10-Q 1 b301dec10q.htm BCTC III 10-Q DECEMBER 31, 2001 Boston Capital Tax Credit Fund III L

FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

(Mark One)

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

      For the quarterly period ended December 31, 2001

                                             or

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

      For the transition period from _______ to _______
Commission file number        0-21718

BOSTON CAPITAL TAX CREDIT FUND III L.P.
(Exact name of registrant as specified in its charter)

Delaware

52-1749505

(State or other jurisdiction

(I.R.S. Employer

of incorporation or organization)

Identification No.)

 

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

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

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

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

Yes

X

  

No

_

 

 

 

 

BOSTON CAPITAL TAX CREDIT FUND III L.P.

QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED DECEMBER 31, 2001

TABLE OF CONTENTS

FOR THE QUARTER ENDED DECEMBER 31, 2001 *

Balance_Sheets *

Balance_Sheets_Series_15 *

Balance_Sheets_Series_16 *

Balance_Sheets_Series_17 *

Balance_Sheets_Series_18 *

Balance_Sheets_Series_19 *

Statements_of_Operations *

THree Months Ended december 31 *

Statements_of_Operations_Series_15 *

Statements_of_Operations_Series_16 *

Statements_of_Operations_Series_17 *

Statements_of_Operations_Series_18 *

Statements_of_Operations_Series_19 *

nine Months Ended december 31 16

Statements_of_Operations_Series_15 17

Statements_of_Operations_Series_16 18

Statements_of_Operations_Series_17 19

Statements_of_Operations_Series_18 20

Statements_of_Operations_Series_19 21

Changes_in_Partners_Capital 22

Changes_in_Partners_Capital_Series_15 23

Changes_in_Partners_Capital_Series_16 23

Changes_in_Partners_Capital_Series_17 24

Changes_in_Partners_Capital_Series_18 24

Changes_in_Partners_Capital_Series_19 25

Statements_of_Cash_Flows 26

nine MONTHS Ended dectember 31

Statements_of_Cash_Flows_Series_15 28

Statements_of_Cash_Flows_Series_16 30

Statements_of_Cash_Flows_Series_17 32

Statements_of_Cash_Flows_Series_18 34

Statements_of_Cash_Flows_Series_19 36

Notes_to_Financial_Statements *

Note_A_Organization *

Note_B_Accounting *

Investment *

Cost

Note_C_Related_Party_Transactions 40

Note_D_Investments 41

Combined_Statements_of_Operations 43

Combined_Statements_Series_15 43

Combined_Statements_Series_16 44

Combined_Statements_Series_17 45

Combined_Statements_Series_18 46

Combined_Statements_Series_19 *

Liquidity *

Capital_Resources *

Results_of_Operations 50

Part_II_Other_Information 55

SIGNATURES 56

 

 

 

 

 

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

 

 

December 31,

2001

(Unaudited)

March 31,

2001

(Audited)

ASSETS

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

$ 78,285,814

$ 85,319,858
     

OTHER ASSETS

    

Cash and cash equivalents

1,741,627

1,122,380

Investments

433,596

1,465,643

Notes receivable

1,309,982

1,309,982

Deferred acquisition costs, 

   net of accumulated amortization

  (Note B)

 

1,422,782

 

1,474,454

Other assets

  2,988,641

  3,032,043
 

$ 86,182,442

$ 93,724,360
     

LIABILITIES

    
     

Accounts payable & accrued expenses 
(Note C)

$      4,553

$      4,553

Accounts payable affiliates

16,391,015

    15,040,788

Capital contributions payable

  1,384,034

  1,384,034
 

 17,779,602

 16,429,375
     

PARTNERS CAPITAL

    
     

Limited Partners 
  
   Units of limited partnership 
   interest, $10 stated value per BAC; 
   22,000,000 authorized BACs; 
   21,996,102 issued and outstanding, 
   as of December 31, 2001   







69,608,474







78,411,698

General Partner

(1,205,634)

(1,116,713)
 

 68,402,840

 77,294,985
 

$ 86,182,442

$ 93,724,360

 

 

 

 

The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 15

 

 

December 31,
2001
(Unaudited)

March 31,
2001
(Audited)

ASSETS

 

 

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

$ 9,712,358

$10,617,785
     

OTHER ASSETS

    

Cash and cash equivalents

413,483

229,627

Investments

-

   286,218

Notes receivable

-

-

Deferred acquisition costs, 
   net of accumulated amortization
  (Note B)

 

218,116

 

226,000

Other assets

   790,920

   799,327
 

$11,134,877

$12,158,957
     

LIABILITIES

    
     

Accounts payable & accrued expenses 
  (Note C)

$     1,145

$     1,145

Accounts payable affiliates

4,529,503

4,218,465

Capital contributions payable

    16,206

    16,206
 

 4,546,854

 4,235,816
     

PARTNERS CAPITAL

    
     

Limited Partners 
  
   Units of limited partnership 
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   3,870,500 issued and outstanding,
   as of December 31, 2001   







6,854,814







8,176,581


General Partner

 (266,791)

 (253,440)
 

 6,588,023

 7,923,141
 

$11,134,877

$12,158,957



The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 16



December 31,
2001
(Unaudited)

March 31,
2001
(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS (Note D)

$18,557,625

$20,493,977

 

    

OTHER ASSETS

    

Cash and cash equivalents

332,073

113,123

Investments

145,114

535,809

Notes receivable

-

-

Deferred acquisition costs, 
   net of accumulated amortization 
  (Note B)

 

349,683

 

362,321

Other assets

   128,277

   138,036
 

$19,512,772

$21,643,266
     

LIABILITIES

    
     

Accounts payable & accrued expenses 
  (Note C)

$         -

$         -

Accounts payable affiliates

3,730,011

3,411,025

Capital contributions payable

   138,506

   138,506
 

 3,868,517

 3,549,531
     

PARTNERS CAPITAL

    

Limited Partners 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   5,429,402 issued and outstanding,
   as of December 31, 2001







15,954,422







18,379,407

General Partner

 (310,167)

 (285,672)

 

15,644,255

18,093,735
 

$19,512,772

$21,643,266


The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 17



December 31,
2001
(Unaudited)

March 31,
2001
(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING 
   PARTNERSHIPS (Note D)

$18,091,113

$19,483,775

 

    

OTHER ASSETS

    

Cash and cash equivalents

430,854

397,129

Investments

-

-

Notes receivable

1,309,982

1,309,982

Deferred acquisition costs, 
   net of accumulated amortization
  (Note B)

 

314,886

 

326,548

Other assets

 1,964,132

 1,985,681
 

$22,110,967

$23,503,115
     

LIABILITIES

    
     

Accounts payable & accrued expenses 
  (Note C)

$         -

$         -

Accounts payable affiliates

5,033,370

4,633,143

Capital contributions payable

1,186,768

 1,186,768
 

6,220,138

 5,819,911
     

PARTNERS CAPITAL

    
     

Limited Partners 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   5,000,000 issued and outstanding,
   as of December 31, 2001   







16,161,601







17,936,052


General Partner

 (270,772)

 (252,848)
 

15,890,829

17,683,204
 

$22,110,967

$23,503,115


The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 18



December 31,
2001
(Unaudited)

March 31,
2001
(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING   

   PARTNERSHIPS (NOTE D)

$12,937,504

$14,578,072
     

OTHER ASSETS

    

Cash and cash equivalents

325,302

238,396

Investments

-

107,824

Notes receivable

-

-

Deferred acquisition costs,  

   Net of accumulated amortization

  (Note B)

 

237,770

 

246,330

Other assets

    89,184

    93,007
 

$13,589,760

$15,263,629
     

LIABILITIES

    
     

Accounts payable & accrued expenses 

  (Note C)


$         -

$         -

Accounts payable affiliates

2,105,346

1,893,885

Capital contributions payable

    18,554

    18,554
 

 2,123,900

 1,912,439
     

PARTNERS CAPITAL

    
     

Limited Partners 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   3,616,200 issued and outstanding,
   as of December 31, 2001       







11,661,429







13,527,906


General Partner

 (195,569)

 (176,716)
 

11,465,860

13,351,190
 

$13,589,760

$15,263,629



The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 19



December 31,
2001
(Unaudited)

March 31,
2001
(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS (NOTE D)    

$18,987,214

$20,146,249
     

OTHER ASSETS

    

Cash and cash equivalents

239,915

144,105

Investments

288,482

535,792

Notes receivable

-

-

Deferred acquisition costs, 
   net of accumulated amortization
   (Note B)

 

302,327

 

313,255

Other assets

    16,128

    15,992
 

$19,834,066

$21,155,393
     

LIABILITIES

    
     

Accounts payable & accrued expenses
   (Note C)

$     3,408

$     3,408

Accounts payable affiliates

992,785

884,270

Capital contributions payable

    24,000

    24,000
 

 1,020,193

   911,678
     

PARTNERS CAPITAL

    
     

Limited Partners 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   4,080,000 issued and outstanding,
   as of December 31, 2001    







18,976,208







20,391,752


General Partner

 (162,335)

 (148,037)
 

18,813,873

20,243,715
 

$19,834,066

$21,155,393

The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS


Three Months Ended December 31,
(Unaudited)

 


2001


2000
     

Income

    

  Interest income

$     15,967

$     34,550

  Other income

     13,551

     26,100
 

     29,518

     60,650

Share of loss from Operating 
  Partnerships(Note D)

(2,422,991)

(2,440,671)
     

Expenses

    

  Professional fees

19,794

8,286

  Fund management fee (Note C) 

513,892

633,491

  Amortization

17,224

17,224

  General and administrative expenses

     70,116

     22,077

  

  621,026

    681,078
     

  NET LOSS

$(3,014,499)

$(3,061,099)
     

Net loss allocated to limited partners

$(2,984,354)

$(3,030,488)
     

Net loss allocated to general partner

$   (30,145)

$   (30,611)
     

Net loss per BAC

$      (.68)

$      (.68)
     















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended December 31,
(Unaudited)

Series 15


2001


2000
     

Income

    

  Interest income

$     2,946

$     5,019

  Other income

     1,701

     5,400

     4,647

    10,419

Share of loss from Operating 
  Partnerships(Note D)

 (335,688)

 (456,267)
     

Expenses

    

  Professional fees

4,194

2,588

  Fund management fee    

115,584

130,180

  Amortization

2,628

2,628

  General and administrative expenses

    13,868

     3,566

  

  136,274

   138,962
     

  NET LOSS

$ (467,315)

$ (584,810)
     

Net loss allocated to limited partners

$ (462,642)

$ (578,962)
     

Net loss allocated to general partner

$   (4,673)

$   (5,848)
     

Net loss per BAC

$     (.12)

$     (.15)
     

















The accompanying notes are an integral part of this statement

 

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended December 31,
(Unaudited)

Series 16


2001


2000
     

Income

    

  Interest income

$     3,845

$    11,225

  Other income

     4,350

     4,950
 

     

     8,195

    16,175

Share of loss from Operating 
  Partnerships(Note D)

 (645,659)

 (797,318)
     

Expenses

    

  Professional fees

6,558

832

  Fund management fee    

154,147

 172,092

  Amortization

4,213

     4,213

  General and administrative expenses

    16,893

     6,080

  

  181,811

   183,217
     

  NET LOSS

$ (819,275)

$ (964,360)
     

Net loss allocated to limited partners

$ (811,082)

$ (954,716)
     

Net loss allocated to general partner

$   (8,193)

$   (9,644)
     

Net loss per BAC

$     (.15)

$     (.18)
     














 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended December 31,
(Unaudited)

Series 17


2001


2000
     

Income

    

  Interest income

$     1,887

$     3,118

  Other income

     3,450

     9,900
 

     5,337

    13,018

Share of loss from Operating 
  Partnerships(Note D)

 (543,064)

 (419,157)
     

Expenses

    

  Professional fees

3,559

1,966

  Fund management fee    

122,861

135,282

  Amortization

3,887

3,887

  General and administrative expenses

    14,993

     4,053

  

  145,300

   145,188
     

  NET LOSS

$ (683,027)

$ (551,327)
     

Net loss allocated to limited partners

$ (676,197)

$ (545,814)
     

Net loss allocated to general partner

$   (6,830)

$   (5,513)
     

Net loss per BAC

$     (.14)

$     (.11)
     















 



The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

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

Series 18


2001


2000
     

Income

    

  Interest Income

$     1,127

$     3,541

  Other income

     1,950

     2,250
 

     3,077

     5,791

Share of loss from Operating 
  Partnerships(Note D)

 (526,808)

 (406,221)
     

Expenses

    

  Professional fees

3,059

1,315

  Fund management fee    

21,433

93,100

  Amortization

2,853

2,853

  General and administrative expenses

    11,743

     3,935

  

  39,088

   101,203
     

  NET LOSS

$ (562,819)

$ (501,633)
     

Net loss allocated to limited partners

$ (557,191)

$ (496,617)
     

Net loss allocated to general partner

$   (5,628)

$   (5,016)
     

Net loss per BAC

$     (.15)

$     (.14)
     















 



The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended December 31,
(Unaudited)

Series 19


2001


2000
     

Income

    

  Interest income

$     6,162

$    11,647

  Other income

     2,100

     3,600

     8,262

    15,247

Share of loss from Operating 
  Partnerships(Note D)

 (371,772)

 (361,708)
     

Expenses

    

  Professional fees

2,424

1,585

  Fund management fee    

99,867

102,837

  Amortization

3,643

3,643

  General and administrative expenses

    12,619

     4,443

  

  118,553

   112,508
     

  NET LOSS

$ (482,063)

$ (458,969)
     

Net loss allocated to limited partners

$ (477,242)

$ (454,379)
     

Net loss allocated to general partner

$   (4,821)

$   (4,590)

Net loss per BAC

$     (.12)

$     (.11)
     



















The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS


Nine Months Ended December 31,
(Unaudited)

 


2001


2000
     

Income

    

  Interest income

$     67,934

$     99,942

  Other income

     27,955

     27,099
 

     95,889

    127,041

Share of loss from Operating 
  Partnerships(Note D)

(6,967,499)

(7,054,673)
     

Expenses

    

  Professional fees

190,725

137,097

  Fund management fee (Note C) 

1,655,489

1,810,856

  Amortization

51,672

51,672

  General and administrative expenses

    122,649

    100,303

  

2,020,535

  2,099,928
     

  NET LOSS

$(8,892,145)

$(9,027,560)
     

Net loss allocated to limited partners

$(8,803,224)

$(8,937,284)
     

Net loss allocated to general partner

$   (88,921)

$   (90,276)
     

Net loss per BAC

$     (2.01)

$     (2.01)
     















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Nine Months Ended December 31,
(Unaudited)

Series 15


2001


2000
     

Income

    

  Interest income

$     13,345

$     14,194

  Other income

      3,451

      5,409

     16,796

     19,603

Share of loss from Operating 
  Partnerships(Note D)

  (905,112)

(1,298,870)
     

Expenses

    

  Professional fees

48,518

32,818

  Fund management fee    

366,815

372,034

  Amortization

7,884

7,884

  General and administrative expenses

     23,585

     18,751

  

   446,802

    431,487
     

  NET LOSS

$(1,335,118)

$(1,710,754)
     

Net loss allocated to limited partners

$(1,321,767)

$(1,693,646)
     

Net loss allocated to general partner

$   (13,351)

$   (17,108)
     

Net loss per BAC

$      (.34)

$      (.44)
     

















The accompanying notes are an integral part of this statement

 

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Nine Months Ended December 31,
(Unaudited)

Series 16


2001


2000
     

Income

    

  Interest income

$     18,567

$     32,365

  Other income

      4,754

      5,386
 

     

     23,321

     37,751

Share of loss from Operating 
  Partnerships(Note D)

(1,925,169)

(2,290,665)
     

Expenses

    

  Professional fees

49,714

32,615

  Fund management fee    

455,392

 494,881

  Amortization

12,638

    12,638

  General and administrative expenses

     29,888

     24,943

  

   547,632

    565,077
     

  NET LOSS

$(2,449,480)

$(2,817,991)
     

Net loss allocated to limited partners

$(2,424,985)

$(2,789,811)
     

Net loss allocated to general partner

$   (24,495)

$   (28,180)

Net loss per BAC

$      (.45)

$      (.51)
     














 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Nine Months Ended December 31,
(Unaudited)

Series 17


2001


2000
     

Income

    

  Interest income

$      6,531

$      9,363

  Other income

     15,700

     10,454
 

     22,231

     19,817

Share of loss from Operating 
  Partnerships(Note D)

(1,388,792)

(1,277,121)
     

Expenses

    

  Professional fees

44,936

26,412

  Fund management fee    

342,153

380,605

  Amortization

11,662

11,662

  General and administrative expenses

     27,063

     22,633

  

   425,814

    441,312
     

  NET LOSS

$(1,792,375)

$(1,698,616)
     

Net loss allocated to limited partners

$(1,774,451)

$(1,681,630)
     

Net loss allocated to general partner

$   (17,924)

$   (16,986)
     

Net loss per BAC

$      (.35)

$      (.34)
     















 



The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Nine Months Ended December 31,
(Unaudited)

Series 18


2001


2000
     

Income

    

  Interest Income

$      6,073

$     10,248

  Other income

      1,950

      2,250
 

      8,023

     12,498

Share of loss from Operating 
  Partnerships(Note D)

(1,635,934)

(1,154,565)
     

Expenses

    

  Professional fees

26,234

21,296

  Fund management fee    

202,554

258,503

  Amortization

8,560

8,560

  General and administrative expenses

     20,071

    15,962

  

   257,419

   304,321
     

  NET LOSS

$(1,885,330)

$ (1,446,388)
     

Net loss allocated to limited partners

$(1,866,477)

$ (1,431,924)
     

Net loss allocated to general partner

$   (18,853)

$    (14,464)
     

Net loss per BAC

$      (.52)

$       (.40)
     















 



The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Nine Months Ended December 31,
(Unaudited)

Series 19


2001


2000
     

Income

    

  Interest income

$     23,418

$     33,772

  Other income

      2,100

      3,600

     25,518

     37,372

Share of loss from Operating 
  Partnerships(Note D)

(1,112,492)

(1,033,452)
     

Expenses

    

  Professional fees

21,323

23,956

  Fund management fee    

288,575

304,833

  Amortization

10,928

10,928

  General and administrative expenses

     22,042

     18,014

  

   342,868

    357,731
     

  NET LOSS

$(1,429,842)

$(1,353,811)
     

Net loss allocated to limited partners

$(1,415,544)

$(1,340,273)
     

Net loss allocated to general partner

$   (14,298)

$   (13,538)

Net loss per BAC

$      (.35)

$      (.33)
     



















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine Months Ended December 31, 2001
(Unaudited)

 





Assignees



General
Partner





Total
       

Partners' capital 
 (deficit)
  April 1, 2001



$ 78,411,698



$(1,116,713)



$ 77,294,985

    

      
       

Net income (loss)

(8,803,224)

   (88,921)

(8,892,145)
       

Partners' capital 
 (deficit),
  December 31, 2001



$ 69,608,474



$(1,205,634)



$ 68,402,840
       





























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine Months Ended December 31, 2001
(Unaudited)

 

Assignees

General
Partner

Total

Series 15

      

Partners' capital 
 (deficit)
  April 1, 2001



$  8,176,581



$  (253,440)



$  7,923,141

    

      
       

Net income (loss)

(1,321,767)

   (13,351)

(1,335,118)
       

Partners' capital 
 (deficit)
  December 31, 2001    



$  6,854,814



$  (266,791)



$  6,588,023
       
       

Series 16

      

Partners' capital 
 (deficit)
  April 1, 2001



$ 18,379,407



$  (285,672)



$ 18,093,735
       
       

Net income (loss)

(2,424,985)

   (24,495)

(2,449,480)
       

Partners' capital 
 (deficit)
  December 31, 2001    



$ 15,954,422



$  (310,167)



$ 15,644,255
       


















The accompanying notes are an integral part of these statements.

 

 

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine Months Ended December 31, 2001
(Unaudited)

 

Assignees

General
Partner

Total

Series 17

      

Partners' capital 
 (deficit)
  April 1, 2001



$ 17,936,052



$  (252,848)



$ 17,683,204

    

      
       

Net income (loss)

(1,774,451)

  (17,924)

(1,792,375)
       

Partners' capital 
 (deficit)
  December 31, 2001    



$ 16,161,601



$  (270,772)



$ 15,890,829
       
       

Series 18

      

Partners' capital 
 (deficit)
  April 1, 2001



$ 13,527,906



$  (176,716)



$ 13,351,190
       
       

Net income (loss)

(1,866,477)

   (18,853)

(1,885,330)
       

Partners' capital 
 (deficit),
  December 31, 2001   



$ 11,661,429



$  (195,569)



$ 11,465,860
       


















The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine Months Ended December 31, 2001
(Unaudited)

 

Assignees

General
Partner

Total

Series 19

      

Partners' capital 
 (deficit)
  April 1, 2001



$ 20,391,752



$  (148,037)



$ 20,243,715

    

      
       

Net income (loss)

(1,415,544)

   (14,298)

(1,429,842)
       

Partners' capital 
 (deficit),
  December 31, 2001



  $ 18,976,208



$  (162,335)



$ 18,813,873
       
































The accompanying notes are an integral part of this statement

 

 

 

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

 

2001

2000

Cash flows from operating activities:

    
     

   Net Loss

$(8,892,145)

$(9,027,560)

   Adjustments

    

      Distributions from Operating
        Partnerships


66,545


21,776

      Amortization

51,672

51,672

      Share of Loss from Operating
        Partnerships


6,967,499


7,054,673

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


-


      -

      Decrease (Increase) in other assets

43,402

(121,717)

      Decrease (Increase) in accounts
        payable affiliates


 1,350,227


  1,713,387
     

      Net cash (used in) provided by 
        operating activities


 (412,800)


  (307,769)
     
     

Cash flows from investing activities:

    
     

   Capital contributions paid to 
     Operating Partnerships


-


(31,500)

   Advances to Operating Partnerships

-

 54,340

   Investments

 1,032,047

     88,122
     

   Net cash (used in) provided by
     investing activities


 1,032,047


    110,962














The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

 

2001

2000
     

Continued

    
     

Cash flows from financing activity:

    
     

   Credit adjusters received from
     Operating Partnerships


          -


          -
     

      Net cash (used in)provided by
        financing activity


          -


          -
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


619,247


  (196,807)
     

Cash and cash equivalents, beginning

  1,122,380

  1,754,063
     

Cash and cash equivalents, ending

$  1,741,627

$  1,557,256
     




























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 15

 

2001

2000

Cash flows from operating activities:

    
     

   Net Loss

$(1,335,118)

$(1,710,754)

   Adjustments

    

      Distributions from Operating
        Partnerships


315


12

Amortization

7,884

7,884

      Share of Loss from Operating
        Partnerships


905,112


1,298,870

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


-


-

      Decrease (Increase) in other assets

8,407

1,084

      Decrease (Increase) in accounts
        payable affiliates


    311,038


    411,038
     

      Net cash (used in) provided by 
        operating activities


  (102,362)


      8,134
     
     

Cash flows from investing activities:

    
     

   Capital contributions paid to 
     Operating Partnerships


-


-

   Advances to Operating Partnerships

-

 32,170

   Investments

    286,218

    (6,771)
     

   Net cash (used in) provided by
     investing activities


    286,218


     25,399














The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 15

 

2001

2000
     

Continued

    
     

Cash flows from financing activity:

    
     

   Credit adjusters received from
     Operating Partnerships


          -


          -
     

      Net cash (used in)provided by
        financing activity


          -


          -
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS

 183,856

   33,533
     

Cash and cash equivalents, beginning

    229,627

    308,497
     

Cash and cash equivalents, ending

$    413,483

$    342,030
     




























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 16

 

2001

2000

Cash flows from operating activities:

    
     

   Net Loss

$(2,449,480)

$(2,817,991)

   Adjustments

    

      Distributions from Operating
        Partnerships


11,183


4,830

      Amortization

12,638

12,638

      Share of Loss from Operating
        Partnerships


1,925,169


2,290,665

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


-


-

      Decrease (Increase) in accounts
        receivable


9,759


(6,559)

      Decrease (Increase) in accounts
        payable affiliates


    318,986


    418,984
     

      Net cash (used in) provided by 
        operating activities


  (171,745)


   (97,433)
     
     

Cash flows from investing activities:

    
     

   Capital contributions paid to 
     Operating Partnerships


-


(1,500)

   Advances to Operating Partnerships

-

 -

   Investments

    390,695

   (20,405)
     

   Net cash (used in) provided by
     investing activities


    390,695


   (21,905)














The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 16

 

2001

2000
     

Continued

    
     

Cash flows from financing activity:

    
     

   Credit adjusters received from
     Operating Partnerships


          -


          -
     

      Net cash (used in)provided by
        financing activity


          -


          -
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS

218,950

(119,338)
     

Cash and cash equivalents, beginning

    113,123

    307,415
     

Cash and cash equivalents, ending

$    332,073

$    188,077
     




























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 17

 

2001

2000

Cash flows from operating activities:

    
     

   Net Loss

$(1,792,375)

$(1,698,616)

   Adjustments

    

      Distributions from Operating
        Partnerships


3,870


1,202

      Amortization

11,662

11,662

      Share of Loss from Operating
        Partnerships


1,388,792


1,277,121

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


-


-

      Decrease (Increase) in other assets

21,549

(75,139)

      Decrease (Increase) in accounts
        payable affiliates


    400,227

    488,397
 

 

  

      Net cash (used in) provided by 
        operating activities


     33,725


      4,627
     
     

Cash flows from investing activities:

    
     

   Capital contributions paid to 
     Operating Partnerships


-


(20,000)

   Advances to Operating Partnerships

-

22,170

   Investments

          -

          -
     

   Net cash (used in) provided by
     investing activities


          -


      2,170














The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 17

 

2001

2000
     

Continued

    
     

Cash flows from financing activity:

    
     

   Credit adjusters received from
     Operating Partnerships


          -


          -
     

      Net cash (used in)provided by
        financing activity


          -


          -
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


33,725


   6,797
     

Cash and cash equivalents, beginning

    397,129

    404,005
     

Cash and cash equivalents, ending

$    430,854

$    410,802
     




























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 18

 

2001

2000

Cash flows from operating activities:

    
     

   Net Loss

$(1,885,330)

$(1,446,388)

   Adjustments

    

      Distributions from Operating
        Partnerships


4,634


15,654

      Amortization

8,560

8,560

      Share of Loss from Operating
        Partnerships


1,635,934


1,154,565

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


-


-

      Decrease (Increase) in accounts
        receivable


3,823


(29,302)

      Decrease (Increase) in accounts
        payable affiliates


    211,461


    186,460
     

      Net cash (used in) provided by 
        operating activities


   (20,918)


  (110,451)
     
     

Cash flows from investing activities:

    
     

   Capital contributions paid to 
     Operating Partnerships


-


-

   Advances to Operating Partnerships

  

-

   Investments

    107,824

    (5,053)
     

   Net cash (used in) provided by
     investing activities


    107,824


    (5,053)














The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 18

 

2001

2000
     

Continued

    
     

Cash flows from financing activity:

    
     

   Credit adjusters received from
     Operating Partnerships


          -


          -
     

      Net cash (used in)provided by
        financing activity


          -


          -
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS

86,906

(115,504)
     

Cash and cash equivalents, beginning

    238,396

    377,094
     

Cash and cash equivalents, ending

$    325,302

$    261,590
     




























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 19

 

2001

2000

Cash flows from operating activities:

    
     

   Net Loss

$(1,429,842)

$(1,353,811)

   Adjustments

    

      Distributions from Operating
        Partnerships


46,543


78

      Amortization

10,928

10,928

      Share of Loss from Operating
        Partnerships


1,112,492


1,033,452

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


-


-

      Decrease (Increase) in accounts
        receivable


(136)


(11,801)

      Decrease (Increase) in accounts
        payable affiliates


    108,515


    208,508
     

      Net cash (used in) provided by 
        operating activities


  (151,500)


  (112,646)
     
     

Cash flows from investing activities:

    
     

   Capital contributions paid to 
     Operating Partnerships


-


(10,000)

   Advances to Operating Partnerships

-

 -

   Investments

    247,310

    120,351
     

   Net cash (used in) provided by
     investing activities


    247,310


    110,351














The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 19

 

2001

2000
     

Continued

    
     

Cash flows from financing activity:

    
     

   Credit adjusters received from
     Operating Partnerships


          -


          -
     

      Net cash (used in)provided by
        financing activity


          -


          -
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS

95,810

 (2,295)
     

Cash and cash equivalents, beginning

    144,105

    357,052
     

Cash and cash equivalents, ending

$    239,915

$    354,757
     




























The accompanying notes are an integral part of this statement

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2001

(Unaudited)

 

NOTE A - ORGANIZATION


Boston Capital Tax Credit Fund III L.P. (the "Fund") was formed under the laws
of the State of Delaware as of September 19, 1991 for the purpose of
acquiring, holding, and disposing of limited partnership interests in
Operating Partnerships which will acquire, develop, rehabilitate, operate and
own newly constructed, existing or rehabilitated low-income apartment
complexes ("Operating Partnerships"). Effective as of June 1, 2001 there was
a restructuring, and as a result, the Fund's general partner was reorganized
as follows. The General Partner of the Fund continues to be Boston Capital
Associates III L.P., a Delaware limited partnership. The general partner of
the General Partner is now BCA Associates Limited Partnership, a Massachusetts
limited partnership, whose sole general partner is C&M Management, Inc., a
Massachusetts corporation and whose limited partners are Herbert F. Collins
and John P. Manning. Mr. Manning is the principal of Boston Capital Partners,
Inc. The limited partner of the General Partner is Capital Investment
Holdings, a general partnership whose partners are certain officers and
employees of Boston Capital Partners, Inc., and its affiliates. The Assignor
Limited Partner is BCTC III Assignor Corp., a Delaware corporation which is
wholly-owned by Herbert F. Collins and John P. Manning.


Pursuant to the Securities Act of 1933, the Fund filed a Form S-11
Registration Statement with the Securities and Exchange Commission, effective
January 24, 1992 which covered the offering (the "Public Offering") of the
Fund's beneficial assignee certificates ("BACs") representing assignments of
units of the beneficial interest of the limited partnership interest of the
Assignor Limited Partner.  The Fund registered 20,000,000 BACs at $10 per BAC
for sale to the public in one or more series.  On September 4, 1993 the Fund
filed an amendment to Form S-11 with the Securities and Exchange Commission
which registered an additional 2,000,000 BACs at $10 per BAC for sale to the
public in one or more series. The registration for the additional BACs became
effective on October 6, 1993. Offers and sales of BACs in Series 15 through 19
of the Fund were completed and the last of the BACs in Series 15, 16, 17, 18
and 19 were issued by the Fund on June 26, 1992, December 28, 1992, June 17,
1993, September 22, 1993, and December 17, 1993, respectively.  The Fund sold
3,870,500 of Series 15 BACs, for a total of $38,705,000; 5,429,402 of Series
16 BACs, for a total of $54,293,000; 5,000,000 of Series 17 BACs, for a total
of $50,000,000; 3,616,200 of Series 18 BACs, for a total of $36,162,000; and
4,080,000 of Series 19 BACs, for a total of $40,800,000.  The Fund issued the
last BACs in Series 19 on December 17, 1993.  This concluded the Public
offering of the Fund.




 











Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2001
(Unaudited)

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES

The condensed financial statements included herein as of December 31, 2001
and for the three and nine months then ended have been prepared by the
Fund, without audit.  The Fund accounts for its investments in Operating
Partnerships using the equity method, whereby the Fund adjusts its investment
cost for its share of each Operating Partnership's results of operations and
for any distributions received or accrued.  Costs incurred by the Fund in
acquiring the investments in the Operating Partnerships are capitalized to the
investment account.  The Fund's accounting and financial reporting policies
are in conformity with generally accepted accounting principles and include
adjustments in  interim periods considered necessary for a fair presentation
of the results of operations. Such adjustments are of a normal recurring
nature.

Investments

The Fund has included in investments Certificates of Deposit with original
materities of one year or less. These investments are carried at costs.




























 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2001
(Unaudited)

Amortization

On July 1, 1995, the Fund began amortizing unallocated acquisition
costs over 330 months from April 1, 1995. As of December 31, 2001 the Fund has accumulated unallocated acquisition amortization totaling $470,555.  The
breakdown of accumulated unallocated acquisition amortization within the fund
as of December 31, 2001 and 2000 is as follows:

 

       2001

     2000
     

Series 15

$ 71,053

$ 60,542

Series 16

113,746

96,896

Series 17

112,865

97,315

Series 18

77,170

65,757

Series 19

 95,721

 81,151

$470,555

$401,661

 

NOTE C - RELATED PARTY TRANSACTIONS

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

Boston Capital Partners, Inc. is entitled to asset acquisition fees for
selecting, evaluating, structuring, negotiating, and closing the Funds
acquisition of interests in the Operating Partnerships.   Prior to the quarter
ended December 31, 2001 all series had completed payment of all acquisition
fees due to Boston Capital Partners, Inc.











 







Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2001
(Unaudited)

NOTE C - RELATED PARTY TRANSACTIONS - CONTINUED

An annual fund management fee based on .5 percent of the aggregate cost
of all apartment complexes owned by the Operating Partnerships, has been
accrued to Boston Capital Asset Management Limited Partnership.  The fund
management fees accrued for the quarter ended December 31, 2001 and 2000 are
as follows:

 

        2001

        2000
     

Series 15

$137,013

$137,013

Series 16

172,995

172,995

Series 17

140,925

140,925

Series 18

95,487

95,487

Series 19

102,837

102,837
 

$649,257

$649,257

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS

At December 31, 2001 and 2000, the Fund had limited partnership
interests in 241 Operating Partnerships which own or are constructing
apartment complexes. The breakdown of Operating Partnerships within the Fund
at December 31, 2001 and 2000 is as follows:

 

   

Series 15

68

Series 16

64

Series 17

49

Series 18

34

Series 19

 26
 

241








 

 

 

 

 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2001
(Unaudited)


NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS - CONTINUED

Under the terms of the Fund's investment in each Operating Partnership,
the Fund is required to make capital contributions to the Operating
Partnerships.  These contributions are payable in installments over several
years upon each Operating Partnership achieving specified levels of
construction and/or operations.  The contributions payable at December 31,
2001 and 2000 are as follows:  

 

        2001

        2000
     

Series 15

$   16,206

$   32,922

Series 16

138,506

138,506

Series 17

1,186,768

1,186,768

Series 18

18,554

18,554

Series 19

   24,000

   24,000
 

$1,384,034

$1,400,750

 

The Funds fiscal year ends March 31st of each year, while all the Operating
Partnerships' fiscal years are the calendar year.  Pursuant to the provisions
of each Operating Partnership Agreement, financial results for each of the
Operating Partnerships are provided to the Fund within 45 days after the close
of each Operating Partnerships quarterly period.  Accordingly, the current
financial results available for the Operating Partnerships are for the nine
months ended September 30, 2001.
























 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 15

 

        2001

        2000
     

Revenues

    

   Rental

$  7,699,484

$  7,474,844

   Interest and other

    410,510

    280,934
     
 

  8,109,994

  7,755,778
     

Expenses

    

   Interest

2,185,866

2,102,708

   Depreciation and amortization

2,584,915

2,695,399

   Operating expenses

  5,124,816

  4,850,228
 

  9,895,597

  9,648,335
     

NET LOSS

$(1,785,603)

$(1,892,557)
     

Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.



$  (905,112)



$(1,298,870)
     
     

Net loss allocated to other 
   Partners


$   (17,856)


$   (18,926)
     

Net loss suspended

$  (862,635)

$  (574,761)

 

 

 

 

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

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 16

 

        2001

        2000
     

Revenues

    

   Rental

$ 10,041,306

$  9,976,395

   Interest and other

    790,312

    510,202
     
 

 10,831,618

 10,486,597
     

Expenses

    

   Interest

2,982,297

    2,812,217

   Depreciation and amortization

3,593,036

3,695,680

   Operating expenses

  6,586,789

  6,556,844
 

 13,162,122

 13,064,741
     

NET LOSS

$(2,330,504)

$(2,578,144)
     

Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.



$(1,925,169)



$(2,290,665)
     
     

Net loss allocated to other 
   Partners


$   (23,305)


$   (25,781)
     

Net loss suspended

$  (382,030)

$  (261,698)

 

 

 

 

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

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 17
 

        2001

        2000
     

Revenues

    

   Rental

$  9,208,724

$  8,839,203

   Interest and other

    440,922

    336,380
     
 

  9,649,646

  9,175,583
     

Expenses

    

   Interest

3,002,715

  2,759,122

   Depreciation and amortization

2,889,526

  2,798,661

   Operating expenses

  5,485,715

  5,067,389
 

 11,377,956

 10,625,172
     

NET LOSS

$(1,728,310)

$(1,449,589)
     

Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.



$(1,388,792)



$(1,277,121)
     
     

Net loss allocated to other 
   Partners


$   (17,283)


$   (14,497)
     

Net loss suspended

$  (322,235)

$  (157,971)

 

 

 

 

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

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 18

 

        2001

        2000
     

Revenues

    

   Rental

$  5,122,116

$  4,986,525

   Interest and other

    246,694

    279,914
     
 

  5,368,810

  5,266,439
     

Expenses

    

   Interest

1,577,800

  1,414,803

   Depreciation and amortization

1,926,784

  1,882,759

   Operating expenses

  3,590,152

  3,179,524
 

  7,094,736

  6,477,086
     

NET LOSS

$(1,725,926)

$(1,210,647)
     

Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.



$(1,635,934)



$(1,154,565)
     
     

Net loss allocated to other 
   Partners


$   (17,259)


$   (12,106)

Net loss suspended

$   (72,733)

$   (43,976)

 

 

 

 

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

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 19
 

        2001

        2000
     

Revenues

    

   Rental

$  7,346,813

$  7,068,453

   Interest and other

    255,465

    209,817
     
 

  7,602,278

  7,278,270
     

Expenses

    

   Interest

2,501,175

  2,414,328

   Depreciation and amortization

2,153,555

  2,207,371

   Operating expenses

  4,152,732

  3,722,378
 

  8,807,462

  8,344,077
     

NET LOSS

$(1,205,184)

$(1,065,807)
     

Net loss allocation to Boston  

   Capital Tax Credit Fund 
   III L.P.



$(1,112,492)



$(1,033,452)
     
     

Net loss allocated to other 
   Partners


$   (12,052)


$   (10,658)
     

Net loss suspended

$   (80,640)

$   (21,697)

 

 

 

 

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

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2001
(Unaudited)




NOTE E - TAXABLE LOSS

The Fund's taxable loss for the year ended March 31, 2002 is expected to
differ from its loss for financial reporting purposes.  This is primarily due
to accounting differences in depreciation incurred by the Operating
Partnerships and also differences between the equity method of accounting and
the IRS accounting methods.  No provision or benefit for income taxes has been
included in these financial statements since taxable income or loss passes
through to, and is reportable by, the partners and assignees individually

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

Liquidity

The Funds primary source of funds is the proceeds of its Public
Offering.  Other sources of liquidity will include (i) interest earned on
capital contributions held pending investment and on Working Capital Reserves
and (ii) cash distributions from operations of the operating Partnerships in
which the Fund has and will invest.  Interest income is expected to decrease
over the life of the Fund as capital contributions are paid to the Operating
Partnerships and Working Capital Reserves are expended.    The Fund does not
anticipate significant cash distributions from operations of the Operating
Partnerships.

The Fund is currently accruing the fund management fee.  Fund management
fees accrued during the quarter ended December 31, 2001 were $649,257 and
total fund management fees accrued as of December 31, 2001 were $15,220,795.
Pursuant to the Partnership Agreement, such liabilities will be deferred until
the Fund receives sales of refinancing proceeds from Operating Partnerships
which will be used to satisfy such liabilities. The Funds working capital and
sources of liquidity coupled with affiliated party liability accruals allow
sufficient levels of liquidity to meet the third party obligations of the
Fund.  The Fund is currently unaware of any trends which would create
insufficient liquidity to meet future third party obligations of the Fund.

The Fund has recorded an additional $1,170,220 as payable to affiliates.
This represents fundings to make advances and/or loans to certain Operating
Partnerships in Series 15 and Series 17 of $213,564, and $956,656,
respectively.

Capital Resources

The Fund offered BACs in a Public Offering declared effective by the
Securities and Exchange Commission on January 24, 1992.  The Fund received
$38,705,000, $54,293,000, $50,000,000, $36,162,000 and $40,800,000
representing 3,870,500, 5,429,402, 5,000,000, 3,616,200 and 4,080,000 BACs
from investors admitted as BAC Holders in Series 15, Series 16, Series 17,
Series 18, and Series 19, respectively.  The Public Offering was completed on
December 17, 1993.

(Series 15)  The Fund commenced offering BACs in Series 15 on January 24,
1992.  Offers and sales of BACs in Series 15 were completed on June 26,
1992.  The Fund has committed proceeds to pay initial and additional
installments of capital contributions to 68 Operating Partnerships in the
amount of $28,257,701.

During the quarter ended December 31, 2001, none of Series 15 net
offering proceeds had been used to pay capital contributions. Series 15 net
offering proceeds in the amount of $16,206 remain to be used by the Fund to
pay remaining capital contributions to the Operating Partnerships that Series
15 has invested in as of December 31, 2001.

(Series 16)  The Fund commenced offering BACs in Series 16 on July 13, 1992.
Offers and sales of BACs in Series 16 were completed on December 28, 1992. The
Fund has committed proceeds to pay initial and additional installments of
capital contributions to 64 Operating Partnerships in the amount of
$39,579,774.

     During the quarter ended December 31, 2001, none of Series 16 net
offering proceeds had been used to pay capital contributions.  Series 16 net
offering proceeds in the amount of $138,506 remain to be used by the Fund to
pay remaining capital contributions to the Operating Partnerships that Series
16 has invested in as of December 31, 2001.

(Series 17)  The Fund commenced offering BACs in Series 17 on January 24,
1993.  Offers and sales of BACs in Series 17 were completed on June 17, 1993.
The Fund has committed proceeds to pay initial and additional installments of
capital contributions to 49 Operating Partnerships in the amount of
$36,538,204.

     During the quarter ended December 31, 2001, none of Series 17 net
offering proceeds had been used to pay capital contributions.  Series 17 has
outstanding contributions payable in the amount of $1,186,768 as of December 31, 2001. Of the amount outstanding, $1,139,873 has been advanced or loaned
to the Operating Partnerships. The advances and loans will be converted to
capital and the remaining contributions of $46,895 will be released from
available net offering proceeds when the Operating Partnerships have achieved
the conditions set forth in their partnership agreements.

(Series 18)  The Fund commenced offering BACs in Series 18 on June 17, 1993.
Offers and sales of BACs in Series 18 were completed on September 22, 1993.
The Fund has committed proceeds to pay initial and additional installments of
capital contributions to 34 operating Partnerships in the amount of
$26,442,202.

During the quarter ended December 31, 2001, none of Series 18 net
offering proceeds had been used to pay capital contributions.  Series 18 net
offering proceeds in the amount of $18,554 remain to be used by the Fund to
pay remaining capital contributions to the Operating Partnerships that Series
18 has invested in as of December 31, 2001.

(Series 19) The Fund commenced offering BACs in Series 19 on October 8,
1993. Offers and sales of BACs in Series 19 were completed on December 17,
1993.  The Fund has committed proceeds to pay initial and additional
installments of capital contributions to 26 Operating Partnerships in the
amount of $29,614,506.

During the quarter ended December 31, 2001, none of Series 19 net
offering proceeds had been used to pay capital contributions.  Series 19 net
offering proceeds in the amount of $24,000 remain to be used by the Fund to
pay remaining capital contributions to the Operating Partnerships that Series
19 has invested in as of December 31, 2001.

Results of Operations

As of December 31, 2001 and 2000 the Fund held limited partnership
interests in 241 Operating Partnerships.  In each instance the Apartment
Complex owned by the applicable Operating Partnership is eligible for the
Federal Housing Tax Credit.  Occupancy of a unit in each Apartment Complex
which initially complied with the Minimum Set-Aside Test (i.e., occupancy by
tenants with incomes equal to no more than a certain percentage of area median
income) and the Rent Restriction Test (i.e., gross rent charged tenants does
not exceed 30% of the applicable income standards) is referred to hereinafter
as "Qualified Occupancy."  Each of the Operating Partnerships and each of the
respective Apartment Complexes are described more fully in the Prospectus or
applicable report on Form 8-K.  The General Partner believes that there is
adequate casualty insurance on the properties.

The Fund incurred a fund management fee to Boston Capital Asset
Management Limited Partnerships (formerly Boston Capital Communications
Limited Partnership) in an amount equal to .5 percent of the aggregate cost of
the apartment complexes owned by the Operating Partnerships, less the amount
of certain asset management and reporting fees paid by the Operating
Partnerships.  The fund management fees incurred for the quarter ended
December 31, 2001 for Series 15, Series 16, Series 17, Series 18 and Series
19 were $115,584, $154,147, $122,861, $21,433, and $99,867 respectively.

The Funds investment objectives do not include receipt of significant
cash distributions from the Operating Partnerships in which it has invested or
intends to invest.  The Funds 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 15

As of December 31, 2001 and 2000, the average qualified occupancy for
the series was 100%.  The series had a total of 68 properties at December 31,
2001, all of which were at 100% qualified occupancy.

For the nine months being reported Series 15 reflects a net loss from
Operating Partnerships of $1,785,603.  When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect positive operations of
$799,312.  This is an interim period estimate; it is not necessarily
indicative of the final year end results.

    Operations continue to improve at Hidden Cove Apartments (Hidden Cove) as
evidenced by stabilized occupancy and increased rental collections. Occupancy
for the fouth quarter of 2001 averaged 97%. To date, the property has been
able to complete minor capital improvements and fund its replacement reserve
account without financial assistance. The property operated below breakeven
for the year 2001 due to an unforeseen expense incurred to cure termite infestion. Cash flow and reserves will continue to be utilized to make improvements necessary to maintain building safety. The Operating General Partner has completed negotiations with the property's management company and has transferred the Operating General Partnership interest to that entity effective January 1, 2001. The Operating General Partner has been negotiating to refinance the permanent mortgage. The current lender is unwilling at this time to entertain any refinance proposal not involving a complete paydown of all outstanding debt, including all accrued interest. It is not in the Partnerships best interest to structure a refinance as proposed.

In April of 2000, School Street I LP, (School Street Apartments - Phase
I) inserted Marshall School Street I, LLC, as the Operating General Partner
and property management company. Since taking control, the management company
completed the capital improvements program and improved the tenant selection
criteria. As a result, physical occupancy at the property has increased and stabilized. During 2001 occupancy averaged 99%. The improved occupancy and the improved tenant selection criteria increased cash flow significantly during 2001, but it still remains below breakeven. The Operating General Partner continues to fund any operating cash deficits. The mortgage, property taxes, insurance and payables are current.

On July 16, 2001 a grease fire occurred in one unit at Timmons Village (Timmons Village Limited Partnership). Rehabilitation work has been completed and the unit is now occupied. The property has been reimbursed $6,862 by the insurance. This amount covers both the repair work and the lost rental income.

Series 16

As of December 31, 2001 and 2000, the average qualified occupancy for
the series was 99.9%. The series had a total of 64 properties at December 31, 2001.  Out of the total, 63 had 100% qualified occupancy.

For the nine months being reported Series 16 reflects a net loss from
Operating Partnerships of $2,330,504.  When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect positive operations of
$1,262,532.  This is an interim period estimate; it is not necessarily
indicative of the final year end results.

Cass Partners, L.P. (Fitzgerald Apartments) continues to operate below
breakeven due to low occupancy. An increased supply of affordable housing in
the area with superior amenities hampered marketing efforts and made tenant
retention difficult. Average physical occupancy for 2000 was 75%, down from an
average of 85% in 1999. Average occupancy for 2001 was 70%. Property management lowered rents during June of 2001 by $50 per unit to better compete against the newer affordable housing complexes. Additionally, commercial rental income in 2001 was significantly ahead of 2000 and will have a positive impact on cash flow. However the property is not expected to breakeven during 2001. Marketing efforts consist of referrals from the nearby Air Force Base, newspaper advertising and flyers. The Investment Limited Partner has recommended further rent reductions and a plan to obtain additional parking for the project. The recommendations are under review by project management. The Operating General Partner continues to support the property financially. The mortgage, taxes, insurance and accounts payable are current.

Series 17

   As of December 31, 2001 and 2000, the average qualified occupancy for
the series was 99.7%.  The series had a total of 49 properties at December 31, 2001.  Out of the total 48 had 100% qualified occupancy.

For the nine months being reported Series 17 reflects a net loss from
Operating Partnerships of $1,728,310.  When adjusted for depreciation, which,
is a non-cash item, the Operating Partnerships reflect positive operations of
$1,161,216. This is an interim period estimate; it is not necessarily
indicative of the final year end results.

  Annadale Housing Partners (Kingsview Manor & Estates) has historically
reported net losses due to operational issues associated with the property. Occupancy remains stable at 89% through the fourth quarter of 2001. Operations at the property continue to improve in 2001, partly due to a 14% increase in rental income over the prior year. An affiliate of the management company assumed the General Partner responsibilities for the partnership, on January 1, 2001. The property continues to breakeven, and is able to continue to fund capital improvements from operations. The Investment Partner continues to monitor this situation.

The mortgage lender for Cypress Point Limited Partnership (Laurel Ridge
Apartment) placed the partnership in default of its mortgage because the
property failed to achieve the required debt service coverage ratio and failed
to make its required real estate tax payment. The existing loan terms
provided for an interest rate adjustment after the initial five-year permanent
mortgage period. When this adjustment occurred there was a rate increase,
which in turn increased the property's debt service payment, adversely
affecting operations. The Investment Limited Partner advanced funds to the
partnership to bring the taxes current. In September 2000, BCP Wisconsin
LLC became the managing general partner of the partnership. BCP Wisconsin LLC
negotiated a standstill agreement with the lender in order to allow time to
devise different options for dealing with existing loan defaults. The lender
was not amenable to the work out plan that BCP Wisconsin LLC had previously
proposed. BCP Wisconsin LLC ultimately decided that the interests of the
property would best be served if it took out the existing lender under a
refinancing with an alternate mortgage lender. Application for refinancing
was made with an alternate lender. In June of 2001 the Investment General
Partner refinanced the first mortgage and put in place BCP Cypress LLC as the
new sole General Partner. The refinancing provided significantly more
favorable loan terms. The capital improvement project at the property has been completed and has had a positive impact on rents. No further funding advances from the Investment Limited Partner are expected to be required. The loan proceeds from the refinancing has allowed repayment of all prior advances (including capital improvement work) from the Investment Limited Partner. Operations at the property are positive.

The area surrounding the property owned by California Investors VI LP (Orchard Park) continues to experience economic growth. A high school has been built across the street from the front entrance of the community and opened during the third quarter. The location of this school will continue to enhance marketing efforts. Occupancy averaged 98% for the fourth quarter of 2001. In 2001 the property has been able to operate at breakeven, while continuing to fund capital improvement projects. This is in part due to a rent increase implemented in March 2001. The increase was phased in as leases expired. The full benefit of the increase will be evident in 2002. In addition to the positive changes affecting this partnership, an affiliate of the management company assumed the General Partner responsibilities for the partnership on January 1, 2001, and is now responsible for funding all future operating deficits.

Physical occupancy at Palmetto Properties Ltd. (Palmetto Villas)
for 2000 averaged 84%. Occupancy at December 30, 2001 remains stable at 97%. The property suffered from low occupancy in 1999 and the first half of 2000 due to poor on-site management and significant deferred maintenance
issues. As a result, the property management company was replaced in January
2001. Since the management company change occurred, occupancy levels have
steadily increased as improvements have been made at the property and deferred
maintenance has been addressed. However, property taxes remain an issue. Rural Development paid the 1998 delinquent taxes as an advance against the mortgage. The 1999 taxes were recently paid from property operations. The Investment General Partner is attempting to work with Rural Development to develop a workout plan to address the tax issue. Fiscal year 2000 taxes remain delinquent. The Investment General Partner continues negotiations with the current Operating General Partner aimed at removing him from the partnership. The new management company has expressed interest in assuming the role of Operating General Partner, and based on the management company's performance to date, the partnership would benefit from this arrangement.

Mt. Vernon Associates, L.P. is a 76-unit building located in Mt. Vernon, NY. The Partnership suffers from negative cash flow as a result of high operating expenses. The property has been able to meet obligations due to the Operating General Partner funding deficits. As the management agent is an affiliate of the Operating General Partner, the Partnership has also been deferring management fees. The New York State Department of Housing and Community Renwal (DHCR) performed a compliance monitoring visit in 1999 where they tested the Partnership's compliance with the applicable requirements of Section 42. The results of the sample of tenants files reviewed indicated that 15 units were potentially not in compliance. The Operating General Partner prepared responses to DHCR's findings, however, DHCR filed form 8823 (report of noncompliance) with the IRS in 2000. To date no recapture of credits been taken. The Operating General Partner and the Investment Limited Partner are continuing to work together to bring the files back into compliance, as well as establishing measures to ensure the tenant files are properly documented. The Investment Limited Partner continues to monitor this situation closely.

Series 18

 As of December 31, 2001 and 2000 the average qualified occupancy for the series was 100%.  The series had a total of 34 properties at December 31, 2001, all of which were at 100% qualified occupancy.

For the nine months being reported Series 18 reflects a net loss from Operating Partnerships of $1,725,926. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $200,858.

Series 18 reported an increase in the net loss per BAC for the current nine-month period over the prior year. The increase is primarily the result of an increase in maintenance costs reported by some of the Operating Partnerships. The Investment Limited Partner believes that a portion of these costs will be capitalized in the Operating Partnerships' final year-end audited financial statements. This will bring actual maintenance costs more in line with the prior year. This is an interim period estimate; it is not necessarily indicative of the final year end results.

Harris Housing Limited Partnership (Harris Music Lofts), located in West Palm Beach, Florida, operated slightly below break-even for the fourth quarter of 2001 mainly due to high operating expenses. The property continues to perform necessary maintenance including carpet replacement and roof repairs. The General Partner continues to share operating costs with an affiliated property in the same neighborhood in an attempt to reduce expenses. It is anticipated that the project will breakeven in 2002. Average occupancy for the fourth quarter of 2001 declined to 94% from the third quarter average of 97%.

Marengo Park Apartments, Limited Partnership (Marengo Park) operated
below breakeven due to the prior year's low occupancy levels. Occupancy averaged 84% in 2000. Management has attributed the occupancy problem to the local economy. Due to historical low occupancy rates, the property suffered from under funded reserves and delinquent real estate taxes. The Investment General Partner and the Operating General Partner negotiated a workout plan with Rural Development to address these issues. Now that the workout plan is in place both the real estate taxes and reserves are current. Additionally, Rural Development approved Special Market Rate rents at the property in an effort to improve occupancy. Occupancy has improved to 100% as of December 31, 2001 and operations have significantly improved. The property has been able to meet all required monthly expenses, including taxes and reserve deposits. They will further benefit by a reduction in their annual tax expense, which is expected to go into effect in 2002.

Parvin's Limited Partnership (Parvin's Branch Townhomes) continues to
incur operating deficits due to high debt service payments. The loan has an interest rate of 10.5% and is amortized over 15 years. The management company and Operating General Partner are in discussions with the existing first mortgage holder regarding restructuring and/or refinancing the existing mortgage, in an effort to reduce the debt service. The Operating General Partner and the management company have been deferring their respective fees to improve the property's cash flow.  In addition, the Operating General Partner continues to fund deficits. Of the total 24 units at this property, 23 units were occupied for each of the 12 months in 2001, resulting in an average occupancy of 95.83%. The mortgage, taxes, insurance and payables are current.

Glen Place Apartments Limited Partnership (Glen Place Apartments) received 60-Day letters issued by the IRS stating that the Operating Partnership had not met certain IRC Section 42 requirements for the tax years 1996 and 1997. The 60-Day letters, were the result of an IRS audit of the Operating Partnership's tenant files. As a result of their audit, the IRS has proposed an adjustment that would disallow 59% of past and future tax credits. The adjustment will also include interest and penalties on the past tax credit being disallowed. The Investment General Partner and its counsel are working with the Operating General Partner and its counsel to negotiate a more favorable settlement. As a result of the Investment General Partner's expectation that certain past and future credits will be disallowed, the auditor's have included a contingency footnote in the annual financial statement (Note H) which is a part of the most recently filed 10-K dated March 31, 2001.

Chelsea Square Development Limited Partnership (Chelsea Square Apartments) is a six unit property, which incurred negative cash flow during 2000 as a result of low residential rental rates, payment of back taxes and water/sewer and the non payment of commercial rental revenue to the property. To resolve the negative cash flow, residential and rental rates were increased in June 2001. Additionally, the Investment General Partner has contacted the Operating General Partner regarding the receipt of commercial rental income. The Investment General Partner is working to confirm the commercial rental income will be allocated to the operating partnership. The back property taxes and water and sewer are on an approved payment plan with the municipality and will be brought current by the end of the second quarter of 2003. The property will not break even in 2001, however, application of current and past due commercial rental revenue, coupled with the rental rate increase should allow the property to breakeven in 2002. The mortgage and property insurance are current.

Series 19

  As of December 31, 2001 and 2000 the average qualified occupancy
for the series was 100%.  The series had a total of 26 properties at December 31, 2001, all of which were at 100% qualified occupancy.

For the nine months being reported Series 19 reflects a net loss from
Operating Partnerships of $1,205,184.  When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect positive operations of
$948,371. This is an interim period estimate; it is not necessarily
indicative of the final year end results.

Carrollton Villa Limited Partnership (Carrollton Villa Apartments), located in Carrollton, Missouri, operated below breakeven in 2001 as a result of low occupancy. In anticipation of a changing housing market the property was reconfigured in late 2000 from 1 and 2 bedrooms only to include 3 and 4 bedroom units. Occupancy averaged 81% during 2001 and was 76% at December 31, 2001. Management is currently running ads in the local newspaper, and flyers with pull-tabs, have been posted throughout the community and in surrounding areas. Moreover, the site manager has a very successful relationship with the local housing authority, which should generate tenant referrals. The property's mortgage, taxes and insurance were all current as of December 31, 2001.

 


PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

        None

Item 2.  Changes in Securities

        None

Item 3.  Defaults upon Senior Securities

        None

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

        None

Item 5.  Other Information

        None

Item 6.  Exhibits and Reports on Form 8-K

        (a)  Exhibits

        None

        (b)  Reports on Form 8-K

            

 

 

 

 

SIGNATURES

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

Boston Capital Tax Credit Fund III L.P.
     
 

By:

Boston Capital Associates III L.P.
   

General Partner
     
 

By:

BCA Associates Limited Partnership,
   

General Partner
     
 

By:

C&M Management Inc.,
   

General Partner

Date:

    
     

February 20, 2002

By:

/s/ John P. Manning 
     
   

John P. Manning

 

 

  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 Fund 
and in the capacities and on the dates indicated:

DATE:

SIGNATURE:

TITLE:
     

February 20, 2002

/s/ John P. Manning

Director, President
   

(Principal Executive
 

John P. Manning

Officer) C&M Management
   

Inc.; Director,
   

President (Principal
   

Executive Officer)
   

BCTC III Assignor Corp.