Partnership Bethesda, Maryland We have audited the accompanying balance sheets of Friendship Village Limited Partnership as of December 31, 1996 and 1995, and the related statements of income, partnership equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards, Government Auditing Standards issued by the Comptroller General of the United States and the U.S. Department of Agriculture, Farmers Home Administration Audit Program handbook, dated December 1989. Those standards require that we plan and perform the audit- to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test- basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Friendship village Limited Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the' years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our reports dated February 21, 1997 on our consideration of Friendship Village Limited Partnership's internal control structure and on its compliance with laws and regulations. NOVOGRADAC & COMPANY LLP CERTIFIED PUBLIC ACCOUNTANTS Report of Independent Auditors To the General Partner Glenhaven Park Partners, A California Limited Partnership We have audited the accompanying balance sheet of Glenhaven Park Partners, A California Limited Partnership as of December 31, 1995, and the related statements of operations, changes in partners' capital and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, An audit includes ex g, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Glenhaven Park Partners, A California Limited Partnership as of December 3 1, 1995, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. February 16, 1996 42 Market Street 7th Floor San Francisco California 94105 Telephone (415) 356-8000 Facsimile (415) 356-8001 Certified Public Accountants FLOYD & COMPANY, CPA Certified Public Accountant 306 Commercial Ave, Suite 202 Savannah, Georgia 31406 Phone:(912) 355-9969 Post Office Box 14251 Savannah, Georgia 31416 INDEPENDENT AUDITORS' REPORT To the General Partners of Hillmont Village Limited Partnership We have audited the accompanying balance sheets of Hillmont Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the related statements of operations, partners' equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. The financial statement information for the year ending December 31, 1995 was audited by another independent certified public accountant who expressed and unqualified opinion dated March 16, 1996. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hillmont Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1997 Schonwit & Associates Certified Public Accountant 5 Anton Boulevard, Suite 500 Costa Mesa, California 92626 (714) 437-1025 FAX (714) 957-1678 INDEPENDENT AUDITOR'S REPORT To the Partners La Gema Del Barrio, A California Limited Partnership I have audited the accompanying balance sheet of La Gema Del Barrio, A California Limited Partnership, as of December 31, 1996, and the related statements of operations, partners' equity, and cash flows for the year then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audit. The financial statements of La Gema Del Barrio, a California Limited Partnership, for the year ended December 31, 1995, as presented herein, were examined by another auditor whose report dated April4, 1996, expressed an unqualified opinion on those financial statements. I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion the accompanying financial statements referred to above present fairly, in all material respects, the financial position of La Gema Del Barrio, A California Limited Partnership as of December 31, 1996, and the results of its operations, the changes in partners' equity, and cash flows for the year then ended in conformity with generally accepted accounting principles. My audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 6 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. SCHONWIT & ASSOCIATES February 14, 1997 PLANTE MORAN, LLP Certified Public Accountants - Management Consultants 1111 Michigan Avenue P.O. Box 2500 East Lansing, Michigan 48826-2500 517-332-6200 FAX 517-332-8502 INDEPENDENT AUDITOR?S REPORT To the Partners Lakeview Meadows Limited Dividend Housing Association Limited Partnership We have audited the accompanying balance sheet of Lakeview Meadows Limited Dividend Housing Association Limited Partnership (a Michigan limited partnership), MSHDA Development No. 874, as of December 31, 1996 and 1995, and the related statements of profit and loss, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lakeview Meadows Limited Dividend Housing Association Limited Partnership as of December 31, 1996 and 1995, and its profit and loss, partners' equity, and its cash flows for the. years then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 12, 1997, on our consideration of the Partnership's internal control structure and a report dated February 12, 1997, on its compliance with laws and regulations. February 12, 1997 A member of Moores Rowland International Burke & Rea Edward T. Burke, C.P.A Bernard E. Rea, C.P.A To the Partners Maidu Properties (A California Limited Partnership) Rocklin, California We have audited the accompanying balance sheets of Maidue Properties (A California Limited Partnership), as of December 31, 1996 and 1995 and the related statements of income, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluting the overall financial statement presentation. We believe that our audits provide a reasonable basis of our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Maidu Properties (A California Limited Partnership) as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information for the years ended December 31, 1996 and 1995, on pages 13 and 14, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Burke & Rea Stockton, California April 4, 1997 P.O. Box 4632 Stcokton, CA 95204 Telephone 209/933-9113 Fax 209/933-9115 H M & R P.C. CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS'REPORT To the Partners Montague Place Limited Partnership Lansing, Michigan We have audited the accompanying balance sheets of Montague Place Limited Partnership (a Michigan limited partnership), FMHA Project. No. 26-079-0382937919 as of December 31, 1996 and 1995, and the related to statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Montague Place Limited Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Our audit was performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 11 to 20 is presented for purposes of additional analysis and is not a required part of the basic financial statements. This information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, the information is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Henderson, Miller & Robbins, P.C. Lansing, Michigan February 4, 1997 HENDERSON, MILLER & ROBBINS, RC. 1375 S. WASHINGTON Ave. Lansing MI 48910 517) 372-6565 - FAX (517) 372-6571 LAURIE A. LEE Certified Public Accountant 5446 Birchbrook Court Las Vegas, Nevada 89120 Telephone:(702)456-2162 INDEPENDENT AUDITOR?S REPORT To the Partners of Navapai Associates: I have audited the balance sheets of Navapai Associates, a Limited Partnership (the "Partnership") as of December 31, 1996 and 1995, and the related statements of operations, partners' capital, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, I have also issued my reports dated February 14, 1997 on my consideration of the Partnership's internal control and on its compliance with laws and regulations. The accompanying supplementary information (beginning on page 10) is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. February 14, 1997 Member: American Institute Of CPAs - Nevada Society Of CPAs FLOYD & COMPANY Certified Public Accountant 306 Commercial Drive, Suite 202 Savannah, Georgia 31406 Phone:(912) 355-9969 Post Office Box 14251 Savannah, Georgia 31416 INDEPENDENT AUDITORS' REPORT To the General Partners of Oakland Village Limited Partnership We have audited the accompanying balance sheets of Oakland Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the related statements of operations, partners' equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. The financial statement information for the year ending December 31, 1995 was audited by another independent certified public accountant who expressed and unqualified opinion dated March 16, 1996. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, financial statements referred to above present fairly, in all material respects, the financial position of Oakland Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1997 STEWART AMD KERR, PA Certified Public Accountants 6817 Falls of Neuse Road, Suite 106 Raleigh, North Carolina 27615 (919) 676-3115 Fax (919) 676-3866 MEMBER - ------ AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS NORTH CAROLINA ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS - -------------------------------------------------------- To the Partners St. Barnabas Ridge Limited Partnership d/b/a Snow Hill Ridge Apartments Raleigh, North Carolina We have audited the accompanying balance sheets of St. Barnabas Ridge Limited Partnership d/b/a Snow Hill Ridge Apartments, as of December 31, 1995, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of St. Barnabas Ridge Limited Partnership d/b/a Snow Hill Ridge Apartments as of December 31, 1994 were audited by other auditors whose report dated January 24, 1995, expressed an unqualified opinion on those statements. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides reasonable basis or our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of St. Barnabas Ridge Limited Partnership d/b/a Snow Hill Ridge Apartments as of December 31, 1995, and the results of its operations, and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 11, 1996 on our consideration of St. Barnabas Ridge Limited Partnership d/b/a Snow Hill Ridge Apartments internal control structure and a report dated February 11, 1996 on its compliance with laws and regulations. STEWART AND KERR, PA Page 2 Our audit was conducted for the purpose of forming an opinion on the 1995 financial statements taken as a whole. The accompanying information on Pages 11-12 is presented for the purposes of additional analysis and is not a required part of the financial statements of St. Barnabas Ridge Limited Partnership d/b/a Snow Hill Ridge Apartments. Such 1995 information has been subjected to the auditing procedures applied in the audit of the 1995 financial statements and, in our opinion, is fairly presented in all material respects in relation to the 1995 financial statements taken as a whole. Raleigh, North Carolina February 11, 1996 FRIEDMAN & FULLER, PC Certified Public Accountants - Management Consultants 2400 Research Boulevard, Suite 250 Rockville, Maryland 20850-3243 921-8000 Fax (301) 921-4700 E-mail: info@ffgroup.com URL: http://www.ffgroup.com/ Profitable Ideas for Growing Businesses INDEPENDENT AUDITOR'S REPORT To the Partners Stanardsville Village Limited Partnership RHS No. 54-48-541523939 North Main Street Stanardsville, Virginia 22973 We have audited the accompanying balance sheets of Stanardsville Village Limited Partnership, RHS No. 54-48- 541523939 as of December 31, 1996 and 1995, and the related statements of operations, partners' capital (deficiency) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards and the Audit Program require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Stanardsville Village Limited Partnership, RHS No. 54-48-541523939 as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on pages 10 and 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. January 29, 1997 FLOYD & COMPANY, CPA Certified Public Accountant 306 Commercial Drive, Suite 202 Savannah, Georgia 31406 Phone: (912) 355-9969 Post Office Box 14251 Savannah, Georgia 31416 INDEPENDENT AUDITORS' REPORT To the General Partners of Summer Lane Limited Partnership We have audited the accompanying balance sheets of Summer Lane Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the related statements of operations, partners, equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. The financial statement information for the year ending December 31, 1995 was audited by another independent certified public accountant who expressed and unqualified opinion dated March 16, 1996. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Summer Lane Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1997 Graham, Carter & Jennings, PLC Certified Public Accountants Harold D. Carter (1931-1993) Jack G. Jennings Walter H. Graham Michael J. Carter INDEPENDENT AUDITOR'S REPORT To the Partners Victoria Limited Partnership We have audited the accompanying balance sheets of Victoria Limited Partnership (a Virginia limited partnership), FmHA Project No.: 54-067-541518059, as of December 31, 1996 and 1995, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Victoria Limited Partnership, FmHA Project No.: 54-067-541518059, as of December 31, 1996 and 1995, and the results of its operations, the changes in partners' equity and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 12 and 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. February 3, 1997 601 Thimble Shoals Boulevard Suite 201 Newport News, Virginia 23606 (757) 873-0767 Fax (757) 873-6938 MCMILLAN, PATE & KING, L.L.P. CERTIFIED PUBLIC ACCOUNTANTS 615 OBERLIN ROAD, SUITE 200 RALEIGH, NC 27605 INDEPENDENT AUDITORS' REPORT Partners Village Terrace Limited Partnership We have audited the balance sheet of Village Terrace Limited Partnership as of December 31, 1995 and the related statements of operations, partners' capital, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of Village Terrace Limited Partnership as of December 31, 1994, were audited by other auditors who have ceased operations and whose report dated February 13, 1995, expressed an unqualified opinion on those statements. McMillan, Pate & Robertson, Certified Public Accountants, a North Carolina partnership, ceased business operations on February 29, 1996. In accordance with North Carolina General Statutes and the North Carolina Accountancy Rules, the Company directed its records to be transferred to McMillan, Pate & King, L.L.P., which commenced business operations on March 1,1996. Incomplete accounting and tax services of McMillan, Pate & Robertson are being completed by McMillan, Pate & King, L.L.P. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Village Terrace Limited Partnership as of December 31, 1995 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 9 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. February 2, 1996 and March 1,1996 STIENESSEN - SCHLEGEL & CO. LIMITED LIABILITY COMPANY Certified Public Accountants INDEPENDENT AUDITOR'S REPORT To the Partners Woodfield Commons Limited Partnership We have audited the accompanying balance sheets of Woodfield Commons Limited Partnership as of December 31, 1996 and 1995, and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Woodfield Commons Limited Partnership, as of December 31, 1996 and 1995, and the results of its operations, changes in partners' equity, and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on paces 12 and 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Certified Public Accountants January 15, 1997 2411 N. Hillcrest Parkway, P.O. Box 810, Eau Claire, WI 54702-0810 Phone (715) 832-3425 Fax (715) 832-1665 LITTLE, SHANEYFELT & CO. Certified Public Accountants 1501 N. University, Suite 300 Little Rock, Arkansas 72207-5232 Telephone (501) 666-2879 INDEPENDENT AUDITOR'S REPORT To the Partners Beckwood Manor Six Limited Partnership We have audited the accompanying balance sheets of Beckwood Manor Six Limited Partnership, FMHA Project No. 03-048- 0710677265 (the Partnership), as of December 31, 1995 and 1994, and the related statements of profit (loss), changes in partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Beckwood Manor Six Limited Partnership as of December 31, 1995 and 1994, and its results of operations, changes in partners, equity (deficit), and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated March 11, 1996, on our consideration of the Partnership's internal control structure and a report dated March 11, 1996 on its compliance with laws, regulations, contracts and grants. Little, Shaneyfelt & Co. March 11, 1996 NOVOGRADAC & COMPANY LLP Certified Public Accountants Atlanta Los Angeles Portland San Francisco Michael J. Novogradac Richard B. Hutchins Jon E. Krabbenschmidt Harry Abram Walter C. McJGill, Jr Scott J. Hubbard Stephen B. Tracy REPORT OF INDEPENDENT AUDITORS To the General Partner Haven Park Partners II, A California Limited Partnership We have audited the accompanying balance sheet of Haven Park Partners II, A California Limited Partnership as of December 31, 1995, and the related statements of operations, changes in partners' capital and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Haven Park Partners II, A California Limited Partnership as of December 31, 1995, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. February 16, 1996 425 Market Street 7th Floor San Francisco California 94105 Telephone (415) 356-8000 Facsimile (415) 356-8001 NOVOGRADAC & COMPANY LLP Certified Public Accountants Atlanta Los Angeles Portland San Francisco Michael J. Novogradac Richard B. Hutchins Jon E. Krabbenschmidt Harry Abram Walter C. McJGill, Jr Scott J. Hubbard Stephen B. Tracy REPORT OF INDEPENDENT AUDITORS To the General Partner Haven Park Partners III, A California Limited Partnership We have audited the accompanying balance sheet of Haven Park Partners III, A California Limited Partnership as of December 31, 1995, and the related statements of operations, changes in partners' capital and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Haven Park Partners III, A California Limited Partnership as of December 31, 1995, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. To the General Partner Haven Park Partners III, A California Limited Partnership February 16, 1996 425 Market Street 7th Floor San Francisco California 94105 Telephone (415) 356-8000 Facsimile (415) 356-8001 NOVOGRADAC & COMPANY LLP Certified Public Accountants Atlanta Los Angeles Portland San Francisco Michael J. Novogradac Richard B. Hutchins Jon E. Krabbenschmidt Harry Abram Walter C. McJGill, Jr Scott J. Hubbard Stephen B. Tracy REPORT OF INDEPENDENT AUDITORS To the General Partner Haven Park Partners IV, A California Limited Partnership We have audited the accompanying balance sheet of Haven Park Partners IV, A California Limited Partnership as of December 31, 1995, and the related statements of operations, changes in partners' capital and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Haven Park Partners IV, A California Limited Partnership as of December 31, 1995, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. February 16, 1996 425 Market Street 7th Floor San Francisco California 94105 Telephone (415) 356-8000 Facsimile (415) 356-8001 GRAHAM CARTER & JENNINGS,PLC CERTIFIED PUBLIC ACCOUNTANTS Harold D. Carter (1931-1993) Jack G. Jennings Walter H. Graham Michael J. Carter Independent Auditor's Report To the Partners Jarratt Limited Partnership We have audited the accompanying balance sheets of Jarratt Limited Partnership (a Virginia limited partnership), FMHA Project No.: 55-014-541507373 as of December 31, 1995 and 1994, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Jarratt Limited Partnership, FMHA Project No.: 55-014-541507373, as of December 31, 1995 and 1994, and the results of its operations, the changes in partners' capital and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 13 and 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. February 14, 1996 Member: American Institute and Nevada Society of CPAs J. Marc Hill Certified Public Accountant 12700 Preston Road, Suite 185 Dallas, Texas 75230 April 8, 1996 To the Partners of One Northridge Limited Partnership INDEPENDENT AUDITOR?S REPORT LETTER I have audited the accompanying balance sheets of One Northridge Limited Partnership as of December 31, 1995 and 1994, and the related statements of operations, cash flows and partners' equity (deficit) for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of One Northridge Limited Partnership as of December 31, 1995and 1994 and the results of operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. My audit was made for the purpose of forming an opinion the basic financial statements taken as a whole. The supplemental information included is for additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. J. Marc Hill Public Accountant DIXON, ODOM & CO., L.L.P. Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners Pine Ridge Elderly Apartments Limited Partnership Raleigh, North Carolina We have audited the accompanying balance sheets of Pine Ridge Elderly Apartments Limited Partnership as of December 31, 1996 and 1995 and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Pine Ridge Elderly Apartments Limited Partnership as of December 31, 1996 and 1995 and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 10 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. January 16, 1997 A member of Moores Rowland International An association of independent accounting firms throughout the world 1829 Eastchester Drive - P.O. Box 2646 High Point, NC 27261-2646 910-889-5156 Fax 910-889-6168 TAMA AND BUDAJ, P.C. Certified Public Accountants 32783 Middlebelt Road Farmington Hills, Michigan 48334-1726 (810) 626-3800 Fax (810) 626-2276 ELY TAMA, CPA JEFFREY F. BUDAJ, CPA BARTON A. LOWEN, CPA EMIL A. RAAB, CPA DIANE L. ISAACS, CPA JOHN W. WEIPERT, CPA SEAN M. DONOVAN, CPA American, Michigan, Florida & South Carolina Institutes of CPAs To the Partners of Rosewood Manor, Ltd. We have audited the accompanying balance sheet of ROSEWOOD MANOR, LTD. as of December 31, 1995 and 1994, and the related statements of operations, changes in partners' equity (deficit) and cash flows - project operations for the years then ended. These financial statements are the responsibility of the general partner and management of the partnership. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly in all material respects, the financial position of ROSEWOOD MANOR, LTD. , as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supporting data on pages 10 through 17 inclusive has been subjected to the auditing procedures applied in the examination of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. We have also reviewed internal accounting controls and compliance with laws and regulations and have rendered our reports thereon on pages 18 through 20. TAMA AND BUDAJ, P.C. Farmington Hills, Michigan February 9, 1996 Bob T. Robinson Certified Public Accountant 2084 Dunbarton Drive Jackson, Mississippi 39216 (601) 982-3875 To the Partners Scott Partners, A Louisiana Partnership in Commendam INDEPENDENT AUDITOR?S REPORT I have audited the accompanying balance sheet of Scott Partners, A Louisiana Partnership in Commendam as of December 31, 1995 and 1994, and the related statements of operations, partners' equity (deficit) and cash flows for years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. in my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Scott Partners, A Louisiana Partnership in Commendam as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basis financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Jackson, Mississippi March 13, 1996 MAHONEY ULBRICH CHRISTIANSEN RUSS P.A. Certified Public Accountants Suite 800 Capital Centre 386 North Wabasha Saint Paul, Minnesota 55102 Telephone 612-227-6695 Fax 612-227-9796 To the Partners Zinsmaster Limited Partnership Minneapolis, Minnesota INDEPENDENT AUDITORS' REPORT We have audited the accompanying balance sheets of Zinsmaster Limited Partnership (MHFA Project No. 88-R-029) as of December 31, 1995 and 1994, and the related statements of operations, partners' capital and cash flows, for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation: We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Zinsmaster Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 11 through 16 is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Saint Paul, Minnesota January 24, 1996 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 BALANCE SHEETS March 31, 1998 and 1997 Total - ----------------------------------- 1998 1997 - ---------------- ---------------- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes B and D) $ 60,839,977 $ 69,472,764 OTHER ASSETS Cash and cash equivalents (note E) 693,751 1,725,325 Investments held to maturity 917,497 - Notes receivable (note F) 604,695 603,920 Deferred acquisition costs, net of accumulated amortization (notes A and C) 1,189,760 1,238,321 Other 387,808 342,545 - --------------- --------------- $ 64,633,488 $ 73,382,875 =============== =============== LIABILITIES AND PARTNERS CAPITAL LIABILITIES Accounts payable - affiliates (note B) $ 14,237,489 $ 11,654,634 Capital contributions payable (note C) 368,417 387,098 - --------------- --------------- 14,605,906 12,041,732 - --------------- --------------- PARTNERS CAPITAL (note A) Assignor limited partner Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value, 18,679,738 issued and outstanding to the assignees at March 31, 1998 and 1997 - - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 18,679,738 issued and outstanding at March 31, 1998 and 1997 51,144,019 62,344,445 General partner (1,116,437) (1,003,302) - --------------- --------------- 50,027,582 61,341,143 - --------------- --------------- $ 64,633,488 $ 73,382,875 =============== ===============
(continued) F-5 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 BALANCE SHEETS - CONTINUED March 31, 1998 and 1997 Series 7 - --------------------------------- 1998 1997 - ---------------- ---------------- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes B and D) $ 1,485,326 $ 1,771,367 OTHER ASSETS Cash and cash equivalents (note E) 7,134 12,008 Investments held to maturity - - - Notes receivable (note F) - - - Deferred acquisition costs, net of accumulated amortization (notes A and C) - - - Other 16,450 16,450 - --------------- --------------- $ 1,508,910 $ 1,799,825 =============== =============== LIABILITIES AND PARTNERS CAPITAL LIABILITIES Accounts payable - affiliates (note B) $ 860,885 $ 730,326 Capital contributions payable (note C) - - - - --------------- --------------- 860,885 730,326 - --------------- --------------- PARTNERS CAPITAL (note A) Assignor limited partner Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value, 1,036,100 issued and outstanding to the assignees at March 31, 1998 and 1997 - - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 1,036,100 issued and outstanding at March 31, 1998 and 1997 731,471 1,148,730 General partner (83,446) (79,231) - --------------- --------------- 648,025 1,069,499 - --------------- --------------- $ 1,508,910 $ 1,799,825 =============== ===============
(continued) F-6 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 BALANCE SHEETS - CONTINUED March 31, 1998 and 1997 Series 9 - ----------------------------------- 1998 1997 - ---------------- ---------------- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes B and D) $ 10,821,707 $ 12,528,610 OTHER ASSETS Cash and cash equivalents (note E) 267,915 566,836 Investments held to maturity 249,497 - Notes receivable (note F) - - - Deferred acquisition costs, net of accumulated amortization (notes A and C) 21,312 22,182 Other 47,650 14,009 - ---------------- --------------- $ 11,408,081 $ 13,131,637 =============== =============== LIABILITIES AND PARTNERS CAPITAL LIABILITIES Accounts payable - affiliates (note B) $ 3,457,163 $ 2,881,376 Capital contributions payable (note C) 4,590 4,590 - ---------------- --------------- 3,461,753 2,885,966 - --------------- --------------- PARTNERS CAPITAL (note A) Assignor limited partner Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value, 4,178,029 issued and outstanding to the assignees at March 31, 1998 and 1997 - - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 4,178,029 issued and outstanding at March 31, 1998 and 1997 8,227,204 10,503,554 General partner (280,876) (257,883) - --------------- --------------- 7,946,328 10,245,671 - --------------- --------------- $ 11,408,081 $ 13,131,637 =============== ===============
(continued) F-7 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 BALANCE SHEETS - CONTINUED March 31, 1998 and 1997 Series 10 - ---------------------------------- 1998 1997 - --------------- --------------- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes B and D) $ 8,211,459 $ 9,224,595 OTHER ASSETS Cash and cash equivalents (note E) 41,484 144,428 Investments held to maturity 83,000 - Notes receivable (note F) - - - Deferred acquisition costs, net of accumulated amortization (notes A and C) 84,314 87,755 Other 39,662 38,979 - --------------- --------------- $ 8,459,919 $ 9,495,757 =============== =============== LIABILITIES AND PARTNERS CAPITAL LIABILITIES Accounts payable - affiliates (note B) $ 2,339,472 $ 1,983,960 Capital contributions payable (note C) - - - - --------------- --------------- 2,339,472 1,983,960 - --------------- --------------- PARTNERS CAPITAL (note A) Assignor limited partner Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value, 2,428,925 issued and outstanding to the assignees at March 31, 1998 and 1997 - - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,428,925 issued and outstanding at March 31, 1998 and 1997 6,270,055 7,647,492 General partner (149,608) (135,695) - --------------- --------------- 6,120,447 7,511,797 - --------------- --------------- $ 8,459,919 $ 9,495,757 =============== ===============
(continued) F-8 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 BALANCE SHEETS - CONTINUED March 31, 1998 and 1997 Series 11 - ----------------------------------- 1998 1997 - ---------------- --------------- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes B and D) $ 9,872,942 $ 11,085,975 OTHER ASSETS Cash and cash equivalents (note E) 38,800 307,351 Investments held to maturity 249,000 - Notes receivable (note F) - - - Deferred acquisition costs, net of accumulated amortization (notes A and C) 42,735 44,479 Other 47,290 41,567 - --------------- --------------- $ 10,250,767 $ 11,479,372 =============== =============== LIABILITIES AND PARTNERS CAPITAL LIABILITIES Accounts payable - affiliates (note B) $ 1,625,754 $ 1,300,073 Capital contributions payable (note C) 22,528 27,528 - --------------- --------------- 1,648,282 1,327,601 - --------------- --------------- PARTNERS CAPITAL (note A) Assignor limited partner Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value, 2,489,599 issued and outstanding to the assignees at March 31, 1998 and 1997 - - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,489,599 issued and outstanding at March 31, 1998 and 1997 8,731,145 10,264,938 General partner (128,660) (113,167) - --------------- --------------- 8,602,485 10,151,771 - --------------- --------------- $ 10,250,767 $ 11,479,372 =============== ===============
(continued) F-9 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 BALANCE SHEETS - CONTINUED March 31, 1998 and 1997 Series 12 - ----------------------------------- 1998 1997 - ---------------- ---------------- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes B and D) $ 10,585,841 $ 11,946,248 OTHER ASSETS Cash and cash equivalents (note E) 21,827 8,532 Investments held to maturity - - - Notes receivable (note F) 61,111 60,336 Deferred acquisition costs, net of accumulated amortization (notes A and C) 326,262 339,579 Other 59,831 55,986 - --------------- --------------- $ 11,054,872 $ 12,410,681 =============== =============== LIABILITIES AND PARTNERS CAPITAL LIABILITIES Accounts payable - affiliates (note B) $ 2,067,156 $ 1,628,384 Capital contributions payable (note C) 11,405 11,405 - --------------- --------------- 2,078,561 1,639,789 - --------------- --------------- PARTNERS CAPITAL (note A) Assignor limited partner Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value, 2,972,795 issued and outstanding to the assignees at March 31, 1998 and 1997 - - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,972,795 issued and outstanding at March 31, 1998 and 1997 9,143,807 10,920,442 General partner (167,496) (149,550) - --------------- --------------- 8,976,311 10,770,892 - --------------- --------------- $ 11,054,872 $ 12,410,681 =============== ===============
(continued) F-10 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 BALANCE SHEETS - CONTINUED March 31, 1998 and 1997 Series 14 - ----------------------------------- 1998 1997 - ---------------- ---------------- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes B and D) $ 19,862,702 $ 22,915,969 OTHER ASSETS Cash and cash equivalents (note E) 316,591 686,170 Investments held to maturity 336,000 - Notes receivable (note F) 543,584 543,584 Deferred acquisition costs, net of accumulated amortization (notes A and C) 715,137 744,326 Other 176,925 175,554 - --------------- --------------- $ 21,950,939 $ 25,065,603 =============== =============== LIABILITIES AND PARTNERS CAPITAL LIABILITIES Accounts payable - affiliates (note B) $ 3,887,059 $ 3,130,515 Capital contributions payable (note C) 329,894 343,575 - --------------- --------------- 4,216,953 3,474,090 - --------------- --------------- PARTNERS CAPITAL (note A) Assignor limited partner Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value, 5,574,290 issued and outstanding to the assignees at March 31, 1998 and 1997 - - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,574,290 issued and outstanding at March 31, 1998 and 1997 18,040,337 21,859,289 General partner (306,351) (267,776) - --------------- --------------- 17,733,986 21,591,513 - --------------- --------------- $ 21,950,939 $ 25,065,603 =============== ===============
See notes to financial statements F-11 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF OPERATIONS Years ended March 31, 1998, 1997 and 1996 Total - ----------------------------------------------------- 1998 1997 1996 --------------- - ---------------- ---------------- Income Interest income $ 41,471 $ 155,501 $ 65,468 Miscellaneous income 1,442 - - - --------------- - --------------- --------------- 42,913 155,501 65,468 --------------- - --------------- --------------- Share of losses (income) from operating limited partnerships (note A) (8,573,433) (10,464,997) (12,992,069) --------------- - --------------- --------------- Expenses Professional fees 228,290 315,326 221,999 Partnership management fee (note B) 2,314,373 2,273,826 2,356,546 Amortization (note A) 48,561 58,391 109,832 General and administrative expenses (note B) 191,817 133,901 163,958 --------------- - --------------- --------------- 2,783,041 2,781,444 2,852,335 --------------- - --------------- --------------- $ (11,313,561) $ (13,090,940) $ (15,778,936) =============== =============== =============== Net loss allocated to general partner $ (113,136) $ (130,909) $ (157,789) =============== =============== =============== Net loss allocated to assignees $ (11,200,425) $ (12,960,031) $ (15,621,147) =============== =============== =============== Net loss per BAC $ (0.60) $ (0.69) $ (0.84) =============== =============== ===============
(continued) F-12 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF OPERATIONS - CONTINUED Years ended March 31, 1998, 1997 and 1996 Series 7 - ----------------------------------------------------- 1998 1997 1996 --------------- - ---------------- ---------------- Income Interest income $ 257 $ 222 $ 216 Miscellaneous income - - - - --------------- - --------------- --------------- 257 222 216 --------------- - --------------- --------------- Share of losses from operating limited partnerships (note A) (286,041) (1,126,341) (867,319) --------------- - --------------- --------------- Expenses Professional fees 16,079 20,369 19,823 Partnership management fee (note B) 111,089 106,774 107,256 Amortization (note A) - - - - General and administrative expenses (note B) 8,522 6,248 6,650 --------------- - --------------- --------------- 135,690 133,391 133,729 --------------- - --------------- --------------- $ (421,474) $ (1,259,510) $ (1,000,832) =============== =============== =============== Net loss allocated to general partner $ (4,215) $ (12,595) $ (10,008) =============== =============== =============== Net loss allocated to assignees $ (417,259) $ (1,246,915) $ (990,824) =============== =============== =============== Net loss per BAC $ (0.40) $ (1.20) $ (0.96) =============== =============== ===============
(continued) F-13 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF OPERATIONS - CONTINUED Years ended March 31, 1998, 1997 and 1996 Series 9 - ----------------------------------------------------- 1998 1997 1996 --------------- - --------------- --------------- Income Interest income $ 16,101 $ 17,468 $ 25,217 Miscellaneous income 87 - - - --------------- - --------------- --------------- 16,188 17,468 25,217 --------------- - --------------- --------------- Share of losses (income) from operating limited partnerships (note A) (1,699,785) (2,660,814) (2,777,350) --------------- - --------------- --------------- Expenses Professional fees 35,520 36,729 35,155 Partnership management fee (note B) 547,218 539,985 560,971 Amortization (note A) 870 870 870 General and administrative expenses (note B) 32,138 25,333 31,497 --------------- - --------------- --------------- 615,746 602,917 628,493 --------------- - --------------- --------------- $ (2,299,343) $ (3,246,263) $ (3,380,626) =============== =============== =============== Net loss allocated to general partner $ (22,993) $ (32,463) $ (33,806) =============== =============== =============== Net loss allocated to assignees $ (2,276,350) $ (3,213,800) $ (3,346,820) =============== =============== =============== Net loss per BAC $ (0.55) $ (0.77) $ (0.80) =============== =============== ===============
(continued) F-14 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF OPERATIONS - CONTINUED Years ended March 31, 1998, 1997 and 1996 Series 10 - ----------------------------------------------------- 1998 1997 1996 --------------- - ---------------- ---------------- Income Interest income $ 3,695 $ 3,951 $ 4,445 Miscellaneous income - - - - --------------- - --------------- --------------- 3,695 3,951 4,445 --------------- - --------------- --------------- Share of losses (income) from operating limited partnerships (note A) (1,008,105) (1,166,928) (1,426,332) --------------- - --------------- --------------- Expenses Professional fees 31,229 30,509 30,562 Partnership management fee (note B) 321,682 324,407 343,505 Amortization (note A) 3,441 3,442 10,407 General and administrative expenses (note B) 30,588 20,187 23,542 --------------- - --------------- --------------- 386,940 378,545 408,016 --------------- - --------------- --------------- $ (1,391,350) $ (1,541,522) $ (1,829,903) =============== =============== =============== Net loss allocated to general partner $ (13,913) $ (15,415) $ (18,299) =============== =============== =============== Net loss allocated to assignees $ (1,377,437) $ (1,526,107) $ (1,811,604) =============== =============== =============== Net loss per BAC $ (0.57) $ (0.63) $ (0.75) =============== =============== ===============
(continued) F-15 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF OPERATIONS - CONTINUED Years ended March 31, 1998, 1997 and 1996 Series 11 - ----------------------------------------------------- 1998 1997 1996 ---------------- - ---------------- --------------- Income Interest income $ 5,610 $ 5,692 $ 4,570 Miscellaneous income 5 - - - --------------- - --------------- --------------- 5,615 5,692 4,570 --------------- - --------------- ---------------- Share of income (losses) from operating limited partnerships (note A) (1,197,310) 579,030 (1,621,193) --------------- - --------------- --------------- Expenses Professional fees 30,344 30,044 29,212 Partnership management fee (note B) 298,613 291,053 284,604 Amortization (note A) 1,744 1,745 10,109 General and administrative expenses (note B) 26,890 17,211 20,329 --------------- - --------------- --------------- 357,591 340,053 344,254 --------------- - --------------- --------------- $ (1,549,286) $ 244,669 $ (1,960,877) =============== ================ =============== Net income (loss) allocated to general partner $ (15,493) $ 2,447 $ (19,609) =============== =============== =============== Net income (loss) allocated to assignees $ (1,533,793) $ 242,222 $ (1,941,268) =============== =============== =============== Net income (loss) per BAC $ (0.61) $ 0.10 $ (0.78) =============== =============== ===============
(continued) F-16 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF OPERATIONS - CONTINUED Years ended March 31, 1998, 1997 and 1996 Series 12 - ----------------------------------------------------- 1998 1997 1996 --------------- - --------------- --------------- Income Interest income $ 228 $ 2,674 $ 4,804 Miscellaneous income - - - - --------------- - --------------- --------------- 228 2,674 4,804 --------------- - --------------- --------------- Share of losses from operating limited partnerships (note A) (1,350,247) (1,939,765) (2,179,426) --------------- - --------------- --------------- Expenses Professional fees 42,629 46,798 36,776 Partnership management fee (note B) 360,155 347,953 353,184 Amortization (note A) 13,317 13,317 19,944 General and administrative expenses (note B) 28,461 23,195 27,052 --------------- - --------------- --------------- 444,562 431,263 436,956 --------------- - --------------- --------------- $ (1,794,581) $ (2,368,354) $ (2,611,578) =============== =============== =============== Net loss allocated to general partner $ (17,946) $ (23,684) $ (26,116) =============== =============== =============== Net loss allocated to assignees $ (1,776,635) $ (2,344,670) $ (2,585,462) =============== =============== =============== Net loss per BAC $ (0.60) $ (0.79) $ (0.87) =============== =============== ===============
(continued) F-17 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF OPERATIONS - CONTINUED Years ended March 31, 1998, 1997 and 1996 Series 14 - ----------------------------------------------------- 1998 1997 1996 ---------------- - ---------------- --------------- Income Interest income $ 15,580 $ 125,494 $ 26,216 Miscellaneous income 1,350 - - - --------------- - --------------- --------------- 16,930 125,494 26,216 --------------- - --------------- --------------- Share of losses from operating limited partnerships (note A) (3,031,945) (4,150,179) (4,120,449) --------------- - --------------- --------------- Expenses Professional fees 72,489 150,877 70,471 Partnership management fee (note B) 675,616 663,654 707,026 Amortization (note A) 29,189 39,017 68,502 General and administrative expenses (note B) 65,218 41,727 54,888 --------------- - --------------- --------------- 842,512 895,275 900,887 --------------- - --------------- --------------- $ (3,857,527) $ (4,919,960) $ (4,995,120) =============== =============== =============== Net loss allocated to general partner $ (38,575) $ (49,200) $ (49,951) =============== =============== =============== Net loss allocated to assignees $ (3,818,952) $ (4,870,760) $ (4,945,169) =============== =============== =============== Net loss per BAC $ (0.69) $ (0.87) $ (0.89) =============== =============== ===============
See notes to financial statements F-18 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF CHANGES IN PARTNERS' CAPITAL Years ended March 31, 1998, 1997 and 1996 Total Assignees General partner Total - ---------------------------------------------------- ---------------- - ---------------- --------------- Partners' capital (deficit), March 31, 1995 $ 90,925,623 $ (714,604) $ 90,211,019 Net loss (15,621,147) (157,789) (15,778,936) --------------- - --------------- --------------- Partners' capital (deficit), March 31, 1996 75,304,476 (872,393) 74,432,083 Net loss (12,960,031) (130,909) (13,090,940) --------------- - --------------- --------------- Partners' capital (deficit), March 31, 1997 62,344,445 (1,003,302) 61,341,143 Net loss (11,200,426) (113,135) (11,313,561) --------------- - --------------- --------------- Partners' capital (deficit), March 31, 1998 $ 51,144,019 $ (1,116,437) $ 50,027,582 =============== =============== ===============
(continued) F-19 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - CONTINUED Years ended March 31, 1998, 1997 and 1996 Series 7 Assignees General partner Total - ---------------------------------------------------- ---------------- - ---------------- ---------------- Partners' capital (deficit), March 31, 1995 $ 3,386,469 $ (56,628) $ 3,329,841 Net loss (990,824) (10,008) (1,000,832) --------------- - -------------- --------------- Partners' capital (deficit), March 31, 1996 2,395,645 (66,636) 2,329,009 Net loss (1,246,915) (12,595) (1,259,510) --------------- - -------------- --------------- Partners' capital (deficit), March 31, 1997 1,148,730 (79,231) 1,069,499 Net loss (417,259) (4,215) (421,474) --------------- - -------------- --------------- Partners' capital (deficit), March 31, 1998 $ 731,471 $ (83,446) $ 648,025 =============== =============== ===============
Series 9 Assignees General partner Total - ---------------------------------------------------- --------------- - -------------- --------------- Partners' capital (deficit), March 31, 1995 $ 17,064,175 $ (191,615) $ 16,872,560 Net loss (3,346,820) (33,806) (3,380,626) --------------- - -------------- --------------- Partners' capital (deficit), March 31, 1996 13,717,355 (225,421) 13,491,934 Net loss (3,213,801) (32,462) (3,246,263) --------------- - -------------- --------------- Partners' capital (deficit), March 31, 1997 10,503,554 (257,883) 10,245,671 Net loss (2,276,350) (22,993) (2,299,343) --------------- - -------------- --------------- Partners' capital (deficit), March 31, 1998 $ 8,227,204 $ (280,876) $ 7,946,328 =============== ============== ---------------
(continued) F-20 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - CONTINUED Years ended March 31, 1998, 1997 and 1996 Series 10 Assignees General partner Total - ---------------------------------------------------- --------------- - --------------- --------------- Partners' capital (deficit), March 31, 1995 $ 10,985,203 $ (101,981) $ 10,883,222 Net loss (1,811,604) (18,299) (1,829,903) --------------- - --------------- --------------- Partners' capital (deficit), March 31, 1996 9,173,599 (120,280) 9,053,319 Net loss (1,526,107) (15,415) (1,541,522) --------------- - --------------- --------------- Partners' capital (deficit), March 31, 1997 7,647,492 (135,695) 7,511,797 Net loss (1,377,437) (13,913) (1,391,350) --------------- - --------------- --------------- Partners' capital (deficit), March 31, 1998 $ 6,270,055 $ (149,608) $ 6,120,447 =============== =============== ===============
Series 11 Assignees General partner Total - ---------------------------------------------------- --------------- - --------------- --------------- Partners' capital (deficit), March 31, 1995 $ 11,963,984 $ (96,005) $ 11,867,979 Net loss (1,941,268) (19,609) (1,960,877) --------------- - --------------- --------------- Partners' capital (deficit), March 31, 1996 10,022,716 (115,614) 9,907,102 Net income 242,222 2,447 244,669 --------------- - --------------- --------------- Partners' capital (deficit), March 31, 1997 10,264,938 (113,167) 10,151,771 Net loss (1,533,793) (15,493) (1,549,286) --------------- - --------------- --------------- Partners' capital (deficit), March 31, 1998 $ 8,731,145 $ (128,660) $ 8,602,485 =============== =============== ===============
(continued) F-21 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - CONTINUED Years ended March 31, 1998, 1997 and 1996 Series 12 Assignees General partner Total - ---------------------------------------------------- --------------- - --------------- --------------- Partners' capital (deficit), March 31, 1995 $ 15,850,574 $ (99,750) $ 15,750,824 Net loss (2,585,462) (26,116) (2,611,578) --------------- - --------------- --------------- Partners' capital (deficit), March 31, 1996 13,265,112 (125,866) 13,139,246 Net loss (2,344,670) (23,684) (2,368,354) --------------- - --------------- --------------- Partners' capital (deficit), March 31, 1997 10,920,442 (149,550) 10,770,892 Net loss (1,776,635) (17,946) (1,794,581) --------------- - --------------- --------------- Partners' capital (deficit), March 31, 1998 $ 9,143,807 $ (167,496) $ 8,976,311 =============== =============== ===============
Series 14 Assignees General partner Total - ---------------------------------------------------- --------------- - --------------- --------------- Partners' capital (deficit), March 31, 1995 $ 31,675,218 $ (168,625) $ 31,506,593 Net loss (4,945,169) (49,951) (4,995,120) --------------- - --------------- --------------- Partners' capital (deficit), March 31, 1996 26,730,049 (218,576) 26,511,473 Net loss (4,870,760) (49,200) (4,919,960) --------------- - --------------- --------------- Partners' capital (deficit), March 31, 1997 21,859,289 (267,776) 21,591,513 Net loss (3,818,952) (38,575) (3,857,527) --------------- - --------------- --------------- Partners' capital (deficit), March 31, 1998 $ 18,040,337 $ (306,351) $ 17,733,986 =============== =============== ===============
See notes to financial statements F-22 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF CASH FLOWS Years ended March 31, 1998, 1997 and 1996 Total - ----------------------------------------------------- 1998 1997 1996 ---------------- - ---------------- ---------------- Cash flows from operating activities Net loss $ (11,313,561) $ (13,090,940) $ (15,778,936) Adjustments to reconcile net loss to net cash provided by (used in) operating activities Distribution from operating limited partnerships 44,006 106,453 101,256 Share of losses from operating limited partnerships 8,573,433 10,464,997 12,992,069 Amortization 48,561 58,391 109,832 Changes in assets and liabilities Accounts payable and accrued expenses 2,582,855 2,521,041 2,492,807 Other assets (2,899) 2,297 415,503 --------------- - --------------- --------------- Net cash provided by (used in) operating activities (67,605) 62,239 332,531 --------------- - --------------- --------------- Cash flows from investing activities Capital contributions paid to operating limited partnerships (18,000) (620,884) (768,934) Repayment from (advance to) operating limited partnerships (28,474) 421,684 - Purchase of investments (917,497) - - - --------------- - --------------- --------------- Net cash used in investing activities (963,971) (199,200) (768,934) NET DECREASE IN CASH AND CASH EQUIVALENTS (1,031,576) (136,961) (436,403) Cash and cash equivalents, beginning 1,725,325 1,862,286 2,298,689 --------------- - --------------- --------------- Cash and cash equivalents, end $ 693,749 $ 1,725,325 $ 1,862,286 =============== =============== ===============
(continued) F-23 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1998, 1997 and 1996 Total - ----------------------------------------------------- 1998 1997 1996 --------------- - --------------- --------------- Supplemental schedule of noncash investing and financing activities The partnership has decreased its capital contribution obligation to the operating limited partnerships for low income tax credits not generated $ 681 $ 8,572 $ 60,116 =============== =============== =============== The partnership has adjusted its investment in operating limited partnerships for low income tax credits not generated $ 14,988 $ 20,969 $ 26,305 =============== =============== =============== The partnership has applied notes receivable and advances against installments of capital contributions $ - $ 902,811 $ - =============== =============== ===============
(continued) F-24 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1998, 1997 and 1996 Series 7 - ----------------------------------------------------- 1998 1997 1996 --------------- - --------------- --------------- Cash flows from operating activities Net loss $ (421,474) $ (1,259,510) $ (1,000,832) Adjustments to reconcile net loss to net cash provided by (used in) operating activities Distribution from operating limited partnerships - - - 2,258 Share of losses from operating limited partnerships 286,041 1,126,341 867,319 Amortization - - - - Changes in assets and liabilities Accounts payable and accrued expenses 130,559 140,303 122,085 Other assets - - - - --------------- - --------------- --------------- Net cash provided by (used in) operating activities (4,874) 7,134 (9,170) --------------- - --------------- --------------- Cash flows from investing activities Capital contributions paid to operating limited partnerships - - - - Repayment from (advance to) operating limited partnerships - - - - Purchase of investments - - - - --------------- - --------------- --------------- Net cash provided by investing activities - - - - --------------- - --------------- --------------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (4,874) 7,134 (9,170) Cash and cash equivalents, beginning 12,008 4,874 14,044 --------------- - --------------- --------------- Cash and cash equivalents, end $ 7,134 $ 12,008 $ 4,874 =============== =============== ===============
(continued) F-25 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1998, 1997 and 1996 Series 7 - ----------------------------------------------------- 1998 1997 1996 --------------- - --------------- --------------- Supplemental schedule of noncash investing and financing activities The partnership has decreased its capital contribution obligation to the operating limited partnerships for low income tax credits not generated $ - $ - - $ - =============== =============== =============== The partnership has adjusted its investment in operating limited partnerships for low income tax credits not generated $ - $ - - $ - =============== =============== =============== The partnership has applied notes receivable and advances against installments of capital contributions $ - $ - - $ - =============== =============== ===============
(continued) F-26 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1998, 1997 and 1996 Series 9 - ----------------------------------------------------- 1998 1997 1996 --------------- - --------------- --------------- Cash flows from operating activities Net loss $ (2,299,343) $ (3,246,263) $ (3,380,626) Adjustments to reconcile net loss to net cash provided by (used in) operating activities Distribution from operating limited partnerships 3,390 4,980 4,554 Share of income (losses) from operating limited partnerships 1,699,785 2,660,814 2,777,350 Amortization 870 870 870 Changes in assets and liabilities Accounts payable and accrued expenses 575,787 574,619 584,663 Other assets (2,216) - - 82,981 --------------- - --------------- --------------- Net cash provided by (used in) operating activities (21,727) (4,980) 69,792 --------------- - --------------- --------------- Cash flows from investing activities Capital contributions paid to operating limited partnerships - (86,448) (124,017) Repayment from (advance to) operating limited partnerships (27,697) - - - Purchase of investments (249,497) - - - --------------- - --------------- --------------- Net cash used in investing activities (277,194) (86,448) (124,017) --------------- - --------------- --------------- NET DECREASE IN CASH AND CASH EQUIVALENTS (298,921) (91,428) (54,225) Cash and cash equivalents, beginning 566,836 658,264 712,489 --------------- - --------------- --------------- Cash and cash equivalents, end $ 267,915 $ 566,836 $ 658,264 =============== =============== ===============
(continued) F-27 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1998, 1997 and 1996 Series 9 - ----------------------------------------------------- 1998 1997 1996 --------------- - --------------- --------------- Supplemental schedule of noncash investing and financing activities The partnership has decreased its capital contribution obligation to the operating limited partnerships for low income tax credits not generated $ - $ 8,572 $ 32,046 =============== =============== =============== The partnership has adjusted its investment in operating limited partnerships for low income tax credits not generated $ 3,728 $ 10,230 $ - =============== =============== ===============
(continued) F-28 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1998, 1997 and 1996 Series 10 - ----------------------------------------------------- 1998 1997 1996 --------------- - --------------- --------------- Cash flows from operating activities Net loss $ (1,391,350) $ (1,541,522) $ (1,829,903) Adjustments to reconcile net loss to net cash provided by (used in) operating activities Distribution from operating limited partnerships 5,031 7,447 947 Share of losses (income) from operating limited partnerships 1,008,105 1,166,928 1,426,332 Amortization 3,441 3,442 10,407 Changes in assets and liabilities Accounts payable and accrued expenses 355,512 355,508 371,404 Other assets (683) - - 265 --------------- - --------------- --------------- Net cash used in operating activities (19,944) (8,197) (20,548) --------------- - --------------- --------------- Cash flows from investing activities Capital contributions paid to operating limited partnerships - - - (10,014) Repayment from (advance to) operating limited partnerships - - - - Purchase of investments (83,000) - - - --------------- - --------------- --------------- Net cash used in investing activities (83,000) - - (10,014) --------------- - --------------- --------------- NET DECREASE IN CASH AND CASH EQUIVALENTS (102,944) (8,197) (30,562) Cash and cash equivalents, beginning 144,428 152,625 183,187 --------------- - --------------- --------------- Cash and cash equivalents, end $ 41,484 $ 144,428 $ 152,625 =============== =============== ===============
(continued) F-29 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1998, 1997 and 1996 Series 10 - ----------------------------------------------------- 1998 1997 1996 --------------- - --------------- --------------- Supplemental schedule of noncash investing and financing activities The partnership has decreased its capital contribution obligation to the operating limited partnerships for low income tax credits not generated $ - $ - - $ - =============== =============== =============== The partnership has adjusted its investment in operating limited partnerships for low income tax credits not generated $ - $ - - $ - =============== =============== =============== The partnership has applied notes receivable and advances against installments of capital contributions $ - $ - - $ - =============== =============== ===============
(continued) F-30 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1998, 1997 and 1996 Series 11 - ----------------------------------------------------- 1998 1997 1996 --------------- - --------------- --------------- Cash flows from operating activities Net income (loss) $ (1,549,286) $ 244,669 $ (1,960,877) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Distribution from operating limited partnerships 10,000 80,667 90,443 Share of (income) losses from operating limited partnerships 1,197,310 (579,030) 1,621,193 Amortization 1,744 1,745 10,109 Changes in assets and liabilities Accounts payable and accrued expenses 325,681 325,681 325,679 Other assets - - - - --------------- - --------------- --------------- Net cash provided by (used in) operating activities (14,551) 73,732 86,547 --------------- - --------------- --------------- Cash flows from investing activities Capital contributions paid to operating limited partnerships (5,000) - - - Repayment from (advance to) operating limited partnerships - - - - Purchase of investments (249,000) - - - --------------- - --------------- --------------- Net cash used in investing activities (254,000) - - - --------------- - --------------- --------------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (268,551) 73,732 86,547 Cash and cash equivalents, beginning 307,351 233,619 147,072 --------------- - --------------- --------------- Cash and cash equivalents, end $ 38,800 $ 307,351 $ 233,619 =============== =============== ===============
(continued) F-31 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1998, 1997 and 1996 Series 11 - ----------------------------------------------------- 1998 1997 1996 --------------- - --------------- --------------- Supplemental schedule of noncash investing and financing activities The partnership has decreased its capital contribution obligation to the operating limited partnerships for low income tax credits not generated $ - $ - - $ - =============== =============== =============== The partnership has adjusted its investment in operating limited partnerships for low income tax credits not generated $ 5,723 $ 5,723 $ 11,446 =============== =============== =============== The partnership has applied notes receivable and advances against installments of capital contributions $ - $ - - $ - =============== =============== ===============
(continued) F-32 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1998, 1997 and 1996 Series 12 - ----------------------------------------------------- 1998 1997 1996 --------------- - --------------- --------------- Cash flows from operating activities Net loss $ (1,794,581) $ (2,368,354) $ (2,611,578) Adjustments to reconcile net loss to net cash provided by (used in) operating activities Distribution from operating limited partnerships 6,315 9,735 1,087 Share of losses from operating limited partnerships 1,350,247 1,939,765 2,179,426 Amortization 13,317 13,317 19,944 Changes in assets and liabilities Accounts payable and accrued expenses 438,772 383,267 383,268 Other assets - - - - --------------- - --------------- --------------- Net cash provided by (used in) operating activities 14,070 (22,270) (27,853) --------------- - --------------- --------------- Cash flows from investing activities Capital contributions paid to operating limited partnerships - (76,430) - Repayment from (advance to) operating limited partnerships (775) (60,336) - Purchase of investments - - - - --------------- - --------------- --------------- Net cash used in investing activities (775) (136,766) - --------------- - --------------- --------------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 13,295 (159,036) (27,853) Cash and cash equivalents, beginning 8,532 167,568 195,421 --------------- - --------------- --------------- Cash and cash equivalents, end $ 21,827 $ 8,532 $ 167,568 =============== =============== ===============
(continued) F-33 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1998, 1997 and 1996 Series 12 - ----------------------------------------------------- 1998 1997 1996 --------------- - --------------- --------------- Supplemental schedule of noncash investing and financing activities The partnership has decreased its capital contribution obligation to the operating limited partnerships for low income tax credits not generated $ - $ - - $ - =============== =============== =============== The partnership has adjusted its investment in operating limited partnerships for low-income tax credits not generated $ 3,485 $ 3,845 $ 7,689 =============== =============== =============== The partnership has applied notes receivable and advances against installments of capital contributions $ - $ - - $ - =============== =============== ===============
(continued) F-34 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1998, 1997 and 1996 Series 14 - ----------------------------------------------------- 1998 1997 1996 --------------- - --------------- --------------- Cash flows from operating activities Net loss $ (3,857,527) $ (4,919,960) $ (4,995,120) Adjustments to reconcile net loss to net cash provided by (used in) operating activities Distribution from operating limited partnerships 19,270 3,624 1,967 Share of losses from operating limited partnerships 3,031,945 4,150,179 4,120,449 Amortization 29,189 39,017 68,502 Changes in assets and liabilities Accounts payable and accrued expenses 756,544 741,663 705,708 Other assets - 2,297 332,257 --------------- - --------------- --------------- Net cash provided by (used in) operating activities (20,579) 16,820 233,763 --------------- - --------------- --------------- Cash flows from investing activities Capital contributions paid to operating limited partnerships (13,000) (458,006) (634,903) Repayment from (advance to) operating limited partnerships - 482,020 - Purchase of investments (336,000) - - - --------------- - --------------- --------------- Net cash provided by (used in) investing activities (349,000) 24,014 (634,903) --------------- - --------------- --------------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (369,579) 40,834 (401,140) Cash and cash equivalents, beginning 686,170 645,336 1,046,476 --------------- - --------------- --------------- Cash and cash equivalents, end $ 316,591 $ 686,170 $ 645,336 =============== =============== ===============
(continued) F-35 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1998, 1997 and 1996 Series 14 - ----------------------------------------------------- 1998 1997 1996 --------------- - --------------- --------------- Supplemental schedule of noncash investing and financing activities The partnership has decreased its capital contribution obligation to the operating limited partnerships for low income tax credits not generated $ 681 $ - - $ 28,070 =============== =============== =============== The partnership has adjusted its investment in operating limited partnerships for low income tax credits not generated $ 2,052 $ 1,171 $ 7,170 =============== =============== =============== The partnership has applied notes receivable and advances against installments of capital contributions $ - $ 902,811 $ - =============== =============== ===============
See notes to financial statements F-36 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS March 31, 1998, 1997 and 1996 NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Boston Capital Tax Credit Fund II Limited Partnership (the "partnership") was formed under the laws of the State of Delaware on June 28, 1989, for the purpose of acquiring, holding and disposing of limited partnership interests in operating limited partnerships which will acquire, develop, rehabilitate, operate and own newly constructed, existing or rehabilitated low-income apartment complexes which qualify for the Low-Income Housing Tax Credit established by the Tax Reform Act of 1986. Certain of the apartment complexes may also qualify for the Historic Rehabilitation Tax Credit for their rehabilitation of a certified historic structure; accordingly, the apartment complexes are restricted as to rent charges and operating methods and are subject to the provisions of Section 42(g)(2) of the Internal Revenue Code relating to the Rehabilitation Investment Credit. The general partner of the partnership is Boston Capital Associates II Limited Partnership and the limited partner is BCTC Assignor Corp. II (the "assignor limited partner"). Pursuant to the Securities Act of 1933, the partnership filed a Form S-11 Registration Statement with the Securities and Exchange Commission, effective August 29, 1988, 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. BACs sold in bulk over $100,000 were offered to investors at a reduced cost per BAC. The partnership is no longer selling any BACs related to any series. The final closing in Series 14 was January 27, 1993. The BACs issued and outstanding in each series at March 31, 1998 and 1997 are as follows: Series 7 1,036,100 Series 9 4,178,029 Series 10 2,428,925 Series 11 2,489,599 Series 12 2,972,795 5,574,290 Series 14 ----------- Total 18,679,738 ===========
In accordance with the limited partnership agreement, profits, losses, and cash flow (subject to certain priority allocations and distributions) and tax credits are allocated 99% to the assignees and 1% to the general partner. F-37 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Organization Costs ------------------ Initial organization and offering expenses, common to all series, were allocated on a percentage of equity raised to each series. Organization costs were being amortized on the straight-line method over sixty months. Accumulated amortization for the years ended March 31, 1998 and 1997 is as follows: 1998 1997 --------------- - --------------- Series 7 $ 44,056 $ 44,056 Series 9 156,077 156,077 Series 10 90,168 90,168 Series 11 91,182 91,182 Series 12 104,791 104,791 Series 14 196,563 196,563 --------------- - --------------- $ 682,837 $ 682,837 =============== ===============
Deferred Acquisition Costs -------------------------- Deferred acquisition costs are being amortized on the straight- line method starting April 1, 1995 over 27.5 years (330 months). As of April 1, 1995, the partnership reclassified certain unallocated acquisition costs included in the investments in operating limited partnerships to deferred acquisition costs. The amounts include $23,920, $94,634, and $47,968 for Series 9, Series 10 and Series 11, respectively. F-38 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Deferred Acquisition Costs (Continued) -------------------------- Accumulated amortization for the years ended March 31, 1998 and 1997 is as follows: 1998 1997 --------------- - --------------- Series 7 $ - $ - - Series 9 2,610 1,740 Series 10 10,324 6,883 Series 11 5,233 3,489 Series 12 39,951 26,634 Series 14 87,568 58,379 --------------- - --------------- $ 145,686 $ 97,125 =============== ===============
Income Taxes ------------ No provision or benefit for income taxes has been included in these financial statements since taxable income or loss passes through to, and is reportable by, the partners and assignees individually. Investments in Operating Limited Partnerships --------------------------------------------- The partnership accounts for its investments in operating limited partnerships using the equity method of accounting. Under the equity method of accounting, the partnership adjusts its investment cost for its share of each operating limited partnership's results of operations and for any distributions received or accrued. However, the partnership recognizes individual operating partnership s losses only to the extent that the fund s share of losses of the operating partnerships exceeds the carrying amount of the investment. Unrecognized losses are suspended and offset against future individual operating partnership's income. No operating partnerships were acquired during 1996 or 1997. F-39 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Investments in Operating Limited Partnerships (Continued) --------------------------------------------- A loss in value of an investment in an operating partnership other than a temporary decline would be recorded as an impairment loss. Impairment is measured by comparing the investment carrying amount to the sum of the total amount of the remaining tax credits allocated to the partnership and the estimated residual value of the investment. Capital contributions to operating partnerships are adjusted by tax credit adjusters. Tax credit adjusters are defined as adjustments to operating partnership capital contributions due to reductions in actual tax credits from those originally projected. The partnership records tax credit adjusters as a reduction in investment in operating partnerships and capital contributions payable. The operating partnerships maintain their financial statements based on a calendar year and the partnership utilizes a March 31 year-end. The fund records losses and income from the operating partnerships on a calendar year basis which is not materially different from losses and income generated if the operating partnerships utilized a March 31 year-end. The partnership records capital contributions payable to the operating partnerships once there is a binding obligation to fund a specified amount. The operating partnerships record capital contributions from the partnership when received. The partnership records acquisition cost as an increase in its investment in operating partnerships. Certain operating partnerships have not recorded the acquisition costs as a capital contribution from the partnership. These differences are shown as reconciling items in note C. Cash Equivalents ---------------- Cash equivalents include tax-exempt sweep accounts, certificates of deposit, and money market accounts having original maturities at date of acquisition of three months or less. The carrying amounts approximates fair value because of the short maturity of these instruments. F-40 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Net Loss per Beneficial Assignee Certificate (Continued) -------------------------------------------- Fiscal Year ----------- For financial reporting, all the series use a March 31 year end, whereas for income tax reporting, each series uses a calendar year. The operating limited partnerships use a calendar year for both financial and income tax reporting. Net Loss per Beneficial Assignee Certificate -------------------------------------------- Net loss per beneficial assignee certificate is calculated based upon the weighted average number of units outstanding. The weighted average number of units outstanding in each series at March 31, 1998, 1997 and 1996 is as follows: Series 7 1,036,100 Series 9 4,178,029 Series 10 2,428,925 Series 11 2,489,599 Series 12 2,972,795 Series 14 5,574,290 --------------- Total 18,679,738 ===============
Use of Estimates ---------------- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Investments Held to Maturity ---------------------------- Investments held to maturity consist of certificates of deposit with original maturities greater than 90 days and are carried at amortized cost which approximates fair value. F-41 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Adoption of Accounting Standard ------------------------------- On March 31, 1997, the partnership adopted Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings per Share" and SFAS No. 129, "Disclosure of Information about Capital Structure." SFAS No. 128 provides accounting and reporting standards for the amount of earnings per share. SFAS No. 129 requires the disclosure in summary form within the financial statements of pertinent rights and privileges of the various securities outstanding. The implementation of these standards has not materially affected the partnership's financial statements. In June 1997, the Financial Accounting Standards Board issued SFAS No. 130, "Reporting Comprehensive Income" and SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information." In February 1998, the Financial Accounting Standards Board issued SFAS No. 132, "Employees Disclosures about Pensions and Other Post-retirement Benefits." SFAS No. 130 is effective for years beginning after December 15, 1997. SFAS No. 131 and No. 132 are effective for years beginning after December 31, 1997 and early adoption is encouraged. The partnership does not have any items of other comprehensive income, does not have other segments of its business or when to report, and does not have any pensions or other post-retirement benefits. Consequently, these pronouncements are expected to have no effect on the partnership's financial statements. NOTE B - RELATED PARTY TRANSACTIONS During the years ended March 31, 1998, 1997 and 1996, the partnership entered into several transactions with various affiliates of the general partner, including Boston Capital Partners, Inc., Boston Capital Services, Inc., Boston Capital Holdings Limited Partnership, and Boston Capital Asset Management Limited Partnership (formerly Boston Capital Communications Limited Partnership) as follows: F-42 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE B - RELATED PARTY TRANSACTIONS (Continued) Boston Capital Asset Management Limited Partnership (formerly Boston Capital Communications Limited Partnership) is entitled to an annual partnership management fee based on .5 percent of the aggregate cost of all apartment complexes acquired by the operating limited partnerships, less the amount of certain partnership management and reporting fees paid or payable by the operating limited partnerships. The aggregate cost is comprised of the capital contributions made by each series to the operating limited partnership and 99% of the permanent financing at the operating limited partnership level. The annual partnership management fees charged to each series operations during the years ended March 31, 1998, 1997 and 1996 are as follows: 1998 1997 1996 --------------- - --------------- --------------- Series 7 $ 111,089 $ 106,774 $ 107,256 Series 9 547,218 539,985 560,971 Series 10 321,682 324,407 343,505 Series 11 298,613 291,053 284,604 Series 12 360,155 347,953 353,184 Series 14 675,616 663,654 707,026 --------------- - --------------- --------------- $ 2,314,373 $ 2,273,826 $ 2,356,546 =============== =============== ===============
General and administrative expenses incurred by Boston Capital Partners, Inc., Boston Capital Holdings Limited Partnership, and Boston Capital Asset Management Limited Partnership (formerly Boston Capital Communications Limited Partnership) during the years ended March 31, 1998, 1997 and 1996 charged to each series operations are as follows: 1998 1997 1996 --------------- - --------------- --------------- Series 7 $ 2,441 $ 518 $ 742 Series 9 15,327 15,827 17,895 Series 10 18,402 12,050 12,777 Series 11 16,420 10,562 12,577 Series 12 13,492 13,990 16,322 Series 14 37,157 25,277 24,618 --------------- - --------------- --------------- $ 103,239 $ 78,224 $ 84,931 =============== =============== ===============
F-43 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE B - RELATED PARTY TRANSACTIONS (Continued) Accounts payable - affiliates at March 31, 1998 and 1997 represents general and administrative expenses, partnership management fees, and may include advances which are payable to Boston Capital Partners, Inc., Boston Capital Holdings Limited Partnership, Boston Capital Services, Inc., and Boston Capital Asset Management Limited Partnership. The carrying value of the accounts payable - affiliates approximates fair value. NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS At March 31, 1998 and 1997, the partnership has limited partnership interests in operating limited partnerships which own operating apartment complexes. The number of operating limited partnerships in which the partnership has limited partnership interests at March 31, 1998 and 1997 by series are as follows: 1998 and 1997 --------------- Series 7 15 Series 9 55 Series 10 46 Series 11 40 Series 12 53 Series 14 101 --------------- 310 ===============
Under the terms of the partnership s investment in each operating limited partnership, the partnership is required to make capital contributions to the operating limited partnerships. These contributions are payable in installments over several years upon each operating limited partnership achieving specified levels of construction or operations. F-44 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The contributions payable to operating limited partnerships at March 31, 1998 and 1997 by series are as follows: 1998 1997 --------------- - --------------- Series 7 $ - $ - - Series 9 4,590 4,590 Series 10 - - - Series 11 22,528 27,528 Series 12 11,405 11,405 Series 14 329,894 343,575 --------------- - --------------- $ 368,417 $ 387,098 =============== ===============
F-45 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The partnership's investments in operating limited partnerships at March 31, 1998 are summarized as follows: Total - --------------- Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters $ 133,483,117 Acquisition costs of operating limited partnerships 22,387,381 Cumulative distributions from operating limited partnerships (433,776) Cumulative losses from operating limited partnerships (94,596,745) - --------------- Investment per balance sheet 60,839,977 The partnership (has recorded) or has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 1998, which (have not) have been included in the partnerships capital accounts included in the operating limited partnerships financial statements as of December 31, 1997 (See note A) (2,619,980) The partnership has recorded acquisition costs at March 31, 1998, which have not been recorded in the net assets of the operating limited partnerships (see note A) (2,577,204) Cumulative losses from operating limited partnerships for the three months ended March 31, 1998, which the operating limited partnerships have not included in their capital as of December 31, 1997 due to different year ends (see note A) 5,109,374 Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A) (9,596,954) The partnership has recorded low-income housing tax credit adjusters not recorded by operating partnerships (see note A) 1,524,819 Other 97,038 - --------------- Equity per operating limited partnerships combined financial statements $ 52,777,070 ===============
F-46 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The partnership's investments in operating limited partnerships at March 31, 1998 are summarized as follows: Series 7 Series 9 Series 10 ---------------- - ---------------- ---------------- Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters $ 7,486,177 $ 29,796,871 $ 17,581,651 Acquisition costs of operating limited partnerships 1,302,313 5,201,737 2,958,341 Cumulative distributions from operating limited partnerships (2,258) (43,005) (23,359) Cumulative losses from operating limited partnerships (7,300,906) (24,133,896) (12,305,174) --------------- - --------------- --------------- Investment per balance sheet 1,485,326 10,821,707 8,211,459 The partnership (has recorded) or has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 1998, which (have not) have been included in the partnerships capital accounts included in the operating limited partnerships financial statements as of December 31, 1997 (see note A) 24,274 (339,406) (11,530) The partnership has recorded acquisition costs at March 31, 1998, which have not been recorded in the net assets of the operating limited partnerships (see note A) (461,143) (185,244) (9,836) Cumulative losses from operating limited partnerships for the three months ended March 31, 1998, which the operating limited partnerships have not included in their capital as of December 31, 1997 due to different year ends (see note A) 125,066 1,134,799 776,692 Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A) (2,854,029) (2,967,867) (1,137,095) The partnership has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A) (11,992) 231,710 93,713 Other (10,630) 38,185 (46,363) --------------- - --------------- --------------- Equity per operating limited partnerships combined financial statements $ (1,703,128) $ 8,733,884 $ 7,877,040 =============== =============== ===============
F-47 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The partnership's investments in operating limited partnerships at March 31, 1998 are summarized as follows: Series 11 Series 12 Series 14 ---------------- - ---------------- --------------- Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters $ 17,701,870 $ 21,394,399 $ 39,522,149 Acquisition costs of operating limited partnerships 3,069,084 3,398,377 6,457,529 Cumulative distributions from operating limited partnerships (239,296) (29,166) (96,692) Cumulative losses from operating limited partnerships (10,658,716) (14,177,769) (26,020,284) --------------- - --------------- --------------- Investment per balance sheet 9,872,942 10,585,841 19,862,702 The partnership (has recorded) or has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 1998, which (have not) have been included in the partnerships capital accounts included in the operating limited partnerships financial statements as of December 31, 1997 (see note A) (231,881) (602,177) (1,459,260) The partnership has recorded acquisition costs at March 31, 1998, which have not been recorded in the net assets of the operating limited partnerships (see note A) (519,482) (315,858) (1,085,641) Cumulative losses from operating limited partnerships for the three months ended March 31, 1998, which the operating limited partnerships have not included in their capital as of December 31, 1997 due to different year ends (see note A) 721,702 613,706 1,737,409 Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A) (1,049,548) (654,438) (933,977) The partnership has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A) 106,366 148,948 956,074 Other 199,237 49,178 (132,569) --------------- - --------------- --------------- Equity per operating limited partnerships combined financial statements $ 9,099,336 $ 9,825,200 $ 18,944,738 =============== =============== ===============
F-48 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The partnership's investments in operating limited partnerships at March 31, 1997 are summarized as follows: Total - --------------- Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters $ 133,498,465 Acquisition costs of operating limited partnerships 22,387,381 Cumulative distributions from operating limited partnerships (389,770) Cumulative losses from operating limited partnerships (86,023,312) - --------------- Investment per balance sheet 69,472,764 The partnership (has recorded) or has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 1997, which (have not) have been included in the partnerships capital accounts included in the operating limited partnerships financial statements as of December 31, 1996 (See note A) (2,468,695) The partnership has recorded acquisition costs at March 31, 1997, which have not been recorded in the net assets of the operating limited partnerships (see note A) (2,577,205) Cumulative losses from operating limited partnerships for the three months ended March 31, 1997, which the operating limited partnerships have not included in their capital as of December 31, 1996 due to different year ends (see note A) 5,109,374 Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A) (6,085,976) The partnership has recorded low-income housing tax credit adjusters not recorded by operating partnerships (see note A) 1,488,703 Other 27,515 - --------------- Equity per operating limited partnerships combined financial statements $ 64,966,480 ===============
F-49 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The partnership's investments in operating limited partnerships at March 31, 1997 are summarized as follows: Series 7 Series 9 Series 10 ---------------- - ---------------- ---------------- Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters $ 7,486,177 $ 29,800,599 $ 17,581,651 Acquisition costs of operating limited partnerships 1,302,313 5,201,737 2,958,341 Cumulative distributions from operating limited partnerships (2,258) (39,615) (18,328) Cumulative losses from operating limited partnerships (7,014,865) (22,434,111) (11,297,069) --------------- - --------------- --------------- Investment per balance sheet 1,771,367 12,528,610 9,224,595 The partnership (has recorded) or has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 1997, which (have not) have been included in the partnerships capital accounts included in the operating limited partnerships financial statements as of December 31, 1996 (see note A) 24,274 (345,499) (11,530) The partnership has recorded acquisition costs at March 31, 1997, which have not been recorded in the net assets of the operating limited partnerships (see note A) (461,143) (185,244) (9,836) Cumulative losses from operating limited partnerships for the three months ended March 31, 1997, which the operating limited partnerships have not included in their capital as of December 31, 1996 due to different year ends (see note A) 125,066 1,134,799 776,692 Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A) (2,420,144) (2,029,532) (633,921) The partnership has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A) (11,992) 227,982 93,713 Other (10,631) 38,661 (51,388) --------------- - --------------- --------------- Equity per operating limited partnerships combined financial statements $ (983,203) $ 11,369,777 $ 9,388,325 =============== =============== ===============
F-50 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The partnership's investments in operating limited partnerships at March 31, 1997 are summarized as follows: Series 11 Series 12 Series 14 ---------------- - ---------------- --------------- Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters $ 17,707,593 $ 21,398,244 $ 39,524,201 Acquisition costs of operating limited partnerships 3,069,084 3,398,377 6,457,529 Cumulative distributions from operating limited partnerships (229,296) (22,851) (77,422) Cumulative losses from operating limited partnerships (9,461,406) (12,827,522) (22,988,339) --------------- - --------------- --------------- Investment per balance sheet 11,085,975 11,946,248 22,915,969 The partnership (has recorded) or has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 1997, which (have not) have been included in the partnerships capital accounts included in the operating limited partnerships financial statements as of December 31, 1996 (see note A) (163,881) (600,610) (1,371,449) The partnership has recorded acquisition costs at March 31, 1997, which have not been recorded in the net assets of the operating limited partnerships (see note A) (519,483) (315,858) (1,085,641) Cumulative losses from operating limited partnerships for the three months ended March 31, 1997, which the operating limited partnerships have not included in their capital as of December 31, 1996 due to different year ends (see note A) 721,702 613,706 1,737,409 Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A) (488,932) (203,956) (309,491) The partnership has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A) 100,643 148,948 929,409 Other 199,264 15,446 (163,837) --------------- - --------------- --------------- Equity per operating limited partnerships combined financial statements $ 10,935,288 $ 11,603,924 $ 22,652,369 =============== =============== ===============
F-51 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized balance sheets of the operating limited partnerships in which series 7, 9 through 12, and 14 hold an interest as of December 31, 1997 are as follows COMBINED SUMMARIZED BALANCE SHEETS Total Series 7 Series 9 Series 10 ------------- - ------------- ------------- ------------- ASSETS Buildings and improvements, net of accumulated depreciation $ 490,567,380 $ 20,683,120 $ 95,427,592 $ 59,805,436 Land 31,344,813 1,871,570 6,035,503 4,073,162 Other assets 37,442,703 1,560,626 6,800,768 6,299,213 ------------- - ------------- ------------- ------------- $ 559,354,896 $ 24,115,316 $ 108,263,863 $ 70,177,811 ============= ============= ============= ============= LIABILITIES AND PARTNERS' CAPITAL Mortgage and construction loans payable $ 418,158,409 $ 19,437,579 $ 87,183,047 $ 56,450,825 Accounts payable and accrued expenses 11,890,156 2,555,081 3,575,180 680,340 Other liabilities 31,438,442 2,081,135 7,466,222 2,759,457 ------------- - ------------- ------------- ------------- 461,487,007 24,073,795 98,224,449 59,890,622 ------------- - ------------- ------------- ------------- PARTNERS CAPITAL Boston Capital Tax Credit Fund II Limited Partnership 52,777,070 (1,703,128) 8,733,884 7,877,040 Other partners 45,090,819 1,744,649 1,305,530 2,410,149 ------------- - ------------- ------------- ------------- 97,867,889 41,521 10,039,414 10,287,189 ------------- - ------------- ------------- ------------- $ 559,354,896 $ 24,115,316 $ 108,263,863 $ 70,177,811 ============= ============= ============= =============
F-52 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized balance sheets of the operating limited partnerships in which series 7, 9 through 12, and 14 hold an interest as of December 31, 1997 are as follows: COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED Series 11 Series 12 Series 14 - ------------- ------------- ------------- ASSETS Buildings and improvements, net of accumulated depreciation $ 59,638,023 $ 87,252,862 $ 167,760,347 Land 3,234,637 5,010,480 11,119,461 Other assets 5,707,901 5,639,803 11,434,392 - ------------- ------------- ------------- $ 68,580,561 $ 97,903,145 $ 190,314,200 ============= ============= ============= LIABILITIES AND PARTNERS' CAPITAL Mortgage and construction loans payable $ 51,903,045 $ 67,131,203 $ 136,052,710 Accounts payable and accrued expenses 1,568,909 1,612,020 1,898,626 Other liabilities 2,458,523 5,779,176 10,893,929 - ------------- ------------- ------------- 55,930,477 74,522,399 148,845,265 - ------------- ------------- ------------- PARTNERS CAPITAL Boston Capital Tax Credit Fund II Limited Partnership 9,099,336 9,825,200 18,944,738 Other partners 3,550,748 13,555,546 22,524,197 - ------------- ------------- ------------- 12,650,084 23,380,746 41,468,935 - ------------- ------------- ------------- $ 68,580,561 $ 97,903,145 $ 190,314,200 ============= ============= =============
F-53 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized balance sheets of the operating limited partnerships in which series 7, 9 through 12, and 14 hold an interest as of December 31, 1996 are as follows: COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED Total Series 7 Series 9 Series 10 -------------- - ------------- -------------- ------------- ASSETS Buildings and improvements, net of accumulated depreciation $ 510,675,769 $ 21,619,257 $ 99,459,012 $ 62,471,017 Land 31,448,023 1,871,570 6,043,933 4,072,051 Other assets 34,514,735 1,644,350 6,332,153 5,383,804 ------------- - ------------- ------------- ------------- $ 576,638,527 $ 25,135,177 $ 111,835,098 $ 71,926,872 ============= ============= ============= ============= LIABILITIES AND PARTNERS' CAPITAL Mortgage and construction loans payable $ 419,841,875 $ 19,725,342 $ 87,607,507 $ 56,111,510 Accounts payable and accrued expenses 11,357,882 2,127,882 3,136,395 861,747 Other liabilities 30,564,306 2,029,817 7,340,235 2,792,063 ------------- - ------------- ------------- ------------- 461,764,063 23,883,041 98,084,137 59,765,320 ------------- - ------------- ------------- ------------- PARTNERS CAPITAL Boston Capital Tax Credit Fund II Limited Partnership 64,966,480 (983,203) 11,369,777 9,388,325 Other partners 49,907,984 2,235,339 2,381,184 2,773,227 ------------- - ------------- ------------- ------------- 114,874,464 1,252,136 13,750,961 12,161,552 ------------- - ------------- ------------- ------------- $ 576,638,527 $ 25,135,177 $ 111,835,098 $ 71,926,872 ============= ============= ============= =============
F-54 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized balance sheets of the operating limited partnerships in which series 7, 9 through 12, and 14 hold an interest as of December 31, 1996 are as follows: COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED Series 11 Series 12 Series 14 - -------------- -------------- -------------- ASSETS Buildings and improvements, net of accumulated depreciation $ 62,414,776 $ 90,721,825 $ 173,989,882 Land 3,239,961 5,011,397 11,209,111 Other assets 5,433,275 5,149,548 10,571,605 - ------------- ------------- ------------- $ 71,088,012 $ 100,882,770 $ 195,770,598 ============= ============= ============= LIABILITIES AND PARTNERS' CAPITAL Mortgage and construction loans payable $ 52,099,557 $ 66,926,828 $ 137,371,131 Accounts payable and accrued expenses 1,669,503 1,582,294 1,980,061 Other liabilities 2,525,818 5,847,967 10,028,406 - ------------- ------------- ------------- 56,294,878 74,357,089 149,379,598 - ------------- ------------- ------------- PARTNERS CAPITAL Boston Capital Tax Credit Fund II Limited Partnership 10,935,288 11,603,924 22,652,369 Other partners 3,857,846 14,921,757 23,738,631 - ------------- ------------- ------------- 14,793,134 26,525,681 46,391,000 - ------------- ------------- ------------- $ 71,088,012 $ 100,882,770 $ 195,770,598 ============= ============= =============
F-55 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 1997 in which series 7, 9 through 12, and 14 hold an interest as of December 31, 1997 are as follows: COMBINED SUMMARIZED STATEMENTS OF OPERATIONS Year ended December 31, 1997 Total Series 7 Series 9 Series 10 ------------- - ------------- ------------- ------------- Revenue Rental $ 60,866,377 $ 3,005,781 $ 11,454,200 $ 8,322,402 Interest and other 3,044,223 127,508 894,873 450,055 Gain on extinguishment of debt - - - - - ------------- - ------------- ------------- ------------- 63,910,600 3,133,289 12,349,073 8,772,457 ------------- - ------------- ------------- ------------- Expenses Interest 23,080,731 1,212,064 4,653,093 2,836,343 Depreciation and amortization 21,881,301 1,006,534 4,392,318 2,876,203 Taxes and insurance 7,907,163 393,005 1,657,582 1,171,139 Repairs and maintenance 9,379,705 596,308 1,688,160 1,251,379 Operating expenses 17,506,671 981,168 3,281,675 2,311,856 Impairment loss - - - - - Other expenses 1,645,450 58,827 395,456 185,945 ------------- - ------------- ------------- ------------- 81,401,021 4,247,906 16,068,284 10,632,865 ------------- - ------------- ------------- ------------- NET LOSS $ (17,490,421) $ (1,114,617) $ (3,719,211) $ (1,860,408) ============= ============= ============= ============= Net loss allocated to Boston Capital Tax Credit Fund II Limited Partnership* $ (12,084,411) $ (719,926) $ (2,638,120) $ (1,511,279) ============= ============= ============= ============= Net loss allocated to other partners $ (5,406,010) $ (394,691) $ (1,081,091) $ (349,129) ============= ============= ============= =============
* Amounts include $433,885, $938,335, $503,174, $560,616, $450,482 and $624,486 for Series 7, Series 9, Series 10, Series 11, Series 12 and Series 14, respectively, of loss not recognized under the equity method of accounting as described in note A. F-56 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 1997 in which series 7, 9 through 12, and 14 hold an interest as of December 31, 1997 are as follows: COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED Year ended December 31, 1997 Series 11 Series 12 Series 14 - ------------- ------------- ------------- Revenue Rental $ 7,846,610 $ 9,757,092 $ 20,480,292 Interest and other 359,822 418,119 793,846 Gain on extinguishment of debt - - - - - ------------- ------------- ------------- 8,206,432 10,175,211 21,274,138 - ------------- ------------- ------------- Expenses Interest 2,794,082 3,550,707 8,034,442 Depreciation and amortization 2,983,261 3,753,430 6,869,555 Taxes and insurance 1,022,372 1,291,332 2,371,733 Repairs and maintenance 1,204,789 1,499,444 3,139,625 Operating expenses 2,175,920 2,925,854 5,830,198 Impairment loss - - - - Other expenses 87,129 298,739 619,354 - ------------- ------------- ------------- 10,267,553 13,319,506 26,864,907 - ------------- ------------- ------------- NET LOSS $ (2,061,121) $ (3,144,295) $ (5,590,769) ============= ============= ============= Net income (loss) allocated to Boston Capital Tax Credit Fund II Limited Partnership* $ (1,757,926) $ (1,800,729) $ (3,656,431) ============= ============= ============= Net loss allocated to other partners $ (303,195) $ (1,343,566) $ (1,934,338) ============= ============= =============
* Amounts include $433,885, $938,335, $503,174, $560,616, $450,482 and $624,486 for Series 7, Series 9, Series 10, Series 11, Series 12 and Series 14, respectively, of loss not recognized under the equity method of accounting as described in note A. F-57 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 1996 in which series 7, 9 through 12, and 14 hold an interest as of December 31, 1996 are as follows: COMBINED SUMMARIZED STATEMENTS OF OPERATIONS Year ended December 31, 1996 Total Series 7 Series 9 Series 10 ------------- - ------------- ------------- ------------- Revenue Rental $ 58,961,658 $ 2,949,168 $ 11,010,403 $ 8,155,351 Interest and other 2,411,868 148,591 502,216 354,109 Gain on extinguishment of debt 16,082,731 7,086,275 - - ------------- - ------------- ------------- ------------- 77,456,257 10,184,034 11,512,619 8,509,460 ------------- - ------------- ------------- ------------- Expenses Interest 22,585,425 1,248,725 4,353,890 2,731,337 Depreciation and amortization 24,446,031 1,659,202 4,572,101 2,886,971 Taxes and insurance 7,813,912 394,466 1,694,007 1,133,757 Repairs and maintenance 8,456,129 497,519 1,546,652 1,108,104 Operating expenses 17,164,115 928,994 3,309,520 2,282,111 Impairment loss 21,537,150 10,768,575 2,344,000 - Other expenses 1,611,433 153,563 222,707 203,371 ------------- - ------------- ------------- ------------- 103,614,195 15,651,044 18,042,877 10,345,651 ------------- - ------------- ------------- ------------- NET LOSS $ (26,157,938) $ (5,467,010) $ (6,530,258) $ (1,836,191) ============= ============= ============= ============= Net loss allocated to Boston Capital Tax Credit Fund II Limited Partnership* $ (15,273,526) $ (3,057,372) $ (4,374,517) $ (1,578,005) ============= ============= ============= ============= Net loss allocated to other partners $ (10,884,412) $ (2,409,638) $ (2,155,741) $ (258,186) ============= ============= ============= =============
* Amounts include $1,931,030, $1,713,703, $411,077, $399,572, $169,086 and $184,060 for Series 7, Series 9, Series 10, Series 11, Series 12 and Series 14, respectively, of loss not recognized under the equity method of accounting as described in note A. F-58 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 1996 in which series 7, 9 through 12, and 14 hold an interest as of December 31, 1996 are as follows: COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED Year ended December 31, 1996 Series 11 Series 12 Series 14 - ------------- ------------- ------------- Revenue Rental $ 7,651,444 $ 9,513,804 $ 19,681,488 Interest and other 323,198 381,167 702,587 Gain on extinguishment of debt 1,910,181 - 7,086,275 - ------------- ------------- ------------- 9,884,823 9,894,971 27,470,350 - ------------- ------------- ------------- Expenses Interest 2,824,169 3,670,176 7,757,128 Depreciation and amortization 2,979,535 4,341,452 8,006,770 Taxes and insurance 996,614 1,282,895 2,312,173 Repairs and maintenance 1,016,852 1,305,890 2,981,112 Operating expenses 2,041,473 2,817,436 5,784,581 Impairment loss - - - 8,424,575 Other expenses 113,355 320,894 597,543 - ------------- ------------- ------------- 9,971,998 13,738,743 35,863,882 - ------------- ------------- ------------- NET LOSS $ (87,175) $ (3,843,772) $ (8,393,532) ============= ============= ============= Net income (loss) allocated to Boston Capital Tax Credit Fund II Limited Partnership* $ 179,458 $ (2,108,851) $ (4,334,239) ============= ============= ============= Net loss allocated to other partners $ (266,633) $ (1,734,921) $ (4,059,293) ============= ============= =============
* Amounts include $1,931,030, $1,713,703, $411,077, $399,572, $169,086 and $184,060 for Series 7, Series 9, Series 10, Series 11, Series 12 and Series 14, respectively, of loss not recognized under the equity method of accounting as described in note A. F-59 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO TAX RETURN For income tax purposes, the partnership reports using a December 31 year end. The partnership's net income (loss) for financial reporting and tax return purposes for the year ended March 31, 1998 are reconciled as follows: Total Series 7 Series 9 Series 10 ------------- - ------------- ------------- ------------- Net income (loss) for financial reporting purposes, March 31, 1998 $ (11,313,561) $ (421,474) $ (2,299,343) $ (1,391,350) Operating limited partnership rents received in advance 8,213 (2,682) 9,078 (1,127) Partnership management fees not recognized for tax purposes 2,509,932 113,148 575,784 355,512 Tax exempt interest income - - - - - Other (802,323) 187,685 (250,638) (25,546) Operating limited partnership loss not allowed for financial reporting under equity method of accounting (3,510,977) (433,884) (938,335) (503,174) Excess of tax depreciation over book depreciation on operating limited partnership assets (1,880,059) (260,145) (342,599) (126,715) Difference due to fiscal year for book purposes and calendar year for tax purposes 28,560 (84) 5,231 5,525 Impairment loss not recognized for tax purposes - - - - - ------------- - ------------- ------------- ------------- Income (loss) for tax return purposes, December 31, 1997 $ (14,960,215) $ (817,436) $ (3,240,822) $ (1,686,875) ============= ============= ============= =============
F-60 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO TAX RETURN (Continued) For income tax purposes, the partnership reports using a December 31 year end. The partnership's net income (loss) for financial reporting and tax return purposes for the year ended March 31, 1998 are reconciled as follows: Series 11 Series 12 Series 14 - ------------- ------------- ------------- Net income (loss) for financial reporting purposes, March 31, 1998 $ (1,549,286) $ (1,794,581) $ (3,857,527) Operating limited partnership rents received in advance (138) (1,742) 4,824 Partnership management fees not recognized for tax purposes 325,680 383,268 756,540 Tax exempt interest income - - - - Other 50,360 (164,594) (599,590) Operating limited partnership loss not allowed for financial reporting under equity method of accounting (560,616) (450,482) (624,486) Excess of tax depreciation over book depreciation on operating limited partnership assets (162,458) (393,680) (594,462) Difference due to fiscal year for book purposes and calendar year for tax purposes (768) 1,677 16,979 Impairment loss not recognized for tax purposes - - - - - ------------- ------------- ------------- Income (loss) for tax return purposes, December 31, 1997 $ (1,897,226) $ (2,420,134) $ (4,897,722) ============= ============= =============
F-61 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO TAX RETURN (Continued) For income tax purposes, the partnership reports using a December 31 year end. The partnership's net income (loss) for financial reporting and tax return purposes for the year ended March 31, 1997 are reconciled as follows: Total Series 7 Series 9 Series 10 ------------- - ------------- ------------- ------------- Net income (loss) for financial reporting purposes, March 31, 1997 $ (13,090,940) $ (1,259,510) $ (3,246,263) $ (1,541,522) Operating limited partnership rents received in advance (68,776) 174 (54,803) (2,360) Partnership management fees not recognized for tax purposes 2,538,800 113,700 589,293 371,400 Tax exempt interest income (105,477) - - - - Other 3,285,917 3,040,622 - (66,003) Operating limited partnership loss not allowed for financial reporting under equity method of accounting (4,808,528) (1,931,030) (1,713,703) (411,077) Excess of tax depreciation over book depreciation on operating limited partnership assets (1,539,602) (42,774) (265,391) (141,482) Difference due to fiscal year for book purposes and calendar year for tax purposes 675,015 868 1,491,187 (21,904) Impairment loss not recognized for tax purposes 6,953,234 2,873,020 1,031,360 - ------------- - ------------- ------------- ------------- Income (loss) for tax return purposes, December 31, 1996 $ (6,160,357) $ 2,795,070 $ (2,168,320) $ (1,812,948) ============= ============= ============= =============
F-62 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO TAX RETURN (Continued) For income tax purposes, the partnership reports using a December 31 year end. The partnership's net income (loss) for financial reporting and tax return purposes for the year ended March 31, 1997 are reconciled as follows: Series 11 Series 12 Series 14 - ------------- ------------- ------------- Net income (loss) for financial reporting purposes, March 31, 1997 $ 244,669 $ (2,368,354) $ (4,919,960) Operating limited partnership rents received in advance - - (9,471) (2,316) Partnership management fees not recognized for tax purposes 325,680 383,268 755,459 Tax exempt interest income - - - (105,477) Other 144,689 11,193 155,416 Operating limited partnership loss not allowed for financial reporting under equity method of accounting (399,572) (169,086) (184,060) Excess of tax depreciation over book depreciation on operating limited partnership assets (128,565) (295,913) (665,477) Difference due to fiscal year for book purposes and calendar year for tax purposes 26,617 5,473 (827,226) Impairment loss not recognized for tax purposes - - - 3,048,854 - ------------- ------------- ------------- Income (loss) for tax return purposes, December 31, 1996 $ 213,518 $ (2,442,890) $ (2,744,787) ============= ============= =============
F-63 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO TAX RETURN (Continued) For income tax purposes, the partnership reports using a December 31 year end. The partnership's net income (loss) for financial reporting and tax return purposes for the year ended March 31, 1996 are reconciled as follows: Total Series 7 Series 9 Series 10 ------------- - ------------- ------------- ------------- Net loss for financial reporting purposes, March 31, 1996 $ (15,778,936) $ (1,000,832) $ (3,380,626) $ (1,829,903) Operating limited partnership rents received in advance 4,661 513 4,102 (3,976) Partnership management fees not recognized for tax purposes 2,312,283 107,256 540,717 316,814 Tax exempt interest income - - - - - Other 570,416 - - (187,432) 3,814 Operating limited partnership loss not allowed for financial reporting under equity method of accounting (911,232) (219,621) (290,086) (166,196) Excess of tax depreciation over book depreciation on operating limited partnership assets (1,542,117) (1,944) (275,324) (149,140) Difference due to fiscal year for book purposes and calendar year for tax purposes (526,463) 267,998 (1,124,860) 66,095 ------------- - ------------- ------------- ------------- Income (loss) for tax return purposes, December 31, 1995 $ (15,871,388) $ (846,630) $ (4,713,509) $ (1,762,492) ============= ============= ============= =============
F-64 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO TAX RETURN (Continued) For income tax purposes, the partnership reports using a December 31 year end. The partnership's net income (loss) for financial reporting and tax return purposes for the year ended March 31, 1996 are reconciled as follows: Series 11 Series 12 Series 14 - ------------- ------------- ------------- Net loss for financial reporting purposes, March 31, 1996 $ (1,960,877) $ (2,611,578) $ (4,995,120) Operating limited partnership rents received in advance (1,745) (2,053) 7,820 Partnership management fees not recognized for tax purposes 293,577 351,469 707,026 Tax exempt interest income - - - - Other 146,439 (44,593) 652,188 Operating limited partnership loss not allowed for financial reporting under equity method of accounting (83,193) (34,870) (117,266) Excess of tax depreciation over book depreciation on operating limited partnership assets (174,075) (191,560) (750,074) Difference due to fiscal year for book purposes and calendar year for tax purposes 97,950 40,806 120,972 - ------------- ------------- ------------- Income (loss) for tax return purposes, December 31, 1995 $ (1,681,924) $ (2,492,379) $ (4,374,454) ============= ============= =============
F-65 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO TAX RETURN (Continued) The difference between the investments in operating limited partnerships for tax purposes and financial statements purposes is primarily due to the differences in the losses not recognized under the equity method of accounting and the historic tax credits taken for income tax purposes. At March 31, 1998, the differences are as follows: Total Series 7 Series 9 Series 10 ------------- - ------------- ------------- ------------- Investment in operating limited partnerships - tax return December 31, 1997 $ 54,366,018 $ 3,699,459 $ 8,224,889 $ 6,955,886 Add back losses not recognized under the equity method 9,596,954 2,854,029 2,967,867 1,137,095 Historic tax credits 5,105,527 1,819,802 240,250 - Less share of loss - three months ended March 31, 1998 (5,109,374) (125,066) (1,134,799) (776,692) Impairment loss not recognized for tax purposes (6,953,234) (2,873,020) (1,031,360) - Other 3,834,086 (3,889,878) 1,554,860 895,170 ------------- - ------------- ------------- ------------- Investment in operating limited partnerships - as reported, March 31, 1998 $ 60,839,977 $ 1,485,326 $ 10,821,707 $ 8,211,459 ============= ============= ============= =============
F-66 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO TAX RETURN (Continued) The difference between the investments in operating limited partnerships for tax purposes and financial statements purposes is primarily due to the differences in the losses not recognized under the equity method of accounting and the historic tax credits taken for income tax purposes. At March 31, 1998, the differences are as follows: Series 11 Series 12 Series 14 - ------------- ------------- ------------- Investment in operating limited partnerships - tax return December 31, 1997 $ 7,937,986 $ 8,896,024 $ 18,651,774 Add back losses not recognized under the equity method 1,049,548 654,438 933,977 Historic tax credits 1,281,688 - 1,763,787 Less share of loss - three months ended March 31, 1998 (721,702) (613,706) (1,737,409) Impairment loss not recognized for tax purposes - - - (3,048,854) Other 325,422 1,649,085 3,299,427 - ------------- ------------- ------------- Investment in operating limited partnerships - as reported, March 31, 1998 $ 9,872,942 $ 10,585,841 $ 19,862,702 ============= ============= =============
F-67 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO TAX RETURN (Continued) The difference between the investments in operating limited partnerships for tax purposes and financial statements purposes is primarily due to the differences in the losses not recognized under the equity method of accounting and the historic tax credits taken for income tax purposes. At March 31, 1997, the differences are as follows: Total Series 7 Series 9 Series 10 ------------- - ------------- ------------- ------------- Investment in operating limited partnerships - tax return December 31, 1996 $ 69,234,722 $ 4,494,526 $ 11,455,941 $ 8,620,851 Add back losses not recognized under the equity method 6,085,976 2,420,144 2,029,532 633,921 Historic tax credits 5,105,527 1,819,802 240,250 - Less share of loss - three months ended March 31, 1997 (5,109,374) (125,066) (1,134,799) (776,692) Impairment loss not recognized for tax purposes (6,953,234) (2,873,020) (1,031,360) - Other 2,276,072 (3,965,022) 969,046 1,913,443 ------------- - ------------- ------------- ------------- Investment in operating limited partnerships - as reported, March 31, 1997 $ 70,639,689 $ 1,771,364 $ 12,528,610 $ 10,391,523 ============= ============= ============= =============
F-68 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO TAX RETURN (Continued) The difference between the investments in operating limited partnerships for tax purposes and financial statements purposes is primarily due to the differences in the losses not recognized under the equity method of accounting and the historic tax credits taken for income tax purposes. At March 31, 1997, the differences are as follows: Series 11 Series 12 Series 14 - ------------- ------------- ------------- Investment in operating limited partnerships - tax return December 31, 1996 $ 9,891,906 $ 11,264,295 $ 23,507,203 Add back losses not recognized under the equity method 488,932 203,956 309,491 Historic tax credits 1,281,688 - 1,763,787 Less share of loss - three months ended March 31, 1997 (721,702) (613,706) (1,737,409) Impairment loss not recognized for tax purposes - - - (3,048,854) Other 145,151 1,091,703 2,121,751 - ------------- ------------- ------------- Investment in operating limited partnerships - as reported, March 31, 1997 $ 11,085,975 $ 11,946,248 $ 22,915,969 ============= ============= =============
F-69 Boston Capital Tax Credit Fund II Limited Partnership Series 7,9 through 12, and 14 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1998, 1997 and 1996 NOTE E - CASH EQUIVALENTS Cash equivalents of $661,174 and $1,680,747 as of March 31, 1998 and 1997, respectively, include tax-exempt sweep accounts, certificates of deposit, and money market accounts with interest at rates ranging 2.25% to 5.3% per annum. NOTE F - NOTES RECEIVABLE Notes receivable at March 31, 1998 and 1997, consist of advance installments of capital contributions and/or advances made to operating limited partnerships of $604,695 and $603,920, respectively. The Series 12 notes, $61,111 and $60,336 at March 31, 1998 and 1997, respectively, are noninterest bearing and due on demand. The Series 14 notes, $543,584 and $583,584 at March 31, 1998 and 1997, respectively, are noninterest bearing and due on demand. The prime rate was 8.5% and 8.5% at March 31, 1998 and 1997, respectively. The carrying value of the notes receivable approximates fair value. NOTE G - INVESTMENTS HELD TO MATURITY Investments held to maturity at March 31, 1998 and 1997, consist of certificates of deposit totaling $917,497 and $-0-, respectively. The certificates of deposit mature within the next 12 months with interest rates ranging from 5.30% to 5.65% per annum. NOTE H - CONTINGENCY Woodfield Commons is in receipt of a 60-Day letter issued by the IRS stating that the partnership has not met certain IRC Section 42 requirements. The finding was the result of an IRS audit of the partnerships tenant files. The IRS has proposed an adjustment that would disallow the partnership from utilizing certain past or future credits. The Operating General Partner and its Counsel are in the process of filing an appeal to the findings of the IRS, and do not anticipate an outcome that will have a material effect on the financial statements and accordingly, no adjustment has been made in accompanying finan- cial statements. F-70 Boston Capital Tax Credit Fund II Limited Partnership - Series 7 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - ------------------------------------------------------------------------------------- - -------------------------------------- Bowditch School 1,630,968 65,961 4,818,466 75,906 65,961 4,894,372 4,960,333 1,232,873 12/89 12/89 34 Briarwood Apts LP 624,427 44,500 747,246 24,268 44,500 771,514 816,014 263,591 12/89 12/89 5-27.5 Buckner Prop LP 619,396 27,500 771,030 16,550 27,500 787,580 815,080 284,640 3/89 12/89 5-27.5 Creekside 1,091,361 89,016 1,290,616 (4,390)a 89,016 1,286,226 1,375,242 179,844 9/89 6/89 5-27.5 Deer Hill II LP 1,479,045 103,000 1,424,556 337,809 103,000 1,762,365 1,865,365 581,072 5/89 2/90 5-27.5 Hillandale 3,152,333 601,653 4,198,973 1,816,091 601,653 6,015,064 6,616,717 1,913,880 1/90 12/89 5-27.5 King City Elderly 1,658,088 175,000 2,549,870 48,271 175,000 2,598,141 2,773,141 739,823 11/89 6/90 27.5 Lebanon Prop II LP 573,502 3,000 730,187 9,536 3,000 739,723 742,723 255,429 7/89 12/89 5-27.5 F-71 Boston Capital Tax Credit Fund II Limited Partnership - Series 7 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - ------------------------------------------- Metropole Apts Assoc 2,194,490 82,800 2,621,625 51,040 82,800 2,672,665 2,755,465 772,853 12/89 12/89 27.5 New Holland Apts 951,963 80,000 3,269,700 (2,279,307)b 80,000 990,393 1,070,393 836,335 8/90 5/90 35 Oak Grove Estates LP 485,264 15,200 597,465 11,344 15,200 608,809 624,009 211,603 9/89 12/89 27.5 Oakview LTD 1,128,782 35,280 1,375,820 82,393 35,280 1,458,213 1,493,493 363,711 10/89 12/89 40 Rosenberg Hotel 1,824,673 452,000 7,434,335 (5,259,335)b 415,000 2,175,000 2,590,000 62,143 1/92 2/90 27.5 Westwood 1,413,403 96,600 1,355,174 354,965 96,660 1,710,139 1,806,799 567,359 7/90 7/90 5-27.5 Winfield Prop II LP 609,884 37,000 735,086 9,919 37,000 745,005 782,005 266,933 5/89 12/89 5-27.5 ---------- --------- ---------- --------- --------- ---------- -- - -------- --------- 19,437,579 1,908,510 33,920,149 (4,704,940) 1,871,570 29,215,209 31,086,779 8,532,089 ========== ========= ========== ========= ========= ========== ========== ========= F-72 Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 1997. a - Decrease due to a reallocation of acquisition costs. b - Decrease due to building impairment in year ended December 31, 1996. **There were no carrying costs as of December 31, 1997. The column has been ommitted for presentation purposes.
F-73 Notes to Schedule III Boston Capital Tax Credit Fund II Limited Partnership - Series 7 Reconciliation of Land, Building & Improvements current year changes Balance at beginning of period-04/01/92..........................$ 41,816,362 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 0 Improvements, etc................................. 1,735,711 Other............................................. 0 ---------- $ 1,735,711 Deductions during period: Cost of real estate sold..........................$ 0 Other............................................. 0 ---------- $ 0 ----------- Balance at close of period - 03/31/93............................$ 43,552,073 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 0 Improvements, etc................................. 147,543 Other............................................. 0 ---------- $ 147,543 Deductions during period: Cost of real estate sold..........................$ 0 Other............................................. 0 ---------- $ 0 ----------- Balance at close of period - 03/31/94............................$ 43,699,616 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 0 Improvements, etc................................. 58,462 Other............................................. 0 ---------- $ 58,462 Deductions during period: Cost of real estate sold..........................$ 0 Other............................................. (261,992) ---------- $ (261,992) ----------- Balance at close of period - 03/31/95............................$ 43,496,086 F-74 Notes to Schedule III-Continued Boston Capital Tax Credit Fund II Limited Partnership - Series 7 Reconciliation of Land, Building & Improvements current year changes-Continued Balance at close of period - 03/31/95.........................$ 43,496,086 Additions during period: Acquisitions through foreclosure..............$ 0 Other acquisitions............................ 0 Improvements, etc............................. 26,794 Other......................................... 0 ----------- $ 26,794 Deductions during period: Cost of real estate sold......................$ 0 Other......................................... 0 ----------- $ 0 ----------- Balance at close of period - 03/31/96.........................$ 43,522,880 Additions during period: Acquisitions through foreclosure..............$ 0 Other acquisitions............................ 0 Improvements, etc............................. 0 Other......................................... 0 ----------- $ 0 Deductions during period: Cost of real estate sold......................$ 0 Other......................................... (12,480,477) ----------- $(12,480,477) ----------- Balance at close of period - 03/31/97.........................$ 31,042,403 Additions during period: Acquisitions through foreclosure..............$ 0 Other acquisitions............................ 0 Improvements, etc............................. 44,376 Other......................................... 0 ----------- $ 44,376 Deductions during period: Cost of real estate sold......................$ 0 Other......................................... 0 ----------- $ 0 ------------ Balance at close of period - 03/31/98........................ $ 31,086,779 ============ F-75 Notes to Schedule III - Continued Boston Capital Tax Credit Fund II Limited Partnership - Series 7 Reconciliation of Accumulated Depreciation current year changes Balance at beginning of period - 04/01/92.......................$ 2,312,199 Current year expense................................$1,360,178 --------- Balance at close of period - 3/31/93............................$ 3,672,377 Current year expense................................$1,436,830 --------- Balance at close of period - 3/31/94............................$ 5,109,207 Current year expense................................$1,391,094 --------- Balance at close of period - 3/31/95............................$ 6,500,301 Current year expense................................$1,384,980 --------- Balance at close of period - 3/31/96............................$ 7,885,281 Current year expense................................$ (333,705) --------- Balance at close of period - 3/31/97............................$ 7,551,576 Current year expense................................$ 980,513 --------- Balance at close of period - 3/31/98............................$ 8,532,089 ========== F-76 S> Boston Capital Tax Credit Fund II Limited Partnership - Series 9 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - -------------------------------------------- 438 Warren St. 721,934 45,972 1,177,081 35,005 45,972 1,212,086 1,258,058 358,653 5/90 3/90 28 Beaver Brook 1,185,213 135,070 1,395,155 3,197 135,070 1,398,352 1,533,422 470,293 5/90 4/90 27.5 Big Lake Seniors 560,504 27,804 732,961 0 27,804 732,961 760,765 47,019 6/95 4/94 5-27.5 Blakely 947,599 50,000 1,159,403 27,320 50,000 1,186,723 1,236,723 366,399 5/90 5/90 5-27.5 Blanco Sr 519,876 40,147 679,816 0 40,147 679,816 719,963 57,347 9/94 12/93 7-40 Blooming- dale 1,481,407 100,338 1,771,660 7,676 100,338 1,779,336 1,879,674 552,945 3/90 5/90 5-27.5 Breeze- wood 1,429,634 114,000 1,784,173 4,415 114,000 1,788,588 1,902,588 539,922 5/90 5/90 7-27.5 Brooklyn 1,108,471 9,000 1,416,895 52,159 9,000 1,469,054 1,478,054 339,062 5/90 5/90 5-27.5 F-77 Boston Capital Tax Credit Fund II Limited Partnership - Series 9 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - -------------------------------------------- Calif. Inv.V 5,418,004 401,411 10,661,108 165,384 401,411 10,826,492 11,227,903 2,375,835 3/90 3/90 35 Cambridge 1,135,178 99,974 1,381,815 2,550 99,974 1,384,365 1,484,339 434,994 1/90 4/90 7-27.5 Cedar Rapids 4,401,632 294,600 7,692,319 188,094 294,600 7,880,413 8,175,013 2,297,547 6/90 4/90 7-27.5 Corinth 1,491,978 53,351 1,865,231 62,186 53,351 1,927,417 1,980,768 587,077 2/90 4/90 5-27.5 Cotton Mill Assoc. 1,482,385 75,000 1,730,384 17,491 75,000 1,747,875 1,822,875 248,660 7/93 10/92 5-27.5 Fawn River 3,701,144 77,000 4,396,993 489,476 77,000 4,886,469 4,963,469 1,304,769 10/90 10/90 27.5 Fountain Green 724,343 68,134 880,440 2,995 68,134 883,435 951,569 255,451 5/90 6/90 27.5 Glenwood Hotel 744,109 25,000 1,128,486 10,400 25,000 1,138,886 1,163,886 341,870 6/90 6/90 7-27.5 Greenwich 1,484,611 85,197 1,862,476 24,090 85,197 1,886,566 1,971,763 572,953 2/90 4/90 5-27.5 Grifton 1,259,126 35,393 1,170,847 367,089 35,393 1,537,936 1,573,329 166,082 2/94 9/93 7-27.5 F-78 Boston Capital Tax Credit Fund II Limited Partnership - Series 9 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - -------------------------------------------- Hacienda Villa 3,911,182 233,165 7,304,446 154,995 233,165 7,459,441 7,692,606 1,521,157 1/90 4/90 40 Haines City 1,440,156 100,000 1,709,218 10,512 100,000 1,719,730 1,819,730 551,174 2/90 4/90 27.5 Hernando 1,486,882 70,000 1,975,766 8,818 70,000 1,984,584 2,054,584 607,098 7/90 6/90 27.5 Hobe Sound 2,801,426 261,000 3,482,634 29,920 261,000 3,512,554 3,773,554 1,070,971 4/90 4/90 27.5 Immokalee 2,194,651 160,000 2,732,134 10,354 160,000 2,742,488 2,902,488 617,119 5/90 5/90 7-27.5 Kristin Park 1,392,250 117,179 1,694,459 34,906 117,179 1,729,365 1,846,544 376,065 6/90 3/90 27.5 Le Grande Enterprise 1,741,818 13,090 2,232,493 0 67,500 2,232,493 2,299,993 216,469 10/93 11/92 5-50 Long- meadow 1,482,082 95,000 1,765,749 8,181 95,000 1,773,930 1,868,930 354,324 8/90 8/90 10-40 Maywood 1,502,617 53,000 1,961,139 5,614 53,000 1,966,753 2,019,753 576,460 7/90 3/90 5-27.5 Meadow run 640,656 44,400 784,163 6,398 44,400 790,561 834,961 244,095 5/90 5/90 27.5 F-79 Boston Capital Tax Credit Fund II Limited Partnership - Series 9 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - -------------------------------------------- Meadow- crest 2,896,927 286,065 4,982,274 36,756 286,065 5,019,030 5,305,095 1,588,612 10/90 9/90 5-27.5 Newfane Senior 992,883 30,000 1,211,708 9,050 30,000 1,220,758 1,250,758 278,365 9/92 10/92 5-27.5 New Holland 951,963 80,000 3,269,700 (2,279,307)b 80,000 990,393 1,070,393 836,335 8/90 5/90 5-27.5 Old Stage 1,266,317 39,840 1,517,419 6,830 39,840 1,524,249 1,564,089 453,308 9/90 5/90 27.5 Pedcor Invest. 3,214,268 170,435 6,211,383 (1,817)a 170,435 6,209,566 6,380,001 1,267,816 4/90 3/90 27.5 Pleasanton Sr 623,730 40,000 813,308 0 40,000 813,308 853,308 107,067 7/93 12/93 40 Polkton Housing 645,313 25,038 754,785 0 25,038 754,785 779,823 180,538 12/93 1/94 5-27.5 Princess Manor 1,493,133 57,066 1,869,314 7,059 57,066 1,876,373 1,933,439 578,176 8/90 6/90 5-27.5 Princess Villas 1,492,136 63,104 1,786,927 8,009 63,104 1,794,936 1,858,040 543,041 8/90 6/90 5-27.5 F-80 Boston Capital Tax Credit Fund II Limited Partnership - Series 9 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - -------------------------------------------- Putney First 1,422,624 128,800 1,804,424 (10,683) 128,800 1,793,741 1,922,541 231,696 5/93 12/92 5-27.5 Quail Hollow RRH 1,471,814 100,000 1,861,652 4,796 100,000 1,866,448 1,966,448 595,251 1/90 5/90 27.5 Quail Hollow Warsaw 1,406,357 33,500 1,747,578 8,435 33,500 1,756,013 1,789,513 341,554 9/90 7/90 7-40 Rainbow Gardens 1,218,609 70,000 1,450,989 803 70,000 1,451,792 1,521,792 267,792 6/93 12/92 7-27.5 Raitt St. Apts. 800,404 270,281 1,221,755 0 270,281 1,221,755 1,492,036 194,357 8/93 5/93 5-27.5 School St. II 804,966 37,622 1,585,434 3,793 37,622 1,589,227 1,626,849 291,773 6/93 6/93 7-27.5 South Paris Housing 1,490,168 65,000 1,853,831 (176,840) 242,301 1,676,991 1,919,292 341,433 10/92 11/92 5-27.5 South- western 1,427,651 30,000 1,766,094 17,303 30,000 1,783,397 1,813,397 553,715 5/90 5/90 7-27.5 F-81 Boston Capital Tax Credit Fund II Limited Partnership - Series 9 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - -------------------------------------------- Spring- field 3,830,348 775,955 4,177,205 5,474,378 775,955 9,651,583 10,427,538 2,278,171 6/91 6/90 5-27.5 Sunshine 1,472,029 127,000 1,729,289 36,923 117,000 1,766,212 1,883,212 499,581 11/90 9/90 5-27.5 Surry Village II 776,903 60,000 938,244 2,475 50,718 940,719 991,437 302,263 1/90 5/90 5-27.5 Tappa- hannock Green 1,507,692 122,500 1,703,483 0 122,500 1,703,483 1,825,983 275,706 5/94 3/94 5-27.5 Twin Oaks 1,140,589 53,636 1,397,601 (128) 53,636 1,397,473 1,451,109 427,359 5/90 5/90 5-27.5 Village Oaks 751,472 42,140 884,614 4,022 42,140 888,636 930,776 266,560 2/90 6/90 5-27.5 Warrens- burg 793,526 32,000 991,475 9,572 32,000 1,001,047 1,033,047 351,813 4/90 4/90 5-27.5 Westside 2,434,577 25,000 4,022,240 (45,749)a 25,000 3,976,491 4,001,491 1,045,829 12/90 6/90 5-27.5 F-82 Boston Capital Tax Credit Fund II Limited Partnership - Series 9 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - -------------------------------------------- Westwood 1,413,403 96,660 1,690,074 18,495 98,230 1,708,569 1,806,799 567,359 7/90 7/90 27.5 Wilming- ton 1,052,377 75,637 1,293,362 (5,865)a 75,637 1,287,497 1,363,134 378,269 8/90 8/90 27.5 ---------- --------- ----------- --------- --------- ----------- - - ---------- ---------- 87,183,047 5,821,504 123,065,606 4,857,535 6,035,503 127,923,141 133,958,644 32,495,549 ========== ========= =========== ========= ========= =========== =========== ========== Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 1997. a - Decrease due to a reallocation of acquisition costs. b - Decrease due to building impairment in year ended December 31, 1996. **There were no carrying costs as of December 31, 1997. The column has been omitted for presentation purposes.
F-83 Notes to Schedule III Boston Capital Tax Credit Fund II Limited Partnership - Series 9 Reconciliation of Land, Building & Improvements current year changes Balance at beginning of period-04/01/92..........................$122,231,856 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 3,447,429 Improvements, etc................................. 143,343 Other............................................. 0 ---------- $ 3,590,772 Deductions during period: Cost of real estate sold..........................$(7,395,934) Other............................................. (24,083) ---------- $ (7,420,017) ----------- Balance at close of period - 03/31/93............................$118,402,611 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 3,591,731 Improvements, etc................................. 9,011,423 Other............................................. 0 ---------- $ 12,603,154 Deductions during period: Cost of real estate sold..........................$ 0 Other............................................. 0 ---------- $ 0 ----------- Balance at close of period - 03/31/94............................$131,005,765 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 2,630,397 Improvements, etc................................. 1,266,494 Other............................................. 0 ---------- $ 3,896,891 Deductions during period: Cost of real estate sold..........................$ 0 Other............................................. 0 ---------- $ 0 ----------- Balance at close of period - 03/31/95............................$134,902,656 F-84 Notes to Schedule III-Continued Boston Capital Tax Credit Fund II Limited Partnership - Series 9 Reconciliation of Land, Building & Improvements current year changes-Continued Balance at close of period - 03/31/95.........................$134,902,656 Additions during period: Acquisitions through foreclosure..............$ 0 Other acquisitions............................ 0 Improvements, etc............................. 818,652 Other......................................... 0 ----------- $ 818,652 Deductions during period: Cost of real estate sold......................$ 0 Other......................................... 0 ----------- $ 0 - ----------- Balance at close of period - 03/31/96.........................$135,721,308 Additions during period: Acquisitions through foreclosure..............$ 0 Other acquisitions............................ 0 Improvements, etc............................. 0 Other......................................... 0 ----------- $ 0 Deductions during period: Cost of real estate sold......................$ 0 Other......................................... (2,117,890) ----------- $ (2,117,890) - ----------- Balance at close of period - 03/31/97.........................$133,603,418 Additions during period: Acquisitions through foreclosure..............$ 0 Other acquisitions............................ 0 Improvements, etc............................. 355,226 Other......................................... 0 ----------- $ 355,226 Deductions during period: Cost of real estate sold......................$ 0 Other......................................... 0 ----------- $ 0 - ----------- Balance at close of period - 03/31/98.........................$133,958,644 =========== F-85 Notes to Schedule III - Continued Boston Capital Tax Credit Fund II Limited Partnership - Series 9 Reconciliation of Accumulated Depreciation current year changes Balance at beginning of period - 04/01/92......................$ 6,203,920 Current year expense...............................$4,059,735 --------- Balance at close of period - 3/31/93...........................$10,263,655 Current year expense...............................$4,195,190 --------- Balance at close of period - 3/31/94...........................$14,458,845 Current year expense...............................$4,588,398 --------- Balance at close of period - 3/31/95...........................$19,047,243 Current year expense...............................$4,535,644 --------- Balance at close of period - 3/31/96...........................$23,582,887 Current year expense...............................$4,517,586 --------- Balance at close of period - 3/31/97...........................$28,100,473 Current year expense...............................$4,359,076 --------- Balance at close of period - 3/31/98...........................$32,495,549 ========== F-86 Boston Capital Tax Credit Fund II Limited Partnership - Series 10 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - -------------------------------------------- Ackerman 594,681 42,000 619,380 245,001 42,000 864,381 906,381 87,070 6/94 9/93 5-27.5 Athens II 1,337,761 75,000 1,642,281 10,324 75,000 1,652,605 1,727,605 447,799 6/90 8/90 5-27.5 Autumn Lane 734,854 34,094 891,072 382 34,094 891,454 925,548 257,710 11/90 8/89 5-27.5 Baytree 958,217 44,759 1,099,246 93,247 44,759 1,192,493 1,237,252 389,774 7/90 11/88 5-27.5 Benchmark 951,918 60,600 1,137,112 34,022 60,600 1,171,134 1,231,734 382,545 7/90 11/88 5-27.5 Brentwood 955,769 64,999 1,163,002 19,746 64,999 1,182,748 1,247,747 225,933 10/90 11/90 5-27.5 Briarwood 1,484,144 154,900 1,898,553 (415,160) 154,900 1,483,393 1,638,293 446,326 8/90 8/90 7-27.5 Butler Properties 504,089 37,500 376,730 223,430 37,500 600,160 637,660 103,010 2/91 12/90 5-27.5 Candlewick Place 1,259,859 70,800 1,500,289 61,171 70,800 1,561,460 1,632,260 239,926 10/92 12/92 5-27.5 F-87 Boston Capital Tax Credit Fund II Limited Partnership - Series 10 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - ------------------------------------------- Cedarstone 774,097 66,000 955,695 5,794 66,000 961,489 1,027,489 142,176 5/93 5/93 5-40 Centre- ville Apts. 634,272 63,073 697,069 53,246 16,000 750,315 766,315 289,653 2/90 11/90 5-27.5 Charlton Court 1,203,241 56,144 1,449,050 802 56,144 1,449,852 1,505,996 300,215 1/93 12/92 7-27.5 Chuck- atuck 1,448,269 128,725 1,731,557 12,863 128,725 1,744,420 1,873,145 380,226 2/90 11/90 12-40 Clover- leaf I 856,728 54,740 969,048 20,419 54,740 989,467 1,044,207 305,732 4/90 11/90 5-27.5 Clover- leaf II 875,981 66,488 981,480 23,283 66,488 1,004,763 1,071,251 309,832 4/90 11/90 5-27.5 Connells- ville 1,370,451 55,440 1,591,799 11,901 55,440 1,603,700 1,659,140 345,516 3/90 11/90 5-27.5 Dallas 1,681,994 230,059 3,408,933 (195,432)* 230,059 3,213,501 3,443,560 988,741 10/90 12/91 5-27.5 Ellaville 788,440 45,000 977,293 1,270 45,000 978,563 1,023,563 309,944 2/90 7/90 5-27.5 Forsyth 1,459,281 55,000 1,894,917 5,321 55,000 1,900,238 1,955,238 552,594 9/90 7/90 7-27.5 F-88 Boston Capital Tax Credit Fund II Limited Partnership - Series 10 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - ------------------------------------------- Freedom Apts. 1,051,305 144,065 1,219,436 21,961 144,065 1,241,397 1,385,462 253,118 9/90 11/90 5-27.5 Great Falls 875,089 38,292 1,053,154 6,064 38,292 1,059,218 1,097,510 310,023 10/90 11/90 5-27.5 Hartway Properties 914,599 49,000 1,116,507 0 49,000 1,116,507 1,165,507 273,867 6/90 7/90 5-27.5 Hilltop 1,489,722 105,000 1,916,734 8,766 105,000 1,925,500 2,030,500 584,493 7/90 8/90 7-27.5 Ironton Estates 625,640 29,500 794,461 914 29,500 795,375 824,875 181,118 1/93 5/93 5-27.5 Lambert Square 1,001,895 41,200 1,243,568 3,192 41,200 1,246,760 1,287,960 164,921 12/92 11/92 5-40 Lawton Apts. 1,489,938 54,400 1,848,603 18,842 54,400 1,867,445 1,921,845 700,325 6/90 11/90 5-27.5 Longview 872,593 25,000 1,071,946 45,342 25,000 1,117,288 1,142,288 366,199 8/90 11/88 5-27.5 Maidu 2,160,267 56,500 4,890,261 299,890 56,500 5,190,151 5,246,651 1,307,774 12/91 3/91 7-27.5 F-89 Boston Capital Tax Credit Fund II Limited Partnership - Series 10 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - ------------------------------------------- Meadow- brook 1,480,487 75,141 1,789,549 1,916 75,141 1,791,465 1,866,606 560,190 3/90 9/90 5-27.5 Mercer Apts. 909,802 46,249 1,098,860 25,226 46,249 1,124,086 1,170,335 231,345 8/90 11/90 5-27.5 Morgan- town 770,290 36,000 930,187 7 36,000 930,194 966,194 172,479 12/90 8/90 5-27.5 Newnan 2,002,390 92,706 4,128,942 (241,857)* 92,706 3,887,085 3,979,791 1,196,557 10/90 12/90 5-27.5 Northern Conn 1,013,314 42,500 1,536,482 10,144 42,500 1,546,626 1,589,126 283,522 12/92 1/93 5-27.5 Parkwood 3,048,644 316,667 4,358,381 7,812 316,667 4,366,193 4,682,860 1,203,537 5/91 3/91 5-27.5 Pedcor Invest- ments 3,263,900 200,000 4,714,711 285,289 200,000 5,000,000 5,200,000 906,517 10/90 7/90 5-27.5 Pinetree Manor 981,648 30,000 1,210,633 1,895 30,000 1,212,528 1,242,528 157,678 1/93 11/92 7-40 Pineview 962,572 125,000 1,178,400 4,541 125,000 1,182,941 1,307,941 346,510 12/90 9/90 7-27.5 F-90 Boston Capital Tax Credit Fund II Limited Partnership - Series 10 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - -------------------------------------------- Rosewood Village 650,109 36,000 806,255 3,813 36,000 810,068 846,068 248,405 7/90 7/90 5-27.5 South Farm 2,215,559 254,636 3,486,308 7,644 254,636 3,493,952 3,748,588 711,148 7/93 4/93 7-40 Stockton Estates 516,325 17,500 647,699 1,371 17,500 649,070 666,570 154,333 1/93 2/93 5-27.5 Stratford Square 752,528 63,000 443,433 452,618 63,000 896,051 959,051 129,156 2/93 10/92 5-40 Summer Glen 1,486,693 147,225 1,669,056 2,673 147,225 1,671,729 1,818,954 261,205 3/93 11/92 5-40 Washington Heights 440,862 76,537 974,803 11,261 81,248 986,064 1,067,312 206,111 7/90 11/90 5-27.5 West Des Moines 2,368,447 437,568 4,154,100 296,779 437,568 4,450,879 4,888,447 1,235,666 7/90 7/90 7-27.5 Wichita West 1,749,221 110,377 2,920,599 49,509 110,377 2,970,108 3,080,485 835,558 7/90 7/90 7-27.5 F-91 Boston Capital Tax Credit Fund II Limited Partnership - Series 10 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - -------------------------------------------- Woodside Housing 1,482,940 60,140 1,926,294 12,302 60,140 1,938,596 1,998,736 371,499 11/90 12/90 5-27.5 ---------- --------- ---------- ---------- --------- ----------- - - --------- ---------- 56,450,825 4,115,524 78,113,868 1,549,544 4,073,162 79,663,412 83,736,574 19,857,976 ========== ========= ========== ========== ========= =========== ========== ========== Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 1997. * Decrease due to reduction in development fee which reduced the property basis. **There were no carrying costs as of December 31, 1997. The column has been ommitted for presentation purposes.
F-92 Notes to Schedule III Boston Capital Tax Credit Fund II Limited Partnership - Series 10 Reconciliation of Land, Building & Improvements current year changes Balance at beginning of period-04/01/92..........................$ 73,561,151 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 2,204,866 Improvements, etc................................. 314,333 Other............................................. 0 ---------- $ 2,519,199 Deductions during period: Cost of real estate sold..........................$(7,395,934) Other............................................. 0 ---------- $(7,395,934) ----------- Balance at close of period - 03/31/93............................$ 68,684,416 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 8,492,161 Improvements, etc................................. 6,297,007 Other............................................. 0 ---------- $ 14,789,168 Deductions during period: Cost of real estate sold..........................$ 0 Other............................................. 0 ---------- $ 0 ----------- Balance at close of period - 03/31/94............................$ 83,473,584 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 0 Improvements, etc................................. 313,600 Other............................................. 0 ---------- $ 313,600 Deductions during period: Cost of real estate sold..........................$ 0 Other............................................. 0 ---------- $ 0 ----------- Balance at close of period - 03/31/95............................$ 83,787,184 F-93 Notes to Schedule III Boston Capital Tax Credit Fund II Limited Partnership - Series 10 Reconciliation of Land, Building & Improvements current year changes - continued Balance at close of period - 03/31/95.........................$ 83,787,184 Additions during period: Acquisitions through foreclosure..............$ 0 Other acquisitions............................ 0 Improvements, etc............................. 0 Other......................................... 86,855 ----------- $ 86,855 Deductions during period: Cost of real estate sold......................$ 0 Other......................................... (440,637) ----------- $ (440,637) - ----------- Balance at close of period - 03/31/96.........................$ 83,433,402 Additions during period: Acquisitions through foreclosure..............$ 0 Other acquisitions............................ 0 Improvements, etc............................. 0 Other......................................... 0 ----------- $ 0 Deductions during period: Cost of real estate sold......................$ 0 Other......................................... 186,916 ----------- $ 186,916 - ----------- Balance at close of period - 03/31/97.........................$ 83,620,318 Additions during period: Acquisitions through foreclosure..............$ 0 Other acquisitions............................ 0 Improvements, etc............................. 116,256 Other......................................... 0 ----------- $ 116,256 Deductions during period: Cost of real estate sold......................$ 0 Other......................................... 0 ----------- - ----------- Balance at close of period - 03/31/98.........................$ 83,736,574 =========== F-94 Notes to Schedule III Boston Capital Tax Credit Fund II Limited Partnership - Series 10 Reconciliation of Accumulated Depreciation current year changes Balance at beginning of period - 04/01/92.......................$ 3,259,154 Current year expense................................$2,487,975 --------- Balance at close of period - 3/31/93............................$ 5,747,129 Current year expense................................$2,881,214 --------- Balance at close of period - 3/31/94............................$ 8,628,343 Current year expense................................$2,883,271 --------- Balance at close of period - 3/31/95............................$11,511,614 Current year expense................................$2,768,634 --------- Balance at close of period - 3/31/96............................$14,280,248 Current year expense................................$2,797,002 --------- Balance at close of period - 3/31/97............................$17,077,250 Current year expense................................$2,780,726 --------- Balance at close of period - 3/31/98............................$19,857,976 ========== F-95 Boston Capital Tax Credit Fund II Limited Partnership - Series 11 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - ------------------------------------------- Academy Hill 1,378,688 119,500 1,607,604 15,024 119,500 1,622,628 1,742,128 445,897 2/91 2/91 5-27.5 Aspen Square 1,836,234 150,413 2,118,648 107,758 150,703 2,226,406 2,377,109 419,760 11/90 11/90 5-27.5 Bridge- view 1,366,398 50,686 1,586,090 3,480 50,686 1,589,570 1,640,256 534,027 12/89 12/90 5-27.5 Buckeye 1,343,157 93,421 1,584,893 69,821 93,421 1,654,714 1,748,135 346,156 8/90 12/90 5-27.5 Church Hill 956,659 63,232 663,136 537,056 63,232 1,200,192 1,263,424 219,611 1/91 12/90 7-40 Copper Creek 1,176,259 77,750 1,410,989 52,436 77,750 1,463,425 1,541,175 278,616 9/90 11/90 5-27.5 Coronado 492,369 9,998 1,499,265 7,561 9,998 1,506,826 1,516,824 420,913 4/91 2/91 5-27.5 Crestwood 4,319,614 360,000 10,649,129 36,963 360,000 10,686,092 11,046,092 2,940,861 7/91 1/91 7-27.5 F-96 Boston Capital Tax Credit Fund II Limited Partnership - - Series 11 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - --------------------------------------------- Dallas Apts. 1,681,994 230,059 3,408,933 (195,432)* 230,059 3,213,501 3,443,560 988,741 10/90 12/90 7-27.5 Denmark I 771,233 54,000 915,172 6,494 54,000 921,666 975,666 283,328 6/90 11/90 27.5 Denmark II 819,126 36,000 1,003,547 727 36,000 1,004,274 1,040,274 304,408 6/90 11/90 5-27.5 El Dorado Springs 581,964 22,500 735,245 10,956 17,176 746,201 763,377 245,938 9/90 11/90 5-27.5 Eldon Estates II 582,238 30,000 690,453 30,506 30,000 720,959 750,959 233,885 11/90 12/90 5-27.5 Eldon Manor 560,336 7,500 787,399 21,758 7,500 809,157 816,657 261,817 11/90 12/90 5-27.5 Elderly Hsing of Macon 1,630,712 50,000 1,992,329 9,260 50,000 2,001,589 2,051,589 241,590 4/93 5/93 5-27.5 Eutaw Elderly 1,626,292 24,000 1,972,439 6,720 24,000 1,979,159 2,003,159 198,511 12/93 5/93 5-50 Farmer- ville 968,487 57,015 1,195,142 7,045 57,015 1,202,187 1,259,202 205,811 4/91 1/91 N/A F-97 Boston Capital Tax Credit Fund II Limited Partnership - Series 11 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - --------------------------------------------- Forest Glade 1,484,300 100,000 1,841,104 23,316 100,000 1,864,420 1,964,420 525,586 12/90 12/90 7-27.5 Franklin School 1,265,208 112,032 2,528,326 1,939,760 112,032 4,468,086 4,580,118 1,024,679 12/91 10/90 27.5 Harbor View 1,482,191 143,957 1,802,615 5,350 143,957 1,807,965 1,951,922 537,400 7/90 12/90 7-27.5 Hilltop Apts. 1,424,053 178,736 1,545,237 1,223 178,736 1,546,460 1,725,196 312,452 11/92 1/93 27.5 Holland Senior 900,050 27,500 1,096,333 22,160 27,500 1,118,493 1,145,993 339,294 6/90 11/90 27.5 Holly Senior 918,527 36,882 1,139,044 26,408 36,882 1,165,452 1,202,334 346,636 10/90 11/90 27.5 Ivan Woods 2,198,430 275,000 4,347,328 20,064 275,000 4,367,392 4,642,392 1,281,979 4/91 2/91 5-27.5 Kaplan Manor 926,987 66,000 1,106,192 46,434 66,000 1,152,626 1,218,626 216,281 12/90 12/90 7-40 F-98 Boston Capital Tax Credit Fund II Limited Partnership - Series 11 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - -------------------------------------------- Lakewood 954,715 53,100 1,162,254 6,491 53,100 1,168,745 1,221,845 206,262 5/91 1/91 N/A Licking Associates 406,367 14,000 316,889 176,342 14,000 493,231 507,231 111,828 3/92 11/91 N/A London Arms 2,654,248 37,500 3,479,332 (22,804)* 37,500 3,456,528 3,494,028 885,855 12/90 12/90 5-27.5 Maidu 2,160,267 56,500 4,890,261 299,890 56,500 5,190,151 5,246,651 1,307,774 12/91 3/91 7-27.5 Manning Properties 841,061 44,125 1,015,703 7,152 44,125 1,022,855 1,066,980 301,847 11/90 11/90 5-27.5 Metter 1,474,127 44,500 1,770,511 4,472 45,141 1,774,983 1,820,124 342,294 5/93 12/92 5-27.5 Nevada Manor 648,793 50,000 782,543 10,670 50,000 793,213 843,213 264,951 10/90 11/90 5-27.5 Newnan Apts. 2,002,390 92,706 4,128,942 (241,857)* 92,706 3,887,085 3,979,791 1,196,557 10/90 12/90 5-27.5 Oatka Villige 920,064 35,000 1,151,205 6,230 35,000 1,157,435 1,192,435 354,132 6/90 11/90 5-27.5 RPI#18L.P. 1,233,570 100 1,776,840 116,895 100 1,893,735 1,893,835 503,421 12/90 12/90 5-27.5 F-99 Boston Capital Tax Credit Fund II Limited Partnership - Series 11 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - ------------------------------------------ Sierra Springs 1,176,939 52,290 1,448,815 58,057 52,387 1,506,872 1,559,259 279,031 11/90 11/90 5-27.5 South Fork 1,448,759 100,000 1,782,527 14,161 100,000 1,796,688 1,896,688 344,366 2/91 2/91 5-27.5 Twin Oaks of Allendale 782,923 71,305 951,711 (170,609)* 71,305 781,102 852,407 232,360 9/90 12/90 5-27.5 Washington 958,686 55,050 1,150,878 14,587 55,050 1,165,465 1,220,515 207,075 3/91 1/91 7-40 Wildridge 1,548,630 156,576 1,617,243 5,292 156,576 1,622,535 1,779,111 420,110 4/91 1/91 7-27.5 ---------- --------- ---------- ---------- --------- ----------- - ----------- ---------- $51,903,045 3,238,933 76,652,246 3,097,817 3,234,637 79,750,063 82,984,700 20,112,040 ========== ========= ========== ========== ========= =========== =========== ========== Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 1997. *Decrease due to reduction of development fee which reduced the property basis. **There were no carrying costs as of December 31, 1997. The column has been ommitted for presentation purposes.
F-100 Notes to Schedule III Boston Capital Tax Credit Fund II Limited Partnership - Series 11 Reconciliation of Land, Building & Improvements current year changes Balance at beginning of period-04/01/92..........................$ 75,467,308 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 44,500 Improvements, etc................................. 862,272 Other............................................. 0 ---------- $ 906,772 Deductions during period: Cost of real estate sold..........................$(1,343,477) Other............................................. (188,348) ---------- $ (1,531,825) ----------- Balance at close of period - 03/31/93............................$ 74,842,255 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 5,762,741 Improvements, etc................................. 1,962,905 Other............................................. 0 ---------- $ 7,725,646 Deductions during period: Cost of real estate sold..........................$ 0 Other............................................. 0 ---------- $ 0 ----------- Balance at close of period - 03/31/94............................$ 82,567,901 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 0 Improvements, etc................................. 1,297,882 Other............................................. 0 ---------- $ 1,297,822 Deductions during period: Cost of real estate sold..........................$ 0 Other............................................. 0 ---------- $ 0 ----------- Balance at close of period - 03/31/95............................$ 83,865,783 F-101 Notes to Schedule III Boston Capital Tax Credit Fund II Limited Partnership - Series 11 Reconciliation of Land, Building & Improvements current year changes - continued Balance at close of period - 03/31/95..........................$ 83,865,783 Additions during period: Acquisitions through foreclosure...............$ 0 Other acquisitions............................. 0 Improvements, etc.............................. 81,256 Other.......................................... 0 ----------- $ 81,256 Deductions during period: Cost of real estate sold.......................$ 0 Other.......................................... (1,209,041) ----------- $ (1,209,041) ----------- Balance at close of period - 03/31/96..........................$ 82,737,998 Additions during period: Acquisitions through foreclosure...............$ 0 Other acquisitions............................. 0 Improvements, etc.............................. 125,078 Other.......................................... 0 ----------- $ 125,078 Deductions during period: Cost of real estate sold.......................$ 0 Other.......................................... 0 ----------- $ 0 ----------- Balance at close of period - 03/31/97..........................$ 82,863,076 Additions during period: Acquisitions through foreclosure...............$ 0 Other acquisitions............................. 0 Improvements, etc.............................. 121,624 Other.......................................... 0 ----------- $ 121,624 Deductions during period: Cost of real estate sold.......................$ 0 Other.......................................... 0 ----------- $ 0 ----------- Balance at close of period - 03/31/98..........................$ 82,984,700 =========== F-102 Notes to Schedule III Boston Capital Tax Credit Fund II Limited Partnership - Series 11 Reconciliation of Accumulated Depreciation current year changes Balance at beginning of period - 04/01/92.......................$ 2,602,158 Current year expense................................$2,916,577 --------- Balance at close of period - 3/31/93............................$ 5,518,735 Current year expense................................$2,946,686 --------- Balance at close of period - 3/31/94............................$ 8,465,421 Current year expense................................$4,159,331 --------- Balance at close of period - 3/31/95............................$12,624,752 Current year expense................................$1,693,850 --------- Balance at close of period - 3/31/96............................$14,318,602 Current year expense................................$2,889,737 --------- Balance at close of period - 3/31/97............................$17,208,339 Current year expense.................................$2,903,701 --------- Balance at close of period - 3/31/98............................$20,112,040 ========== F-103 Boston Capital Tax Credit Fund II Limited Partnership - Series 12 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - --------------------------------------------- Autumnwood Village 1,035,970 40,777 371,734 901,535 40,777 1,273,269 1,314,046 289,309 4/92 10/91 5-27.5 BB&L Enterprises 522,178 24,000 648,985 1,600 24,000 650,585 674,585 151,218 3/91 5/91 5-40 Bowman Village 666,199 17,000 848,107 2,520 17,000 850,627 867,627 214,433 10/91 6/91 5-27.5 Brandy- wood 1,752,028 86,029 3,313,958 (47,086)* 86,029 3,266,872 3,352,901 944,876 9/91 12/91 5-27.5 Briarwick 1,253,406 95,079 1,587,073 595 95,079 1,587,668 1,682,747 305,870 4/91 4/91 5-40 Bucksport 1,387,118 71,500 1,683,768 (136,548)* 271,318 1,547,220 1,818,538 391,655 8/91 6/91 7-27.5 Burkes- ville 735,262 40,000 897,118 530 40,000 897,648 937,648 144,098 9/91 6/91 5-27.5 F-104 Boston Capital Tax Credit Fund II Limited Partnership - Series 12 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - --------------------------------------------- California Investors VII 8,934,496 820,000 9,361,922 16,788,173 803,050 26,150,095 26,953,145 3,714,028 12/93 10/92 5-27.5 Cananche Creek 1,236,724 66,200 1,515,813 39,125 66,200 1,554,938 1,621,138 250,833 6/91 5/91 5-27.5 Carson Village 653,315 30,000 193,264 610,191 30,000 803,455 833,455 179,940 6/92 10/91 5-27.5 Clarkson Prop 750,032 36,000 932,918 0 36,000 932,918 968,918 150,603 7/91 6/91 7-27.5 Clymer House 1,083,630 20,000 1,387,091 2,709 20,000 1,389,800 1,409,800 322,164 10/91 6/91 5-27.5 Corcoran Investment 1,526,248 75,000 1,976,455 0 75,000 1,976,455 2,051,455 335,978 11/90 2/91 5-50 Cornish Park 1,456,823 67,390 1,761,946 94,424 68,500 1,856,370 1,924,870 458,776 6/91 6/91 5-27.5 Crescent City 1,867,066 211,000 2,297,055 (14,590)* 211,000 2,282,465 2,493,465 424,183 3/91 3/91 5-50 Dallas II 1,681,994 230,059 3,194,199 19,302 230,059 3,213,501 3,443,560 988,741 10/90 3/91 7-27.5 F-105 Boston Capital Tax Credit Fund II Limited Partnership - Series 12 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - ------------------------------------------- Earlimart 1,347,429 90,000 1,711,424 827 90,000 1,712,251 1,802,251 291,962 6/91 6/91 5-50 Evanwood 757,044 36,000 929,102 456 32,400 929,558 961,958 168,163 5/91 6/91 5-27.5 Fort Smith 1,039,337 87,500 2,089,062 0 87,500 2,089,062 2,176,562 333,713 8/94 9/93 7-27.5 Frank- lin II 1,488,528 50,000 1,864,100 2,199 50,000 1,866,299 1,916,299 540,603 11/90 4/91 7-27.5 Franklin House 305,487 1,000 812,706 2,742 1,000 815,448 816,448 214,750 1/88 5/93 5-27.5 Hamilton Village 570,376 18,943 368,532 344,202 18,943 712,734 731,677 168,226 3/92 10/91 5-27.5 Hunters Park 1,412,014 92,750 1,650,083 15,434 92,750 1,665,517 1,758,267 249,984 4/91 5/91 5-27.5 Ivan Woods 2,198,430 275,000 4,347,328 20,064 275,000 4,367,392 4,642,392 1,281,979 4/91 2/91 5-27.5 Jesup 631,506 19,375 427,265 382,416 19,375 809,681 829,056 193,080 7/92 12/91 5-27.5 F-106 Boston Capital Tax Credit Fund II Limited Partnership - Series 12 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - ------------------------------------------- Lakeridge 917,823 34,832 1,103,517 7,461 34,832 1,110,978 1,145,810 286,105 4/91 3/91 5-50 Laurel Village 662,922 15,145 256,421 569,407 15,145 825,828 840,973 190,064 5/92 10/91 5-27.5 Los Caballos 773,138 53,886 1,006,731 1,700 26,943 1,008,431 1,035,374 176,042 8/91 7/91 5-27.5 Marlboro 837,163 26,176 1,032,404 14,417 26,176 1,046,821 1,072,997 310,519 2/91 3/91 5-27.5 Melvilles 894,250 18,500 1,103,074 30,288 18,500 1,133,362 1,151,862 181,911 10/91 7/91 5-27.5 Nanty Glo 1,477,706 35,000 1,869,757 17,675 35,000 1,887,432 1,922,432 438,202 7/91 6/91 7-40 Newnan II 2,001,179 92,706 3,868,800 18,285 92,706 3,887,085 3,979,791 1,196,557 10/90 3/91 7-27.5 Nye County 1,366,344 60,000 1,694,731 5,023 60,000 1,699,754 1,759,754 485,870 4/91 5/91 5-27.5 Oakleigh 915,249 57,500 553,121 564,755 57,500 1,117,876 1,175,376 170,228 3/92 8/91 7-40 Oakwood 911,682 52,000 782,736 345,697 52,000 1,128,433 1,180,433 174,222 1/92 8/91 7-40 Parkwood 3,048,644 316,667 4,358,381 7,812 316,667 4,366,193 4,682,860 1,203,537 5/91 3/91 5-27.5 F-107 Boston Capital Tax Credit Fund II Limited Partnership - Series 12 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - ------------------------------------------- Portales Estates 1,441,485 66,500 1,777,470 5,720 66,500 1,783,190 1,849,690 522,716 7/91 7/91 5-27.5 Prairie West 472,796 65,000 983,964 3,798 69,633 987,762 1,057,395 281,977 9/95 3/91 5-27.5 Ridgeway Court 894,407 48,500 1,039,377 21,524 48,500 1,060,901 1,109,401 274,946 1/91 4/91 5-27.5 River Reach 1,367,782 118,750 1,656,515 6,732 118,750 1,663,247 1,781,997 445,971 5/91 5/91 7-27.5 Rockmoor 438,306 30,000 521,541 17,017 30,000 538,558 568,558 83,415 3/91 5/91 5-27.5 RPI #22 572,558 0 1,177,719 16,447 0 1,194,166 1,194,166 288,026 7/91 6/91 7-27.5 Scott City 599,332 13,000 764,225 (285) 13,000 763,940 776,940 132,060 11/91 6/91 5-27.5 Shawnee Ridge 668,146 53,650 801,129 8,388 53,650 809,517 863,167 134,820 5/91 5/91 5-27.5 Spring- field 3,830,348 775,955 9,620,653 30,930 775,955 9,651,583 10,427,538 2,278,171 6/91 7/91 5-27.5 Stonegate Manor 1,010,946 76,000 1,265,168 6,097 76,000 1,271,265 1,347,265 357,126 12/90 5/91 7-27.5 F-108 Boston Capital Tax Credit Fund II Limited Partnership - Series 12 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provemnts Total ciation Date Date Life - -------------------------------------------------------------------------------- - -------------------------------------------- Turner Lane 722,375 31,530 882,974 2,172 31,530 885,146 916,676 233,673 7/91 5/91 7-27.5 Union Baptist 507,995 0 1,151,557 19,964 0 1,171,521 1,171,521 232,418 4/91 5/91 5-27.5 Villas of Lakeridge 532,695 47,952 605,356 809 47,952 606,165 654,117 156,504 3/91 3/91 5-27.5 Waynesboro 1,372,681 50,000 1,455,507 1,074 50,000 1,456,581 1,506,581 389,677 1/91 4/91 5-27.5 Windsor II 732,003 51,178 887,455 10,641 51,178 898,096 949,274 267,654 11/90 4/91 7-27.5 Woodcrest 711,744 42,000 883,702 8,102 42,000 891,804 933,804 144,014 11/91 6/91 7-40 Woodside 1,156,864 19,383 1,378,829 1,136 19,383 1,379,965 1,399,348 428,977 3/91 4/91 5-40 ---------- --------- ---------- ---------- ---------- ----------- - ----------- --------- 67,131,203 4,852,412 90,653,822 20,773,607 5,010,480 111,427,429 116,437,909 24,174,567 ========== ========= ========== ========== ========= =========== =========== ========== Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 1997 *Decrease due to a reallocation of acquisition costs. **There were no carrying costs as of December 31, 1997 The column has been ommitted for presentation purposes.
F-109 Notes to Schedule III Boston Capital Tax Credit Fund II Limited Partnership - Series 12 Reconciliation of Land, Building & Improvements current year changes Balance at beginning of period-04/01/92..........................$ 79,690,665 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 9,428,122 Improvements, etc................................. 7,164,766 Other............................................. 0 ---------- $ 16,592,888 Deductions during period: Cost of real estate sold..........................$ 0 Other............................................. 0 ---------- $ 0 ----------- Balance at close of period - 03/31/93............................$ 96,283,553 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 901,206 Improvements, etc................................. 16,586,367 Other............................................. 0 ---------- $ 17,487,573 Deductions during period: Cost of real estate sold..........................$ 0 Other............................................. 0 ---------- $ 0 ----------- Balance at close of period - 03/31/94............................$113,771,126 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 0 Improvements, etc................................. 2,226,528 Other............................................. 0 ---------- $ 2,226,528 Deductions during period: Cost of real estate sold..........................$ 0 Other............................................. 0 ---------- $ 0 ----------- Balance at close of period - 03/31/95............................$115,997,654 F-110 Notes to Schedule III Boston Capital Tax Credit Fund II Limited Partnership - Series 12 Reconciliation of Land, Building & Improvements current year changes - continued Balance at close of period - 03/31/95..........................$115,997,654 Additions during period: Acquisitions through foreclosure...............$ 0 Other acquisitions............................. 0 Improvements, etc.............................. 231,724 Other.......................................... 0 ----------- $ 231,724 Deductions during period: Cost of real estate sold.......................$ 0 Other.......................................... 0 ----------- $ 0 - ----------- Balance at close of period - 03/31/96..........................$116,229,378 Additions during period: Acquisitions through foreclosure...............$ 0 Other acquisitions............................. 0 Improvements, etc.............................. 67,052 Other.......................................... 0 ----------- $ 67,052 Deductions during period: Cost of real estate sold.......................$ 0 Other.......................................... 0 ----------- $ 0 - ----------- Balance at close of period - 03/31/97..........................$116,296,430 Additions during period: Acquisitions through foreclosure...............$ 0 Other acquisitions............................. 0 Improvements, etc.............................. 141,479 Other.......................................... 0 ----------- $ 141,479 Deductions during period: Cost of real estate sold.......................$ 0 Other.......................................... 0 ----------- $ 0 - ----------- Balance at close of period - 03/31/98..........................$116,437,909 =========== F-111 Notes to Schedule III Boston Capital Tax Credit Fund II Limited Partnership - Series 12 Reconciliation of Accumulated Depreciation current year changes Balance at beginning of period - 04/01/92.......................$ 2,036,741 Current year expense................................$3,141,623 --------- Balance at close of period - 3/31/93............................$ 5,178,364 Current year expense................................$3,409,630 --------- Balance at close of period - 3/31/94............................$ 8,587,994 Current year expense................................$4,171,394 --------- Balance at close of period - 3/31/95............................$12,759,388 Current year expense................................$4,116,629 --------- Balance at close of period - 3/31/96............................$16,876,017 Current year expense................................$3,687,191 --------- Balance at close of period - 3/31/97............................$20,563,208 Current year expense................................$3,611,359 --------- Balance at close of period - 3/31/98............................$24,174,567 ========== F-112 Boston Capital Tax Credit Fund II Limited Partnership - Series 14 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Descrip- Encum- and im- Improve- and im- Depre- struct uired ciation tion brances Land provements ments Land provements Total ciation Date Date Life - -------------------------------------------------------------------------------- - --------------------------------------------- Ada Vil 1,048,982 125,997 1,201,080 0 125,997 1,201,080 1,327,077 193,739 11/93 1/93 5-30 Amherst 1,602,927 60,000 1,920,734 0 60,000 1,920,734 1,980,734 458,712 1/92 1/92 7-27.5 Beckwood Manor 1,271,185 35,000 1,569,743 38,578 35,000 1,608,321 1,643,321 374,762 10/92 5/92 5-27.5 Belmont Vlg 929,502 64,312 1,073,695 6,676 64,312 1,080,372 1,144,684 182,905 12/91 1/92 7-27.5 Bethel Park 1,491,698 265,800 1,310,374 486,472 117,500 1,796,846 1,914,346 299,461 3/92 12/91 5-40 Blan- chard 218,258 42,000 727,225 (473,334) 23,726 253,891 277,617 46,914 9/91 10/91 7-40 F-113 Boston Capital Tax Credit Fund II Limited Partnership - Series 14 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Descrip- Encum- and im- Improve- and im- Depre- struct uired ciation tion brances Land provements ments Land provements Total ciation Date Date Life - -------------------------------------------------------------------------------- - ------------------------------------------- Blanchard Vlg 598,621 42,000 730,704 0 42,000 730,704 772,704 116,535 7/93 1/93 5-30 Brant- wood 1,144,296 55,500 1,382,381 2,409 55,500 1,384,790 1,440,290 362,946 9/91 7/91 7-27.5 Brecken- ridge 867,880 21,500 1,181,178 1,909 21,500 1,183,087 1,204,587 207,276 3/92 1/92 7-27.5 Briar- wood II 1,494,414 90,000 1,785,580 (297,553) 90,000 1,488,027 1,578,027 356,301 4/92 2/92 7-27.5 Bridge Coali- tion 0 0 695,990 45,082 0 741,072 741,072 151,800 12/91 1/92 27.5 Buchanan 726,197 63,275 833,561 34,172 63,275 867,733 931,008 259,153 10/90 7/91 7-27.5 California Inv. V 5,418,004 401,411 10,824,261 2,231 401,411 10,826,492 11,227,903 2,375,835 03/90 8/92 7-27.5 California Inv. VII 8,934,496 820,000 9,361,922 16,788,173 803,050 26,150,095 26,953,145 3,714,028 12/93 10/92 7-27.5 Capital Hsg 1,539,129 178,000 3,131,389 49,397 178,000 3,180,786 3,358,786 777,820 1/91 8/91 7-27.5 F-114 Boston Capital Tax Credit Fund II Limited Partnership - Series 14 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Descrip- Encum- and im- Improve- and im- Depre- struct uired ciation tion brances Land provements ments Land provements Total ciation Date Date Life - -------------------------------------------------------------------------------- - ---------------------------------------------- Capitol One 695,155 35,000 883,508 0 35,000 883,508 918,508 113,724 8/95 3/95 7-27.5 Carleton Court 2,712,472 94,360 3,954,231 219,892 94,360 4,174,123 4,268,483 753,602 12/91 12/91 7-34 Carriage Run 1,329,397 83,980 1,046,960 550,232 83,980 1,597,192 1,681,172 371,070 4/92 10/91 7-27.5 Cedar- wood 1,419,039 61,698 1,477,659 231,450 61,698 1,709,109 1,770,807 240,422 1/92 10/91 7-27.5 Central Valley 1,827,871 141,353 2,170,282 0 141,353 2,170,282 2,311,635 326,281 12/91 1/92 5-50 Chapar- ral 696,420 38,972 863,939 3,510 38,972 867,449 906,421 132,343 7/91 8/91 7-50 College Green 3,781,020 225,000 6,774,847 38,689 225,000 6,813,536 7,038,536 703,949 8/95 3/95 7-27.5 Colorado City 542,805 30,000 608,138 16,258 30,000 624,396 654,396 98,292 10/91 10/91 7-40 Cotton wood 655,114 40,000 775,242 3,710 40,000 778,952 818,952 124,111 7/91 10/91 7-40 F-115 Boston Capital Tax Credit Fund II Limited Partnership - Series 14 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Descrip- Encum- and im- Improve- and im- Depre- struct uired ciation tion brances Land provements ments Land provements Total ciation Date Date Life - -------------------------------------------------------------------------------- - ---------------------------------------------- Crystal Sprgs 1,305,442 60,000 1,574,032 6,642 60,000 1,580,674 1,640,674 305,820 1/92 1/92 7-27.5 Davis Vlg 1,176,194 55,000 1,456,778 0 55,000 1,456,778 1,511,778 246,376 9/93 1/93 5-30 Derby Hsg 1,851,036 165,000 3,451,914 (28,429) 165,000 3,423,485 3,588,485 844,530 9/91 6/91 7-27.5 Deven- wood 874,134 76,000 1,215,772 3,057 76,000 1,218,829 1,294,829 245,210 1/93 7/92 N/A Duncan Vlg 1,148,821 83,875 1,391,226 0 83,875 1,391,226 1,475,101 223,800 11/93 1/93 5-30 Edison Village 1,200,486 46,536 1,425,180 50,796 46,536 1,475,976 1,522,512 352,666 2/92 7/91 7-27.5 Excel- sior 624,169 70,000 704,252 10,279 70,000 714,531 784,531 221,780 4/91 2/92 7-27.5 Four Oaks Hsg 894,429 48,000 1,063,004 3,228 73,083 1,066,232 1,139,315 236,685 6/92 3/92 7-27.5 F-116 Boston Capital Tax Credit Fund II Limited Partnership - Series 14 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Descrip- Encum- and im- Improve- and im- Depre- struct uired ciation tion brances Land provements ments Land provements Total ciation Date Date Life - -------------------------------------------------------------------------------- - ---------------------------------------------- Franklin Vista 930,247 49,520 1,130,261 0 49,520 1,130,261 1,179,781 175,857 4/92 1/92 7-27.5 Friend- ship 1,440,395 195,314 1,639,123 127,149 213,230 1,766,272 1,979,502 592,644 6/91 1/92 7-27.5 Glenhaven Park 688,873 195,000 834,120 0 195,000 834,120 1,029,120 185,932 6/89 1/94 7-27.5 Harrison City 1,482,136 35,521 1,799,025 6,144 35,521 1,799,025 1,834,546 407,736 9/92 7/92 7-27.5 Haven Park Part- ners II 494,773 225,000 1,045,411 0 225,000 1,045,411 1,270,411 323,168 6/89 1/94 7-27.5 Haven Park Partners III 497,333 225,000 1,177,089 0 225,000 1,177,089 1,402,089 228,179 12/89 1/94 7-27.5 Haven Park Part- ners IV 399,865 180,000 874,413 0 180,000 874,413 1,054,413 161,141 6/90 1/94 7-27.5 Hessmer 911,466 35,000 1,158,895 778,606 35,000 1,158,895 1,193,895 173,096 4/92 12/91 7-40 F-117 Boston Capital Tax Credit Fund II Limited Partnership - Series 14 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Descrip- Encum- and im- Improve- and im- Depre- struct uired ciation tion brances Land provements ments Land provements Total ciation Date Date Life - -------------------------------------------------------------------------------- - ---------------------------------------------- Hillmont Village 886,023 38,000 911,697 160,272 38,000 1,071,969 1,109,969 259,323 1/92 9/91 7-27.5 Hughes Springs 788,584 35,000 947,230 0 35,000 947,230 982,230 149,934 8/91 10/91 7-40 Hunters Run 1,448,179 120,000 1,169,479 537,695 120,000 1,707,174 1,827,174 412,178 2/92 12/91 7-27.5 Indepen- dence 1,086,435 103,901 1,237,331 12,402 103,901 1,249,733 1,353,634 328,930 6/91 8/91 7-27.5 Jarratt 833,930 55,926 1,028,925 (67,608) 55,926 961,317 1,017,243 234,439 12/91 10/91 7-27.5 Kilmar- nock 765,470 44,000 969,309 0 44,000 969,309 1,013,309 265,273 4/91 7/91 7-27.5 King Fisher 170,418 21,000 198,768 0 21,000 198,768 219,768 34,300 12/93 1/93 5-30 La Gama Del Bario 670,201 110,000 1,020,084 46,465 110,000 1,066,549 1,176,549 204,541 8/92 6/92 7-27.5 F-118 Boston Capital Tax Credit Fund II Limited Partnership - Series 14 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Descrip- Encum- and im- Improve- and im- Depre- struct uired ciation tion brances Land provements ments Land provements Total ciation Date Date Life - -------------------------------------------------------------------------------- - --------------------------------------------- Lake Isa- bella 1,995,709 360,000 2,036,815 229,471 360,000 2,266,286 2,626,286 341,621 1/92 9/91 5-50 Lakeview Meadows 1,573,891 99,580 2,665,491 15,063 99,580 2,680,554 2,780,134 684,271 6/92 1/92 12-40 Lakewood Terr 3,873,540 124,707 2,257,609 4,422,726 124,707 6,680,335 6,805,042 1,431,108 8/89 11/93 5-27.5 Lexington Park 4,847,218 500,000 7,754,757 59,955 500,000 7,814,712 8,314,712 1,107,137 12/93 11/91 7-27.5 Lexington Vlg 211,259 23,814 246,703 0 23,814 246,703 270,517 44,462 11/93 1/93 5-30 Lonacon- ing 1,487,952 113,305 181,203 1,558,889 113,305 1,740,092 1,853,397 265,186 9/92 12/91 5-27.5 Louis Assocs. 826,809 13,720 1,038,651 4,099 13,720 1,042,750 1,056,470 219,456 1/92 3/92 7-27.5 Maidu 2,160,267 56,500 5,108,838 81,313 56,500 5,190,151 5,246,651 1,307,774 12/91 1/92 7-27.5 Marion Mnr 1,007,304 50,000 1,237,671 12,940 50,000 1,250,611 1,300,611 174,841 6/92 2/92 7-27.5 F-119 Boston Capital Tax Credit Fund II Limited Partnership - Series 14 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Descrip- Encum- and im- Improve- and im- Depre- struct uired ciation tion brances Land provements ments Land provements Total ciation Date Date Life - -------------------------------------------------------------------------------- - ---------------------------------------------- Maysville Vlg 219,376 25,920 255,681 0 25,920 255,681 281,601 46,397 10/93 1/93 5-30 McComb Fam 1,005,726 30,000 1,226,748 19,051 30,000 1,245,799 1,275,799 268,863 10/91 10/91 7-27.5 Mon- tague 1,141,805 0 1,493,360 97,666 22,223 1,591,026 1,613,249 341,873 12/91 12/91 5-30 Navapai 883,977 53,480 1,073,287 25,572 53,480 1,098,859 1,152,339 192,760 4/91 6/91 7-50 Nevada City 3,550,848 492,000 3,954,179 130,975 492,000 4,085,154 4,577,154 581,346 10/91 1/91 5-27.5 New River 1,486,762 46,400 1,279,522 519,597 46,400 1,799,119 1,845,519 286,528 2/92 8/91 7-27.5 Newel- lton 947,371 57,600 1,161,263 7,800 57,600 1,169,063 1,226,663 174,830 4/92 2/92 7-40 Oakland Vlg 851,583 38,400 1,021,589 2,502 58,014 1,024,091 1,082,105 217,882 8/92 5/92 7-27.5 F-120 Boston Capital Tax Credit Fund II Limited Partnership - Series 14 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Descrip- Encum- and im- Improve- and im- Depre- struct uired ciation tion brances Land provements ments Land provements Total ciation Date Date Life - -------------------------------------------------------------------------------- - --------------------------------------------- Okemah Vlg 696,231 27,752 872,256 0 27,752 872,256 900,008 150,972 5/93 1/93 7-27.5 One North- ridge 1,700,400 190,000 3,051,424 59,364 190,000 3,110,788 3,300,788 586,246 2/92 1/92 7-27.5 Park- wood 3,048,644 316,667 4,358,381 7,812 316,667 4,366,193 4,682,860 1,203,537 5/91 10/91 7-27.5 Pine- ridge 991,848 31,500 494,515 715,923 31,500 1,210,438 1,241,938 159,720 3/92 10/91 7-27.5 Pittsfield Park 1,047,764 204,900 781,557 548,732 58,000 1,330,289 1,388,289 247,997 6/92 12/91 5-30 Planta- tion IV 1,422,194 77,000 1,697,631 22,624 77,000 1,720,255 1,797,255 431,753 11/91 12/91 7-27.5 Portville Square 924,798 66,206 1,068,007 64,495 66,206 1,132,502 1,198,708 184,522 3/92 3/92 7-27.5 Prague Vlg 120,244 10,500 157,060 0 10,500 157,060 167,560 30,510 3/93 1/93 7-27.5 F-121 Boston Capital Tax Credit Fund II Limited Partnership - Series 14 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Descrip- Encum- and im- Improve- and im- Depre- struct uired ciation tion brances Land provements ments Land provements Total ciation Date Date Life - -------------------------------------------------------------------------------- - --------------------------------------------- Rainer Manor 2,690,165 521,000 5,852,852 14,190 521,000 5,867,042 6,388,042 836,922 1/93 3/92 7-27.5 Rosen- berg 1,824,673 452,000 10,701,246 (8,526,246) 415,000 2,175,000 2,590,000 62,143 1/92 12/91 7-27.5 Rosewood Manor 1,440,474 175,000 1,605,480 7,408 175,000 1,612,888 1,787,888 400,032 11/91 12/91 7-27.5 San Jacinto 2,374,792 288,000 2,694,130 105,463 288,000 2,799,593 3,087,593 460,604 10/91 1/92 5-50 Schroon Lake 1,089,005 78,000 1,318,831 (11,386) 78,000 1,307,445 1,385,445 293,479 1/92 11/91 5-50 Scott Part- ners 568,088 60,000 1,171,445 31,816 60,000 1,203,261 1,263,261 301,983 11/91 10/91 7-27.5 Sioux Falls 1,086,827 82,406 2,233,596 (12,432) 82,406 2,221,164 2,303,570 559,301 10/91 11/91 7-27.5 F-122 Boston Capital Tax Credit Fund II Limited Partnership - Series 14 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Descrip- Encum- and im- Improve- and im- Depre- struct uired ciation tion brances Land provements ments Land provements Total ciation Date Date Life - -------------------------------------------------------------------------------- - --------------------------------------------- Smith- ville 1,246,529 79,790 1,465,210 25,305 79,790 1,490,515 1,570,305 463,697 5/91 2/92 7-27.5 South Fulton 665,122 34,000 794,896 1,930 34,000 796,826 830,826 179,448 8/91 10/91 7-27.5 Standard- ville 586,746 29,500 691,006 0 29,500 691,006 720,506 131,528 11/91 4/92 5-40 St. Barnabas 1,211,580 43,335 1,520,445 2,648 43,335 1,523,093 1,566,428 209,937 12/91 10/91 7-27.5 Summerlane 861,833 48,700 1,010,651 3,038 48,700 1,013,689 1,062,389 253,087 11/91 7/91 7-27.5 Tionesta Manor 1,431,388 229,850 1,666,675 17,639 229,850 1,684,314 1,914,164 432,307 1/92 2/92 7-27.5 Titus- ville 1,242,340 85,280 1,235,975 239,616 85,280 1,475,591 1,560,871 355,721 1/92 12/91 7-27.5 Toano III 710,789 56,266 874,381 1,828 56,266 876,209 932,475 240,851 7/91 7/91 7-27.5 Topsham 1,129,745 135,552 1,458,644 1,522 135,552 1,460,166 1,595,718 222,800 8/92 11/91 10-40 F-123 Boston Capital Tax Credit Fund II Limited Partnership - Series 14 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Descrip- Encum- and im- Improve- and im- Depre- struct uired ciation tion brances Land provements ments Land provements Total ciation Date Date Life - -------------------------------------------------------------------------------- - --------------------------------------------- Townview 1,381,297 87,238 1,713,135 16,525 87,238 1,729,660 1,816,898 308,526 10/91 9/91 5-27.5 Tyrone Hsg 1,487,044 138,700 1,850,252 29,130 49,050 1,879,382 1,928,432 307,003 1/92 12/91 5-40 Vic- toria 1,402,517 12,500 1,733,581 0 12,500 1,733,581 1,746,081 392,403 6/92 1/92 5-27.5 Village Terrace 721,253 63,000 1,529,691 800 63,000 1,530,491 1,593,491 383,779 9/91 5/92 5-40 Washing- ton 1,189,091 72,396 1,494,696 2,410 72,396 1,497,106 1,569,502 378,563 8/91 7/91 7-27 Wesley Vlg 1,316,210 44,750 347,831 1,253,193 44,750 1,601,024 1,645,774 259,281 6/92 10/91 5-27.5 Wild- wood 1,265,615 94,949 1,498,290 8,152 94,949 1,506,442 1,601,391 284,856 10/91 10/91 5-40 Woodfield Commons 1,186,524 66,533 2,478,583 129,178 66,533 2,607,761 2,674,294 455,190 6/91 9/91 12-40 Wood- side 1,214,509 44,000 1,472,335 9,013 44,000 1,481,348 1,525,348 372,667 10/91 11/91 7-27.5 F-124 Boston Capital Tax Credit Fund II Limited Partnership - Series 14 Schedule III - Real Estate and Accumulated Depreciation March 31, 1998 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- - ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Descrip- Encum- and im- Improve- and im- Depre- struct uired ciation tion brances Land provements ments Land provements Total ciation Date Date Life - -------------------------------------------------------------------------------- - ------------------------------------------- Wynnewood Vlg 410,877 41,987 521,591 0 41,987 521,591 563,578 92,214 11/93 1/93 5-27.5 York- shire 925,121 29,265 1,079,451 89,221 29,265 1,168,672 1,197,937 301,056 9/91 8/91 5-27.5 Zin- master 1,855,115 100,000 3,307,709 13,873 100,000 3,321,582 3,421,582 1,238,216 1/88 1/95 7-27.5 ----------- ---------- ----------- ---------- ---------- ----------- - ----------- ---------- 136,052,710 11,491,699 186,719,997 21,455,055 11,119,461 208,175,052 219,294,513 40,414,705 =========== ========== =========== ========== ========== =========== =========== ========== Since the Operating Partnerships maintain a calendar year end, the information on this schedule is as of December 31, 1997. * - Reduction due to reduced development fee, which reduced the property basis. ***There were no carrying costs as of December 31, 1997. The column has been omitted for presentation purposes.
F-125 Notes to Schedule III Boston Capital Tax Credit Fund II Limited Partnership - Series 14 Reconciliation of Land, Building & Improvements current year changes Balance at beginning of period-04/01/92..........................$ 81,648,074 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 80,920,213 Improvements, etc................................. 5,161,569 Other............................................. 0 ---------- $ 86,081,782 Deductions during period: Cost of real estate sold..........................$ 0 Other............................................. 0 ---------- $ 0 ----------- Balance at close of period - 03/31/93............................$167,729,856 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 2,382,316 Improvements, etc................................. 38,261,558 Other............................................. 0 ---------- $ 40,643,874 Deductions during period: Cost of real estate sold..........................$ 0 Other............................................. 0 ---------- $ 0 ----------- Balance at close of period - 03/31/94............................$208,373,730 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 4,756,033 Improvements, etc................................. 4,399,236 Other............................................. 0 ---------- $ 9,155,269 Deductions during period: Cost of real estate sold..........................$ 0 Other............................................. 0 ---------- $ 0 ----------- Balance at close of period - 03/31/95............................$217,528,999 F-126 Notes to Schedule III-Continued Boston Capital Tax Credit Fund II Limited Partnership - Series 14 Reconciliation of Land, Building & Improvements current year changes-Continued Balance at close of period - 03/31/95..........................$217,528,999 Additions during period: Acquisitions through foreclosure...............$ 0 Other acquisitions............................. 0 Improvements, etc.............................. 11,627,996 Other.......................................... 0 ----------- $ 11,627,996 Deductions during period: Cost of real estate sold.......................$ 0 Other.......................................... (299,900) ----------- $ (299,900) ----------- Balance at close of period - 03/31/96..........................$228,857,095 Additions during period: Acquisitions through foreclosure...............$ 0 Other acquisitions............................. 0 Improvements, etc.............................. 0 Other.......................................... 0 ----------- $ 0 Deductions during period: Cost of real estate sold.......................$ 0 Other.......................................... (9,932,304) ----------- $ (9,932,304) ----------- Balance at close of period - 03/31/97..........................$218,924,791 Additions during period: Acquisitions through foreclosure...............$ 0 Other acquisitions............................. 0 Improvements, etc.............................. 369,722 Other.......................................... 0 ----------- $ 369,722 Deductions during period: Cost of real estate sold.......................$ 0 Other.......................................... 0 ----------- $ 0 ----------- Balance at close of period - 03/31/98..........................$219,294,513 =========== F-127 Notes to Schedule III - Continued Boston Capital Tax Credit Fund II Limited Partnership - Series 14 Reconciliation of Accumulated Depreciation current year changes Balance at beginning of period - 04/01/92.........................$ 659,075 Current year expense..................................$5,383,385 - --------- Balance at close of period - 3/31/93..............................$ 6,042,460 Current year expense..................................$6,562,213 - --------- Balance at close of period - 3/31/94..............................$12,604,673 Current year expense..................................$7,623,477 - --------- Balance at close of period - 3/31/95..............................$20,228,150 Current year expense..................................$8,161,751 - --------- Balance at close of period - 3/31/96..............................$28,389,901 Current year expense..................................$5,335,897 - --------- Balance at close of period - 3/31/97..............................$33,725,798 Current year expense..................................$6,668,907 - --------- Balance at close of period - 3/31/98..............................$40,414,705 ========== F-128 EX-27 2
CT 0000853566 BOSTON CAPITAL TAX CREDIT FUND II, A LIMITED PARTNERSHIP 12-MOS MAR-31-1998 APR-01-1997 MAR-31-1998 64,633,488 0 0 0 0 64,633,488 42,913 0 (11,356,474) 0 0 0 (11,313,561) 0 0
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