10-Q 1 b3dec1810q.htm BCTC III DECEMBER 2018 10-Q Boston Capital Tax Credit Fund III L

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended December 31, 2018

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        0-21718

 

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)

                   (617) 624-8900                   

(Registrant's telephone number, including area code)

 

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

 

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

Yes ý

No 

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ý

No 

 

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

 

Large accelerated filer □

Accelerated Filer □

Non-accelerated filer ý

Smaller Reporting Company ý

Emerging Growth Company □

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

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

 

Yes 

No ý

 

BOSTON CAPITAL TAX CREDIT FUND III L.P.

QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED DECEMBER 31, 2018

 

TABLE OF CONTENTS

 

PART I - FINANCIAL INFORMATION

 

 

 

Pages

 

Item 1. Condensed Financial Statements

 

 

Condensed Balance Sheets

4-9

 

 

Condensed Statements of Operations

10-21

 

 

Condensed Statements of Changes in 
Partners' Capital (Deficit)


22-25

 

 

Condensed Statements of Cash Flows

26-31

 

 

Notes to Condensed Financial 
Statements


32-44

 

 

 

 

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



45-58

 

 

 

 

Item 3. Quantitative and Qualitative
Disclosures About Market Risk


59

 

 

 

 

Item 4. Controls and Procedures

59

 

 

 

PART II - OTHER INFORMATION

 

 

 

 

 

Item 1. Legal Proceedings

60

 

 

 

 

Item 1A. Risk Factors

60

 

 

 

 

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


60

 

 

 

 

Item 3. Defaults Upon Senior Securities

60

 

 

 

 

Item 4. Mine Safety Disclosures

60

 

 

 

 

Item 5. Other Information

60

 

 

 

 

Item 6. Exhibits 

60

 

 

 

Signatures

61

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED BALANCE SHEETS

(Unaudited)

 

 

 

December 31,
2018

March 31,
2018

 

ASSETS

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

$           -

$           -

 

 

 

 

 

 

Cash and cash equivalents

    963,768

   1,632,938

 


$    963,768


$   1,632,938

 

 

 

LIABILITIES

 

 

 

 

 

Accounts payable & accrued expenses 

$           -

$       2,000

Accounts payable affiliates (Note C)

10,744,421

14,740,050

Capital contributions payable (Note D)

      26,447

      26,447

 


  10,770,868


  14,768,497

 

 

 

PARTNERS' CAPITAL (DEFICIT)

 

 

 

 

 

Assignees 
  
   Units of limited partnership 
   interest, $10 stated value per BAC; 
   22,000,000 authorized BACs;

21,996,102 issued and 21,778,581

outstanding as of December 31, 2018

and March 31, 2018

 





(10,715,939)





(11,248,474)

General Partner

  908,839

 (1,887,085)

 


(9,807,100)


(13,135,559)

 


$    963,768


$   1,632,938

 











The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED BALANCE SHEETS

(Unaudited)

Series 15

 

 

 

December 31,
2018

March 31,
2018

 

ASSETS

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

$          -

$          -

 

 

 

 

 

 

Cash and cash equivalents

     -

    244,074

 


$    -


$    244,074

 

 

 

LIABILITIES

 

 

 

 

 

Accounts payable & accrued expenses 

$          -

$          -

Accounts payable affiliates (Note C)

-

3,034,436

Capital contributions payable (Note D)

          -

          -

 


   -


  3,034,436

 

 

 

PARTNERS' CAPITAL (DEFICIT)

 

 

 

 

 

Assignees 
  
   Units of limited partnership 
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   3,870,500 issued and 3,811,700

outstanding as of December 31, 2018

and March 31, 2018





(2,439,314)





(2,440,269)

General Partner

  2,439,314

  (350,093)

 

 

-


(2,790,362)

 


$     -


$    244,074












The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED BALANCE SHEETS

(Unaudited)

Series 16



December 31,
2018

March 31,
2018

 

ASSETS

 

 

 

 

 

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

$          -

$          -

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

    125,432

    320,396

 


$    125,432


$    320,396

 

 

 

LIABILITIES

 

 

 

 

 

Accounts payable & accrued expenses 

$          -

$      2,000

Accounts payable affiliates (Note C)

7,794,821

7,890,441

Capital contributions payable (Note D)

          -

          -

 


  7,794,821


  7,892,441

 

 

 

PARTNERS' CAPITAL (DEFICIT)

 

 

 

 

 

Assignees 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   5,429,402 issued and 5,367,700

outstanding as of December 31,

2018 and March 31, 2018





(7,126,088)





(7,029,717)

General Partner

  (543,301)

  (542,328)

 


(7,669,389)


(7,572,045)

 


$    125,432


$    320,396








 

The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED BALANCE SHEETS

(Unaudited)

Series 17



December 31,
2018

March 31,
2018

 

ASSETS

 

 

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

$          -

$          -

 

 

 

 

 

 

Cash and cash equivalents

    595,543

    536,326

 


$    595,543


$    536,326

 

 

 

LIABILITIES

 

 

 

 

 

Accounts payable & accrued expenses 

$          -

$          -

Accounts payable affiliates (Note C)

-

-

Capital contributions payable (Note D)

      7,893

      7,893

 


      7,893


      7,893

 

 

 

PARTNERS' CAPITAL (DEFICIT)

 

 

 

 

 

Assignees 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   5,000,000 issued and 4,956,447

outstanding as of December 31, 2018

and March 31, 2018





953,981





895,356

General Partner

  (366,331)

  (366,923)

 


    587,650


    528,433

 


$    595,543


$    536,326









The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED BALANCE SHEETS

(Unaudited)

Series 18



December 31,
2018

March 31,
2018

 

ASSETS

 

 

 

 

 

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

$          -

$          -

 

 

 

 

 

 

Cash and cash equivalents

    242,793

    351,136

 


$    242,793


$    351,136

 

 

 

LIABILITIES

 

 

 

 

 

Accounts payable & accrued expenses 

$          -

$          -

Accounts payable affiliates (Note C)

2,949,600

3,815,173

Capital contributions payable (Note D)

     18,554

     18,554

 


  2,968,154


  3,833,727

 

 

 

PARTNERS' CAPITAL (DEFICIT)

 

 

 

 

 

Assignees 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   3,616,200 issued and 3,586,734

outstanding as of December 31, 2018

and March 31, 2018





(2,387,879)





(3,137,537)

General Partner

  (337,482)

  (345,054)

 


(2,725,361)


(3,482,591)

 


$    242,793


$    351,136

 











The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED BALANCE SHEETS

(Unaudited)

Series 19

 



December 31,
2018

March 31,
2018

 

ASSETS

 

 

 

 

 

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

$          -

$          -

 

 

 

 

 

 

Cash and cash equivalents

     -

    181,006

 


$     -


$    181,006

 

 

 

LIABILITIES

 

 

 

 

 

Accounts payable & accrued expenses 

$          -

$          -

Accounts payable affiliates (Note C)

-

-

Capital contributions payable (Note D)

          -

          -

 


          -


          -

 

 

 

PARTNERS' CAPITAL (DEFICIT)

 

 

 

 

 

Assignees 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   4,080,000 issued and 4,056,000

outstanding as of December 31, 2018

and March 31, 2018





283,361





463,693

General Partner

  (283,361)

  (282,687)

 


     -


    181,006

 


$     -


$    181,006

 








The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Three Months Ended December 31,
(Unaudited)

 

 


2018


2017

 

 

 

 

 

Income

  Interest income

$     3,044

 

$     2,303

 

  Other income

    12,010

 

     -

 

 


    15,054

 


    2,303

 

Gain on Disposition of Operating 
  Partnerships


   116,000


  201,065

 

 

 

 

 

Expenses

 

 

 

 

  Professional fees

19,140

 

7,150

 

  Fund management fee, net (Note C) 

32,018

 

11,994

 

  General and administrative expenses

   115,487

 

    39,936

 

  


   166,645

 


    59,080

 

 

 

 

 

 

  NET INCOME (LOSS)

$  (35,591)

 

$ 144,288

 

 

 

 

 

 

Net income (loss) allocated to limited assignees

$  (35,235)

 

$ 142,845

 

 

 

 

 

 

Net income (loss) allocated to general partner

$     (356)

 

$    1,443

 

 

 

 

 

 

Net income (loss) per BAC

$       .00

 

$      .01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Three Months Ended December 31,

(Unaudited)

 

Series 15


2018


2017

 

 

 

 

 

Income

  Interest income

$        142

 

$         290

 

  Other income

          -

 

         -

 


        142


        290

Gain on Disposition of Operating 
  Partnerships


     94,500


     47,602

 

 

 

 

 

 

 

Expenses

 

 

 

 

  Professional fees

4,586

 

1,430

 

  Fund management fee, net (Note C) 

6,086

 

12,936

 

  General and administrative expenses

     47,769

 

      6,868

 

  


     58,441

 


    21,234

 

 

 

 

 

 

  NET INCOME (LOSS)

$    36,201

 

$   26,658

 

 

 

 

 

 

Net income (loss) allocated to limited assignees

$    35,839

 

$ 26,391

 

 

 

 

 

 

Net income (loss) allocated to general partner

$       362

 

$       267

 

 

 

 

 

 

Net income (loss) per BAC

$       .01

 

$     .01

 

 

 

 

 

 

 























The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Three Months Ended December 31,
(Unaudited)

 

Series 16


2018


2017

 

 

 

 

Income

 

 

 

  Interest income

$        214

 

$        343

  Other income

       10

 

       -

 


       224

 


      343

Gain on Disposition of Operating 
  Partnerships


          -


    62,361

 

 

 

 

Expenses

 

 

 

  Professional fees

3,728

 

1,430

  Fund management fee, net (Note C) 

18,097

 

24,663

  General and administrative expenses

      9,746

 

     10,494

  


     31,571

 


     36,587

 

 

 

 

  NET INCOME (LOSS)

$   (31,347)

 

$   26,117

 

 

 

 

Net income (loss) allocated to limited assignees

$   (31,034)

 

$    25,856

 

 

 

 

Net income (loss) allocated to general partner

$      (313)

 

$      261

 

 

 

 

Net income (loss) per BAC

$      (.01)

 

$    .00

 

 

 

 























The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Three Months Ended December 31,
(Unaudited)


Series 17


2018


2017

 

 

 

 

 

Income

  Interest income

$      2,189

 

$        597

 

  Other income

      -

 

     -

 

 


      2,189

 


      597

 

Gain on Disposition of Operating 
  Partnerships


     21,500


   22,000

 

 

 

 

 

Expenses

 

 

 

 

  Professional fees

3,396

 

1,430

 

  Fund management fee, net (Note C) 

7,219

 

(36,389)

 

  General and administrative expenses

      7,685

 

      8,287

 

  


     18,300

 


   (26,672)

 

 

 

 

 

 

  NET INCOME (LOSS)

$      5,389

 

$  49,269

 

 

 

 

 

 

Net income (loss) allocated to limited assignees

$      5,335

 

$  48,776

 

 

 

 

 

 

Net income (loss) allocated to general partner

$         54

 

$     493

 

 

 

 

 

 

Net income (loss) per BAC

$        .00

 

$    .01

 

 

 

 

 

 

 






















The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Three Months Ended December 31,

(Unaudited)


Series 18

 


2018


2017

 

 

 

Income

 

 

  Interest income

$        387

$        914

  Other income

     12,000

      -

 


     12,387


      914

Gain on Disposition of Operating 
  Partnerships


          -


    -

 

 

 

Expenses

 

 

  Professional fees

2,913

1,430

  Fund management fee, net (Note C) 

(2,552)

2,207

  General and administrative expenses

     10,404

      7,149

  


     10,765


     10,786

 

 

 

  NET INCOME (LOSS)

$    1,622

$   (9,872)

 

 

 

Net income (loss) allocated to limited assignees

$    1,606

$   (9,773)

 

 

 

Net income (loss) allocated to general partner

$       16

$       (99)

 

 

 

Net income (loss) per BAC

$       .00

$     (.00)

 

 

 

























The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Three Months Ended December 31,
(Unaudited)



Series 19


2018


2017

 

 

 

Income

 

 

  Interest income

$       112

$       159

  Other income

         -

      -


       112


     159

Gain on Disposition of Operating 
  Partnerships


         -


   69,102

 

 

 

Expenses

 

 

  Professional fees

4,517

1,430

  Fund management fee, net (Note C) 

3,168

8,577

  General and administrative expenses

    39,883

     7,138

  


    47,568


  17,145

 

 

 

  NET INCOME (LOSS)

$  (47,456)

$  52,116

 

 

 

Net income (loss) allocated to limited assignees

$  (46,981)

$  51,595

 

 

 

Net income (loss) allocated to general partner

$     (475)

$      521

Net income (loss) per BAC

$     (.01)

$     .01

 

 

 












 









The accompanying notes are an integral part of these condensed statements

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Nine Months Ended December 31,
(Unaudited)

 

 


2018


2017

 

 

 

 

 

Income

 

 

 

 

  Interest income

$     9,640

 

$     3,819

 

  Other income

   122,979

 

    15,375

 

 


   132,619

 


    19,194

 

Gain on Disposition of Operating 
  Partnerships


   957,020



 1,052,341

 

 

 

 

 

Expenses

 

 

 

 

  Professional fees

122,277

 

108,844

 

  Fund management fee, net (Note C) 

140,556

 

136,766

 

  General and administrative expenses

   174,171

 

    92,919

 

  


   437,004

 


   338,529

 

 

 

 

 

 

  NET INCOME (LOSS)

$   652,635

 

$  733,006

 

 

 

 

 

 

Net income (loss) allocated to limited assignees

$   646,108

 

$  725,675

 

 

 

 

 

 

Net income (loss) allocated to general partner

$     6,527

 

$    7,331

 

 

 

 

 

 

Net income (loss) per BAC

$       .03

 

$    .03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Nine Months Ended December 31,

(Unaudited)

 

Series 15


2018


2017

 

 

 

 

 

Income

 

 

 

 

  Interest income

$        942

 

$        329

 

  Other income

          -

 

       321

 


        942


       650

Gain on Disposition of Operating 
  Partnerships


    107,000



  265,241

 

 

 

 

 

Expenses

 

 

 

 

  Professional fees

25,826

 

22,462

 

  Fund management fee, net (Note C) 

21,998

 

18,780

 

  General and administrative expenses

     59,153

 

     17,167

 

  


    106,977

 


    58,409

 

 

 

 

 

 

  NET INCOME (LOSS)

$    965

 

$   207,482

 

 

 

 

 

 

Net income (loss) allocated to limited assignees

$    955

 

$    205,407

 

 

 

 

 

 

Net income (loss) allocated to general partner

$       10

 

$      2,075

 

 

 

 

 

 

Net income (loss) per BAC

$       .00

 

$      .05

 

 

 

 

 

 

 























The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Nine Months Ended December 31,
(Unaudited)

 

Series 16


2018


2017

 

 

 

 

Income

 

 

 

  Interest income

$      1,078

 

$        939

  Other income

      1,888

 

      2,080

 


      2,966

 


      3,019

Gain on Disposition of Operating 
  Partnerships


          -

 

 


    187,294

 

 

 

 

Expenses

 

 

 

  Professional fees

28,353

 

28,238

  Fund management fee, net (Note C) 

48,853

 

62,666

  General and administrative expenses

     23,104

 

     22,386

  


    100,310

 


    113,290

 

 

 

 

  NET INCOME (LOSS)

$   (97,344)

 

$  77,023

 

 

 

 

Net income (loss) allocated to limited assignees

$   (96,371)

 

$ 76,253

 

 

 

 

Net income (loss) allocated to general partner

$      (973)

 

$      770

 

 

 

 

Net income (loss) per BAC

$      (.02)

 

$     .01

 

 

 

 























The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Nine Months Ended December 31,
(Unaudited)


Series 17


2018


2017

 

 

 

 

 

Income

 

 

 

 

  Interest income

$      4,320

 

$      1,238

 

  Other income

    108,075

 

     11,958

 

 


    112,395

 


     13,196

 

Gain on Disposition of Operating 
  Partnerships


     21,500


 

22,000

 

 

 

 

 

Expenses

 

 

 

 

  Professional fees

26,208

 

21,270

 

  Fund management fee, net (Note C) 

28,657

 

(14,264)

 

  General and administrative expenses

     19,813

 

     19,320

 

  


     74,678

 


     26,326

 

 

 

 

 

 

  NET INCOME (LOSS)

$     59,217

 

$   8,870

 

 

 

 

 

 

Net income (loss) allocated to limited assignees

$     58,625

 

$   8,781

 

 

 

 

 

 

Net income (loss) allocated to general partner

$        592

 

$    89

 

 

 

 

 

 

Net income (loss) per BAC

$        .01

 

$      .00

 

 

 

 

 

 

 






















The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Nine Months Ended December 31,

(Unaudited)


Series 18

 


2018


2017

 

 

 

Income

 

 

  Interest income

$      2,554

$      1,113

  Other income

     12,933

      933

 


     15,487


      2,046

Gain on Disposition of Operating 
  Partnerships


    815,520


    508,704

 

 

 

Expenses

 

 

  Professional fees

21,588

20,340

  Fund management fee, net (Note C) 

30,947

44,171

  General and administrative expenses

     21,242

     16,864

  


     73,777


     81,375

 

 

 

  NET INCOME (LOSS)

$    757,230

$  429,375

 

 

 

Net income (loss) allocated to limited assignees

$    749,658

$   425,081

 

 

 

Net income (loss) allocated to general partner

$      7,572

$   4,294

 

 

 

Net income (loss) per BAC

$        .21

$       .12

 

 

 

























The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Nine Months Ended December 31,
(Unaudited)



Series 19


2018


2017

 

 

 

Income

 

 

  Interest income

$       746

$      200

  Other income

        83

      83


       829


     283

Gain on Disposition of Operating 
  Partnerships


    13,000


  69,102

 

 

 

Expenses

 

 

  Professional fees

20,302

16,534

  Fund management fee, net (Note C) 

10,101

25,413

  General and administrative expenses

    50,859

    17,182

  


    81,262


   59,129

 

 

 

  NET INCOME (LOSS)

$  (67,433)

$  10,256

 

 

 

Net income (loss) allocated to limited assignees

$  (66,759)

$  10,153

 

 

 

Net income (loss) allocated to general partner

$     (674)

$     103

Net income (loss) per BAC

$     (.02)

$      .00

 

 

 
























The accompanying notes are an integral part of these condensed statements

 

 

 

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Nine Months Ended December 31, 2018

(Unaudited)

 




Assignees



General
Partner





Total

 

 

 

 

Partners' capital 
 (deficit)
  April 1, 2018



$(11,248,474)



$ (1,887,085)



$(13,135,559)

 

 

 

 

Contributions

-

2,789,397

2,789,397

 

 

 

 

Distributions

(113,573)

-

(113,573)

 

 

 

 

Net income (loss)

     646,108

       6,527

     652,635

 

 

 

 

Partners' capital 
 (deficit),
  December 31, 2018



$(10,715,939)



$  908,839



$ (9,807,100)

 

 

 

 



















 

 

 

 







The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Nine Months Ended December 31, 2018

(Unaudited)

 

 



Assignees

General
Partner

Total

Series 15

 

 

 

 

Partners' capital 
 (deficit)
  April 1, 2018



$ (2,440,269)



$ (350,093)



$ (2,790,362)

 

 

 

 

Contributions

-

2,789,397

2,789,397

 

 

 

 

Distributions

-

-

-

 

 

 

 

Net income (loss)

     955

      10

     965

 

 

 

 

Partners' capital 
 (deficit),
  December 31, 2018



$ (2,439,314)



$ 2,439,314



$  -

 

 

 

 

 

 

 

 

Series 16

 

 

 

 

Partners' capital 
 (deficit)
  April 1, 2018



$ (7,029,717)



$ (542,328)



$ (7,572,045)

 

 

 

 

Contributions

-

-

-

 

 

 

 

Distributions

-

-

-

 

 

 

 

Net income (loss)

    (96,371)

     (973)

    (97,344)

 

 

 

 

Partners' capital 
 (deficit),
  December 31, 2018



$ (7,126,088)



$ (543,301)



$ (7,669,389)

 

 

 

 






 

 

 

 

 

 

 

 





The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Nine Months Ended December 31, 2018

(Unaudited)

 

 

 



Assignees

General
Partner

Total

Series 17

 

 

 

 

Partners' capital 
 (deficit)
  April 1, 2018



$     895,356



$  (366,923)



$     528,433

 

 

 

 

Contributions

-

-

-

 

 

 

 

Distributions

-

-

-

 

 

 

 

Net income (loss)

      58,625

        592

      59,217

 

 

 

 

Partners' capital 
 (deficit),
  December 31, 2018



$     953,981



$  (366,331)



$     587,650

 

 

 

 

 

 

 

 

Series 18

 

 

 

 

Partners' capital 
 (deficit)
  April 1, 2018



$ (3,137,537)



$  (345,054)



$ (3,482,591)

Contributions

-

-

-

 

 

 

 

Distributions

-

-

-

 

 

 

 

Net income (loss)

     749,658

      7,572

     757,230

 

 

 

 

Partners' capital 
 (deficit),
  December 31, 2018



$ (2,387,879)



$  (337,482)



$ (2,725,361)

 

 

 

 








 

 

 






The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Nine Months Ended December 31, 2018

(Unaudited)

 

 



Assignees

General
Partner

Total

Series 19

 

 

 

 

Partners' capital 
 (deficit)
  April 1, 2018



$    463,693



$ (282,687)



$    181,006

 

 

 

 

Contributions

-

-

-

 

 

 

 

Distributions

(113,573)

-

(113,573)

 

 

 

 

Net income (loss)

   (66,759)

     (674)

   (67,433)

 

 

 

 

Partners' capital 
 (deficit),
  December 31, 2018



$    283,361



$ (283,361)



$     -

 

 

 

 


























 

 





The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,

(Unaudited)

 

2018

2017

Cash flows from operating activities:

 

 

 

 

 

   Net Income (Loss)

$   652,635

$   733,006

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

 

 

      Gain on Disposition of 
        Operating Partnerships


(957,020)


(1,052,341)

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts         payable and accrued expenses

 

(2,000)

 

(16,745)

     (Decrease) Increase in accounts
        payable affiliates


(1,206,232)


    50,811

 

 

 

      Net cash (used in) provided by 
        operating activities


(1,512,617)


  (285,269)

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of
     Operating Partnerships


    957,020


  1,052,341

 

 

 

   Net cash provided by
     investing activities


    957,020


  1,052,341

 

 

 

Cash flows from financing activities:

 

 

 

Distributions


  (113,573)


   -

 

 

 

Net cash used in
financing activities


  (113,573)


  -

 

 

 

 

  INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(669,170)


767,072

 

 

 

Cash and cash equivalents, beginning

  1,632,938

  1,460,257

 

 

 

Cash and cash equivalents, ending

$   963,768

$  2,227,329

 

 

 

Supplemental schedule of noncash

investing and financing activities:

 

 

 

 

 

The general partner's equity balance was increased and accounts payable affiliates were reduced as a result of forgiveness of debt with an affiliate of the general partner.

 

 

 

 

$ 2,789,397

 

 

 

 

$ -

 

 

 

 

 

 

 



The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 15

 

 

2018

2017

Cash flows from operating activities:

 

 

 

 

 

   Net Income (Loss)

$    965

$  207,482

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

 

 

      Gain on Disposition of 
        Operating Partnerships


(107,000)


(265,241)

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts         payable and accrued expenses


-


(3,245)

     (Decrease) Increase in accounts
        payable affiliates


  (245,039)


     32,142

 

 

 

      Net cash (used in) provided by 
        operating activities


  (351,074)


   (28,862)

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of
     Operating Partnerships

 

    107,000

 

  265,241

 

 

 

   Net cash provided by
     investing activities

 

    107,000

 

  265,241

 

 

 

Cash flows from financing activities:

 

 

 

Distributions


     -


   -

 

 

 

Net cash used in
financing activities


    -


  -

 

 

 

 

 

 

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS

 

(244,074)

 

236,379

 

 

 

Cash and cash equivalents, beginning

    244,074

     64,641

 

 

 

Cash and cash equivalents, ending

$     -

$    301,020

 

 

 

Supplemental schedule of noncash

investing and financing activities:

 

 

 

 

 

The general partner's equity balance was increased and accounts payable affiliates were reduced as a result of forgiveness of debt with an affiliate of the general partner.

 

 

 

 

$ 2,789,397

 

 

 

 

$ -

 

 

 

 

 

 

 

 


The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS


Nine Months Ended December 31,
(Unaudited)


Series 16

 

2018

2017

Cash flows from operating activities:

 

 

   Net Income (Loss)

$   (97,344)

$ 77,023

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

 

 

Gain on Disposition of 
        Operating Partnerships


-


(187,294)

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts         payable and accrued expenses


(2,000)


3,000

     (Decrease) Increase in accounts
        payable affiliates


  (95,620)


  (48,651)

 

 

 

      Net cash (used in) provided by 
        operating activities


 (194,964)


 (155,922)

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of
     Operating Partnerships

 

         -

 

  187,294

 

 

 

   Net cash provided by
     investing activities

 

         -

 

 187,294

 

 

 

Cash flows from financing activities:

 

 

 

Distributions


     -


   -

 

 

 

Net cash used in
financing activities


    -


  -

 

 

 

 

 

 

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(194,964)


31,372

 

 

 

Cash and cash equivalents, beginning

   320,396

   327,901

 

 

 

Cash and cash equivalents, ending

$   125,432

$   359,273

 

 

 

Supplemental schedule of noncash

investing and financing activities:

 

 

 

 

 

The general partner's equity balance was increased and accounts payable affiliates were reduced as a result of forgiveness of debt with an affiliate of the general partner.

 

 

 

 

$ -

 

 

 

 

$ -

 




The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,

(Unaudited)

Series 17

 

2018

2017

Cash flows from operating activities:

 

 

 

 

 

   Net Income (Loss)

$     59,217

$ 8,870

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

 

 

      Gain on Disposition of 
        Operating Partnerships


(21,500)


(22,000)

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts         payable and accrued expenses


-


(12,000)

     (Decrease) Increase in accounts
        payable affiliates


          -


        -

 

 

 

      Net cash (used in) provided by 
        operating activities


     37,717


(25,130)

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of
     Operating Partnerships


     21,500


   22,000

 

 

 

   Net cash provided by
     investing activities


     21,500


   22,000

 

 

 

Cash flows from financing activities:

 

 

 

Distributions


     -


   -

 

 

 

Net cash used in
financing activities


    -


  -

 

 

 

 

 

 

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


59,217


(3,130)

 

 

 

Cash and cash equivalents, beginning

    536,326

    559,787

 

 

 

Cash and cash equivalents, ending

$    595,543

$    556,657

 

 

 

Supplemental schedule of noncash

investing and financing activities:

 

 

 

 

 

The general partner's equity balance was increased and accounts payable affiliates were reduced as a result of forgiveness of debt with an affiliate of the general partner.

 

 

 

 

$ -

 

 

 

$ -

 

 




The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,

(Unaudited)

Series 18

 

2018

2017

Cash flows from operating activities:

 

 

 

 

 

   Net Income (Loss)

$  757,230

$ 429,375

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

 

 

      Gain on Disposition of 
        Operating Partnerships


(815,520)


(508,704)

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts         payable and accrued expenses


-


-

     (Decrease) Increase in accounts
        payable affiliates


 (865,573)


    67,320

 

 

 

      Net cash (used in) provided by 
        operating activities


 (923,863)


 (12,009)

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of
     Operating Partnerships


   815,520


508,704

 

 

 

   Net cash provided by
     investing activities


   815,520


 508,704

 

 

 

Cash flows from financing activities:

 

 

 

Distributions


     -


   -

 

 

 

Net cash used in
financing activities


    -


  -

 

 

 

 

 

 

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(108,343)


496,695

 

 

 

Cash and cash equivalents, beginning

   351,136

   318,027

 

 

 

Cash and cash equivalents, ending

$   242,793

$   814,722

 

 

 

Supplemental schedule of noncash

investing and financing activities:

 

 

 

 

 

The general partner's equity balance was increased and accounts payable affiliates were reduced as a result of forgiveness of debt with an affiliate of the general partner.

 

 

 

 

$ -

 

 

 

 

$ -

 

 

 

 




The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,

(Unaudited)


Series 19

 

2018

2017

Cash flows from operating activities:

 

 

 

 

 

   Net Income (Loss)

$   (67,433)

$   10,256

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

 

 

      Gain on Disposition of 
        Operating Partnerships


(13,000)


(69,102)

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts         payable and accrued expenses


-


(4,500)

     (Decrease) Increase in accounts
        payable affiliates


          -


          -

 

 

 

      Net cash (used in) provided by 
        operating activities


   (80,433)


   (63,346)

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of
     Operating Partnerships

 

     13,000

 

   69,102

 

 

 

   Net cash provided by
     investing activities

 

     13,000

 

   69,102

 

 

 

Cash flows from financing activities:

 

 

 

Distributions


  (113,573)


   -

 

 

 

Net cash used in
financing activities


  (113,573)


  -

 

 

 

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(181,006)


5,756

 

 

 

Cash and cash equivalents, beginning

    181,006

    189,901

 

 

 

Cash and cash equivalents, ending

$     -

$    195,657

 

 

 

Supplemental schedule of noncash

investing and financing activities:

 

 

 

 

 

The general partner's equity balance was increased and accounts payable affiliates were reduced as a result of forgiveness of debt with an affiliate of the general partner.

 

 

 

 

$ -

 

 

 

 

$ -

 

 



The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS
December 31, 2018

(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 of the Fund is now BCA Associates Limited Partnership, a Massachusetts limited partnership, whose sole general partner is C&M Management, Inc., a Massachusetts corporation 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 various 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 September 26, 1992, December 28, 1992, September 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.  As of December 31, 2018, 3,811,700 BACs in Series 15, 5,367,700 BACs in Series 16, 4,956,447 BACs in Series 17, 3,586,734 BACs in Series 18, and 4,056,000 BACs in Series 19, respectively, are outstanding. 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 CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2018

(Unaudited)

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES

The condensed financial statements included herein as of December 31, 2018 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. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Fund's Annual Report on Form 10-K for the fiscal year ended March 31, 2018.


























 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2018

(Unaudited)

 

NOTE C - RELATED PARTY TRANSACTIONS

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

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.  Since reporting fees collected by the series were added to reserves and not paid to Boston Capital Asset Management Limited Partnership, the amounts accrued are not net of reporting fees received. The fund management fees accrued for the three months ended December 31, 2018 and 2017 are as follows:

 

        2018

        2017

Series 15

$  7,586

$ 12,936

Series 16

20,021

24,663

Series 17

12,219

13,611

Series 18

15,948

22,257

Series 19

  3,168

  8,577

 

$ 58,942

$ 82,044

The fund management fees paid for the three months ended December 31, 2018 and 2017 are as follows:

2018

2017

Series 15

$ 209,499

$  -

Series 16

-

-

Series 17

12,219

13,611

Series 18

-

-

Series 19

   3,168

   8,577

$ 224,886

$ 22,188

 

 

The fund management fees paid for the nine months ended December 31, 2018 and 2017 are as follows:

 

2018

2017

Series 15

$  271,999

$  16,000

Series 16

155,683

124,615

Series 17

36,657

40,833

Series 18

915,520

-

Series 19

   10,851

  26,163

$1,390,710

$ 207,611

 

 

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED

December 31, 2018

(Unaudited)

 

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS

At December 31, 2018 and 2017, the Fund had limited partnership interests in 25 and 40 Operating Partnerships, respectively, which own or are constructing apartment complexes. The breakdown of Operating Partnerships within the Fund at December 31, 2018 and 2017 is as follows:

 

 

2018

2017

Series 15

-

9

Series 16

12

13

Series 17

3

4

Series 18

10

11

Series 19

  -

  3

 

 25

 40

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, 2018 and 2017 are as follows:

 

        2018

        2017

Series 15

$      -

$      -

Series 16

-

-

Series 17

7,893

7,893

Series 18

18,554

18,554

Series 19

      -

      -

 

$ 26,447

$ 26,447

 

During the nine months ended December 31, 2018 the Fund disposed of fourteen Operating Partnerships. A summary of the dispositions by Series for December 31, 2018 is as follows:

 

 

Operating
Partnership
Interest
Transferred

 

Sale of
Underlying
Operating
Partnership

 

Fund Proceeds
from
Disposition

 

Gain on
Disposition

Series 15

8

 

1

 

$

107,000

 

$

107,000

Series 16

-

 

-

 

 

-

 

 

-

Series 17

1

 

-

 

 

21,500

 

 

21,500

Series 18

1

 

-

 

 

815,520

 

 

815,520

Series 19

3

 

-

 

 

13,000

 

 

13,000

Total

13

 

1

 

$

957,020

 

$

957,020

 

 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2018

(Unaudited)

 

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

 

During the nine months ended December 31, 2017 the Fund disposed of thirteen Operating Partnerships. A summary of the dispositions by Series for December 31, 2017 is as follows:

 

 

Operating
Partnership
Interest
Transferred

 

Sale of
Underlying
Operating
Partnership

 

Fund Proceeds
from
Disposition

 

Gain on
Disposition

Series 15

4

 

-

 

$

265,241

 

$

265,241

Series 16

4

 

-

 

 

187,294

 

 

187,294

Series 17

1

 

-

 

 

22,000

 

 

22,000

Series 18

-

 

1

 

 

508,704

 

 

508,704

Series 19

3

 

-

 

 

69,102

 

 

69,102

Total

12

 

1

 

$

1,052,341

 

$

1,052,341

 

 

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

 

The Fund's 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, 2018.

 


Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2018

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

 

        2018

        2017

 

 

 

Revenues

 

 

   Rental

$  3,631,348

$  5,655,574

   Interest and other

     61,533

    121,815

 

 

 

 

  3,692,881

  5,777,389

 

 

 

Expenses

 

 

   Interest

452,441

693,138

   Depreciation and amortization

908,641

1,444,282

   Operating expenses

  2,898,402

  4,529,324

 


  4,259,484


  6,666,744

 

 

 

NET LOSS

$  (566,603)

$ (889,355)

 

 

 

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



$  (560,936)



$ (880,461)

 

 

 

 

 

 

Net loss allocated to other 
   Partners


$    (5,667)


$   (8,894)

 

 

 

 

 

 

 

 

 

The Fund accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Fund 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 CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2018

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 15

 

        2018

        2017

 

 

 

Revenues

 

 

   Rental

$     -

$  1,128,127

   Interest and other

      -

     23,022

 

 

 

 

     -

  1,151,149

 

 

 

Expenses

 

 

   Interest

-

133,480

   Depreciation and amortization

-

292,021

   Operating expenses

     -

   857,944

 


     -


 1,283,445

 

 

 

NET LOSS

$    -

$  (132,296)

 

 

 

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



$    -



$  (130,973)

 

 

 

 

 

 

Net loss allocated to other 
   Partners


$       -


$    (1,323)

 

 

 

 

 

 

 

 

 

The Fund accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Fund 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 CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2018

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 16

 

        2018

        2017

 

 

 

Revenues

 

 

   Rental

$  1,593,836

$  1,817,953

   Interest and other

     19,422

     37,226

 

 

 

 

  1,613,258

  1,855,179

 

 

 

Expenses

 

 

   Interest

178,577

211,069

   Depreciation and amortization

376,366

446,024

   Operating expenses

  1,220,899

  1,413,222

 


  1,775,842


  2,070,315

 

 

 

NET LOSS

$  (162,584)

$  (215,136)

 

 

 

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



$  (160,958)



$  (212,985)

 

 

 

 

 

 

Net loss allocated to other 
   Partners


$    (1,626)


$   (2,151)

 

 

 

 

 

 

The Fund accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Fund 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 CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2018

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

 

Series 17

 

        2018

        2017

 

 

 

Revenues

 

 

   Rental

$    829,325

$   921,714

   Interest and other

     16,673

     17,879

 

 

 

 

    845,998

  939,593

 

 

 

Expenses

 

 

   Interest

75,612

89,771

   Depreciation and amortization

244,297

280,489

   Operating expenses

    603,958

   699,083

 


    923,867


  1,069,343

 

 

 

NET LOSS

$   (77,869)

$  (129,750)

 

 

 

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



$   (77,089)



$  (128,452)

 

 

 

 

 

 

Net loss allocated to other 
   Partners


$      (780)


$    (1,298)

 

 

 

 

 

 

 

 

 

The Fund accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Fund 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 CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2018

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 18

 

        2018

        2017

 

 

 

Revenues

 

 

   Rental

$   1,208,187

$   1,302,172

   Interest and other

      25,438

      30,421

 

 

 

 

   1,233,625

   1,332,593

 

 

 

Expenses

 

 

   Interest

198,252

208,309

   Depreciation and amortization

287,978

321,007

   Operating expenses

   1,073,545

   1,132,647

 


   1,559,775


   1,661,963

 

 

 

NET LOSS

$   (326,150)

$   (329,370)

 

 

 

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



$   (322,889)



$   (326,076)

 

 

 

 

 

 

Net loss allocated to other 
   Partners


$     (3,261)


$    (3,294)

 

 

 

The Fund accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Fund 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 CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2018

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 19

 

        2018

        2017

 

 

 

Revenues

 

 

   Rental

$     -

$    485,608

   Interest and other

      -

     13,267

 

 

 

 

     -

    498,875

 

 

 

Expenses

 

 

   Interest

-

50,509

   Depreciation and amortization

-

104,741

   Operating expenses

     -

    426,428

 


     -


   581,678

 

 

 

NET LOSS

$    -

$   (82,803)

 

 

 

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



$    -



$   (81,975)

 

 

 

 

 

 

Net loss allocated to other 
   Partners


$       -


$     (828)

 

 

 

 

 

 

The Fund accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Fund 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 CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2018
(Unaudited)


NOTE E - TAXABLE LOSS

The Fund's taxable loss is expected to differ from its loss for financial reporting purposes.  This is primarily due to accounting differences in depreciation incurred by the Operating Partnerships and also differences between the equity method of accounting and the IRS accounting methods.  

 

NOTE F - INCOME TAXES

 

The Fund has elected to be treated as a pass-through entity for income tax purposes and, as such, is not subject to income taxes. Rather, all items of taxable income, deductions and tax credits are passed through to and are reported by its owners on their respective income tax returns. The Fund's federal tax status as a pass-through entity is based on its legal status as a partnership. Accordingly, the Fund is not required to take any tax positions in order to qualify as a pass-through entity. The Fund is required to file and does file tax returns with the Internal Revenue Service and other taxing authorities. Accordingly, these financial statements do not reflect a provision for income taxes and the Fund has no other tax positions which must be considered for disclosure. Income tax returns filed by the Fund are subject to examination by the Internal Revenue Service for a period of three years. While no income tax returns are currently being examined by the Internal Revenue Service, tax years since 2014 remain open.

 

NOTE G - SUBSEQUENT EVENTS

 

Events that occur after the balance sheet date but before the financial statements were available to be issued must be evaluated for recognition or disclosure.  The effects of subsequent events that provide evidence about conditions that existed at the balance sheet date are recognized in the accompanying financial statements. Subsequent events, which provide evidence about conditions that existed after the balance sheet date, require disclosure in the accompanying notes.  Management evaluated the activity of the Fund through the date the financial statements were issued, and concluded that no subsequent events have occurred that would require recognition in the financial statements or disclosure in the notes to the financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2018
(Unaudited)

 

 

NOTE H - Plan of Liquidation

 

On March 30, 2016, our General Partner recommended that the BAC holders approve a plan of liquidation and dissolution for the Partnership, or the "Plan." The Plan was approved by the BAC holders on June 1, 2016, and was adopted by the General Partner on June 1, 2016. Pursuant to the Plan, the General Partner would be able to, without further action by the BAC holders:

 

  • liquidate the assets and wind up the business of the Partnership;

 

  • make liquidating distributions in cancellation of the BACs, if any;

 

  • dissolve the Partnership after the sale of all of the Partnership's assets; and

 

  • take, or cause the Partnership to take, such other acts and deeds and shall do, or cause the Partnership to do, such other things, as are necessary or appropriate in connection with the dissolution, winding up and liquidation of the Partnership, the termination of the responsibilities and liabilities of the Partnership under applicable law, and the termination of the existence of the Partnership.

 

Since the approval of the Plan by the BAC holders, we have continued to seek to sell the assets of the Partnership and use the sale proceeds and/or other Partnership funds to pay all expenses in connection with such sales, pay or make provision for payment of all Partnership obligations and liabilities, including accrued fees, and unpaid loans to the General Partner, and distribute the remaining assets as set forth in the Partnership Agreement. We expect to complete the sale of the apartment complexes approximately three to five years after the BAC holders approval of the Plan, which was June 1, 2016. However, because of numerous uncertainties, the liquidation may take longer or shorter than expected, and the final liquidating distributions, if any, may occur months after all of the apartment complexes of any given Series have been sold. As liquidation is not imminent, the Partnership will continue to report as a going concern.

 

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

 

 

 

 

 

 

 

 

 

 

 

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


This Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements including our intentions, hopes, beliefs, expectations, strategies and predictions of our future activities, or other future events or conditions. These statements are "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created by these acts. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including, for example, the factors identified in Part I, Item 1A. "Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended March 31, 2018. Although we believe that the assumptions underlying these forward-looking statements are reasonable, any of the assumptions could be inaccurate, and there can be no assurance that the forward-looking statements included in this Report will prove to be accurate. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of this information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved.

 

Liquidity

The Fund's primary source of funds was the proceeds of its Public Offering.  Other sources of liquidity include (i) interest earned on capital contributions unpaid for the nine months ended December 31, 2018 or on working capital reserves, (ii) cash distributions from operations of the Operating Partnerships in which the Fund has invested and (iii) proceeds received from the dispositions of the Operating Partnership that are returned to fund reserves.  These sources of liquidity, along with the Fund's working capital reserve, are available to meet the obligations of the Partnership.  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, 2018 were $58,942 and total fund management fees accrued as of December 31, 2018 were $10,744,421. During the three months ended December 31, 2018, $224,886 of accrued fund management fees were paid. Pursuant to the Partnership Agreement, these liabilities will be deferred until the Fund receives proceeds from sales of the Operating Partnerships, which will be used to satisfy these liabilities. The Fund's working capital and sources of liquidity coupled with affiliated party liability accruals allow sufficient levels of liquidity to meet the third party obligations of the Fund.  The Fund is currently unaware of any trends which would create insufficient liquidity to meet future third party obligations of the Fund.

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 September 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. Series 15 has since sold its interest in 68 of the Operating Partnerships.

 

During the quarter ended December 31, 2018, none of Series 15 net offering proceeds were used to pay capital contributions. No additional net offering proceeds remain to be used by the Fund to pay capital contributions to the Operating Partnerships that Series 15 has invested in as of December 31, 2018.

 

(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. Series 16 has since sold its interest in 52 of the Operating Partnerships.

 

During the quarter ended December 31, 2018, none of Series 16 net offering proceeds were used to pay capital contributions.  No additional net offering proceeds remain to be used by the Fund to pay capital contributions to the Operating Partnerships that Series 16 has invested in as of December 31, 2018.

 

(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 September 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. Series 17 has since sold its interest in 46 of the Operating Partnerships.

During the quarter ended December 31, 2018, none of Series 17 net offering proceeds were used to pay capital contributions.  Series 17 has contributions payable to 1 Operating Partnership in the amount of $7,893 as of December 31, 2018. The remaining contributions will be released to the Operating Partnership when it has achieved the conditions set forth in its partnership agreement.

 

(Series 18)  The Fund commenced offering BACs in Series 18 on September 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. Series 18 has since sold its interest in 24 of the Operating Partnerships.

During the quarter ended December 31, 2018, none of Series 18 net offering proceeds were used to pay capital contributions.  Series 18 has contributions payable to 2 Operating Partnerships in the amount of $18,554 as of December 31, 2018. The remaining contributions will be released to the Operating Partnerships when they have achieved the conditions set forth in their partnership agreements.

 

(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. Series 19 has since sold its interest in 26 of the Operating Partnerships.

During the quarter ended December 31, 2018, none of Series 19 net offering proceeds were used to pay capital contributions. No additional net offering proceeds remain to be used by the Fund to pay capital contributions to the Operating Partnerships that Series 19 has invested in as of December 31, 2018.

Results of Operations

As of December 31, 2018 and 2017, the Fund held limited partnership interests in 25 and 40 Operating Partnerships, respectively.  In each instance the apartment complex owned by the applicable Operating Partnership is eligible for the federal housing tax credit.  Initial occupancy of a unit in each apartment complex which complied with the minimum set-aside test (i.e., initial occupancy by tenants with incomes equal to no more than a certain percentage of area median income) and the rent restriction test (i.e., gross rent charged tenants does not exceed 30% of the applicable income standards) is referred to as "Qualified Occupancy."  Each of the Operating Partnerships and each of the respective apartment complexes are described more fully in the Prospectus or applicable report on Form 8-K.  The general partner of the Fund believes that there is adequate casualty insurance on the properties.

 

The Fund incurs a fund management fee to Boston Capital Asset Management Limited Partnership (formerly Boston Capital Communications Limited Partnership), or BCAMLP, in an amount equal to .5 percent of the aggregate cost of the apartment complexes owned by the Operating Partnerships, less the amount of various asset management and reporting fees paid by the Operating Partnerships. The fund management fees incurred and the reporting fees paid by the Operating Partnerships for the three and nine months ended December 31, 2018 are as follows:

 

 

3 Months
Gross Fund
Management Fee


3 Months
Reporting Fee

3 Months Fund
Management Fee
Net of Reporting Fee

Series 15

$  7,586

$   1,500

$   6,086

Series 16

20,021

1,924

18,097

Series 17

12,219

5,000

7,219

Series 18

15,948

18,500

(2,552)

Series 19

  3,168

      -

   3,168

$ 58,942

$  26,924

$  32,018

 

 

 

 

 

 

 

9 Months
Gross Fund
Management Fee

9 Months
Reporting Fee

 

9 Months Fund
Management Fee
Net of Reporting Fee

Series 15

$ 26,960

$   4,962

$   21,998

Series 16

60,063

11,210

48,853

Series 17

36,657

8,000

28,657

Series 18

49,947

19,000

30,947

Series 19

 10,851

     750

    10,101

$184,478

$  43,922

$  140,556

 

 

 

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

 

As of December 31, 2017, the average Qualified Occupancy for the series was 100%. The series did not have any properties as of December 31, 2018.

For the nine month periods ended December 31, 2018 and 2017, Series 15 reflects a net loss from Operating Partnerships of $- and $(132,296), respectively, which includes depreciation and amortization of $- and $292,021, respectively. This is an interim period estimate; it is not indicative of the final year end results.

 

In May 2017, the investment general partner transferred its interest in Calexico Senior Apartments to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,716,118 and cash proceeds to the investment partnership of $111,786. Of the total proceeds received, $2,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $109,786 were returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $109,786 as of June 30, 2017.

 

In August 2017, the investment general partner transferred its interest in University Meadows LDHA to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $2,306,546 and cash proceeds to the investment partnership of $140,000. Of the total proceeds received, $23,400 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $8,747 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $107,853 were returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $107,853 as of September 30, 2017.

 

In December 2017, the investment general partner transferred its interest in Chestnut Hill Estates, Limited Partnership to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $639,888 and cash proceeds to the investment partnership of $25,301. Of the total proceeds received, $1,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $23,801 were returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $23,801 as of December 31, 2017.

 

In December 2017, the investment general partner transferred its interest in Sunset Square Limited Partnership to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $649,492 and cash proceeds to the investment partnership of $25,301. Of the total proceeds received, $1,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $23,801 were returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $23,801 as of December 31, 2017.

 

In June 2018, the investment general partner transferred its interest in Beckwood Manor Eight Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,096,290 and cash proceeds to the investment partnership of $16,000. Of the total proceeds received, $3,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $12,500 were returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $12,500 as of June 30, 2018.

 

In December 2018, the investment general partner transferred its interest in Livingston Plaza, Limited to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $571,663 and nominal cash proceeds to the investment partnership. There were no cash proceeds available to pay expenses related to the transfer and no proceeds were returned to cash reserves held by Series 15. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, no gain or loss on the transfer of the Operating Partnership of the proceeds from the transfer has been recorded as of December 31, 2018.

 

 

In November 2018, the investment general partner transferred its interest in Arkansas City Properties Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $702,880 and cash proceeds to the investment partnership of $24,000. Of the total proceeds received, $2,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $22,000 were returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $22,000 as of December 31, 2018.

 

In November 2018, the investment general partner transferred its interest in Barton Village Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $446,257 and cash proceeds to the investment partnership of $13,500. Of the total proceeds received, $2,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $11,500 were returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $11,500 as of December 31, 2018.

 

In December 2018, the investment general partner transferred its interest in Bergen Meadows Limited Partnership to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $835,862 and nominal cash proceeds to the investment partnership. There were no cash proceeds available to pay expenses related to the transfer and no proceeds were returned to cash reserves held by Series 15. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the" RRN") with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 20 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the terms of the RRN. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, no gain or loss on the transfer of the Operating Partnership of the proceeds from the transfer has been recorded as of December 31, 2018.

 

In August 2018, the operating general partner of Healdton Properties, A Limited Partnership entered into an agreement to sell the property to an entity affiliated with the operating general partner and the transaction closed on December 3, 2018. The sales price of the property was $672,878, which included the outstanding mortgage balance of approximately $598,864 and cash proceeds to the investment partnership of $24,000. Of the total proceeds received by the investment partnership, $2,000 was paid to BCAMLP for expenses related to the sale, which include third party legal costs. The remaining proceeds from the sale of $22,000 will be returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $22,000 as of December 31, 2018.

 

In November 2018, the investment general partner transferred its interest in Greenwood Village Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $582,786 and cash proceeds to the investment partnership of $18,000. Of the total proceeds received, $2,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $16,000 were returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $16,000 as of December 31, 2018.

 

In November 2018, the investment general partner transferred its interest in Marshall Lane Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $481,516 and cash proceeds to the investment partnership of $13,500. Of the total proceeds received, $2,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $11,500 were returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $11,500 as of December 31, 2018.

 

In November 2018, the investment general partner transferred its interest in Whitewater Village Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $458,677 and cash proceeds to the investment partnership of $13,500. Of the total proceeds received, $2,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $11,500 were returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $11,500 as of December 31, 2018.

 

Series 16

 

As of December 31, 2018 and 2017, the average Qualified Occupancy for the series was 100%. The series had a total of 12 properties at December 31, 2018, all of which were at 100% Qualified Occupancy.

For the nine month periods ended December 31, 2018 and 2017, Series 16 reflects a net loss from Operating Partnerships of $(162,584) and $(215,136), respectively, which includes depreciation and amortization of $376,366 and $446,024, respectively. This is an interim period estimate; it is not indicative of the final year end results.

In May 2017, the investment general partner transferred its interest in Mendota Village Apartments to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,728,506 and cash proceeds to the investment partnership of $82,083. Of the total proceeds received, $2,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $80,083 were returned to cash reserves held by Series 16. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $80,083 as of June 30, 2017.

 

In May 2017, the investment general partner transferred its interest in Tuolumne City Investment Group II to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,406,018 and cash proceeds to the investment partnership of $46,850. Of the total proceeds received, $2,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $44,850 were returned to cash reserves held by Series 16. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $44,850 as of June 30, 2017.

 

In December 2017, the investment general partner transferred its interest in Falcon Ridge Limited Partnership to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $817,869 and cash proceeds to the investment partnership of $33,735. Of the total proceeds received, $1,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $32,235 were returned to cash reserves held by Series 16. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $32,235 as of December 31, 2017.

 

In December 2017, the investment general partner transferred its interest in Newport Manor, Limited Partnership to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $906,774 and cash proceeds to the investment partnership of $31,626. Of the total proceeds received, $1,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $30,126 were returned to cash reserves held by Series 16. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $30,126 as of December 31, 2017.

 

In January 2018, the investment general partner transferred its interest in Holly Tree Manor of Holly Hill, a Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $783,396 and cash proceeds to the investment partnership of $77,600. Of the total proceeds received, $2,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $75,600 were returned to cash reserves held by Series 16. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $75,600 as of March 31, 2018.

 

The investment general partner will continue to monitor the following Operating Partnerships because of operational or other issues. However, these Operating Partnerships have all exited their LIHTC compliance period and there is therefore no risk to past credit delivery.

 

Anson Limited Partnership

Greenfield Properties, LP

 

 

Series 17

 

As of December 31, 2018 and 2017, the average Qualified Occupancy for the series was 100%.  The series had a total of 3 properties at December 31, 2018, all of which were at 100% Qualified Occupancy.

For the nine month periods ended December 31, 2018 and 2017, Series 17 reflects a net loss from Operating Partnerships of $(77,869) and $(129,750), respectively, which includes depreciation and amortization of $244,297 and $280,489, respectively. This is an interim period estimate; it is not indicative of the final year end results.

 

In December 2017, the investment general partner transferred its interest in Oakwood Manor of Bennettsville, A Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $771,031 and cash proceeds to the investment partnership of $24,000. Of the total proceeds received, $2,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $22,000 were returned to cash reserves held by Series 17. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $22,000 as of December 31, 2017.

 

In December 2018, the investment general partner transferred its interest in Cairo Housing Company I to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $935,638 and cash proceeds to the investment partnership of $24,000. Of the total proceeds received, $2,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $21,500 were returned to cash reserves held by Series 17. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $21,500 as of December 31, 2018.

 

The investment general partner will continue to monitor the following Operating Partnership because of operational or other issues. However, this Operating Partnership has exited their LIHTC compliance period and there is therefore no risk to past credit delivery.

 

Brewer Street Apartments

 

Series 18

 

As of December 31, 2018 and 2017 the average Qualified Occupancy for the series was 100%.  The series had a total of 10 properties at December 31, 2018, all of which were at 100% Qualified Occupancy.

For the nine month periods ended December 31, 2018 and 2017, Series 18 reflects a net loss from Operating Partnerships of $(326,150) and $(329,370), respectively, which includes depreciation and amortization of $287,978 and $321,007, respectively. This is an interim period estimate; it is not indicative of the final year end results.

 

In December 2016, the operating general partner of Chelsea Square Development Limited Partnership entered into an agreement to sell the property to a non-affiliated entity and the transaction closed on April 6, 2017. The sales price of the property was $1,150,000, which included the outstanding mortgage balance of approximately $301,393 and cash proceeds to the investment partnership of $513,204. Of the total proceeds received by the investment partnership, $4,500 was paid to BCAMLP for expenses related to the sale, which include third party legal costs. The remaining proceeds from the sale of $508,704 were returned to cash reserves held by Series 18. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $508,704 as of June 30, 2017.

 

In April 2017, the investment general partner of Series 18 and Boston Capital Tax Credit Fund IV - Series 20 transferred their respective interests in Virginia Avenue Affordable Limited Partnership to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $499,989 and cash proceeds to the investment partnerships of $823,080 and $156,777 for Series 18 and Series 20, respectively. Of the total proceeds received, $7,560 and $1,440, for Series 18 and Series 20, respectively, was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $815,520 and $155,337, for Series 18 and Series 20, respectively, were returned to cash reserves. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $815,520 and $155,337, for Series 18 and Series 20, respectively, as of June 30, 2018.

 

The investment general partner will continue to monitor the following Operating Partnerships because of operational or other issues. However, these Operating Partnerships have all exited their LIHTC compliance period and there is therefore no risk to past credit delivery.

 

Marengo Park Apartments, Limited Partnership

Humboldt I, Limited Partnership

Natchitoches Elderly Apartments, Limited Partnership

Leesville Elderly Apartments, an LA Partnership

Series 19

 

As of December 31, 2017, the average Qualified Occupancy for the series was 100%. The series did not have any properties as of December 31, 2018.

For the nine month periods ended December 31, 2018 and 2017, Series 19 reflects a net loss from Operating Partnerships of $- and $(82,803), respectively, which includes depreciation and amortization of $- and $104,741, respectively. This is an interim period estimate; it is not indicative of the final year end results.

In November 2017, the investment general partner transferred its interest in Independence Properties, Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $743,037 and cash proceeds to the investment partnership of $24,000. Of the total proceeds received, $2,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $21,500 were returned to cash reserves held by Series 19. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $21,500 as of December 31, 2017.

 

In December 2017, the investment general partner transferred its interest in Munford Village, Limited to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $702,560 and cash proceeds to the investment partnership of $25,301. Of the total proceeds received, $1,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $23,801 were returned to cash reserves held by Series 19. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $23,801 as of December 31, 2017.

 

In December 2017, the investment general partner transferred its interest in Sherwood Knoll, Limited Partnership to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $689,460 and cash proceeds to the investment partnership of $25,301. Of the total proceeds received, $1,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $23,801 were returned to cash reserves held by Series 19. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $23,801 as of December 31, 2017.

 

In April 2018, the investment general partner transferred its interest in Madison Limited Partnership to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $571,026 and no cash proceeds to the investment partnership. There were no cash proceeds available to pay expenses related to the transfer and no proceeds were returned to cash reserves held by Series 19. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, no gain or loss on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded as of June 30, 2018.

 

In May 2018, the investment general partner transferred its interest in Summerset Housing Limited Partnership to entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $839,048 and cash proceeds to the investment partnership of $15,500. Of the total proceeds received, $2,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $13,000 will be returned to cash reserves held by Series 19. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $13,000 as of June 30, 2018.

 

In December 2018, the investment general partner transferred its interest in Carrollton Villa, Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,477,678 and nominal cash proceeds to the investment partnership. There were no cash proceeds available to pay expenses related to the transfer and no proceeds were returned to cash reserves held by Series 19. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, no gain or loss on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded as of December 31, 2018.

 

Off Balance Sheet Arrangements

 

None.

Principal Accounting Policies and Estimates

 

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

 

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

 

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

 

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

 

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

 

 

 

 

 

 

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

 

 

Not Applicable

 

Item 4.

Controls and Procedures

 

 

 

 

(a)

Evaluation of Disclosure Controls and Procedures

 

 

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

 

 

 

 

(b)

Changes in Internal Controls

 

 

There were no changes in the Fund's internal control over financial reporting that occurred during the quarter ended December 31, 2018 that materially affected, or are reasonably likely to materially affect, the Fund's internal control over financial reporting.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PART II - OTHER INFORMATION

Item 1.

Legal Proceedings

 

 

 

None

 

 

Item 1A.

Risk Factors

 

 

 

There have been no material changes from the risk factors set forth under Part I, Item 1A. "Risk Factors" in our Form 10-K for the fiscal year ended March 31, 2018.

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

 

 

None

 

 

Item 3.

Defaults upon Senior Securities

 

 

 

None

 

 

Item 4.

Mine Safety Disclosures

 

 

 

Not Applicable

 

 

Item 5.

Other Information

 

 

 

None

 

 

Item 6.

Exhibits

 

 

 

(a)Exhibits

 

 

 

 

 

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

BCTC III CERT 302

 

 

 

 

 

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

BCTC III CERT 302

 

 

 

 

 

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

BCTC III CERT 906

 

 

 

 

 

 

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

BCTC III CERT 906  

 

101. The following materials from the Boston Capital Tax Credit Fund III, L.P. Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2018 formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Balance Sheets, (ii) the Condensed Statements of Operations, (iii) the Condensed Statements of Changes in Partners' Capital (Deficit), (iv) the Condensed Statements of Cash Flows and (v) related notes, filed herein

 

 

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 13, 2019

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 13, 2019

/s/ John P. Manning

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

 

 

 

John P. Manning

 

 

 

 

 

 

 

 

 

DATE:

SIGNATURE:

TITLE:

 

 

 

February 13, 2019

/s/ Marc N. Teal

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

 

 

 

Marc N. Teal