-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VkkO2342C4tJRFDtF8FBR0sYNGWEXdfWXKgBxoRAHY4H5X8YimGunrzQnAgFH3Hz Ys5hKFOMYefdZZ2UlTiMjQ== 0000879555-96-000002.txt : 19960717 0000879555-96-000002.hdr.sgml : 19960717 ACCESSION NUMBER: 0000879555-96-000002 CONFORMED SUBMISSION TYPE: 10-K405 PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960715 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOSTON CAPITAL TAX CREDIT FUND III L P CENTRAL INDEX KEY: 0000879555 STANDARD INDUSTRIAL CLASSIFICATION: OPERATORS OF APARTMENT BUILDINGS [6513] IRS NUMBER: 521749505 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-K405 SEC ACT: 1934 Act SEC FILE NUMBER: 000-21718 FILM NUMBER: 96595116 BUSINESS ADDRESS: STREET 1: 313 CONGRESS ST STREET 2: C/O BOSTON CAPITAL PARTNERS INC CITY: BOSTON STATE: MA ZIP: 02210 BUSINESS PHONE: 6174390072 MAIL ADDRESS: STREET 1: ONE BOSTON PLACE STREET 2: STE 2100 CITY: BOSTON STATE: MA ZIP: 02108-4406 10-K405 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K [X] Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended March 31, 1996 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) Massachusetts 52-1749505 - --------------------------------- ----------------------------- (State of other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) One Boston Place, Suite 2100, Boston, MA 02108-4406 - -------------------------------------------- ----------------- (Address of Principal executive offices) (Zip Code) Fund's telephone number, including area code: (617)624-8900 ------------- Securities registered pursuant to Section 12(b) of the Act: Name of each exchange Title of each class on which registered ------------------- --------------------- None None -------------------------- --------------------------- Securities registered pursuant to Section 12(g) of the Act: Beneficial Assignee Certificates ---------------------------------- (Title of Class) Indicate by check mark whether the Fund (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the Fund was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO ----- ----- Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 or Regulation S-K ( 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. __ |xx| DOCUMENTS INCORPORATED BY REFERENCE ----------------------------------- The following documents of the Fund are incorporated by reference: Form 10-K Parts Document --------- --------- Parts I, III October 7, 1993 Prospectus, as supplemented Parts II, IV Form 8-K dated April 4, 1994 Form 8-K dated April 4, 1994 Form 8-K dated April 7, 1994 Form 8-K dated April 8, 1994 Form 8-K dated April 12, 1994 Form 8-K dated April 14, 1994 Form 8-K dated May 12, 1994 Form 8-K dated May 29, 1994 Form 8-K dated May 31, 1994 Form 8-K dated June 16, 1994 Form 8-K dated June 27, 1994 Form 8-K dated June 27, 1994 Form 8-K dated July 8, 1994 Form 8-K dated September 1, 1994 Form 8-K dated September 12, 1994 Form 8-K dated September 21, 1994 Form 8-K dated October 19, 1994 Form 8-K dated October 25, 1994 Form 8-K dated October 28, 1994 Form 8-K dated November 19, 1994 Form 8-K dated January 12, 1995 BOSTON CAPITAL TAX CREDIT FUND III L.P. Form 10-K ANNUAL REPORT FOR THE YEAR ENDED March 31, 1996 TABLE OF CONTENTS PART I Item 1. Business Item 2. Properties Item 3. Legal Proceedings Item 4. Submission of Matters to a Vote of Security Holders PART II Item 5. Market for the Fund's Limited Partnership Interests and Related Partnership Matters Item 6. Selected Financial Data Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations Item 8. Financial Statements and Supplementary Data Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure PART III Item 10. Directors and Executive Officers of the Fund Item 11. Executive Compensation Item 12. Security Ownership of Certain Beneficial Owners and Management Item 13. Certain Relationships and Related Transactions PART IV Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K Signatures PART I ------ Item 1. Business Organization - ------------ Boston Capital Tax Credit Fund III L.P. (the "Fund") is a limited partnership formed under the Delaware Revised Uniform Limited Partnership Act as of September 19, 1991. The General Partner of the Fund is Boston Capital Associates III L.P., a Delaware limited partnership. C & M Associates, d/b/a Boston Capital Associates, a Massachusetts general partnership, whose only two partners are Herbert F. Collins and John P. Manning, the principals of Boston Capital Partners, Inc., is the sole general partner of the General Partner. The limited partner of the General Partner is Capital Investment Holdings, a general partnership whose partners are certain officers and employees of Boston Capital Partners, Inc., and its affiliates. The Assignor Limited Partner is BCTC III Assignor Corp., a Delaware corporation which is wholly-owned by Herbert F. Collins and John P. Manning. The Assignor Limited Partner was formed for the purpose of serving in that capacity for the Fund and will not engage in any other business. Units of beneficial interest in the Limited Partnership Interest of the Assignor Limited Partner will be assigned by the Assignor Limited Partner by means of beneficial assignee certificates ("BACs") to investors and investors will be entitled to all the rights and economic benefits of a Limited Partner of the Fund including rights to a percentage of the income, gains, losses, deductions, credits and distributions of the Fund. A Registration Statement on Form S-11 and the related prospectus, as supplemented (the "Prospectus") was filed with the Securities and Exchange Commission and became effective January 24, 1992 in connection with a public offering ("Offering") in one or more series of a minimum of 250,000 BACs and a maximum of 20,000,000 BACs at $10 per BAC. 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 additional BACs became effective on October 6, 1993. As of March 31, 1996, subscriptions had been received and accepted by the General Partner in Series 15, 16, 17, 18 and 19 for 21,996,102 BACs, representing capital contributions of $219,961,020. The Fund issued the last BACs in Series 19 on December 17, 1993. This concluded the Public Offering of the Fund. The Offering, including information regarding the issuance of BACs in series, is described on pages 84 to 87 of the Prospectus, as supplemented, under the caption "The Offering", which is incorporated herein by reference. Description of Business - ----------------------- The Fund's principal business is to invest as a limited partner in other limited partnerships (the "Operating Partnerships") each of which 1 will own or lease and will operate an Apartment Complex exclusively or partially for low- and moderate-income tenants. Each Operating Partnership in which the Fund will invest will own Apartment Complexes which are completed, newly-constructed, under construction or rehabilitation, or to-be constructed or rehabilitated, and which are expected to receive Government Assistance. Each Apartment Complex is expected to qualify for the low-income housing tax credit under Section 42 of the Code (the "Federal Housing Tax Credit"), thereby providing tax benefits over a period of ten to twelve years in the form of tax credits which investors may use to offset income, subject to certain strict limitations, from other sources. Certain Apartment Complexes may also qualify for the historic rehabilitation tax credit under Section 48 of the Code (the "Rehabilitation Tax Credit"). The Federal Housing Tax Credit and the Government Assistance programs are described on pages 37 to 51 of the Prospectus, as supplemented, under the captions "Tax Credit Programs" and "Government Assistance Programs," which is incorporated herein by reference. Section 236 (f) (ii) of the National Housing Act, as amended, in Section 101 of the Housing and Urban Development Act of 1965, as amended, each provide for the making by HUD of rent supplement payments to low income tenants in properties which receive other forms of federal assistance such as Tax Credits. The payments for each tenant, which are made directly to the owner of their property, generally are in such amounts as to enable the tenant to pay rent equal to 30% of the adjusted family income. Some of the Apartment Complexes in which the Partnership has invested are receiving such rent supplements from HUD. HUD has been in the process of converting rent supplement assistance to assistance paid not to the owner of the Apartment Complex, but directly to the individuals. At this time, the Partnership is unable to predict whether Congress will continue rent supplement programs payable directly to owners of the Apartment Complex. As of March 31, 1996 the Fund had invested in 68 Operating Partnerships on behalf of Series 15, 65 Operating Partnerships on behalf of Series 16, 49 Operating Partnerships on behalf of Series 17, 34 Operating Partnerships on behalf of Series 18 and 25 Operating Partnerships on behalf of Series 19. A description of these Operating Partnerships is set forth in Item 2 herein. The business objectives of the Fund are to: (1) provide current tax benefits to Investors in the form of Federal Housing Tax Credits and in limited instances, a small amount of Rehabilitation Tax Credits, which an Investor may apply, subject to certain strict limitations, against the investor's federal income tax liability from active, portfolio and passive income; (2) provide tax benefits in the form of passive losses which an Investor may apply to offset his passive income (if any); and (3) preserve and protect the Fund's capital and provide capital appreciation and cash distributions through increases in value of the Fund's investments and, to the extent applicable, equity buildup through periodic payments on the mortgage indebtedness with respect to the Apartment Complexes. 2 The business objectives and investment policies of the Fund are described more fully on pages 30 to 37 of the Prospectus, as supplemented, under the caption "Investment Objectives and Acquisition Policies," which is incorporated herein by reference. Employees - --------- The Fund does not have any employees. Services are performed by the General Partner and its affiliates and agents retained by them. Item 2. Properties The Fund has acquired a Limited Partnership interest in 241 Operating Partnerships in five series, identified in the table set forth below. In each instance the Apartment Complex owned by the applicable Operating Partnership is eligible for the Federal Housing Tax Credit. Occupancy of a unit in each Apartment Complex which initially complied with the Minimum Set-Aside Test (i.e., occupancy by tenants with incomes equal to no more than a certain percentage of area median income) and the Rent Restriction Test (i.e., gross rent charged tenants does not exceed 30% of the applicable income standards) is referred to hereinafter as "Qualified Occupancy." Each of the Operating Partnerships and each of the respective Apartment Complexes are described more fully in the Prospectus or applicable Report on Form 8-K. The General Partner believes that there is adequate casualty insurance on the properties. Please refer to Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" for a more detailed discussion of operational difficulties experienced by certain of the Operating Partnerships. 3 Boston Capital Tax Credit Fund III L.P. - Series 15 PROPERTY PROFILES AS OF March 31, 1996 Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/95 Date Comp. 3/31/96 3/31/96 - --------------------------------------------------------------------------- April Gardens Las Piedras, Apts. III PR 32 $1,476,547 9/92 5/93 100% $ 279,823 Autumwood Keysville, Heights VA 40 1,361,324 8/92 1/93 100% 256,700 Barton Village Arlington, Apartments GA 18 513,541 10/92 3/93 100% 101,154 Bergen Bergen, Meadows NY 24 1,027,491 7/92 7/92 100% 199,420 Bridlewood Horse Cave, Terrace NY 24 796,549 1/94 1/95 100% 167,679 Brunswick Lawrenceville, Commons VA 24 833,058 3/92 9/92 100% 152,282 Buena Vista Apartments, Union, Phase II SC 44 1,462,607 3/92 1/92 100% 281,000 Calexico Calexico, Senior Apts. CA 38 1,933,565 9/92 9/92 100% 366,220 Chestnut Altoona, Hills Estates AL 24 752,728 9/92 9/92 100% 146,500 Columbia Camden, Heights Apts. AR 32 1,304,260 10/92 9/93 100% 247,599 Coral Ridge Coralville, Apartments IA 102 2,649,097 3/92 11/92 100% 2,257,827 Country Meadows Sioux Falls, II, III, IV SD 55 1,393,377 5/92 9/92 100% 1,220,825 Curwensville Curwensville, House Apts. PA 28 1,224,140 9/92 7/93 100% 262,000 Deerfield Crewe, Commons VA 39 1,237,021 4/92 6/92 100% 242,430 4 Boston Capital Tax Credit Fund III L.P. - Series 15 PROPERTY PROFILES AS OF March 31, 1996 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/95 Date Comp. 3/31/96 3/31/96 - --------------------------------------------------------------------------- East Park Dilworth, Apts. I MN 24 $ 504,552 6/94 1/94 100% $ 385,824 Edgewood Apts. Munfordville, KY 24 792,628 6/92 8/92 100% 156,605 Golden Age Oak Grove, Apts. MO 17 407,329 4/92 11/91 100% 84,410 Graham Graham, Village Apts. NC 50 1,348,733 10/94 6/95 100% 794,669 Greentree Utica, Apts. OH 24 691,678 4/94 10/75 100% 64,069 Greenwood Fort Gaines, Village GA 24 680,335 8/92 5/93 100% 131,268 Hadley's Lake East Machias Apts. ME 18 1,046,574 9/92 1/93 100% 291,400 Hammond Westernport, Heights Apts. MD 35 1,498,433 7/92 2/93 100% 327,944 Harrisonville Harrisonville, Properties II MO 24 611,545 3/92 11/91 100% 144,004 Harvest Point Madison, Apts. SC 30 1,207,547 3/95 12/94 100% 255,322 Hearthside II Portage, MI 60 1,965,350 4/92 11/92 100% 1,153,620 5 Boston Capital Tax Credit Fund III L.P. - Series 15 PROPERTY PROFILES AS OF March 31, 1996 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/95 Date Comp. 3/31/96 3/31/96 - --------------------------------------------------------------------------- Heron's Lake Placid, Landing I FL 37 $1,213,328 10/92 10/92 100% $ 255,339 Hidden W. Pittsburg, Cove CA 88 2,970,654 2/94 8/88 100% 200,000 Higginsville Higginsville, Estates MO 24 631,156 3/92 3/91 100% 146,111 Kearney Kearney, Estates MO 24 638,301 5/92 1/92 100% 138,103 Lakeside Lake Village Apts. AR 32 1,227,025 8/94 8/95 100% 282,004 Lake View Lake View, Green Apts. SC 24 893,100 3/92 7/92 95% 183,603 Laurelwood Apartments, Winnsboro, Phase II SC 32 1,075,076 3/92 2/92 100% 229,986 Lebanon Properties Lebanon, III MO 24 636,219 3/92 2/92 100% 152,171 Lebanon Spring Grove, Village II VA 24 932,577 8/92 2/93 100% 169,000 Lilac Apts. Leitchfield, KY 24 734,209 6/92 7/92 100% 148,015 Livingston Livingston, Plaza TX 24 682,346 12/92 11/93 100% 169,642 6 Boston Capital Tax Credit Fund III L.P. - Series 15 PROPERTY PROFILES AS OF March 31, 1996 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/95 Date Comp. 3/31/96 3/31/96 - --------------------------------------------------------------------------- Manning Manning, Lane Apts. SC 42 $1,481,532 8/92 3/93 100% $ 296,436 Marshall Marshallville, Lane Apts. GA 18 557,331 8/92 12/92 100% 114,200 Maryville Maryville, Properties MO 24 722,743 5/92 3/92 100% 156,636 Meadow Grantsville, View Apts. MD 36 1,496,542 5/92 2/93 100% 291,322 Millbrook Sanford, Commons ME 16 927,287 6/92 11/92 100% 227,100 Monark Van Buren & Barling, Homes AR 10 336,950 6/94 3/94 100% 239,800 North Prairie Plainwell, Manor Apts. MI 28 887,809 9/92 5/93 100% 206,820 North Trail Arkansas City, Apts. KS 24 834,392 9/94 12/95 100% 192,851 Oakwood Century, Village FL 39 1,114,744 5/92 5/92 100% 249,374 Osceola Osceola, Estates Apts.IA 24 679,995 5/92 5/92 100% 161,325 Payson Senior Payson, Center Apts. AZ 39 1,495,824 8/92 8/92 100% 365,755 Rainier Mt. Rainier, ManorApts. MD 104 3,733,381 4/92 1/93 100% 1,095,382 Ridgeview Brainerd, Apartments MN 24 866,472 3/92 1/92 100% 165,434 7 Boston Capital Tax Credit Fund III L.P. - Series 15 PROPERTY PROFILES AS OF March 31, 1996 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/95 Date Comp. 3/31/96 3/31/96 - --------------------------------------------------------------------------- Rio Mimbres Deming, II Apartments NM 24 $ 778,239 4/92 4/92 100% $ 149,811 River Chase Wauchula, Apts. FL 47 1,485,527 8/92 10/92 100% 322,944 Rolling Brook Algonac, III Apts. MI 26 832,324 6/92 11/92 100% 185,632 School St. Marshall, Apts.Phase I WI 24 781,822 4/92 5/92 100% 666,025 Shenandoah Shenandoah, Village PA 34 1,482,331 8/92 2/93 100% 317,136 Showboat Chesaning, Manor Apts. MI 26 801,032 7/92 2/93 96% 178,084 Spring Creek Derby, II Apts. KS 50 1,297,540 4/92 6/92 100% 1,060,282 Summit Ridge Palmdale, Apartments CA 304 8,874,224 10/92 12/93 100% 5,639,000 Sunset Sq. Scottsboro, Apts. AL 24 745,177 9/92 8/92 100% 143,900 Taylor Mill Hodgenville, Apartments KY 24 772,776 4/92 5/92 100% 173,606 Timmons Lynchburg, Village Apts. SC 18 626,200 5/92 7/92 100% 122,450 University Detroit, Meadows MI 53 1,848,328 6/92 12/92 100% 1,676,750 Valatie Valatie, Woods NY 32 1,399,064 6/92 4/92 100% 277,600 8 Boston Capital Tax Credit Fund III L.P. - Series 15 PROPERTY PROFILES AS OF March 31, 1996 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/95 Date Comp. 3/31/96 3/31/96 - --------------------------------------------------------------------------- Village Healdton, Woods OK 24 $ 709,514 8/94 12/94 100% $ 173,616 Urb. Corales Villas de Hatillo, Del Mar PR 32 1,472,769 8/92 8/92 100% 307,200 Virgen del Pozo Garden Sabana Grande, Apts. PR 70 3,350,576 8/92 7/93 100% 772,550 Weedpatch Weedpatch, Country Apts. CA 36 1,986,913 1/94 9/94 100% 461,197 Whitewater Ideal, Village Apts. GA 18 526,896 8/92 11/92 100% 108,000 Wood Park Arcadia, Pointe FL 36 1,176,402 6/92 5/92 100% 243,672 * Property was in the lease-up phase as of March 31, 1996. 9 Boston Capital Tax Credit Fund III L.P. - Series 16 PROPERTY PROFILES AS OF March 31, 1996 Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/95 Date Comp. 3/31/96 3/31/96 - --------------------------------------------------------------------------- 1413 Leavenworth Omaha, Apts. NE 60 $1,686,078 12/92 3/93 100% $1,287,526 Abbey Nixa, Orchards Apts. MO 48 1,579,958 3/94 6/94 100% 1,163,875 Abbey Orchards Nixa, Apts.II MO 56 1,144,209 8/94 7/94 100% 1,137,750 Bernice Bernice, Villa Apts. LA 32 973,251 5/93 10/93 100% 200,476 Branch River Wakefield, Commons Apts. NH 24 1,270,785 9/92 2/93 100% 246,105 Brunswick Lawrenceville, Manor Apts. VA 40 1,428,150 2/94 7/94 100% 278,519 Canterfield Denmark, Manor SC 20 773,258 11/92 1/93 100% 175,959 Cape Ann YMCA Gloucester, Community Ctr. MA 23 603,173 1/93 12/93 100% 693,132 Carriage Westville, Park Village OK 24 728,695 2/93 7/93 100% 144,714 Cedar Brown City, Trace Apts. MI 16 508,396 10/92 7/93 100% 102,500 Cielo Azul Aztec, Apts. NM 30 1,023,554 5/93 5/93 100% 389,749 Clymer Clymer, Park Apts. PA 32 1,445,110 12/92 11/94 100% 317,428 Crosby Crosby, County Apts. MN 24 855,601 12/95 12/94 75% -0- 10 Boston Capital Tax Credit Fund III L.P. - Series 16 PROPERTY PROFILES AS OF March 31, 1996 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/95 Date Comp. 3/31/96 3/31/96 - --------------------------------------------------------------------------- Crystal Davenport, Ridge Apts. IA 126 $3,459,829 10/93 2/94 100% $ 2,612,808 Cumberland Middlesboro, Woods Apts. KY 40 1,461,617 12/93 10/94 100% 412,700 Deer Run Warrenton, Apts. NC 31 727,624 8/93 3/93 100% 572,200 Derry Round Borough of Derry, House Court PA 26 1,143,424 2/93 2/93 100% 191,394 Fairmeadow Latta, Apts. SC 24 890,304 1/93 7/93 100% 195,400 Falcon Beattyville, Ridge Apts. KY 40 1,055,747 4/94 1/95 80% 247,200 Forest Butler, Pointe Apts. GA 24 760,279 12/92 9/93 100% 162,397 Gibson Gibson, Manor Apts. NC 24 917,655 12/92 6/93 100% 161,412 Greenfield Greenfield, Properties MO 20 536,994 1/93 5/93 100% 126,046 Greenwood Mt. Pleasant, Apts. PA 36 1,488,252 11/93 10/93 100% 271,475 Harmony Galax, House Apts. VA 40 1,486,888 11/92 7/93 100% 285,588 Haynes House Roxbury, Apartments MA 131 3,561,260 8/94 9/95 100% 1,805,232 Holly Tree Holly Hill, Manor SC 24 891,262 11/92 2/93 100% 201,490 Isola Square Isola, Apartments MS 32 977,204 11/93 4/94 100% 246,722 11 Boston Capital Tax Credit Fund III L.P. - Series 16 PROPERTY PROFILES AS OF March 31, 1996 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/95 Date Comp. 3/31/96 3/31/96 - --------------------------------------------------------------------------- Joiner Joiner, Manor AR 25 $ 829,320 1/93 6/93 100% $ 149,670 Landview Bentonia, Manor MS 28 848,634 7/93 2/94 100% 190,109 Laurel Idabel, Ridge Apts. OK 52 1,398,174 4/93 12/93 100% 282,606 Lawtell Lawtell, Manor Apts. LA 32 939,648 4/93 8/93 100% 202,603 Logan Ridgeland, Lane Apts SC 36 1,307,235 9/92 3/93 100% 274,750 Mariner's Milwaukee, Pointe Apts WI 64 2,040,579 12/92 8/93 100% 1,684,121 Mariner's Pointe Milwaukee, Apts. II WI 52 1,997,797 12/92 8/93 100% 1,676,219 Meadows of Southgate, Southgate MI 83 2,352,555 7/93 5/94 100% 1,716,000 Mendota Mendota, Village Apts.CA 44 1,992,960 12/92 5/93 100% 438,300 Mid City Jersey City, Apts. NJ 58 3,175,335 9/93 6/94 100% 3,097,210 Newport Elderly Newport, Apts. VT 24 1,271,327 2/93 10/93 100% 221,626 Newport Newport, Manor Apts. TN 30 966,919 9/93 12/93 100% 204,863 Oak Forest Eastman, Apts. GA 40 1,191,199 12/92 10/93 100% 251,269 Parkwoods Anson, Apts. ME 24 1,295,853 12/92 9/93 100% 320,206 12 Boston Capital Tax Credit Fund III L.P. - Series 16 PROPERTY PROFILES AS OF March 31, 1996 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/95 Date Comp. 3/31/96 3/31/96 - --------------------------------------------------------------------------- Plantation Tchula, Manor MS 28 $ 841,572 7/93 12/93 100% $ 195,030 Ransom St. Blowing Rock, Apartments NC 13 514,694 12/93 11/94 100% 97,697 Riviera Miami Beach, Apts. FL 56 1,722,487 12/92 12/93 100% 1,442,978 Sable Chase McDonough, of McDonough GA 222 5,280,000 12/93 12/94 100% 5,618,968 Simmesport Simmesport, Square Apts. LA 32 961,478 4/93 6/93 100% 198,500 St. Croix St. Croix, Commons Apts.VI 40 930,000 10/94 12/94 100% 534,847 St. Joseph St. Joseph, Square Apts. LA 32 967,914 5/93 9/93 100% 206,086 Summersville Summersville, Estates MO 24 626,403 5/93 6/93 100% 157,976 Stony Ground St. Croix, Villas VI 22 1,444,120 12/92 6/93 100% 358,414 Talbot Talbotton, Village II GA 24 686,557 8/92 4/93 100% 129,683 Tan Yard Branch Blairsville, Apts. I GA 24 760,205 12/92 9/94 100% 151,154 Tan Yard Branch Blairsville, Apts. II GA 25 744,129 12/92 7/94 100% 144,304 The Fitzgerald Plattsmouth, Building NE 20 326,543 12/93 12/93 100% 924,780 13 Boston Capital Tax Credit Fund III L.P. - Series 16 PROPERTY PROFILES AS OF March 31, 1996 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/95 Date Comp. 3/31/96 3/31/96 - --------------------------------------------------------------------------- The Woodlands Tupper Lake, NY 18 $ 932,811 9/94 2/95 100% $ 205,631 Tuolumne City Tuolumne, Senior Apts. CA 30 1,615,051 12/92 8/93 100% 376,535 Turtle Monticello, Creek Apts. AR 27 856,555 5/93 10/93 100% 185,392 Valley View Palatine Bridge, Apartments NY 32 1,444,261 5/94 5/94 100% 326,870 Victoria North Port, Pointe Apts. FL 42 1,453,978 10/94 1/95 100% 338,058 Vista Linda Sabana Grande, Apartments PR 50 2,517,865 1/93 12/93 100% 435,530 West End Union, Manor SC 28 998,372 5/93 5/93 100% 231,741 Westchester Village Oak Grove, of Oak Grove MO 33 1,262,176 12/92 4/93 100% 889,700 Westchester Village of St. Joseph, St. Joseph MO 60 1,738,317 7/93 6/93 100% 1,316,500 Willcox Senior Willcox, Apts. AZ 30 1,115,600 1/93 6/93 100% 268,747 Woods Damascus, Landing Apts.VA 40 1,482,666 12/92 9/93 100% 286,171 * Property was in the lease-up phase as of March 31, 1996. 14 Boston Capital Tax Credit Fund III L.P. - Series 17 PROPERTY PROFILES AS OF March 31, 1996 Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/95 Date Comp. 3/31/96 3/31/96 - --------------------------------------------------------------------------- Annadale Fresno, Apartments CA 222 $ -0- 1/96 6/90 98% $ -0- Artesia Artesia, Properties NM 40 1,434,774 9/94 9/94 100% 399,464 Aspen Ridge Omaha, Apts. NE 42 893,164 9/93 11/93 100% 809,750 Briarwood Clio, Apartments SC 24 923,134 12/93 8/94 100% 211,133 Briarwood Apartments DeKalb, of DeKalb IL 48 1,653,627 10/93 6/94 100% 1,040,983 Briarwood Buena Vista, Village GA 38 1,138,340 10/93 5/94 100% 252,700 Brookwood Blue Springs, Village MO 72 2,375,549 12/93 12/94 100% 1,585,737 Cairo Senior Cairo, Housing NY 24 1,078,635 5/93 4/93 100% 201,711 Caney Creek Caneyville, Apts. KY 16 482,426 5/93 4/93 100% 118,800 Central Cambridge, House MA 128 2,756,197 4/93 12/93 100% 2,498,109 Clinton Clinton, Estates MO 24 744,029 12/94 12/94 100% 162,717 Cloverport Cloverport, Apts. KY 24 764,716 4/93 7/93 100% 174,575 College Greene Chili, Senior Apts. NY 110 3,820,685 3/95 8/95 100% 191,618 15 Boston Capital Tax Credit Fund III L.P. - Series 17 PROPERTY PROFILES AS OF March 31, 1996 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/95 Date Comp. 3/31/96 3/31/96 - --------------------------------------------------------------------------- Crofton Crofton, Manor Apts. KY 24 $ 812,880 4/93 3/93 100% $ 168,420 Cypress Naples, Point Apts. FL 78 2,980,052 2/94 12/94 100% $1,788,844 Deerwood Adrian, Village Apts.GA 20 641,995 2/94 7/94 100% 131,020 Doyle Darien, Village GA 38 1,179,426 9/93 4/94 100% 235,509 Fuera Bush Senior Fuera Bush, Housing NY 24 1,109,476 7/93 5/93 100% 189,364 Gallaway Gallaway, Manor Apts. TN 36 1,065,387 4/93 5/93 100% 216,499 Glenridge Bullhead City, Apartments AZ 52 2,060,951 6/94 6/94 100% 520,500 Green Acres West Bath, Estates ME 48 1,247,182 1/95 11/94 100% -0- Green Court Mt. Vernon, Apartments NY 76 2,364,625 11/94 11/94 82% 874,878 Henson Oxon Hill, Creek Manor MD 105 4,066,120 5/93 4/94 100% 2,980,421 Hickman Manor Hickman, Apts. II KY 16 550,281 11/93 12/93 100% 134,094 Hill Bladenboro, Estates, II NC 24 1,024,601 3/95 7/95 100% 123,300 Houston Alamo, Village GA 24 676,970 12/93 5/94 100% 134,975 Isola Greenwood, Square Apts. MS 36 1,067,494 11/93 8/94 100% 304,556 16 Boston Capital Tax Credit Fund III L.P. - Series 17 PROPERTY PROFILES AS OF March 31, 1996 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/95 Date Comp. 3/31/96 3/31/96 - --------------------------------------------------------------------------- Ivywood Smyrna, Park Apts. GA 106 $3,122,506 6/93 10/93 100% $2,093,847 Jonestown Jonestown, Manor Apts. MS 28 873,984 12/93 12/94 100% 243,605 Largo Ctr. Largo, Apartments MD 100 3,918,855 3/93 6/94 100% 2,753,455 Lee Terrace Pennington Gap, Apartments VA 40 1,499,279 2/94 12/94 100% 288,268 Oakwood Manor of Bennettsville, Bennettsville SC 24 884,849 9/93 12/93 100% 189,200 Opelousas Opelousas, Point Apts. LA 44 1,403,722 11/93 3/94 100% 439,277 Orchard Beaumont, Park CA 144 4,000,683 1/94 5/89 100% 250,000 Palmetto Palmetto, Villas FL 49 1,628,319 5/94 4/94 100% 421,795 Park Lehigh Acres, Place FL 35 1,187,398 2/94 4/94 100% 283,687 Pinehurst Farwell, Senior Apts. MI 24 814,847 2/94 2/94 100% 183,176 Quail Reedsville, Village GA 31 889,981 9/93 2/94 100% 171,855 Royale Glen Muskegon, Townhomes MI 79 3,918,615 12/93 12/94 100% 891,342 Seabreeze Inglis, Manor FL 37 1,243,429 3/94 1/95 100% 294,387 Soledad Soledad, Senior Apts. CA 40 1,975,248 10/93 1/94 100% 407,894 17 Boston Capital Tax Credit Fund III L.P. - Series 17 PROPERTY PROFILES AS OF March 31, 1996 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/95 Date Comp. 3/31/96 3/31/96 - --------------------------------------------------------------------------- Stratford Midland, Place MI 53 $1,021,651 9/93 6/94 100% $ 892,915 Sugarwood Union City, Park Apts. GA 110 3,323,100 4/94 7/95 100% 1,194,911 Summit Palmdale, Ridge Apt. CA 304 8,874,224 12/93 12/93 100% 5,191,039 Villa West Topeka, V Apartments KS 52 1,278,396 2/93 10/92 100% 902,700 Waynesburg Waynesburg, House Apts. PA 34 1,500,000 7/94 12/95 100% 501,140 West Front Skowhegan, Residence ME 30 1,739,899 9/94 8/94 100% 387,390 West Oaks Raleigh, Apartments NC 50 1,219,045 6/93 7/93 100% 811,994 White White Castle, Castle Manor LA 24 781,732 6/94 5/94 100% 144,009 *Property was in the lease-up phase as of March 31, 1996. 18 Boston Capital Tax Credit Fund III L.P. - Series 18 PROPERTY PROFILES AS OF March 31, 1996 Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/95 Date Comp. 3/31/96 3/31/96 - --------------------------------------------------------------------------- Arch Boston, Apartments MA 75 $2,733,870 4/94 12/94 100% $3,017,845 Bear Creek Naples, Apartments FL 118 5,009,069 3/94 4/95 100% 3,586,687 Briarwood Humbolt, Apartments IA 20 711,555 8/94 4/95 100% 152,702 California San Joaquin, Apartments CA 42 1,846,679 3/94 12/94 100% 519,100 Chatham Chatham, Manor NY 32 1,443,158 1/94 12/93 100% 296,860 Chelsea Sq. Chelsea, Apartments MA 6 301,393 8/94 12/94 100% 451,929 Clarke Newport, School RI 56 2,570,044 12/94 12/94 100% 1,798,436 Cox Creek Ellijay, Apartments GA 25 828,540 1/94 1/95 100% 176,504 Evergreen Macedon, Hills Apts. NY 72 2,844,485 8/94 1/95 100% 1,464,564 Glen Place Duluth, Apartments MN 35 1,262,316 4/94 6/94 100% 1,328,621 Harris Music West Palm Beach, Building FL 38 1,160,532 6/94 11/95 86%* 749,953 Kristine Bakersfield, Apartments CA 60 1,720,795 10/94 10/94 100% 1,636,293 Lakeview Battle Creek, Meadows II MI 60 1,651,769 8/93 5/94 100% 1,029,000 19 Boston Capital Tax Credit Fund III L.P. - Series 18 PROPERTY PROFILES AS OF March 31, 1996 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/95 Date Comp. 3/31/96 3/31/96 - --------------------------------------------------------------------------- Lathrop Lathrop, Properties MO 24 $ 748,858 4/94 5/94 100% $ 171,579 Leesville Leesville, Elderly Apts.LA 54 1,297,870 6/94 6/94 100% 776,500 Lockport Lockport, Seniors Apts.LA 40 1,003,634 7/94 9/94 100% 595,439 Maple Leaf Franklinville, Apartments NY 24 1,110,590 8/94 12/94 100% 190,543 Maple Aurora, Terrace NY 32 1,427,923 9/93 9/93 100% 279,988 Marengo Marengo, Park Apts. IA 24 738,178 10/93 3/94 100% 119,582 Meadowbrook Oskaloosa, Apartments IA 16 486,425 11/93 9/94 100% 96,908 Meadows Show Low, Apartments AZ 40 1,502,162 3/94 5/94 100% 420,302 Natchitoches Senior Natchitoches, Apartments LA 40 976,423 6/94 12/94 100% 624,175 Newton Newton, Plaza Apts. IA 24 815,232 11/93 9/94 100% 166,441 Oakhaven Ripley, Apartments MS 24 508,951 1/94 7/94 100% 116,860 Parvin's Branch Vineland, Townhouses NJ 24 881,429 8/93 11/93 100% 761,856 20 Boston Capital Tax Credit Fund III L.P. - Series 18 PROPERTY PROFILES AS OF March 31, 1996 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/95 Date Comp. 3/31/96 3/31/96 - --------------------------------------------------------------------------- Peach Tree Felton, Apartments DE 32 $1,496,616 1/94 7/93 100% $ 206,100 Pepperton Jackson, Villas GA 29 870,890 1/94 6/94 100% 222,762 Prestonwood Bentonville, Apartments AR 62 1,350,683 12/93 12/94 100% 1,067,200 Richmond Richmond, Manor MO 36 1,040,787 6/94 6/94 100% 231,593 Rio Grande Eagle Pass, Apartments TX 100 2,310,997 6/94 5/94 100% 666,840 Troy Troy, Estates MO 24 703,905 12/93 1/94 100% 159,007 Vista Loma Bullhead City, Apartments AZ 41 1,496,624 5/94 9/94 100% 465,650 Vivian Vivian, Seniors Apts. LA 40 1,016,268 7/94 9/94 100% 625,691 Westminster Meadow Grand Rapids, Apartments MI 64 2,124,796 12/93 11/94 100% 1,378,000 *Property was in the lease-up phase as of March 31, 1996. 21 Boston Capital Tax Credit Fund III L.P. - Series 19 PROPERTY PROFILES AS OF March 31, 1996 Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/95 Date Comp. 3/31/96 3/31/96 - --------------------------------------------------------------------------- Callaway Holt's Summit, Villa MO 48 $1,348,453 6/94 12/94 100% $ 566,567 Carrollton Carrollton, Villa MO 48 1,346,138 6/94 3/95 100% 560,879 Clarke Newport, School RI 56 2,570,044 12/94 12/94 100% 1,149,819 Delaware Crossing Ankeny, Apartments IA 152 3,793,128 8/94 3/95 100% 2,853,891 Garden Gate Forth Worth, Apartments TX 240 4,198,946 2/94 4/95 100% 2,802,657 Garden Gate Plano, Apartments TX 240 6,022,449 2/94 5/95 100% 2,468,901 Hebbronville Hebbronville, Senior TX 20 523,789 12/93 4/94 100% 82,592 Jefferson Denver, Square CO 64 2,852,740 5/94 8/95 100% 1,235,345 Jenny Lynn Morgantown, Apts. KY 24 817,315 1/94 9/94 100% 182,800 Lone Star Lone Star, Senior TX 24 619,348 12/93 5/94 100% 138,740 Mansura Villa II Mansura, Apartments LA 32 973,070 5/94 8/95 100% 227,910 Martindale Martindale, Apts. TX 24 693,838 12/93 1/94 100% 154,790 22 Boston Capital Tax Credit Fund III L.P. - Series 19 PROPERTY PROFILES AS OF March 31, 1996 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/95 Date Comp. 3/31/96 3/31/96 - --------------------------------------------------------------------------- Munford Munford, Village AL 24 $ 769,154 10/93 4/94 100% $ 165,800 Northpoint Kansas City, Commons MO 158 4,350,000 7/94 6/95 100% 1,875,963 Poplar Madison, Ridge Apts. VA 16 655,555 12/93 10/94 100% 91,138 Prospect Villa III Hollister, Apartments CA 30 1,750,546 3/95 5/95 100% 307,577 Sahale Heights Elizabethtown, Apts. KY 24 865,742 1/94 6/94 100% 238,600 Seville Forest Village, Apartments OH 24 268,665 3/94 3/78 100% 47,780 Sherwood Rainsville, Knoll AL 24 784,781 10/93 4/94 95% 162,500 Sugarwood Union City, Park Apts. GA 110 3,323,100 4/94 7/95 100% 1,194,911 Summerset Swainsboro, Apartments GA 30 945,068 1/94 11/95 96% 161,060 Tanglewood Lawrenceville, Apartments GA 130 4,310,000 11/93 12/94 100% 2,463,840 Village Independence, North I KS 24 863,297 6/94 12/94 100% 190,471 Vistas at Largo, Lake Largo MD 110 3,344,577 12/93 1/95 100% 2,783,420 Wedgewood Lane Cedar City, Apartments UT 24 1,006,953 6/94 9/94 100% 262,800 *Property was in the lease-up phase as of March 31, 1996. 23 Item 3. Legal Proceedings None. Item 4. Submission of Matters to a Vote of Security Holders None. 24 PART II ------- Item 5. Market for the Fund's Interests and Related Fund Matters (a) Market Information The Fund is classified as a limited partnership and thus has no common stock. There is no established public trading market for the BACs and it is not anticipated that any public market will develop. (b) Approximate number of security holders As of March 31, 1996, the Fund has 14,062 BAC holders for an aggregate of 21,996,102 BACs, at a subscription price of $10 per BAC, received and accepted. The BACs were issued in series. Series 15 consists of 2,603 investors holding 3,870,500 BACs, Series 16 consists of 3,665 investors holding 5,429,402 BACs, Series 17 consists of 3,089 investors holding 5,000,000 BACs, Series 18 consists of 2,179 investors holding 3,616,200 BACs, and Series 19 consists of 2,526 investors holding 4,080,000 BACs at March 31, 1996. (c) Dividend history and restriction The Fund has made no distributions of Net Cash Flow to its BAC Holders from its inception, September 19, 1991 through March 31, 1996. The Fund Agreement provides that Profits, Losses and Credits will be allocated each month to the holder of record of a BAC as of the last day of such month. Allocation of Profits, Losses and Credits among BAC Holders will be made in proportion to the number of BACs held by each BAC Holder. Any distributions of Net Cash Flow or Liquidation, Sale or Refinancing Proceeds will be made within 180 days of the end of the annual period to which they relate. Distributions will be made to the holders of record of a BAC as of the last day of each month in the ratio which (i) the BACs held by such Person on the last day of the calendar month bears to (ii) the aggregate number of BACs outstanding on the last day of such month. Fund allocations and distributions are described on page 60 of the Prospectus, as supplemented, under the caption "Sharing Arrangements: Profits, Credits, Losses, Net Cash Flow and Residuals", which is incorporated herein by reference. 25 Item 6. Selected Financial Data The information set forth below presents selected financial data of the Fund for each of the years ended in the period September 19, 1991 (date of inception) through March 31, 1996. Additional detailed financial information is set forth in the audited financial statements listed in Item 14 hereof. Operations - ---------- Sept. 19, 1991 through March 31, March 31, March 31, March 31, March 31, 1996 1995 1994 1993 1992 -------- -------- -------- -------- -------- Interest Inc $ 1,034,800 $ 2,200,432 $ 2,380,436 $ 707,838 $ 8,779 Share of Loss of Operating Partnerships (14,435,496) (10,794,203) (4,998,241) (1,294,781) (14,724) Operating Exp. (3,313,615) (3,739,460) (2,585,806) (909,201) (8,688) ----------- ----------- ---------- ---------- ---------- Net Loss $(16,714,311)$(12,333,231)$ (5,203,611)$ (1,496,144) $ (14,633) =========== =========== ========== ========== ========== Net Loss per BAC $ (.75)$ (.56) $ (.31)$ (.21) $ (.03) =========== =========== ========== =========== ========== As of As of As of As of As of March 31, March 31, March 31, March 31, March 31, 1996 1995 1994 1993 1992 -------- -------- -------- -------- -------- Balance Sheet - ------------- Total Assets $167,285,510 $202,894,304 $215,591,233 $110,044,342 $9,156,238 =========== =========== =========== =========== ========= Total Liab. $ 14,069,497 $ 33,078,601 $ 33,263,599 $ 18,125,363 $2,675,431 Partners' =========== =========== =========== =========== ========= Equity $153,216,013 $169,815,703 $182,327,634 $ 91,918,979 $6,480,807 =========== =========== =========== =========== ========= Other Data - ---------- Tax Credits per BAC for the Investors Tax Year, the Twelve Months Ended December 31, 1995, 1994, 1993, 1992 and 1991* $ 1.26 $ .66 $ .42 $ .21 $ .03 =========== =========== =========== ========== ========= * Credit per BAC is a weighted average of all the Series. Since each Series has invested as a limited partner in different Operating Partnerships the Credit per BAC will vary slightly from series to series. For more detailed information refer to Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations. 26 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity - --------- The Fund's primary source of funds is the proceeds of its Public Offering. Other sources of liquidity will include (i) interest earned on capital contributions held pending investment or on working capital reserves and (ii) cash distributions from operations of the Operating Partnerships in which the Fund has and will invest. All sources of liquidity are available to meet the obligations of the Fund. The Fund does not anticipate significant cash distributions in the long or short term from operations of the Operating Partnerships. The Fund is currently accruing the annual fund management fee to enable each series to meet current and future third party obligations. Fund management fees accrued during the year ended March 31, 1996 were $1,991,917, and total fund management fees accrued as of March 31, 1996 were $4,254,606. Pursuant to the Partnership Agreement, such liabilities will be deferred until the Fund receives sale or refinancing proceeds from Operating Partnerships, and at that time proceeds from such sales or refinancing would be used to satisfy such liabilities. The Fund invests in short-term tax-exempt municipal bonds to decrease the amount of taxable interest income that flows through to it's investors. The Fund anticipates that the investments it purchases will be held to maturity, but periodically the Fund must sell investments to meet certain obligations. Many of the investments sold during the years ended March 31, 1995 and 1996 were yielding coupon rates higher than market rates. A premature sale of these investments may have resulted in realized losses, but when combined with the higher coupon yields the resulting actual yields were consistent with market rates. In selecting investments to purchase and sell the general partner and it's advisors stringently monitor the ratings of the investments and safety of principal. 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 and accepted subscriptions for $219,961,020 representing 21,996,102 BACs from investors admitted as BAC Holders in Series 15 through 19 of the Fund. The Fund issued the last BACs in Series 19 on December 17, 1993. This concluded the Public Offering of the Fund. (Series 15). The Fund commenced offering BACs in Series 15 on January 24, 1992. As of March 31, 1996, the Fund had received and accepted subscriptions for $38,705,000 representing 3,870,500 BACs from investors admitted as BAC Holders in Series 15. Offers and sales of BACs in Series 15 were completed and the last of BACs in Series 15 were issued by the Fund on June 26, 1992. 27 During the fiscal year ended March 31, 1996, the Fund used $1,269,931 of Series 15 net offering proceeds to pay initial and additional installments of its capital contributions to 18 Operating Partnerships. As of March 31, 1996 proceeds from the offer and sale of BACs in Series 15 had been used to invest in a total of 68 Operating Partnerships in an aggregate amount of $29,389,280, and the Fund had completed payment of all installments of its capital contributions to 60 of the 68 Operating Partnerships. Series 15 has $202,750 in capital contributions that remain to be paid to the other 8 Operating Partnerships. (Series 16). The Fund commenced offering BACs in Series 16 on July 10, 1992. As of March 31, 1996, the Fund had received and accepted subscriptions for $54,293,000, representing 5,429,402 BACs in Series 16. Offers and sales of BACs in Series 16 were completed and the last of the BACs in Series 16 were issued by the Fund on December 28, 1992. During the fiscal year ended March 31, 1996, the Fund used $2,444,175 of Series 16 net offering proceeds to pay the initial and additional installments of its capital contributions to 39 Operating Partnerships. As of March 31, 1995 the net proceeds from the offer and sale of BACs in Series 16 had been used to invest in a total of 65 Operating Partnerships in an aggregate amount of $40,861,732, and the Fund had completed payment of all installments of its capital contributions to 50 of the 65 Operating Partnerships. Series 16 has $900,481 in capital contributions that remain to be paid to the other 15 Operating Partnerships. (Series 17). The Fund commenced offering BACs in Series 17 on January 24, 1993. As of March 31, 1996, the Fund had received and accepted subscriptions for $50,000,000 representing 5,000,000 BACs from investors admitted as BAC Holders in Series 17. Offers and sales of BACs in Series 17 were completed and the last of the BACs in Series 17 were issued on June 17, 1993. During the fiscal year ended March 31, 1996, the Fund used $3,724,505 of Series 17 net offering proceeds to pay initial and additional installments of its capital contributions to 24 Operating Partnerships. As of March 31, 1996 proceeds from the offer and sale of BACs in Series 17 had been used to invest in a total of 49 Operating Partnerships in an aggregate amount of $37,228,976, and the Fund had completed payments of all installments of its capital contributions to 30 of the 49 Operating Partnerships. Series 17 has $2,312,721 in capital contributions that remain to be paid to the other 19 Operating Partnerships. (Series 18). The Fund commenced offering BACs in Series 18 on June 17, 1993. As of March 31, 1996, the Fund had received and accepted subscriptions for $36,162,000 representing 3,616,200 BACs from investors admitted as BAC Holders in Series 18. Offers and sales of BACs in Series 18 were completed and the last of the BACs in Series 18 were issued on September 22, 1993. 28 During the fiscal year ended March 31, 1996, the Fund used $5,518,309 of Series 18 net offering proceeds to pay initial and additional installments of its capital contributions to 28 Operating Partnerships. As of March 31, 1996 proceeds from the offer and sale of BACs in Series 18 had been used to invest in a total of 34 Operating Partnerships in an aggregate amount of $26,601,277, and the Fund had completed payments of all installments of its capital contributions to 24 of the 34 Operating Partnerships. Series 18 has $861,315 in capital contributions that remain to be paid to the other 10 Operating Partnerships. (Series 19). The Fund commenced offering BACs in Series 19 on October 8, 1993. As of March 31, 1996, the Fund had received and accepted subscriptions for $40,800,000 representing 4,080,000 BACs from investors admitted as BAC Holders in Series 19. Offers and sales of BACs in Series 19 were completed and the last of the BACs in Series 19 were issued on December 17, 1993. During the fiscal year ended March 31, 1996, the Fund used $4,681,675 of Series 19 net offering proceeds to pay initial installments of its capital contributions to 16 Operating Partnerships. As of March 31, 1996 proceeds from the offer and sale of BACs in Series 19 had been used to invest in a total of 25 Operating Partnerships in an aggregate amount of $27,968,049, and the Fund had completed payments of all installments of its capital contributions to 10 of the 25 Operating Partnerships. Series 19 has $5,262,617 in capital contributions that remain to be paid to the other 15 Operating Partnerships. Series 19 also has approximately $2,100,000 of offering proceeds available to invest in additional Operating Partnerships. Results of Operations - --------------------- The Fund incured an annual fund management fee to the General Partner and/or its affiliates in an amount equal to 0.5% of the aggregate cost of the Apartment Complexes owned by the Operating Partnerships, less the amount of certain partnership management and reporting fees paid or payable by the Operating Partnerships. The annual fund management fee incurred for the fiscal years ended March 31, 1996 and 1995 was $2,399,311 and $2,413,494, respectively. The amount is anticipated to continue to decrease in subsequent fiscal years as additional Operating Partnerships begin to pay their annual partnership manageement and reporting fees to the fund. 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 and will be made principally with a view towards realization of Federal Housing Tax Credits for allocation to its partners and BAC holders. (Series 15). As of March 31, 1996 and 1995, the average Qualified Occupancy for the series was 99.9% and 99.9%, respectively. The series had a total of 68 properties at March 31, 1996. Out of the total, 66 were at 100% qualified occupancy. 29 For the tax years ended December 31, 1995 and 1994, the series, in total, generated $3,225,596 and 2,994,206, respectively, in passive income tax losses that were passed through to the investors and also provided $1.43 and $1.32, respectively, in tax credits per BAC to the investors. As of March 31, 1996 and 1995 the Investments in Operating Partnerships for Series 15 was $21,718,070 and $24,934,491, respectively. Investments in Operating Partnerships was affected by the way the Fund accounts for its investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. For the years ended March 31, 1996 and 1995 the net loss for the series was $3,638,790 and $3,512,414, respectively. The major component of these amounts is the Funds share of losses from Operating Partnerships. (Series 16). As of March 31, 1996 and 1995, the average Qualified Occupancy for the series was 99.7% and 98.4%, respectively. The series had a total of 65 properties at March 31, 1996. Out of the total, 63 were at 100% qualified occupancy. For the tax years ended December 31, 1995 and 1994, the series, in total, generated $3,276,992 and $3,232,667, respectively, in passive income tax losses that were passed through to the investors and also provided $1.37 and $.86 respectively, in tax credits per BAC to the investors. As of March 31, 1996 and 1995 the Investments in Operating Partnerships for Series 16 was $37,074,575 and $40,735,319, respectively. Investments in Operating Partnerships was affected by the acquisition of one additional Operating Partnership. Investments in Operating Partnerships was also affected by the way the Fund accounts for such investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. For the years ended March 31, 1996 and March 31, 1995 the net loss for the series was $4,509,607 and $3,306,762, respectively. The major components of these amounts are the Funds share of losses from Operating Partnerships and interest income earned on Offering proceeds to be used for acquisitions and Working Capital Reserves that have yet to be expended. The net loss increased as three properties in lease-up and one under construction at March 31,1995 became fully leased-up in the current fiscal year. (Series 17). As of March 31, 1996 and 1995, the average Qualified Occupancy for the Series was 99.6% and 98.6%, respectively. The series had a total of 49 properties at March 31, 1995. Out of the total 47 were at 100% qualified occupancy. For the tax years ended December 31, 1995 and 1994, the series, in total, generated $3,393,637 and $3,041,575, respectively, in passive income tax losses that were passed through to the investors and also provided $1.30 and $.81, respectively, in tax credits per BAC to the investors. 30 As of March 31, 1996 and 1995 the Investments in Operating Partnerships for Series 17 was $34,318,721 and $35,834,208, respectively. Investments in Operating Parnterships was affected by the acquisition of one additional Operating Partnership. Investments in Operating Partnerships was also affected by the way the Fund accounts for such investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. For the year ended March 31, 1996 the net loss of the series was $3,771,430 and $3,041,575, respectively. The major components of these amounts are the Funds share of losses from Operating Partnerships and interest income earned on Offering proceeds to be used for acquisitions and Working Capital Reserves that have yet to be expended. The net loss inreased as 4 properties in lease-up and 4 properties under construction at March 31, 1995 became fully leased-up in the current fiscal year. (Series 18). As of March 31, 1996 and 1995, the Qualified Occupancy for the series was 99.6% and 92.8%, respectively. The series had a total of 34 properties at March 31, 1996. Out of the total, 33 were at 100% qualified occupancy and 1 was in initial lease-up. For the tax years ended December 31, 1995 and 1994, the series, in total, generated $2,516,225 and $1,165,067, respectively, in passive income tax losses that were passed through to the investors and also provided $1.15 and $.27, respectively, in tax credits per BAC to the investors. As of March 31, 1996 and 1995, the Investments in Operating Partnerships for Series 18 was $26,102,954 and $28,633,478, respectively. Investments in Operating Partnerships was affected by the way the Fund accounts for such investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. For the year ended March 31, 1996 and 1995 the net loss for the series was $2,824,934 and $1,264,227, respectively. The major components of these amounts are the Funds share of losses from Operating Partnerships and interest income earned on Offering proceeds to be used for acquisitions and Working Capital Reserves that have yet to be expended. The net loss will continue to increase until all Operating Partnerships are fully leased-up. (Series 19). As of March 31, 1996 and 1995, the Qualified Occupancy for the series was 99.6% and 82.4%, respectively. The series had a total of 25 properties at March 31, 1996. Out of the total, 23 were at 100% qualified occupancy. For the tax year ended December 31, 1995 and 1994, the series, in total, generated $3,299,830 and $750,479, respectively, in passive income tax losses that were passed through to the investors and also provided $1.0 and $.10, respectively, in tax credits per BAC to the investors. 31 As of March 31, 1996 and 1995 the Investments in Operating Partnerships for Series 19 was $28,044,693 and $32,901,209, respectively. The decrease was due in part to the sale of one of the Operating Partnerships owned at March 31, 1995. Investments in Operating Partnerships was also affected by the way the Fund accounts for such investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. For the years ended March 31, 1996 and 1995, the net loss for the series was $1,969,550 and $1,208,253, respectively. The major components of these amounts are the Funds share of losses from Operating Partnerships and interest income earned on Offering proceeds to be used for acquisitions and Working Capital Reserves that have yet to be expended. The Net loss increased as 6 properties in lease-up and 8 properties under construction at March 31, 1995 became fully leased-up in the current fiscal year. In all series there was an increase in the tax credits provided to the investors from tax years ended December 31, 1994 to December 31, 1995. A greater number of credits was generated by properties which were under construction or in initial lease-up as of December 31, 1994, and subsequently completed construciton and lease-up phases as of December 31, 1995. The Fund expects the stream of tax credits to level of within the next two years as the properties in all series reach stabilized operations. Recent Accounting Standards Not Yet Adopted - ------------------------------------------- In March, 1995 the FASB issued SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of." SFAS No. 121 is effective for financial statements issued for fiscal years beginning after December 31, 1995, with earlier application permitted. SFAS No. 121 addresses the accounting for long-lived assets and certain identifiable intangibles to be held and used by an entity to be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The partnership will adopt SFAS No. 121 on April 1, 1996, as required. Adopting SFAS No. 121 is not expected to have a significant effect on the partnership's financial statements. 32 Item 8. Financial Statements and Supplementary Data The information required by this item is contained in Part IV, Item 14 of this Annual Report on Form 10-K. Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None. 33 PART III -------- Item 10. Directors and Executive Officers of the Fund (a), (b), (c), (d) and (e) The Fund has no directors or executives officers of its own. The following biographical information is presented for the partners of the General Partners and affiliates of those partners (including Boston Capital Partners, Inc. ("Boston Capital")) with principal responsibility for the Fund's affairs. Herbert F. Collins, age 65, is co-founder and Chairman of the Board of Boston Capital Partners, Inc. During 1990 and 1991 he served as Chairman of the Board of Directors for the Federal Home Loan Bank of Boston, a 314-member, $12-billion central bank in New England which is part of the Federal Home Loan Bank System. Mr. Collins is co-founder and serves as Chairman-Emeritus of the Council for Rural Housing and Development, a 300-member organization including 14 state associations formed to encourage the development of rural housing nationwide. He serves as Chairman of the Massachusetts Housing Policy Commission, created by the Governor of the Commonwealth of Massachusetts and the Secretary of the Executive Office of Communities & Development, to assess the current status and recommend future housing policy for the Commonwealth. Additionally, he serves as a Member of the Board of Directors, of the Metropolitan Boston Housing Partnership, an organization dedicated to the renewal of housing through rehabilitation and community involvement. He served on the Mitchell-Danforth Task Force, which helped structure the 1990 tax credit legislation. In addition, Mr. Collins is a past director of the National Leased Housing Association, past chairman of the Rural Development Committee, and is a member of the National Rural Housing Council. Currently, Mr. Collins is a Board member of the National Housing Conference. Prior to co-founding Boston Capital, Mr. Collins served as Vice President and Director of Marketing at ECS Corporation and the Advanced Research Corporation, and was the Product Marketing Manager at Raytheon Corporation. Mr. Collins graduated from Harvard College and attended the Advanced Management Program, Harbridge House, Boston. John P. Manning, age 47, is co-founder, President and Chief Executive Officer of Boston Capital Partners, Inc., and serves as member of the Investment Committee. Mr. Manning is Chairman of the Affordable Housing Tax Credit Coalition and is member of the Board of Directors of the National Leased Housing Association, two Washington, D.C.-based organizations. He also serves on the Board of Advisors for the Housing Development Reporter. He served as a Member of the Massachusetts Housing Policy Commission, Executive Office of Communities & Development, appointed by the Governor of the Commonwealth of Massachusetts. He was named by U.S. Senate Majority Leader George Mitchell to the Mitchell-Danforth Task Force, which helped structure the 1990 tax credit legislation. In similar capacities, Mr. Manning has been asked by the U.S. House Ways and Means Committee and by the U.S. Senate Finance Committee to represent the affordable housing industry as an expert on the efficacy of the low income housing tax credit and its effect on capital markets and the economy. Prior to co-founding Boston Capital in 1974, Mr. Manning was the Eastern Regional Vice President of Western Diversified Equities, a Beverly 34 Hills-based real estate development firm, and was an Investment Manager at the Industrial National Bank in Providence. In 1995, President Clinton appointed Mr. Manning a Member of the Advisory Committee on the Arts (John F. Kennedy Center for the Performing Arts). Mr. Manning graduated from Boston College. Richard J. DeAgazio, age 51, is Executive Vice President of Boston Capital Partners, Inc., and is President of Boston Capital Services, Inc., Boston Capital's NASD registered broker/dealer. Mr. DeAgazio formally served on the national Board of Governors of the National Association of Securities Dealers (NASD), was the Vice Chairman of the NASD's District 11 Committee, and serves as Chairman of the NASD's Statutory Disqualification Subcommittee of the National Business Conduct Committee. He also serves on the NASD State Liaison Committee and the Direct Participation Program Committee. He is a founder and past President of the National Real Estate Investment Association, past President of the Real Estate Securities and Syndication Institute (Massachusetts Chapter) and the Real Estate Investment Association. Prior to joining Boston Capital in 1981, Mr. DeAgazio was the Senior Vice President and Director of the Brokerage Division of Dresdner Securities (USA), Inc., an international investment banking firm owned by four major European banks, and was a Vice President of Burgess & Leith/Advest. He has been a member of the Boston Stock Exchange since 1967. He graduated from Northeastern University. Christopher W. Collins, age 41, is an Executive Vice President and a principal of Boston Capital Partners, Inc., and is responsible for, among other areas, overseeing the investment portfolio of funds sponsored by Boston Capital and the acquisition of real estate investments on behalf of such funds. Mr. Collins has had extensive experience in real estate development activities, having founded and directed the American Development Group, a comprehensive real estate development firm, and has also had extensive experience in the area of acquiring real estate investments. He is on the Board of Directors of the National Multi-Housing Council and a member of the Massachusetts Housing Finance Agency Multi-Family Advisory Committee. He graduated from the University of New Hampshire. Anthony A. Nickas, age 35, is Senior Vice President and Chief Financial Officer of Boston Capital Partners, Inc. and has over twelve years experience in the accounting and finance fields. Mr. Nickas has supervised the financial aspects of both the Project Development and Property Management Affiliates. Prior to joining Boston Capital in 1987, he was Assistant Director of Accounting and Financial Reporting for the Yankee Companies, Inc., and was an Audit Supervisor for Wolf & Company of Massachusetts, P.C., a regional certified public accounting firm based in Boston. He graduated with honors from Norwich University. (f) Involvement in certain legal proceedings. None. (g) Promoters and control persons. None. 35 Item 11. Executive Compensation (a), (b), (c), (d) and (e) The Fund has no officers or directors. However, under the terms of the Amended and Restated Agreement and Certificate of Limited Partnership of the Fund, the Fund has paid or accrued obligations to the General Partner and its affiliates for the following fees during the 1996 fiscal year: 1. An annual fund management fee based on .5 percent of the aggregate cost of all Apartment Complexes acquired by the Operating Partnerships has been accrued or paid to Boston Capital Communications Limited Partnership. The annual fund management Fees charged to operations during the year ended March 31, 1996 was $2,399,311. 2. The Fund has reimbursed an affiliate of the General Partner a total of $140,531 for amounts charged to operations during the year ended March 31, 1996. The reimbursement includes, but may not be limited to postage, printing, travel, and overhead allocations. Item 12. Security Ownership of Certain Beneficial Owners and Management (a) Security ownership of certain beneficial owners. As of March 31, 1996, 21,996,102 BACs had been issued. No person is known to own beneficially in excess of 5% of the outstanding BACs in any of the series. (b) Security ownership of management. The General Partner has a 1% interest in all Profits, Losses, Credits and distributions of the Fund. The Fund's response to Item 12(a) is incorporated herein by reference. (c) Changes in control. There exists no arrangement known to the Fund the operation of which may at a subsequent date result in a change in control of the Fund. There is a provision in the Limited Partnership Agreement which allows, under certain circumstances, the ability to change control. 36 Item 13. Certain Relationships and Related Transactions (a) Transactions with management and others. The Fund has no officers or directors. However, under the terms of the public offering, various kinds of compensation and fees are payable to the General Partner and its Affiliates during the organization and operation of the Fund. Additionally, the General Partner will receive distributions from the partnership if there is cash available for distribution or residual proceeds as defined in the Fund Agreement. The amounts and kinds of compensation and fees are described on page 26 of the Prospectus, as supplemented, under the caption "Compensation and Fees", which is incorporated herein by reference. See Note C of Notes to Financial Statements in Item 14 of this Annual Report on Form 10-K for amounts accrued or paid to the General Partner and its affiliates during the period from September 19, 1991 (date of inception) through March 31, 1995. (b) Certain business relationships. The Fund response to Item 13(a) is incorporated herein by reference. (c) Indebtedness of management. None. (d) Transactions with promoters. Not applicable. 37 PART IV ------- Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K (a) 1 and 2. Financial Statements and Financial Statement Schedules Independent Auditors' Report Balance Sheets, March 31, 1996 and 1995 Statements of Operations for the years ended March 31, 1996, 1995 and 1994 Statements of Changes in Partners' Capital for the years and period ended March 31, 1996, 1995, and 1994 Statements of Cash Flows for the years ended March 31, 1996, 1995 and 1994 Notes to Financial Statements March 31, 1996, 1995 and 1994 Schedule I - Marketable Securities - Other Investments Schedule III - Real Estate and Accumulated Depreciation Notes to Schedule III Schedules not listed are omitted because of the absence of the conditions under which they are required or because the information is included in the financial statements or the notes hereto. (a) 3. Exhibits (listed according to the number assigned in the table in Item 601 of Regulation S-K) Exhibit No. 3 - Organization Documents. a. Certificate of Limited Partnership of Boston Capital Tax Credit Fund III L.P. (Incorporated by reference from Exhibit 3 to the Fund's Registration Statement No. 33-42999 on Form S-11 as filed with the Securities and Exchange Commission on September 26, 1991.) Exhibit No. 4 - Instruments defining the rights of security holders, including indentures. a. Agreement of Limited Partnership of Boston Capital Tax Credit Fund III L.P. (Incorporated by reference from Exhibit 4 to the Fund's Registration Statement No. 33-42999 on Form S-11 as filed with the Securities and Exchange Commission on September 26, 1991.) 38 Exhibit No. 10 - Material contracts. a. Beneficial Assignee Certificate. (Incorporated by reference from Exhibit 10A to the Fund's Registration Statement No. 33-42999 on Form S-11 as filed with the Securities and Exchange Commission on September 26, 1991.) Exhibit No. 28 - Additional exhibits. a. Agreement of Limited Partnership of Branson Christian County (Incorporated by reference from Registrant's current report on Form 8-K as filed with the Securities and Exchange Commission on April 4, 1994). b. Agreement of Limited Partnership of Peachtree L.P. (Incorporated by reference from Registrant's current report on Form 8-K as filed with the Securities and Exchange Commission on April 4, 1994). c. Agreement of Limited Partnership of Cass Partners, L.P. (Incorporated by reference from Registrant's current report on Form 8-K as filed with the Securities and Exchange Commission on April 7, 1994). d. Agreement of Limited Partnership of Sable Chase of McDonough L.P. (Incorporated by reference from Registrant's current report on Form 8-K as filed with the Securities and Exchange Commission on April 8, 1994). e. Agreement of Limited Partnership of Ponderosa Meadows Limited Partnership (Incorporated by reference from Registrant's current report on Form 8-K as filed with the Securities and Exchange Commission on April 12, 1994). f. Agreement of Limited Partnership of Hackley-Barclay LDHA (Incorporated by reference from Registrant's current report on Form 8-K as filed with the Securities and Exchange Commission on April 14, 1994). g. Agreement of Limited Partnership of Sugarwood Park (Incorporated by reference from Registrant's current report on Form 8-K as filed with the Securities and Exchange Commission on May 12, 1994). h. Agreement of Limited Partnership of West End Manor of Union Limited Partnership (Incorporated by reference from Registrant's current report on Form 8-K as filed with the Securities and Exchange Commission on May 29, 1994). i. Agreement of Limited Partnership of Vista Loma (Incorporated by reference from Registrant's current report on Form 8-K as filed with the Securities and Exchange Commission on May 31, 1994). 39 j. Agreement of Limited Partnership of Palmetto Properties (Incorporated by reference from Registrant's current report on Form 8-K as filed with the Securities and Exchange Commission on June 16, 1994). k. Agreement of Limited Partnership of Jefferson Square (Incorporated by reference from Registrant's current report on Form 8-K as filed with the Securities and Exchange Commission on June 27, 1994). l. Agreement of Limited Partnership of Holts Summit Square (Incorporated by reference from Registrant's current report on Form 8-K as filed with the Securities and Exchange Commission on June 27, 1994). m. Agreement of Limited Partnership of Harris Housing (Incorporated by reference from Registrant's current report on Form 8-K as filed with the Securities and Exchange Commission on July 8, 1994). n. Agreement of Limited Partnership of Branson Christian County II (Incorporated by reference from Registrant's current report on Form 8-K as filed with the Securities and Exchange Commission on September 1, 1994). o. Agreement of Limited Partnership of Chelsea Square (Incorporated by reference from Registrant's current report on Form 8-K as filed with the Securities and Exchange Commission on September 12, 1994). p. Agreement of Limited Partnership of Palatine Limited Partnership (Incorporated by reference from Registrant's current report on Form 8-K as filed with the Securities and Exchange Commission on September 21, 1994). q. Agreement of Limited Partnership of Mansura Villa II Limited Partnership (Incorporated by reference from Registrant's current report on Form 8-K as filed with the Securities and Exchange Commission on October 19, 1994). r. Agreement of Limited Partnership of Haynes House Associates II Limited Partnership (Incorporated by reference from Registrant's current report on Form 8-K as filed with the Securities and Exchange Commission on October 25, 1994). s. Agreement of Limited Partnership of Skowhegan Limited Partnership (Incorporated by reference from Registrant's current report on Form 8-K as filed with the Securities and Exchange Commission on October 28, 1994). t. Agreement of Limited Partnership of Mt. Vernon Associates, L.P. (Incorporated by reference from Registrant's current report on F rm 8-K as filed with the Securities and Exchange Commission on November 19, 1994). 40 u. Agreement of Limited Partnership of Clinton Estates, L.P. (Incorporated by reference from Registrant's current report on Form 8-K as filed with the Securities and Exchange Commission on February 1, 1995.) (b) Reports on Form 8-K ------------------- Report on Form 8-K dated April 4, 1994, concerning the Partnership's investment in Branson Christian County, L.P. filed with the commission on April 4, 1994. Report on Form 8-K dated April 4, 1994, concerning the Partnership's investment in Peachtree Limited Partnership filed with the commission on April 4, 1994. Report on Form 8-K dated April 7, 1994, concerning the Partnership's investment in Cass Partners, L.P. filed with the commission on April 7, 1994. Report on Form 8-K dated April 8, 1994, concerning the Partnership's investment in Sable Chase of McDonough L.P. filed with the commission on April 8, 1994. Report on Form 8-K dated April 12, 1994, concerning the Partnership's investment in Ponderosa Meadows Limited Partnership filed with the commission on April 12, 1994. Report on Form 8-K dated April 14, 1994, concerning the Partnership's investment in Hackley-Barclay Limited Partnership filed with the commission on April 14, 1994. Report on Form 8-K dated May 12, 1994, concerning the Partnership's investment in Sugarwood Park Limited Partnership filed with the commission on May 12, 1994. Report on Form 8-K dated May 29, 1994, concerning the Partnership's investment in West End Manor of Union Limited Partnership filed with the commission on May 29, 1994. Report on Form 8-K dated May 31, 1994, concerning the Partnership's investment in Vista Loma Limited Partnership filed with the commission on May 31, 1994. Report on Form 8-K dated June 16, 1994, concerning the Partnership's investment in Palmetto Properties Limited Partnership filed with the commission on June 16, 1994. Report on Form 8-K dated June 27, 1994, concerning the Partnership's investment in Jefferson Square Limited Partnership filed with the commission on June 27, 1994. 41 Report on Form 8-K dated June 27, 1994, concerning the Partnership's investment in Holts Summit Square Limited Partnership filed with the commission on June 27, 1994. Report on Form 8-K dated July 8, 1994, concerning the Partnership's investment in Harris Houisng Limited Partnership filed with the commission on June 27, 1994. Report on Form 8-K dated September 1, 1994, concerning the Partnership's investment in Branson Christian County II Limited Partnership filed with the commission on September 1, 1994. Report on Form 8-K dated September 12, 1994, concerning the Partnership's investment in Chelsea Square Limited Partnership filed with the commission on September 12, 1994. Report on Form 8-K dated September 21, 1994, concerning the Partnership's investment in Palatine Limited Partnership filed with the commission on September 21, 1994. Report on Form 8-K dated October 19, 1994, concerning the Partnership's investment in Mansura Villa II Partnership filed with the commission on October 19, 1994. Report on Form 8-K dated October 25, 1994, concerning the Partnership's investment in Haynes House Associates II Limited Partnership filed with the commission on October 25, 1994. Report on Form 8-K dated October 28, 1994, concerning the Partnership's investment in Skowhegan Limited Partnership filed with the commission on October 28, 1994. Report on Form 8-K dated November 19, 1994, concerning the Partnership's investment in Mt. Vernon Associates, L.P. filed with the commission on November 19, 1994. Report on Form 8-K dated November 19, 1994, concerning the Partnership's investment in Clinton Estates, L.P. filed with the commission on January 12, 1995. (c) Exhibits -------- The list of exhibits required by Item 601 of Regulation S-K is included in Item 14 (a)(3). (d) Financial Statement Schedules ----------------------------- See Item 14 (a) 1 and 2 above. (e) Independent Auditors' Reports for Operating Partnerships. -------------------------------------------------------- 42 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: Boston Capital Associates Date: July 15, 1996 By: /s/ John P. Manning ------------------- John P. Manning By: /s/ Herbert F. Collins ----------------------- Herbert F. Collins Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Fund and in the capacities and on the dates indicated: DATE: SIGNATURE: TITLE: General Partner and July 15, 1996 /s/ John P. Manning Principal Executive ------------------- Officer, Principal Financial Officer and Principal Accounting Officer of Boston Capital Associates General Partner and /s/ Herbert F. Collins Principal Executive ---------------------- Officer, Principal Financial Officer and Principal Accounting Officer of Boston Capital Associates 43 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: Boston Capital Associates By: _________________________ Date: July 15, 1996 John P. Manning By: _________________________ Herbert F. Collins Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Fund and in the capacities and on the dates indicated: DATE: July 15, 1996 SIGNATURE: TITLE: General Partner and _____________________ Principal Executive John P. Manning Officer, Principal Financial Officer and Principal Accounting Officer of Boston Capital Associates General Partner and _____________________ Principal Executive Herbert F. Collins Officer, Principal Financial Officer and Principal Accounting Officer of Boston Capital Associates 43 FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT BOSTON CAPITAL TAX CREDIT FUND III L.P. - SERIES 15 THROUGH SERIES 19 MARCH 31, 1996 AND 1995 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 TABLE OF CONTENTS PAGE INDEPENDENT AUDITORS' REPORT F-3 FINANCIAL STATEMENTS BALANCE SHEETS F-5 STATEMENTS OF OPERATIONS F-11 STATEMENTS OF CHANGES IN PARTNERS' CAPITAL F-17 STATEMENTS OF CASH FLOWS F-23 NOTES TO FINANCIAL STATEMENTS F-35 SCHEDULE I - MARKETABLE SECURITIES - OTHER INVESTMENTS F-67 SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION F-69 NOTES TO SCHEDULE III Schedules not listed are omitted because of the absence of the conditions under which they are required or the information is included in the financial statements or the notes thereto. Reznick Fedder & Silverman Certified Public Accountants * Business Consultants A Professional Corporation 4520 East-West Highway * Suite 300 * Bethesda, MD 20814-3319 (301) 652-9100 * Fax (301) 652-1848 INDEPENDENT AUDITORS' REPORT To the Partners Boston Capital Tax Credit Fund III L.P. We have audited the accompanying balance sheets of Boston Capital Tax Credit Fund III L.P. Series 15 through Series 19, in total and for each series, as of March 31, 1996 and 1995 and the related statements of operations, changes in partners' capital and cash flows for the total partnership and for each of the series for each of the three years in the year or period ended March 31, 1996, which includes the total partnership and Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 as of March 31, 1996 and 1995 and the related statements of operations, changes in partners' capital and cash flows for the years ended March 31, 1996, 1995 and 1994 for the total partnership and Series 15 through Series 17, for the years ended March 31, 1996 and 1995 for Series 18 and 19, and for the period June 17, 1993 (date of inception) through March 31, 1994 for Series 18, and for the period October 8, 1993 (date of inception) through March 31, 1994 for Series 19. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We did not audit the financial statements of certain operating limited partnerships in which Boston Capital Tax Credit Fund III L.P. owns a limited partnership interest. Investments in such partnerships comprise the following percentages: Total, 25% and 26% of the assets as of March 31, 1996 and 1995 and 26%, 19% and 32% of the operating limited partnership loss for years ended March 31, 1996, 1995 and 1994, respectively; of the assets for Series 15 as of March 31, 1996 and 1995, 27% and 18%, respectively, of the operating limited partnership loss for Series 15 for the years ended March 31, 1996, 1995 and 1994, 29%, 20% and 38%, respectively; of the assets for Series 16 as of March 31, 1996 and 1995, 29% and 26%, respectively, of the limited partnership loss for Series 16 for the years ended March 31, 1996, 1995 and 1994, 28%, 26% and 11%, respectively; of the assets for Series 17 as of March 31, 1996 and 1995, 24% and 26%, of the limited partnership loss for Series 17 for the years ended March 31, 1996, 1995 and 1994, 23%, 23% and 39%, respectively; of the assets for Series 18 as of March 31, 1996 and 1995, 19% and 30% and of the operating limited partnership loss for Series 18 for the years ended March 31, 1996 and 1995 and for the period June 17, 1993 (date of inception) through March 31, 1994, 19%, 19% and 4%, respectively; and of the assets for Series 19 as of March 31, 1996 and 1995, 33% and 30% and of the operating limited partnership loss for Series 19 for the years ended March 31, 1996 and 1995 and for the period October 8, 1993 (date of inception) through March 31, 1994, 22%, 11% and 7%, respectively. The financial statements of these partnerships were audited by other auditors, whose reports have been furnished to us, and our opinion, insofar as it relates to information relating to these partnerships, is based solely on the reports of the other auditors. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and signifi- cant estimates made by management, as well as evaluating the overall - F-3 - financial statement presentation. We believe that our audits and the reports of the other auditors provide a reasonable basis for our opinion. In our opinion, based on our audits and the reports of the other auditors, the financial statements referred to above present fairly, in all material respects, the financial position of Boston Capital Tax Credit Fund III L.P. Series 15 through Series 19, in total and for each series, as of March 31, 1996 and 1995 and the results of its operations and its cash flows for the total partnership and for each of the series for each of the three years in the year or period ended March 31, 1996, which includes the total partnership and Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 as of March 31, 1996 and 1995 and the results of their operations and their cash flows for each of the three years in the period ended March 31, 1996 for the total partnership and Series 15 through Series 17, for the years ended March 31, 1996 and 1995 for Series 18 and Series 19, for the period June 17, 1993 (date of inception) through March 31, 1994 for Series 18, and for the period October 8, 1993 (date of inception) through March 31, 1994 for Series 19, in conformity with generally accepted accounting principles. We and other auditors have also audited the information included in the related financial statement schedules listed in Form 10-K, Item 14(a) of Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 as of March 31, 1996. In our opinion, the schedules present fairly, in all material respects, the information required to be set forth therein, in conformity with generally accepted accounting principles. Bethesda, Maryland July 2, 1996 - F-4 - INDEPENDENT AUDITORS' REPORT To the Partners Graham Housing Associates Limited Partnership Raleigh, North Carolina We have audited the accompanying balance sheets of Graham Housing Associates Limited Partnership, as of December 31, 1995, and the related statements of operations, and changes in partners' deficit, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Graham Housing Associates Limited Partnership as of December 31, 1995, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The supporting data included in the report is presented for the purposes of additional analysis and is not a required part of the financial statements of Graham Housing Associates Limited Partnership. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. February 19,1996 Charles Bailly & Company P.L.L.P. Certified Public Accountants Consultants INDEPENDENT AUDITOR'S REPORT The Partners Ridgeview Apartments of Brainerd A Limited Partnership Moorhead, Minnesota We have audited the accompanying balance sheets of Ridgeview Apartments of Brainerd A Limited Partnership, FmHA Project Number 27-018-0411625811 as of December 31, 1995 and 1994, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Ridgeview Apartments of Brainerd A Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Fargo, North Dakota February 8, 1996 Charles Bailly & Company P.L.L.P. Certified Public Accountants Consultants INDEPENDENT AUDITOR'S REPORT The Partners Ridgeview Apartments of Brainerd A Limited Partnership Moorhead, Minnesota We have audited the accompanying balance sheets of Ridgeview Apartments of Brainerd A Limited Partnership, FmHA Project Number 27-018-0411625811 as of December 31, 1994 and 1993, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Ridgeview Apartments of Brainerd A Limited Partnership as of December 31, 1994 and 1993, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Fargo, North Dakota January 17,1994 Plante & Moran, LLP 1111 Michigan Avenue P.O Box 2500 East Lansing, Michigan 48826-2500 Certified Public Accountants Management Consultants 517-332-6200 FAX 517-332-8502 Independent Auditor's Report To the Partners University Meadows Limited Dividend Housing Association Limited Partnership We have audited the accompanying balance sheets of University Meadows Limited Dividend A Limited Partnership, (a Michigan limited partnership),MSHDA Development NO. 889, as of December 31, 1995 and 1994, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of University Meadows Limited Dividend A Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 12, 1996, on our consideration of the Partnership's internal control structure and a report January 12, 1996, on its compliance with laws and regulations. January 12, 1996 A Member of Moores Rowland International A worldwide association of independent accounting Plante & Moran, LLP 1111 Michigan Avenue P.O Box 2500 East Lansing, Michigan 48826-2500 Certified Public Accountants Management Consultants 517-332-6200 FAX 517-332-8502 Independent Auditor's Report To the Partners University Meadows Limited Dividend Housing Association Limited Partnership We have audited the accompanying balance sheets of University Meadows Limited Dividend A Limited Partnership, (a Michigan limited partnership),MSHDA Development NO. 889, as of December 31, 1994 and 1993, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of University Meadows Limited Dividend A Limited Partnership as of December 31, 1994 and 1993, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. January 12, 1996 A Member of Moores Rowland International A worldwide association of independent accounting TAMA AND BUDAJ, P.C. Certified Public Accountants 32783 Middlebelt Road Farmington Hills, Michigan 48334-1726 (810) 626-3800 Fax No. (810) 626-2276 ELY TAMA, CPA* JEFFREY F. BUDAJ, CPA - ---------------------- BARTON A. LOWN, CPA EMIL A. RAAB, CPA DIANE L. ISAACS, CPA JONATHON M. SHELDON, CPA JOHN W. WEIPERT, CPA * Also Licensed in Florida And South Carolina MEMBERS - ------- AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS MICHIGAN ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SOUTH CAROLINA ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT - ---------------------------- To the Partners of Heron's Landing RRH, Ltd. We have audited the accompanying balance sheet of Heron's Landing RRH, Ltd. as of December 31, 1995 and 1994, and the related statements of operations, changes in partners' equity (deficit) and cash flows - project operations for the year then ended. These financial statements are the responsibility of the general partner and management of the partnership. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly in all material respects, the financial position of Heron's Landing RRH, Ltd., as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. TAMA AND BUDAJ, P.C. Page 2 Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supporting data on pages 10 through 17 inclusive has been subjected to the auditing procedures applied in the examination of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as whole. We have also reviewed internal accounting controls and compliance with laws and regulations and have rendered our reports thereon on pages 18 through 20. TAMA AND BUDAJ, P C. Farmington Hills, Michigan February 9, 1996 VELEZ, SEMPRIT, NIEVES & Co. 252 Ponce de Leon Ave 11th Floor Hato Rey, Puerto Rico 00918-9922 Tel: (809) 751-6500 Fax: (809) 767-1197 Certified Public Accountants / Business Advisors A member of Horwath International INDEPENDENT AUDITORS' REPORT ON FINANCIAL STATEMENTS - ----------------------------------------------------- Partners April Gardens Apartments III Limited Partnership San Juan, Puerto Rico We have audited the accompanying balance sheets of April Gardens Apartments III Limited Partnership as of December 31, 1995 and 1994, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of April Gardens Apartments III Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 26, 1996 on our consideration of the Partnership's internal control structure and a report dated January 26, 1996 on its compliance with laws, regulations, contracts, loan covenants and agreements. VELEZ, SEMPRIT, NIEVES & Co. Page 2 We conducted our audits to form an opinion on the basic financial statements of April Gardens Apartments III Limited Partnership taken as a whole. The accompanying schedules of administrative, utilities, maintenance, taxes, insurance and interest expense are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. January 26, 1996 Stamp number 1340334 was affixed to the original of this report. GRAHAM CARTER & JENNINGS, PLC CERTIFIED PUBLIC ACCOUNTANTS Harold D. Carter (1931-1993) - ---------------------------- Jack G. Jennings Walter H. Graham Michael J. Carter Diane B. Carter Independent Auditor'S Report - ---------------------------- To the Partners Autumnwood Limited Partnership We have audited the accompanying balance sheets of Autumnwood Limited Partnership (a Virginia limited partnership) , FMHA Project No.: 54-025-621447815, as of December 31, 1995 and 1994, and the related statements of operations, partners, capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Autumnwood Limited Partnership, FMHA Project No. : 54-025-621447815, as of December 31, 1995 and 1994, and the results of its operations, the changes in partners, capital and cash flows for the years then ended in conformity with generally accepted accounting principles. 601 Thimble Shoals Boulevard Suite 201 Newport News, Virginia 23606 (804) 873-0767 Fax (804) 873-6938 GRAHAM CARTER & JENNINGS, PLC Page 2 Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 13 and 14 is presented for purposes of additional analysis and is not required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. February 26, 1996 CARTER & JENNINGS, P.C. CERTIFIED PUBLIC ACCOUNTANTS 11832-B Canon Boulevard Newport News, Virginia 23606 (804) 873-0767 Facsimile (804) 873-0874 Harold D. Carter (1931-1993) Jack G. Jennings Michael J. Carter INDEPENDENT AUDITOR'S REPORT - ---------------------------- To the Partners Autumnwood Limited Partnership We have audited the accompanying balance sheets of Autumnwood Limited Partnership (a Virginia limited partnership), FMHA Project No.: 54-025-621447815, as of December 31, 1994 and 1993, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility s to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government auditing Standards, issued by the Comptroller General of the United States. Those standards require hat we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing he accounting principles used and significant estimates made by management, as well as evaluating he overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Autumnwood Limited Partnership, FMHA Project No.: 54-025621447815, as of December 31, 1994 and 1993, and the results of its operations, the changes in partners' capital and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 13 and 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Newport News, Virginia February 3, 1995 GOLDEN ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS P.O. Box 967 769 E. Oglethorpe Hwy Hinesville, GA 31313 Larry R. Golden, CPA Janine D. Graham, CPA INDEPENDENT AUDITOR'S REPORT - ---------------------------- To The Partners Barton Village Limited Partnership We have audited the accompanying balance sheets of Barton Village Limited Partnership, as of December 31, 1995 and 1994, and the related statements of operations, changes in partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Barton Village Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. GOLDEN ASSOCIATES Certified Public Accountants April 1, 1996 Hinesville, Georgia TEL. (912) 369-7575 FAX. (912) 876-8798 Members American Institute and Georgia Society of Certified Public Accountants SCHELL & HOGAN CERTIFIED PUBLIC ACCOUNTANTS P.0. Box 859 Brunswick, GA 31521 (912) 267-5300 P.O. Box 967 Hinesville, GA 31313 (912) 369-7575 Jerry W. Harper, CPA James A. Szwast, CPA Larry R. Golden, CPA Joseph A. Whittle, Jr., CPA Steven P. Graham, CPA INDEPENDENT AUDITOR'S REPORT - ---------------------------- To The Partners Barton Village Limited Partnership We have audited the accompanying balance sheets of Barton Village Limited Partnership, as f December 31, 1993 and 1992, and the related statements of operations, changes in partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. hose standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Barton Village Limited Partnership as of December 31, 1993 and 1992, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. SCHELL AND HOGAN Certified Public Accountants February 21, 1994 Hinesville, Georgia Members American Institute and Georgia Society of Certified Public Accountants LITTLE, SHANEYFELT & CO. CERTIFIED PUBLIC ACCOUNTANTS 1501 N. UNIVERSITY, SUITE 300 LITTLE ROCK ARKANSAS 72207-5232 TELEPHONE (501) 666-2879 INDEPENDENT AUDITOR'S REPORT - ---------------------------- To the Partners Beckwood Manor Eight Limited Partnership We have audited the accompanying balance sheet of Beckwood Manor Eight Limited Partnership, FMHA Project No. 03-009- 0710677267 (the Partnership), as of December 31, 1995, and the related statements of profit (loss), changes in partners' equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles Used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Beckwood Manor Eight Limited Partnership as of December 31, 1995, and its results of operations, changes in partners' equity (deficit), and cash flows for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated March 11, 1996, on our consideration of the Partnership's internal control structure and a report dated March 11, 1996 on its compliance with laws, regulations, contracts and grants. Little, Shaneyfelt & Co. March 11, 1996 GRAHAM CARTER & JENNINGS, PLC CERTIFIED PUBLIC ACCOUNTANTS Harold D. Carter (1931-1993) - --------------------------- Jack G. Jennings Walter H. Graham Michael J. Carter Diane B. Carter INDEPENDENT AUDITOR'S REPORT - ---------------------------- To the Partners Brunswick Limited Partnership We have audited the accompanying balance sheets of Brunswick Limited Partnership (a Virginia limited partnership) FMHA Project No.: 54-017-621447814, as of December 31, 1995 and 1994, and the related statements of operations, partners' capital and cash flows or the years then ended. These financial statements are the responsibility of the Partnership' s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance bout whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Brunswick Limited Partnership, FMHA Project No. : 54-017-621447814, as of December 31, 1995 and 1994, and the results of its operations, he changes in partners, capital and cash flows for the years then ended in conformity with generally accepted accounting principles. 601 Thimble Shoals Boulevard, Suite 201 Newport News, Virginia 23606 (804) 873-0767 Fax (804) 873-6938 GRAHAM CARTER & JENNINGS, PLC Page 2 Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 13 and 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. February 26, 1996 CARTER & JENNINGS, P.C. CERTIFIED PUBLIC ACCOUNTANTS 11832-B Canon Boulevard Newport News, Virginia 23606 (804) 873-0767 Facsimile (804) 873-0874 Harold D. Carter (1931 - 1993) - ------------------------------- Jack G. Jennings Michael J. Carter INDEPENDENT AUDITOR'S REPORT - ---------------------------- To the Partners Brunswick Limited Partnership We have audited the accompanying balance sheets of Brunswick Limited Partnership (a Virginia limited partnership), FMHA Project No.: 54-017-621447814, as of December 31, 1994 and 1993, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Brunswick Limited Partnership, FMHA Project No.: 54-017-621447814, as of December 31, 1994 and 1993, and the results of its operations, the changes in partners' capital and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 13 and 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Newport News, Virginia February 3, 1995 DURANT, SCHRAIBMAN & LINDSAY CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT ACCOUNTANTS' REPORT - ------------------------------- To the Partners Buena Vista Apartments, Phase II, A Limited Partnership Columbia, South Carolina We have audited the accompanying balance sheets of Buena Vista Apartments, Phase II, A Limited Partnership A South Carolina Limited Partnership), as of December 31, 1995 and 1994 and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Buena Vista Apartments, Phase II, A Limited Partnership, as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. January 18, 1996 4408 Forest Drive, Third Floor Columbia, South Carolina 29206 Telephone 803-790-0020 Fax 803-790-0011 DONALD W. CAUSEY, CPA, P.C. Certified Public Accountant TEL.(205) 543-3707 P.O.BOX 775 516 Walnut Street Gadsden, Alabama 35902 INDEPENDENT AUDITOR'S REPORT - ---------------------------- To the Partners Chestnut Hill Estates, Ltd. Altoona, Alabama I have audited the accompanying balance sheets of Chestnut Hill Estates, Ltd., a limited partnership, RECD Project No.: 01-028-631016355 as of December 31, 1995 and 1994, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted the audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial presentation. I believe that the audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in material respects, the financial position of Chestnut Hill Estates, Ltd., RECD Project No.: 01-028-631016355 as of December 31, 1995 and 1994,,and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 9 through 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Year End Report and Analysis (Form RECD 1930-8) Parts I through II for the year ended December 31, 1995 and 1994, is presented for purposes of complying with the requirements of the Rural Economic Community Development and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in my opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole. In accordance with Government Auditing Standards, I have also issued a report dated March 4, 1996 on my consideration of Chestnut Hill Estates, Ltd., internal control structure and a report dated March 4, 1996 on its compliance with laws and regulations. March 4, 1996 BERRY, DUNN, McNEIL & PARKER CERTIFIED PUBLIC ACCOUNTANTS MANAGEMENT CONSULTANTS INDEPENDENT AUDITORS' REPORT - ---------------------------- The Partners East Machias Limited Partnership We have audited the accompanying balance sheets of East Machias Limited Partnership, RECD Case No. 23- 015-0010465014, as of December 31, 1995 and 1994, and the related statements of operations, changes in partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall fmancial statements presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of East Machias Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplementary information on pages 15 and 16 as of and for the years ended December 31, 1995 and 1994, is presented solely for the use of Rural Economic and Community Development and is not a required part of the basic financial statements. This supplementary information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Portland, Maine January 23, 1996 Offices in: Bangor, Maine Portland, Maine Lebanon, New Hampshire Manchester, New Hampshire Ludvigson, Braun & Co. ACCOUNTANTS AND AUDITORS 117 NW 3rd Street P.O. Box 845 Valley City, North Dakota 58072-0845 Telephone: (701) 845-1457 Facsimile (701) 845-8003 R.B. Ludvigson, CPA (Retired) Raymond J. Braun, LPA Muriel G. Haugen, CPA Connie E. Winkler LPA JoAnn R. Zerface. CPA INDEPENDENT AUDITORS' REPORT - --------------------------- To the Partners East Park Apartments I Limited Partnership Dilworth, Minnesota We have audited the accompanying balance sheets of East Park Apartments I Limited Partnership, as of December 31, 1995 and 1994 and the related statements of operations, partners' equity and cash flows for the year ended December 31, 1995 and for the period ended from inception (June 1, 1994)through December 31, 1994. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of East Park Apartments I Limited Partnership as of December 31, 1995 and 1994 and the results of its operations, the changes in partners' equity, and its cash flows for the periods then ended, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Valley City, North Dakota February 10, 1996 DANIEL G. DRANE CERTIFIED PUBLIC ACCOUNTANT 209 East Third Street P. 0. Box 577 Hardinsburg, Kentucky 40143 (502) 756-5704 INDEPENDENT AUDITOR'S REPORT - ---------------------------- To the Partners Edgewood Properties, Ltd. Leitchfield, Kentucky I have audited the accompanying balance sheets of Edgewood Properties, Ltd. (a Kentucky limited partnership), RECDS Project No.: 20-050-0611179040, as of December 31, 1995 and 1994, and the related statements of operations, partners' capital, and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits, as of and for the years ended December 31, 1995 and 1994, in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Edgewood Properties, Ltd., as of December 31, 1995 and 1994, and the results of its operations, the changes in partners' capital and cash flows for the years then ended in conformity with generally accepted accounting principles. Daniel G. Drane Certified Public Accountant March 19, 1996 THOMAS, JUDY & TUCKER Certified Public Accountants 16 East Rowan Street, Suite 100 Raleigh, NC 27609 (919) 571-7055 FAX (919-571-7089 C. Gilbert Smith Clifton W. Thomas Chris P. Judy David W. Tucker INDEPENDENT AUDITORS' REPORT - ---------------------------- To the Partners Graham Housing Associates Limited Partnership (A Development Stage Partnership) We have audited the accompanying balance sheet of Graham Housing Associates Limited Partnership as of December 31, 1994. The balance sheet is the responsibility of the Partnership's management. Our responsibility is to express an opinion on this balance sheet based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require hat we plan and perform the audit to obtain reasonable assurance about whether the balance sheet is free of material misstatement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of Graham Housing Associates Limited Partnership as of December 31, 1994 in conformity with generally accepted accounting principles. March 9, 1995 GOLDEN ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS P.O. Box 967 769 E. Oglethorpe Hwy Hinesville, GA 31313 Larry R. Golden, CPA Janine D. Graham, CPA INDEPENDENT AUDITOR'S REPORT - ---------------------------- To The Partners Greenwood Village Limited Partnership We have audited the accompanying balance sheets of Greenwood Village Limited Partnership, as of December 31, 1995 and 1994, and the related statements of operations, changes in partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Greenwood Village Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. GOLDEN ASSOCIATES Certified Public Accountants April 1, 1996 Hinesville, Georgia TEL (912) 369-7575 FAX (912) 876-8798 Members American Institute and Georgia Society of Certified Public Accountants SCHELL & HOGAN CERTIFIED PUBLIC ACCOUNTANTS P.O. Box 859 Brunswick, GA 31521 (912) 267-5300 P.O. Box 967 Hinesville, GA 31313 (912) 369-7575 James W. Harper, CPA James A. Szwast, CPA Larry R. Golden, CPA Joseph A. Whittle, Jr., CPA Steven P. Graham, CPA INDEPENDENT AUDITOR'S REPORT - ---------------------------- To The Partners Greenwood Village Limited Partnership We have audited the accompanying balance sheets of Greenwood Village Limited Partnership, as of December 31, 1993 and 1992, and the related statements of operations, changes in partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Greenwood Village Limited Partnership as of December 31, 1993 and 1992, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. SCHELL AND HOGAN Certified Public Accountants February 21, 1994 Hinesville, Georgia Members American Institute and Georgia Society of Certified Public Accountants HOWE AND ASSOCIATES, PC CERTIFIED PUBLIC ACCOUNTANTS 104 EAST BROADWAY COLUMBIA, MO 65203 February 26, 1996 INDEPENDENT AUDITOR'S REPORT - ---------------------------- Partners HARRISONVILLIE PROPERTIES II, LP Re: For the Years Ended December 31, 1994 and December 31, 1995 We have audited the accompanying balance sheet and the related statements of income, owners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position and results of operations and cash flows for the years then ended in conformity with generally accepted accounting principles. Howe and Associates Schoonover, Boyer, Gettman & Associates Certified Public Accountants Financial Consultants INDEPENDENT AUDITORS' REPORT - ---------------------------- To the Partners The Hearthside II Limited Dividend Housing Association Limited Partnership We have audited the accompanying balance sheets of The Hearthside II Limited Dividend Housing Association Limited Partnership (a Michigan Limited Partnership), as of December 31, 1995 and 1994, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The Hearthside II Limited Dividend Housing Association Limited Partnership, as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 16 and 17 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. January 26, 1996 Northwoods Corporatate Center, Suite 200 110 Northwoods Boulevard Worthington, Ohio 43235 (614) 888-8000 Fax (614) 888-8634 HOWE AND ASSOCIATES, PC CERTIFIED PUBLIC ACCOUNTANTS 104 EAST BROADWAY COLUMBIA, MO 65203 February 19, 1996 INDEPENDENT AUDITOR'S REPORT - ---------------------------- Partners HIGGINSVILLE ESTATES, LP Re: For the Years Ended December 31, 1994 and December 31, 1995 We have audited the accompanying balance sheet and the related statements of income, owners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position and results of operations and cash flows for the years then ended in conformity with generally accepted accounting principles. Howe and Associates, PC HOWE & ASSOCIATES CERTIFIED PUBUC ACCOUNTANTS 104 EAST BROADWAY COLUMBIA, MO 65203 February 24, 1996 INDEPENDENT AUDITORS REPORT - --------------------------- Partners KEARNEY ESTATES, LP. Re: For the Years Ended December 31, 1994 and December 31, 1995 We have audited the accompanying balance sheet and the related statements of income, owners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position and results of operations and cash flows for the years then ended in conformity with generally accepted accounting principles. Howe and Associates DURANT, SCHRAIBMAN & LINDSAY Certified Public Accountants INDEPENDENT ACCOUNTANTS' REPORT - ------------------------------- To the Partners Laurelwood Apartments, Phase II, A limited Partnership Columbia, South Carolina We have audited the accompanying balance sheets of Laurelwood Apartments, Phase II, A Limited Partnership (A South Carolina Limited Partnership), as of December 31, 1995 and 1994 and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Laurelwood Apartments, Phase II, A Limited Partnership, as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. January 26, 1996 4408 Forest Drive, Third Floor Columbia, South Carolina 29206 Telephone 803-790-0020 Fax 803-790-0011 GRAHAM CARTER & JENNINGS, PLC CERTIFIED PUBLIC ACCOUNTANTS Harold D. Carter (1931-1993) - --------------------------- Jack G. Jennings Walter H. Graham Michael J. Carter Diane B. Carter INDEPENDENT AUDITOR'S REPORT - ---------------------------- To the Partners Lebanon II Limited Partnership We have audited the accompanying balance sheets of Lebanon II Limited Partnership (a Virginia limited partnership), FMHA Project No.: 55-013-621447812, as of December 31, 1995 and 1994, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership, s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lebanon II Limited Partnership, FMHA Project No.: 55-013-621447812, as of December 31, 1995 and 1994, and the results of its operations, the changes in partners' capital and cash flows for the years then ended in conformity with generally accepted accounting principles. 601 Thimble Shoals Boulevard, Suite 201 Newport News, Virginia 23606 (804) 873-0767 Fax (804) 873-6938 GRAHAM CARTER & JENNINGS, PLC Page 2 Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 13 and 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. February 26, 1996 CARTER & JENNINGS, P.C. CERTIFIED PUBLIC ACCOUNTANTS 11832-B Canon Boulevard Newport News, Virginia 23608 (804) 873-0767 Facsimile (804) 873-0874 Harold D. Carter (1931-1993) - --------------------------- Jack G. Jennings Michael J. Carter INDEPENDENT AUDITOR'S REPORT - ---------------------------- To the Partners Lebanon II Limited Partnership We have audited the accompanying balance sheets of Lebanon II Limited Partnership (a Virginia limited partnership) , FMHA Project No.: 55-013-621447812, as of December 31, 1994 and 1993, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership' s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lebanon II Limited Partnership, FMHA Project No.: 55-013-621447812, as of December 31, 1994 and 1993, and the results of its operations, the changes in partners, capital and cash flows for the years then ended in conformity with generally accepted accounting principles. CARTER & JENNINGS, P.C. CERTIFIED PUBLIC ACCOUNTANTS Page 2 Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 13 and 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Newport News, Virginia February 3, 1995 HOWE & ASSOCIATES, PC CERTIFIED PUBLIC ACCOUNTANTS 104 EAST BROADWAY COLUMBIA, MO 65203 February 24, 1996 INDEPENDENT AUDITOR'S REPORT - ---------------------------- Partners LEBANON PROPERTIES III, LP Re: For the Years Ended December 31, 1994 and December 31, 1995 We have audited the accompanying balance sheet and the related statements of income, owners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position and results of operations and cash flows for the years then ended in conformity with generally accepted accounting principles. Howe and Associates DANIEL G. DRANE CERTIFIED PUBLIC ACCOUNTANT 209 East Third Street P. 0. Box 577 Hardinsburg, Kentucky 40143 (502) 756-5704 INDEPENDENT AUDITOR'S REPORT - ---------------------------- To the Partners Lilac Properties, Ltd. Leitchfield, Kentucky I have audited the accompanying balance sheets of Lilac Properties, Ltd. (a Kentucky limited partnership), RECDS Project No.: 20-043- 61115801 1, as of December 31, 1995 and 1994, and the related statements of operations, partners' capital, and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits, as of and for the years ended December 31, 1995 and 1994, in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lilac Properties, Ltd., as of December 31, 1995 and 1994, and the results of its operations, the changes in partners' capital and cash flows for the years then ended, in conformity with generally accepted accounting principles. Daniel G. Drane Certified Public Accountant March 19, 1996 Hawkins, Ash, Baptie & Company Certified Public Accountants INDEPENDENT AUDITORS' REPORT - ---------------------------- To the Partners Madison Partners Limited Partnership We have audited the accompanying balance sheet of Madison Partners Limited Partnership (the 'Project'), as of December 31, 1995 and 1994, and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Project's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Madison Partners Limited Partnership as of December 31, 1995 and 1994, and the results of its operations, the changes in partners' equity, and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 12 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. La Crosse, Wisconsin February 14, 1996 SCHELL & HOGAN CERTIFIED PUBLIC ACCOUNTANTS P.O. Box 859 Brunswick, GA 31521 (912) 267-5300 P.O. Box 967 Hinesville, GA 31313 (912)369-7575 Jerry W. Harper, CPA James A. Szwast, CPA Larry R. Golden, CPA Joseph A. Whittle, Jr., CPA Steven P. Graham, CPA INDEPENDENT AUDITOR'S REPORT - ---------------------------- To The Partners Manning Lane Limited Partnership We have audited the accompanying balance sheets of Manning Lane Limited Partnership, as of December 31, 1993 and 1992, and the related statements of operations, changes in partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Manning Lane Limited Partnership as of December 31, 1993 and 1992, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. SCHELL AND HOGAN Certified Public Accountants February 21, 1994 Hinesville, Georgia Members American Institute and Georgia Society of Certified Public Accountants HOWE & ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS 104 EAST BROADWAY COLUMBIA, MO 65203 February 16, 1996 INDEPENDENT AUDITOR'S REPORT - ---------------------------- Partners MARYVILLE PROPERTIES, LP. Re: For the Years Ended December 31, 1994 and December 31, 1995 We have audited the accompanying balance sheet and the related statements of income, owners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position and results of operations and cash flows for the years then ended in conformity with generally accepted accounting principles. Howe and Associates BEALL & COMPANY, PLC CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT - ---------------------------- Monark Properties, An Arkansas Limited Partnership Barling, AR we have audited the accompanying balance sheets of Monark Properties An Arkansas Limited Partnership, as of December 31, 1995 and 1994, and the related statements of operations, changes in partners' capital, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require than we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Monark Properties, An Arkansas Limited Partnership, as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. BEALL AND COMPANY, PLC Certified Public Accountants Fort Smith, Arkansas January 24, 1996 HOWE AND ASSOCIATES, PC CERTIFIED PUBLIC ACCOUNTANTS 104 EAST BROADWAY COLUMBIA, MO 65203 February 15, 1996 INDEPENDENT AUDITOR'S REPORT - ---------------------------- Partners OAK GROVE VILLA APARTMENTS, LP Re: For the Years Ended December 31, 1994 and December 31, 1995 We have audited the accompanying balance sheet and the related statements of income, owners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position and results of operations and cash flows for the years then ended in conformity with generally accepted accounting principles. Howe and Associates, PC HOWE & ASSOCIATES, PC CERTIFIED PUBLIC ACCOUNTANTS 104 EAST BROADWAY COLUMBIA, MO 65203 February 14, 1996 INDEPENDENT AUDITOR'S REPORT - ---------------------------- Partners OSCEOLA ESTATES, LP. Re: For the Years Ended December 31, 1994 and December 31, 1995 We have audited the accompanying balance sheet and the related statements of income, owners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position and results of operations and cash flows for the years then ended in conformity with generally accepted accounting principles. Howe and Associates LITTLE, SHANEYFELT & CO. CERTIFIED PUBLIC ACCOUNTANTS 1501 N. UNIVERSITY, SUITE 300 LITTLE ROCK, ARKANSAS 72207-6232 TELEPHONE (501) 666-2879 INDEPENDENT AUDITOR'S REPORT - ---------------------------- To the Partners P.D.C. Fifty Five Limited Partnership We have audited the accompanying balance sheets of P.D.C. Fifty Five Limited Partnership, FMHA Project No. 03-052- 710665737 (the Partnership), as of December 31, 1995 and 1994, and the related statements of profit (loss), changes in partners, equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of P.D.C. Fifty Five Limited Partnership as of December 31, 1995 and 1994, and its results of operations, changes in partners, equity (deficit), and cash flows for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated March 11, 1996, on our consideration of the Partnership's internal control structure and a report dated March 11, 1996 on its compliance with laws, regulations, contracts and grants. Little, Shaneyfelt & Co. March 11, 1996 McGEE & Associates, P.C. CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT - ---------------------------- To the Partners Rio Mimbres II,Ltd. and Rural Economic Community Development We have audited the accompanying balance sheets of Rio Mimbres II, Ltd. (a limited partnership) as of December 31, 1995 and 1994, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Rio Mimbres II, Ltd. as of December 31, 1995 and 1994, and the results of its operations and the changes in partners' equity and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 23, 1996, on our consideration of the Partnership's internal control structure and a report dated January 23, 1996, on its compliance with laws and regulations. Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental information included in the report is presented for purposes of additional analysis and is not a required part of the financial statements of Rio Mimbres II, Ltd. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. January 23, 1996 Farmington, New Mexico DONALD W. CAUSEY, CPA, P.C. Certified Public Accountant P.O. BOX 775 516 WALNUT STREET GADSDEN, ALABAMA 35902 TELEPHONE (205) 543-3707 INDEPENDENT AUDITOR'S REPORT - ---------------------------- To the Partners Sunset Square I, Limited Partnership Scottsboro, Alabama I have audited the accompanying balance sheets of Sunset Square Limited Partnership, RECD Project No. : 01-036-631030935 as of December 31, 1995 and 1994, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted the audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that the audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sunset Square I, Limited Partnership, RECD Project No.: 01-036-631030935 as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 9 through 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Year End Report and Analysis (Form RECD 1930-8) Parts I through III for the year ended December 31, 1995 and 1994, is presented for purposes of complying with the requirements of the Rural Economic Community Development and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in my opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole. DONALD W. CAUSEY, CPA, P.C. Certified Public Accountant Page 2 In Accordance with Government Auditing Standards, I have also issued a report dated February 10, 1996 on my consideration of Sunset Square I, Limited Partnership's internal control structure and a report dated February 10, 1996 on its compliance with laws and regulations. February 10, 1996 DONALD W. CAUSEY, CPA, P.C. Certified Public Accountant P.O. BOX 775 516 WALNUT STREET GADSDEN, ALABAMA 35902 TELEPHONE (205) 543-3707 INDEPENDENT AUDITOR'S REPORT - ---------------------------- To the Partners Sunset Square I, Limited Partnership Scottsboro, Alabama I have audited the accompanying balance sheets of Sunset Square I, Limited Partnership, RECD Project No. : 01-036-631030935 as of December 31, 1993 and 1992, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted the audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that the audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sunset Square I, Limited Partnership, FmHA Project No.: 01-036-631030935 as of December 31, 1993 and 1992, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 9 through 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Year End Report and Analysis (Form FmHA 1930-8) Parts I through II for the years ended December 31, 1993 and 1992, is presented for purposes of complying with the requirements of the Farmers Home Administration and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in my opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole. February 14, 1994 DANIEL G. DRANE CERTIFIED PUBLIC ACCOUNTANT 209 East Third Street P. 0. Box 577 Hardinsburg, Kentucky 40143 (502) 756-5704 INDEPENDENT AUDITOR'S REPORT - ---------------------------- To the Partners Taylor Mill Properties, Ltd. Leitchfield, Kentucky I have audited the accompanying balance sheets of Taylor Mill Properties, Ltd. (a Kentucky limited partnership), RECDS Project No.: 20-062-0611174245, as of December 31, 1995 and 1994, and the related Statements of operations, partners' capital, and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits, as of and for the years ended December 31, 1995 and 1994, in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Taylor Mill Properties, Ltd., as of December 31, 1995 and 1994, and the results of its operations, the changes in partners' capital and cash flows for the years then ended in conformity with generally accepted accounting principles. Daniel G. Drane Certified Public Accountant March 19, 1996 David C. Moja, C.P.A. P.O. Box 14212 Savannah, Georgia 31416 (912) 354-4141 INDEPENDENT AUDITORS' REPORT - ---------------------------- To the General Partners of Timmons Village Limited Partnership We have audited the accompanying balance sheets of Timmons Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1995 and December 31, 1994, and the related statements of operations, partners, equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Timmons Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1995 and December 31, 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the portion marked "unaudited", on which we express no opinion, has been subjected to the procedures applied in the audits of the basic financial statements and, in our opinion, is fairly presented in all material respects in relation to the basic financial statements taken as a whole. David C. Moja, C.P.A., P.C. March 11, 1996 Savannah, Georgia VELEZ, SEMPRIT, NIEVES & Co. Certified Public Accountants/Business Advisors A Member of Horwath International 252 Ponce de Leon Ave., 11th Floor Hato Rey, Puerto Rico 00918-9922 Tel. (809) 751-6500 Fax: (809) 767-1197 INDEPENDENT AUDITORS' REPORT ON FINANCIAL STATEMENTS - ---------------------------------------------------- Partners Villa del Mar Limited Partnership San Juan, Puerto Rico We have audited the accompanying balance sheets of Villa del Mar Limited Partnership as of December 31, 1994 and 1993, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Controller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Villa del Mar Limited Partnership as of December 31, 1994 and 1993, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. We conducted our audits to form an opinion on the basic financial statements of Villa del Mar Limited Partnership taken as a whole. The accompanying schedules of administrative, utilities, maintenance, taxes, insurance and interest expense are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. March 30, 1995 Stamp number 1282930 was affixed to the original of this report. Ortiz Lopez & Co. Certified Public Accountants Calle Post 183 Sur Altos P.O. Box 3944 Marina Stations Mayaquez, P.R. 00681 Telephones: (809) 833-8236 833-8250 Fax: 833-8285 CPA Eulalio Ortiz Rodriguez, MSA CPA Heriberto Lopez Recio INDEPENDENT AUDITORS' REPORT - ---------------------------- To the Partners virgen del Pozo Limited Partnership We have audited the accompanying balance sheets of Virgen del Pozo Limited Partnership as of December 31, 1995 and 1994, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. in our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Virgen del Pozo Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. To the Partners Virgen del Pozo Limited Partnership Page 2 - Continued Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 13 and 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Certified Public Accountants Mayaguez, Puerto Rico January 29, 1996 David C. Moja, C.P.A. P.O. Box 14212 Savannah, Georgia 31416 (912) 354-4141 INDEPENDENT AUDITORS' REPORT - ---------------------------- To the General Partners of Whitewater Village Limited Partnership We have audited the accompanying balance sheets of Whitewater Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1995 and December 31, 1994, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Whitewater Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1995 and December 31, 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the portion marked "unaudited", on which we express no opinion, has been subjected to the procedures applied in the audits of the basic financial statements and, in our opinion, is fairly presented in all material respects in to the basic financial statements taken as a whole. David C. Moja, C.P.A., P.C. March 11, 1996 Savannah, Georgia Virchow, Krause & Company, LLP Certified Public Accountants & Consultants INDEPENDENT AUDITORS' REPORT - ---------------------------- To the Partners School Street Limited Partnership I Madison, Wisconsin We have audited the accompanying balance sheet of WHEDA Project No. 011/001217 of School Street Limited Partnership I as of December 31, 1995, and the related statements of loss, partners' equity and cash flows for the year then ended. These financial statements are the responsibility of the project's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit In accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, In all material respects, the financial position of WHEDA Project No. 011/001217 of School Street Limited Partnership I as of December 31, 1995, and the results of Its operations, changes in partners' equity and cash flows for the year then ended In conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental information found on pages 13-24 Including supplemental Information required by WHEDA, Is presented for purposes of additional analysis and Is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, In our opinion, Is presented fairly In all material respects in relation to the basic financial statements taken as a whole. To the Partners School Street Limited Partnership I The financial statements of School Street Limited Partnership I for the year ended December 31, 1994 were audited by other accountants, whose report dated January 24, 1995 stated that they were not aware of any material modifications that should be made to those statements in order for them to be in conformity with generally accepted accounting principles. VIRCHOW, KRAUSE & COMPANY, LLP Madison, Wisconsin January 18, 1996 Blackman & Associates, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT 1413 Leavenworth Historic Limited Partnership (A Nebraska Limited Partnership) Omaha, Nebraska We have audited the accompanying balance sheet of 1413 Leavenworth Historic Limited Partnership as of December 31, 1995 and the related statements of operations, changes in partners' capital accounts and cash flows for the year then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Partnership at December 31, 1995 and the results of its operations, changes in partners' capital accounts and cash flows for the year then ended, in conformity with generally accepted accounting principles. Omaha, Nebraska March 31, 1995 11924 Arbor St., Ste. 20O Omaha, Nebraska 68144 Phone (402) 330 1040 Fax (402)333 9189 OTIS, ATWELL & TIMBERLAKE Professional Association CERTIFIED PUBLIC ACCOUNTANTS 980 Forest Avenue Portland, Maine 04103 (207) 797 0990 Fax (207) 797 8618 James C Otis, C.P.A.., CFP Stephen W AtwelL, C.P.A. Fred 1. Timberlake, C.P.A. Bruce E. Fritzson, C.P.A. Thomas J. Gioia, C.P.A. INDEPENDENT AUDITOR'S REPORT The Partners Anson Limited Partnership We have audited the accompanying balance sheets of Anson Limited Partnership, a limited partnership, RECD Case No. 23-013-010459470, as of December 31, 1995 and 1994, and the related statements of income, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Anson Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Certified Public Accountants January 30, 1996 Portland, Maine Habif, Arogeti & Wynne, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners Blairsville Rental Housing, L.P. We have audited the accompanying balance sheets of BLAIRSVILLE RENTAL HOUSING, L.P. (a Limited Partnership), as of December 31, 1995 and 1994, and the related statements of income and expenses, changes in partners, equity (deficit], and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of BLAIRSVILLE RENTAL HOUSING, L.P. as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 10 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Atlanta, Georgia February 22, 1996 MEMBERS Georgia Society of Certified Public Accountants American Institute of Certified Public Accountants AICPA Division for CPA Firms Private Companies Practice Section SEC Practice Section lO73 West Peachtree Street, N.E., Atlanta, GA 30309-3837 (404) 892-9651 Fax (404) 876-3913 Habif, Arogeti & Wynne, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners Blairsville Rental Housing, L.P. We have audited the accompanying balance sheet of BIAIRSVILLE RENTAL HOUSING, L.P. (a development stage partnership), as of December 31, 1993. This financial statement is the responsibility of the Partnership's management. Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the balance sheet is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the balance sheet. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall balance sheet presentation. We believe that out audit provides a reasonable basis for our opinion. In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of BLAIRSVILLE RENTAL HOUSING, L.P. as of December 31, 1993, in conformity with generally accepted accounting principles. Atlanta, Georgia January 14, 1994 MEMBERS GEORGIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AICPA DIVISION FOR CPA FIRMS PRIVATE COMPANIES PRACTICE SECTION SEC PRACTICE SECTION Habif, Arogeti, & Wynne, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners Blairsville Rental Housing, L.P. II We have audited the accompanying balance sheets of BLAIRSVILLE RENTAL HOUSING, L.P. II (a Limited Partnership), as of December 31, 1995 and 1994, and the related statements of income and expenses, changes in partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of BLAIRSVILLE RENTAL HOUSING, L.P. II as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion an the basic financial statements taken as a whole. The supplemental information on page 9 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Atlanta, Georgia February 2, 1996 MEMBERS GEORGIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AICPA DIVISION FOR CPA FIRMS PRIVATE COMPANIES PRACTICE SECTION SEC PRACTICE SECTION l073 West Peachtree Street, N.E., Atlanta, GA 30309-3837 (404) 892-9651 Fax (404) 876-3913 Habif, Arogeti, & Wynne, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners Blairsville Rental Housing II, L.P. We have audited the accompanying balance sheet of BLAIRSVILLE RENTAL HOUSING II, L.P., (a development stage partnership] , as of December 31, 1993. This financial statement is the responsibility of the Partnership's management. Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the balance sheet is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the balance sheet. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall balance sheet presentation. We believe that out audit provides a reasonable basis for our opinion. In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of BLAIRSVILLE RENTAL HOUSING II, L.P. as of December 31, 1993, in conformity with generally accepted accounting principles. Atlanta, Georgia January 14, 1994 MEMBERS GEORGIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AICPA DIVISION FOR CPA FIRMS PRIVATE COMPANIES PRACTICE SECTION SEC PRACTICE SECTION 1073 West Peachtree Street, N.E., Atlanta, GA 30309-3837 (404) 892-9651 Fax (404) 876-3913 HOWE & ASSOCIATES, PC CERTIFIED PUBLIC ACCOUNTANTS 104 EAST BROADWAY COLUMBIA, MO 65203 March 4, 1996 INDEPENDENT AUDITOR'S REPORT Partners BRANSON CHRISTIAN COUNTY I, LP Re: For the Years Ended December 31, 1994 and December 31, 1995 We have audited the accompanying balance sheet and the related statements of income, owners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Governmental Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position and results of operations and cash flows for the years then ended in conformity with generally accepted accounting principles. Howe and Associates, PC HOWE & ASSOCIATES, PC CERTIFIED PUBLIC ACCOUNTANTS 104 EAST BROADWAY COLUMBIA, MO 65203 March 4, 1996 INDEPENDENT AUDITOR'S REPORT Partners BRANSON CHRISTIAN COUNTY II, LP Re: For the Years Ended December 31, 1994 and December 31, 1995 We have audited the accompanying balance sheet and the related statements of income, owners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Governmental Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position and results of operations and cash flows for the years then ended in conformity with generally accepted accounting principles. Howe and Associates, PC Habif, Arogeti, & Wynne, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners Butler Rental Housing, L.P. We have audited the accompanying balance sheet of BUTLER RENTAL HOUSING, L.P. (a development stage partnership] , as of December 31, 1993. This financial statement is the responsibility of the Partnership's management. Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the balance sheet is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the balance sheet. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall balance sheet presentation. We believe that out audit provides a reasonable basis for our opinion. In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of BUTLER RENTAL HOUSING, L.P. as of December 31, 1993, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Atlanta, Georgia January 14, 1994 MEMBERS Georgia Society of Certified Public Accountants American Institute of Certified Public Accountants AICPA Division for CPA Firms Private Companies Practice Section SEC Practice Section DuRant, Schraibman & Lindsay Certified Public Accountants INDEPENDENT ACCOUNTANTS' REPORT To the Partners Canterfield Manor of Denmark, A Limited Partnership Columbia, South Carolina We have audited the accompanying balance sheets of Canterfield Manor of Denmark, A Limited Partnership (A South Carolina Limited Partnership), as of December 31, 1995 and 1994 and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Canterfield Manor of Denmark, A Limited Partnership, as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. January 22, 1996 4408 Forest Drive, Third Floor Columbia, South Carolina 29206 Telephone 803-790-0020 Fax 803-790-0011 DURANT, SCHRAIBMAN & LINDSAY Certified Public Accountants INDEPENDENT ACCOUNTANTS' REPORT To the Partners Canterfield Manor of Denmark, A Limited Partnership Columbia, South Carolina We have audited the accompanying balance sheet of Canterfield Manor of Denmark, A Limited Partnership (A South Carolina Limited Partnership), as of December 31, 1993, and the related statements of operations, partners' equity and cash flows from January 21, 1993 to December 31, 1993. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Canterfield Manor of Denmark, A Limited Partnership, as of December 31, 1993, and the results of its operations and its cash flows from January 21, 1993 to December 31, 1993, in conformity with generally accepted accounting principles. February 19, 1994 4408 Forest Drive, Third Floor Columbia, South Carolina 29206 Telephone 803-790-0020 Fax 803-790-0011 DAVID P. PHILLIPS, P.C. CERTIFIED PUBLIC ACCOUNTANT 3610 DODGE STREET SUITE 212 OFFICE OMAHA, NEBRASKA 68131 OFFICE (402)345-6044 FAX (402) 345-1233 INDEPENDENT AUDITOR'S REPORT To the Partners Cass Partners Limited Partnership I have audited the accompanying balance sheet of Cass Partners Limited Partnership as of December 31, 1995, and the related statement of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audit. The financial statements of Cass Partners Limited Partnership as of December 31, 1994 were audited by another auditor whose report dated March 14, 1995 expressed an unqualified opinion. I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cass Partners Limited Partnership as of December 3 1, 1995, and the results of its operations, and changes in partners' equity (deficit) and cash flows for the year then ended in conformity with generally accepted accounting principles. My audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. March 6, 1996 1-3 OSCAR N. HARRIS & ASSOCIATES, P.A. Certified Public Accountants Members American Institute of Certified Public Accountants North Carolina Association of Certified Public Accountants OSCAR N. HARRIS, C.P.A. SHERRY S. JOHNSON, C.P.A. KENNETH E. MILTON, C.P.A. MARLA L. TART, C.P.A. DARLENE LANGSTON, C.P.A. CONNIE P. STANCIL, C.P.A. INDEPENDENT AUDITORS' REPORT To the Partners of Cumberland Woods Associates of Middlesboro, KY., Ltd. Charlotte, North Carolina We have audited the balance sheets of Cumberland Woods Associates of Middlesboro, KY., Ltd. (a limited partnership) as of December 31, 1995 and 1994, and the related statements of partners, capital, income, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards, Government Auditing Standards (1988 Revision) issued by the Comptroller General of the United States, and the audit programs provided by the U.S. Department of Agriculture-Farmers Home Administration (December 1989 Revision) issued by the Office of Inspector General. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cumberland Woods Associates of Middlesboro, KY., Ltd. as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. Schedule "1" on page 15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Certified Public Accountants February 14, 1996 100 EAST CUMBERLAND STREET, P.O. BOX 578, DUNN, N.C. (910) 892-1021 FAX(910)892-6084 PHILLIPS, DORSEY, THOMAS, WATERS & BRAFFORD, P.C. CERTIFIED PUBLIC ACCOUNTANTS Drawer 1359 215 Horner Street Henderson, NC 27536 919/438-8154 NC WATS 800/356-7674 FAX 919/492-5066 W. Haywood Phillips, CPA Ronald S. Dorsey, CPA H. Timothy Thomas, CPA Susan R. Waters, CPA Michael H. Brafford, CPA Carleen P. Evans, CPA Holly B. Perryman, CPA Franklin L. Irvin, Jr., CPA INDEPENDENT AUDITOR'S REPORT To the Partners Deer Run Limited Partnership Kittrell, North Carolina We have audited the accompanying balance sheets of Deer Run Limited Partnership as of December 31, 1995 and 1994, and the related statements of operations, partners, equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Deer Run Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. CERTIFIED PUBLIC ACCOUNTANTS January 12, 1996 AMERICAN INSTITUTE OF CPAS NC ASSOCIATION OF CPAS Habif, Arogeti, & Wynne, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners Eastman Elderly Housing, L.P. We have audited the accompanying balance sheet of EASTMAN ELDERLY HOUSING, L.P. (a Limited Partnership), as of December 31, 1993, and the related statement of income and expenses, changes in partners' equity, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of EASTMAN ELDERLY HOUSING, L.P. as of December 31, 1993, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Atlanta, Georgia January 14, 1994 MEMBERS Georgia Society of Certified Public Accountants American Institute of Certified Public Accountants AICPA Division For CPA Firms Private Companies Practice Section SEC Practice Section Bradley, Snipes, Gower & Associates, P.C. CERTIFIED PUBLIC ACCOUNTANTS P.O. Box 1009, Dunn, NC 28335, (910)892-6001 P.O. Box 1568, Lillington, NC 27546 (910)893-6026 Russell W. Bradley, CPA Larry D. Snipes, CPA Alton R. Gower, Jr., CPA INDEPENDENT AUDITORS' REPORT The Partners Gibson Manor Associates Limited Partnership We have audited the accompanying balance sheets of Gibson Manor Associates Limited Partnership, Fayetteville, North Carolina (a North Carolina limited partnership), as of December 31, 1995 and 1994, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Gibson Manor Associates Limited Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Gibson Manor Associates Limited Partnership as of December 31, 1995 and 1994, and the results of its operations, the changes in partners' equity and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on Page 12 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Respectfully submitted, Bradley, Snipes, Gower & Associates, P. A. Dunn, North Carolina January 26, 1996 Members/American Institute of Certified Public Accountants, North Carolina Association of Certified Public Accountants HOWE & ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS 104 EAST BROADWAY COLUMBIA, MO 65203 February 20, 1996 INDEPENDENT AUDITORS REPORT Partners GREENFIELD PROPERTIES, LP. Re: For the Years Ended December 31, 1994 and December 31, 1995 We have audited the accompanying balance sheet and the related statements of income, owners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position and results of operations and cash flows for the years then ended in conformity with generally accepted accounting principles. Howe and Associates DURANT, SCHRAIBMAN & LINDSAY Certified Public Accounts INDEPENDENT ACCOUNTANTS' REPORT To the Partners Holly Tree Manor of Holly Hill, A Limited Partnership Columbia, South Carolina We have audited the accompanying balance sheets of Holly Tree Manor of Holly Hill, A Limited Partnership (A South Carolina Limited Partnership), as of December 31, 1995 and 1994, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Holly Tree Manor of Holly Hill, A Limited Partnership, as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. January 27, 1996 4408 Forest Drive, Third Floor Columbia, South Carolina 29206 Telephone 803-790-0020 Fax 803-790-0011 DURANT, SCHRAIBMAN & LINDSAY Certified Public Accountants INDEPENDENT ACCOUNTANTS' REPORT To the Partners Holly Tree Manor of Holly Hill, A Limited Partnership Columbia, South Carolina We have audited the accompanying balance sheet of Holly Tree Manor of Holly Hill, A Limited Partnership (A South Carolina Limited Partnership), as of December 31, 1993, and the related statements of operations, partners' equity and cash flows from February 12, 1993 to December 31, 1993. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing, standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Holly Tree Manor of Holly Hill, A Limited Partnership, as of December 31, 1993), and the results of its operations and its cash flows from February 12, 1993 to December 31, 1993, in conformity with generally accepted accounting principles. February 18, 1994 4408 Forest Drive, Third Floor Columbia, South Carolina 29206 Telephone 803-790-0020 Fax 803-790-0011 The Gautreau Group, L.L.C Certified Public Accountants John C. Gautreau, II, CPA' J.Curt Gautreau, CPA' Crissie Head, CPA Letti Lowe, CPA Jennifer D. Derousselle, CPA 'A Professional Accounting Corporation Independent Auditors' Report To the Partners of Isola Square, L. P. We have audited the accompanying balance sheets of Isola Square, L. P. as of December 31, 1995 and 1994, and the related statements of operations, changes in partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Isola Square, L. P. as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 12, 1996 on our consideration of Isola Square, L. P.'s internal control structure and a report dated February 12, 1996 on its compliance with laws and regulations. Certified Public Accountants February 12, 1996 P.O. Box 82430 \8641 United Plaza Boulevard, Suite 202 \Baton Rouge, Louisiana 70884-2430 \Telephone (504) 924-6744 \FAX (504) 929-6916 The Gautreau Group, L.L.C Certified Public Accountants John C. Gautreau, II, CPA' J.Curt Gautreau, CPA' Crissie Head, CPA Letti Lowe, CPA Jennifer D. Derousselle, CPA 'A Professional Accounting Corporation Independent Auditors' Report To the Partners of Lawtell Manor Partnership We have audited the accompanying balance sheets of Lawtell Manor Partnership (A Louisiana Partnership in Commendam) as of December 31, 1995 and 1994, and the related statements of operations, changes in partners, capital and cash flows for the years then ended. These financial statements are the respon- sibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lawtell Manor Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 12, 1996 on our consideration of Lawtell Manor Partnership's internal control structure and a report dated February 12, 1996 on its compliance with laws and regulations. Certified Public Accountants Baton Rouge, Louisiana February 12, 1996 -2- P.O. Box 82430 \8641 United Plaza Boulevard, Suite 202 \Baton Rouge, Louisiana 70884-2430 \Telephone (504) 924-6744 \FAX (504) 929-6916 GOLDEN ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS P.O. Box 967 769 E. Olglethorpe Hwy Hinesville, GA 31313 Larry R. Golden, CPA Janine D. Graham, CPA INDEPENDENT AUDITOR'S REPORT To The Partners Logan Lane Limited Partnership We have audited the accompanying balance sheets of Logan Lane Limited Partnership, as of December 31, 1995 and 1994, and the related statements of operations, changes in partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Logan Lane Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. GOLDEN ASSOCIATES Certified Public Accountants April 1, 1996 Hinesville, Georgia Members American Institute and Georgia Society of Certified Public Accountants Telephone (912)369-7575 Fax (912) 876-8798 SCHELL & HOGAN CERTIFIED PUBLIC ACCOUNTANTS P.O. Box 859 Brunswick, GA 31521 (912) 267-5300 P.O. Box 967 Hinesville, GA 31313 (912) 369-7575 Jerry W. Harper, CPA James A. Szwast, CPA Larry R. Golden, CPA Joseph A. Whittle, Jr., CPA Steven P. Graham, CPA INDEPENDENT AUDITOR'S REPORT To The Partners Logan Lane Limited Partnership We have audited the accompanying balance sheets of Logan Lane Limited Partnership, as of December 31, 1993 and 1992, and the related statements of operations, changes in partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Logan Lane Limited Partnership as of December 31, 1993 and 1992, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. SCHELL AND HOGAN Certified Public Accountants February 21, 1994 Hinesville, Georgia Brunswick FAX (912) 267-5315 Hinesville FAX (912) 876-8798 Members American Institute and Georgia Society of Certified Public Accountants Virchow, Krause & Company, LLP Certified Public Accountants & Consultants INDEPENDENT AUDITORS' REPORT To the Partners Mariner's Pointe Limited Partnership I and Mariner's Pointe Limited Partnership II Madison, Wisconsin We have audited the accompanying combined balance sheet of WHEDA Project No. 011/001214 of Mariner's Pointe Limited Partnership I and Mariner's Pointe Limited Partnership II as of December 31, 1995, and the related combined statements of loss, partners' equity and cash flows for the year then ended. These combined financial statements are the responsibility of the project's management. Our responsibility is to express an opinion on these combined financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the combined financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the combined financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall combined financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the combined financial statements referred to above present fairly, in all material respects, the financial position of WHEDA Project No. 011/001214 of Mariner's Pointe Limited Partnership I and Mariner's Pointe Limited Partnership II as of December 31, 1995, and the combined results of Its operations, changes in partners' equity and cash flows for the year then ended In conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental information found on pages 13-23, including supplemental information required by WHEDA, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is presented fairly in all material respects in relation to the basic financial statements taken as a whole. Page 1 To the Partners Mariner's Pointe Limited Partnership I and Mariner's Pointe Limited Partnership II The combined financial statements of Mariner's Pointe Limited Partnership I and Mariner's Pointe Limited Partnership II for the year ended December 31, 1994 were audited by other accountants whose report dated January 24, 1995 stated that they were not aware of any material modifications that should be made to those statements in order for them to be in conformity with generally accepted accounting principles. VIRCHOW, KRAUSE & COMPANY, LLP Madison, Wisconsin January 18, 1996 Page 2 Otis, Atwell & Timberlake Professional Association CERTIFIED PUBLIC ACCOUNTANTS 980 Forest Avenue Portland, Maine 04103 (207) 797-0990 FAX (207) 797-8618 James C. Otis, C.P.A., CEP Stephen W. AtwelL, C.P.A. Fred I. Timberlake, C.P.A. Bruce E. Fritzson C.P.A. Thomas J. Gioia, C.P.A. INDEPENDENT AUDITOR'S REPORT To the Partners Newport Housing Associates We have audited the accompanying balance sheets of Newport Housing Associates, a limited partnership, RECD Case No. 53-010-0010466168, as of December 31, 1995 and 1994, and the related statements of income, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Newport Housing Associates as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Certified Public Accountants February 1, 1996 Portland, Maine BLOOM, GETTIS, HABIB & TERRONE, P.C. CERTIFIED PUBLIC ACCOUNTANTS SUITE 145O 2601 SOUTH BAYSHORE DRIVE MIAMI, FLORIDA 33133-9893 TELEPHONE (305)858-6211 FACSIMILE (305) 858-9696 MEMBERS: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS BURT R. BLOOM, C.P.A.,C.V.A. LAWRENCE W. GETTIS, C.P.A. STEVEN M. HABIB, C.P.A. ROGER J. TERRONE, C.P.A. CURT A. ROSNER, C.P.A. To the Partners Riviera Apts., Ltd. Boston, Massachusetts INDEPENDENT AUDITORS' REPORT We have audited the accompanying Balance Sheet of Riviera Apts., Ltd. (a Florida Limited Partnership), as of December 31 , 1995, and the related Statements of Operations, Partners' Equity and Cash Flows for the year then ended. These financial statements are the responsibility of the management of Riviera Apts., Ltd. Our responsibility is to express an opinion on these financial statements based on our audits. The financial statements of Riviera Apts., Ltd. as of December 31 , 1994 were audited by other auditors whose report dated February 23, 1995 expressed an unqualified opinion on these statements. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Riviera Apts., Ltd. as of December 31, 1995 and the results of its operations, the changes in partners, equity and cash flows for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. February 20, 1996 The Gautreau Group, L.L.C Certified Public Accountants John C. Gautreau, II, CPA' J.Curt Gautreau, CPA' Crissie Head, CPA Letti Lowe, CPA Jennifer D. Derousselle, CPA 'A Professional Accounting Corporation Independent Auditors' Report To the Partners of Simmesport Square Partnership We have audited the accompanying balance sheets of Simmesport Square Partnership (A Louisiana Partnership in Commendam) as of December 31, 1995 and 1994, and the related statements of operations, changes in partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Simmesport Square Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 12, 1996 on our consideration of Simmesport Square Partnership's internal control structure and a report dated February 12, 1996 on its compliance with laws and regulations. Certified Public Accountants February 12, 1996 P.O. Box 82430 \8641 United Plaza Boulevard, Suite 202 \Baton Rouge, Louisiana 70884-2430 \Telephone (504) 924-6744 \FAX (504) 929-6916 STIENESSEN SCHLEGEL & CO. LIMITED LIABILITY COMPANY CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's Report To the Partners St. Croix Commons Limited Partnership We have audited the accompanying balance sheets of St. Croix Commons Limited Partnership, as of December 31, 1995 and 1994, and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of St. Croix Commons Limited Partnership, as of December 31, 1995 and 1994, and the results of its operations, the changes in partners' equity, and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 13 and 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. CERTIFIED PUBLIC ACCOUNTANTS January 17, 1996 2411 N. HILLCREST PARKWAY, P.O. BOX 810, EAU CLAIRE, WI,54702-0810 PHONE (715) 832-3425 FAX (715) 832-1665 The Gautreau Group, L.L.C Certified Public Accountants John C. Gautreau, II, CPA' J.Curt Gautreau, CPA' Crissie Head, CPA Letti Lowe, CPA Jennifer D. Derousselle, CPA 'A Professional Accounting Corporation Independent Auditors' Report To the Partners of St. Joseph Square Partnership We have audited the accompanying balance sheets of St. Joseph Square Partnership (A Louisiana Partnership in Commendam) as of December 31, 1995 and 1994, and the related statements of operations, changes in partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of St. Joseph Square Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 12, 1996 on our consideration of St. Joseph Square Partnership's internal control structure and a report dated February 12, 1996 on its compliance with laws and regulations. Certified Public Accountants Baton Rouge, Louisiana February 12, 1996 P.O. Box 82430 \8641 United Plaza Boulevard, Suite 202 \Baton Rouge, Louisiana 70884-2430 \Telephone (504) 924-6744 \FAX (504) 929-6916 HOWE & ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS 104 EAST BROADWAY COLUMBIA, MO 65203 February 11, 1996 INDEPENDENT AUDITOR'S REPORT Partners SUMMERSVILLE ESTATES, LP Re: For the Years Ended December 31, 1994 and December 31, 1995 We have audited the accompanying balance sheet and the related statements of income, owners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position and results of operations and cash flows for the years then ended in conformity with generally accepted accounting principles. Howe and Associates GOLDEN ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS P.O. Box 967 769 E. Oglethorpe Hwy Hinesville, GA 31313 Larry R. Golden, CPA Janine D. Graham, CPA INDEPENDENT AUDITOR'S REPORT To The Partners Talbot Village II Limited Partnership We have audited the accompanying balance sheets of Talbot Village II Limited Partnership, as of December 31, 1995 and 1994, and the related statements of operations, changes in partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Talbot Village II Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. GOLDEN ASSOCIATES Certified Public Accountants April 1, 1996 Hinesville, Georgia Telephone (912)369-7575 Fax (912) 876-8798 Members American Institute and Georgia Society of Certified Public Accountant SCHELL & HOGAN CERTIFIED PUBLIC ACCOUNTANTS P.O. Box 859 Brunswick, GA 31521 (912) 267-5300 P.O. Box 967 Hinesville, GA 31313 (912) 369-7575 Jerry W. Harper, CPA James A. Szwast, CPA Larry R. Golden, CPA Joseph A. Whittle, Jr., CPA Steven P. Graham, CPA INDEPENDENT AUDITOR'S REPORT To The Partners Talbot Village II Limited Partnership We have audited the accompanying balance sheets of Talbot Village II Limited Partnership, as of December 31, 1993 and 1992, and the related statements of operations, changes in partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Talbot Village II Limited Partnership as of December 31, 1993 and 1992, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. SCHELL AND HOGAN Certified Public Accountants February 21, 1994 Hinesville, Georgia Brunswick FAX (912) 267-5315 Hinesville FAX (912) 876-8798 Members American Institute and Georgia Society of Certified Public Accountants Bob T. Robinson Certified Public Accountant 2084 Dunbarton Drive Jackson, Mississippi 39216 (601) 982-3875 Independent Auditor's Report To the Partners Turtle Creek Family, L.P. I have audited the accompanying balance sheet of Turtle Creek Family, L.P. as of December 31, 1995 and 1994, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Turtle Creek Family, L.P. as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Jackson, Mississippi January 23, 1996 Bob T. Robinson Certified Public Accountant Bob T. Robinson, CPA 2084 Dunbarton Drive Jackson, Mississippi 39216 (601) 982-3875 Independent Auditor's Report To the Partners Turtle Creek Family, L.P. I have audited the accompanying balance sheet of Turtle Creek Family, L.P. as of December 31, 1994 and 1993, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. The financial statements for the year ended December 31, 1993 were audited by other auditors whose report dated January 25, 1994 expressed an unqualified opinion on those statements. I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Turtle Creek Family, L.P. as of December 31, 1994 and 1993, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Jackson, Mississippi January 27, 1995 TAMA AND BUDAJ, P.C. Certified Public Accountants 32783 MIDDLEBELT ROAD FARMINGTON HILLS, MICHIGAN 48334-1726 (810)626-3800 FAX (810)626-2276 MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS MICHIGAN ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SOUTH CAROLINA ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS 'ALSO LICENSED IN FLORIDA AND SOUTH CAROLINA ELY TAMA, CPA' JEFFREY F. BUDAJ, CPA BARTON A. LOWEN, CPA EMIL A. RAAB, CPA DIANE L. ISAACS, CPA JONATHON M. SHELDEN, CPA JOHN W. WEIPERT, CPA Independent Auditor's Report To the Partners of Victoria Pointe RRH, Ltd. We have audited the accompanying balance sheet of VICTORIA POINTE RRH, LTD. as of December 31, 1995, and the related statements of operations, changes in partners' equity (deficit) and cash flows - project operations for the period January 23, 1995 (date operational) to December 31, 1995. These financial statements are the responsibility of the general partner and management of the partnership. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly in all material respects, the financial position of VICTORIA POINTE RRH, LTD., as of December 31, 1995, and the results of its operations and its cash flows for the period January 23, 1995 (date operational) to December 31, 1995 in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supporting data on pages 10 through 17 inclusive has been subjected to the auditing procedures applied in the examination of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. We have also reviewed internal accounting controls and compliance with laws and regulations and have rendered our reports thereon on pages 18 through 20. TAMA AND BUDAJ, P C. Farmington Hills, Michigan February 9, 1996 ARMANDO A. SUAREZ, CPA HATO REY TOWER, SUITE 1500 268 MUNOZ RIVIERA AVENUE HATO REY, PR 00918 (787)763-3195 FAX (787)751-8448 INDEPENDENT AUDITOR'S REPORT To the Partners Vista Linda Apartments Limited Partnership I have audited the accompanying balance sheet of Vista Linda Apartments Limited Partnership as of December 31, 1995 and 1994, and the related statements of operations, partners' equity (deficit), and cash flows for the year then ended. These financial statements (FMHA Project No.: 63-0160660472028) are the responsibility of the Partnership's management. My responsibility is to express an opinion on these financial statements based on my audit. I have conducted my audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Vista Linda Apartments Limited Partnership, FmHA Project No.: 63-0160660472028, as of December 31, 1995 and 1994, and the results of its operations, changes in partners' equity (deficit) and cash flows for the years then ended in conformity with generally accepted accounting principles. My audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 20 thru 35 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Armando A. Suarez, CPA March 12, 1996 San Juan, Puerto Rico The stamp #1328710 of the CPA's College of PR was affixed to the original of this report. ARMANDO A. SUAREZ Certified Public Accountant of Puerto Rico License No. 952 OTIS, ATWELL & TIMBERLAKE Professional Association CERTIFIED PUBLIC ACCOUNTANTS 980 Forest Avenue Portland, Maine 04103 (207) 797-0990 FAX (207) 797-8618 James C. Otis, C.P.A, CFP Stephen W. Atwell, C.P.A. Fred I. Timberlake, C.P.A. Bruce E. Fritzson, C.P.A. Thomas J. Gioia, C.P.A. INDEPENDENT AUDITOR'S REPORT The Partners Wakefield Housing Associates We have audited the accompanying balance sheets of Wakefield Housing Associates, a limited partnership, RECD Case No. 34-002-0010456615, as of December 31, 1995 and 1994, and the related statements of income, partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Wakefield Housing Associates as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Certified Public Accountants January 17, 1996 Portland, Maine DURANT, SCHRAIBMAN & LINDSAY Certified Public Accountants INDEPENDENT ACCOUNTANTS' REPORT To the Partners West End Manor Apartments, A Limited Partnership Columbia, South Carolina We have audited the accompanying balance sheets of West End Manor Apartments, A Limited Partnership (A South Carolina Limited Partnership), as of December 31, 1995 and 1994, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of West End Manor Apartments, A Limited Partnership, as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. February 3, 1996 4408 Forest Drive, Third Floor, Columbia, South Carolina 29206, Telephone 803-790-0020 Fax 803-790-0011 Tate, Propp, Beggs & Sugimoto CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS INDEPENDENT AUDITORS' REPORT To the Partners Willcox II Investment Group An Arizona Limited Partnership We have audited the accompanying balance sheets of Willcox II Investment Group, an Arizona Limited Partnership, as of December 31, 1995 and 1994, and the related statements of operations, changes in partners, capital, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Willcox II Investment Group as of December 31, 1995 and 1994, and the results of its operations and cash flows for the years then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 15, 1996, on our consideration of Willcox II Investment Group's internal control structure and a report dated February 15, 1996, on its compliance with laws and regulations. An Accountancy Corporation February 15, 1996 Sacramento, California A Professional Corporation 1545 River Park Drive, Suite 375 Sacramento, California 95815 916-929-1006 FAX 916-929-0879 STIENESSEN SCHLEGEL & CO. LIMITED LIABILITY COMPANY CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's Report To the Partners Crosby Country Apartments Limited Partnership We have audited the accompanying balance sheet of Crosby Country Apartments Limited Partnership as of December 31, 1995, and the related statements of operations, partners' equity, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Crosby Country Apartments Limited Partnership, as of December 31, 1995, and the results of its operations, changes in partners' equity, and cash flows for the year then ended in conformity with Generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 12 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. CERTIFIED PUBLIC ACCOUNTANTS June 19, 1996 2411 N. HILLCREST PARKWAY, P.O. BOX 810, EAU CLAIRE, WI 54702-0810 PHONE (715)832-3425 FAX (715) 832-1665 Bob T. Robinson Certified Public Accountants Bob T. Robinson, CPA 2084 Dunbarton Drive Jackson, Mississippi 39216 (601) 982-3875 Independent Auditor's Report To the Partners Tchula Elderly, L.P. I have audited the accompanying balance sheet of Tchula Elderly, L.P. as of December 31, 1994 and 1993, and the related statements of operations, partners' equity (deficit) and cash flows for years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Tchula Elderly, L.P. as of December 31, 1994 and 1993, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Jackson, Mississippi March 1, 1995 Bob T. Robinson Certified Public Accountants 2084 Dunbarton Drive Jackson, Mississippi 39216 (601) 982-3875 Independent Auditor's Report To the Partners Joiner Elderly, L.P. I have audited the accompanying balance sheet of Joiner Elderly, L.P. as of December 31, 1995 and 1994, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Joiner Elderly, L.P. as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Jackson, Mississippi January 23, 1996 DURANT, SCHRAIBMAN & LINDSAY Certified Public Accountants INDEPENDENT ACCOUNTANTS' REPORT To the Partners West End Manor Apartments, A Limited Partnership Columbia, South Carolina We have audited the accompanying balance sheet of West End Manor Apartments, A Limited Partnership (A South Carolina Limited Partnership), as of December 31, 1993, and the related statements of operations, partner's equity and cash flows from May 19, 1993 to December 31, 1993. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of West End Manor Apartments, A Limited Partnership, as of December 31, 1993, and the results of its operations and its cash flows from May 19, 1993 to December 1, 1993, in conformity with generally accepted accounting principles. February 17, 1994 4408 Forest Drive, Third Floor, Columbia, South Carolina 29206 Telephone 803-790-0020 Fax 803-790-0011 OTIS, ATWELL & TIMBERLAKE Professional Association CERTIFIED PUBLIC ACCOUNTANTS 980 Forest Avenue Portland, Maine 04103 (207) 797-0990 FAX (207) 797-8618 James C. Otis, C.P.A, CFP Stephen W. Atwell, C.P.A. Fred I. Timberlake, C.P.A. Bruce E. Fritzson, C.P.A. Thomas J. Gioia, C.P.A. INDEPENDENT AUDITOR'S REPORT To the Partners Wakefield Housing Associates We have audited the accompanying balance sheets of Wakefield Housing Associates, a limited partnership, FmHA Case No. 34-002-0010456615, as of December 31, 1994 and 1993 and the related statements of income, partners' equity (deficit), and cash flows for the year ended December 31, 1994 and for the period from February 15, 1993 to December 31, 1993. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Wakefield Housing Associates, a limited partnership, as of December 31, 1994 and 1993, and the results of its operations and its cash flows for the year ended December 31, 1994 and for the period from February 15, 1993 to December 31, 1993 in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying additional information on pages 13 and 14 is presented solely for the use of the Farmers Home Administration and is not a required part of the basic financial statements. The Multiple Family Housing Borrower Balance Sheet, Form FmHA 1930-8, has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as whole. Certified Public Accountants January 16, 1995 Portland, Maine TAMA AND BUDAJ, P.C. Certified Public Accountants 32783 MIDDLEBELT ROAD FARMINGTON HILLS, MICHIGAN 48334-1726 (810)626-3800 FAX (810)626-2276 MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS MICHIGAN ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SOUTH CAROLINA ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS 'ALSO LICENSED IN FLORIDA AND SOUTH CAROLINA ELY TAMA, CPA' JEFFREY F. BUDAJ, CPA BARTON A. LOWEN, CPA EMIL A. RAAB, CPA DIANE L. ISAACS, CPA JONATHON M. SHELDEN, CPA JOHN W. WEIPERT, CPA Independent Auditor's Report To the Partners of Victoria Pointe RRH, Ltd. We have audited the accompanying balance sheet of VICTORIA POINTE RRH, LTD. (a Florida limited partnership in the development stage), as of December 31, 1994. This financial statement is the responsibility of the general partner and management of the partnership. Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the balance sheet is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the balance sheet. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall balance sheet presentation. We believe that our audit of the balance sheet provides a reasonable basis for our opinion. In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of VICTORIA POINTE RRH, LTD. (a Florida limited partnership in the development stage), as of December 31, 1994, in conformity with generally accepted accounting principles. TAMA AND BUDAJ, P.C. Farmington Hills, Michigan March 30, 1995 Crain & Company Certified Public Accountants Madison Square 24 Corporate Blvd. Jackson, Tennessee 38305-2395 Telephone (901)668-7070 FAX (901)668-1218 S.Lawson Crain,CPA R. Thomas Crenshaw,CPA Mark M. Layne,CPA Katherine G. Watts,CPA John E. Hudson,CPA Anita C. Hamilton,CPA Mickey Hannon,CPA Karen L. Taylor,CPA Jason T. Shanes,CPA Amy K. Santaniello,CPA Tony R. Jones,CPA Independent Auditor's Report To the Partners Hickman Associates II, Limited Partnership We have audited the accompanying balance sheets of Hickman Associates II, Limited Partnership, FmHA Project No.:20-038-621451228 as of December 31, 1995 and 1994, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. 'nose standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hickman Associates II, Limited Partnership, FmHA Project No.:20-038-621451228, as of December 31, 1994 and 1993, and the results of its operations and its cash flows for the year ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Crain & Company Certified Public Accountants Jackson, Tennessee February 7,1996 Blackman & Associates, P.C Certified Public Accountants Independent Auditors' Report Aspen Ridge Apartments Limited Partnership (A Nebraska Limited Partnership) INDEPENDENT AUDITOR'S REPORT We have audited the accompanying balance sheet of Aspen Ridge Apartments Limited Partnership and the related statements of December 31, 1993 and the related statements of operations, changes in partners' capital accounts and, cash flows for the period from February 26, 1991(date of inception) to December 31, 1993. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Governmental Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position and results of Aspen Ridge Apartments Limited Partnership's operations and cash flows for the period from February 26, 1991 (date of inception) to December 31, 1993 in conformity with generally accepted accounting principles. Omaha, Nebraska February 1, 1994 Blackman & Associates, P.C Certified Public Accountants Independent Auditors' Report Aspen Ridge Apartments Limited Partnership (A Nebraska Limited Partnership) INDEPENDENT AUDITOR'S REPORT We have audited the accompanying balance sheet of Aspen Ridge Apartments Limited Partnership and the related statements of December 31, 1993 and the related statements of operations, changes in partners' capital accounts and, cash flows for the period from February 26, 1991(date of inception) to December 31, 1993. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Governmental Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position and results of Aspen Ridge Apartments Limited Partnership's operations and cash flows for the period from February 26, 1991 (date of inception) to December 31, 1993 in conformity with generally accepted accounting principles. Omaha, Nebraska February 1, 1994 11924 Arbor St., Ste 200. Omaha, Nebraska 68144. (402)330-1040 FAX (402)333-9189 Blackman & Associates, P.C Certified Public Accountants Independent Auditors' Report Aspen Ridge Apartments Limited Partnership (A Nebraska Limited Partnership) INDEPENDENT AUDITOR'S REPORT We have audited the accompanying balance sheet of Aspen Ridge Apartments Limited Partnership and the related statements of December 31, 1994 and the related statements of operations, changes in partners' capital accounts and, cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Governmental Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position and results of the Partnership at December 31, 1994 and the results of its operations and cash flows for the year ended December 31, 1994 in conformity with generally accepted accounting principles. Omaha, Nebraska March 20, 1995 11924 Arbor St., Ste 200. Omaha, Nebraska 68144. (402)330-1040 FAX (402)333-9189 Blackman & Associates, P.C Certified Public Accountants Independent Auditors' Report Aspen Ridge Apartments Limited Partnership (A Nebraska Limited Partnership) INDEPENDENT AUDITOR'S REPORT We have audited the accompanying balance sheet of Aspen Ridge Apartments Limited Partnership and the related statements of December 31, 1995 and the related statements of operations, changes in partners' capital accounts and, cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Governmental Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position and results of the Partnership at December 31, 1995 and the results of its operations and cash flows for the year then ended, in conformity with generally accepted accounting principles. Omaha, Nebraska March 4, 1995 11924 Arbor St., Ste 200. Omaha, Nebraska 68144. (402)330-1040 FAX (402)333-9189 HOWE & ASSOCIATES, PC CERTIFIED PUBLIC ACCOUNTANTS 104 EAST BROADWAY COLUMBIA, MO 65203 February 6, 1996 INDEPENDENT AUDITOR'S REPORT Partners ARTESIA PROPERTIES, LP Re: For the Years Ended December 31, 1994 and December 31, 1995 We have audited the accompanying balance sheet and the related statements of income, owners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Governmental Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position and results of operations and cash flows for the years then ended in conformity with generally accepted accounting principles. Howe and Associates, PC McGLADREY & PULLEN, LLP Certified Public Accountants and Consultants INDEPENDENT AUDITOR'S REPORT - ---------------------------- To the Partners Brewer Street Apartments Limited Partnership Winston-Salem, North Carolina We have audited the accompanying balance sheets of Brewer Street Apartments Limited Partnership as of December 31, 1995 and 1994, and the related statements of income, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Brewer Street Apartments Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Greensboro, North Carolina January 23, 1996 CRISP HUGHES & CO., L.L.P. Certified Public Accountants And Consultants Independent Auditors' Report - ---------------------------- To The Partners Briarwood Apartments, A Limited Partnership We have audited the accompanying balance sheet of Briarwood Apartments, A Limited Partnership as of December 31, 1995 and 1994, and the related statements of operations, changes in partners' capital and cash flows for the year ended December 31, 1995 and for the period August 17, 1994 through December 31, 1994. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards, and with Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Briarwood Apartments, A Limited Partnership as of December 31, 1995 and 1994 and the results of its operations and its cash flows for the year ended December 31, 1995 and for the period August 17, 1994 through December 31, 1994 in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated March 1, 1996 on our consideration of Briarwood Apartments, A Limited Partnership's internal control structure and a report dated March 1, 1996 on its compliance with laws and regulations. March 1, 1996 1 Creekview Court P.O. Box 25849 Greenville, South Carolina 29616 (864) 288-5544 / FAX (864) 458-8519 Other Offices.- Asheville, Boone, Burnsville, Charlotte, Durham, Sylva, NC KB Parrish Co. Certified Public Accountants 151 North Delaware Street Suite 1600 Indianapolis, IN 46204 (317) 269-2455 Fax (317) 269-2464 Report of Independent Certified Public Accountants - -------------------------------------------------- To the Partners of Briarwood of Dekalb, L.P. (A Limited Partnership) Dekalb, Illinois We have audited the balance sheets of Briarwood of Dekalb, L.P. (a limited partnership) as of December 31, 1995 and 1994, and the related statements of operations, changes in partnership capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. we conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. For the period January 1, 1994 to August 3, 1994, the company was in a stage of development. Accordingly, a majority of the company's funds received and expenditures paid during the period related to the construction and initial rent-up of the apartment project. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Briarwood of Dekalb, L.P. at December 31, 1995 and 1994, and the results of its operations, and cash flows for the years then ended, in conformity with generally accepted accounting principles. Respectfully submitted, K. B. Parrish & Co. Certified Public Accountants Indianapolis, Indiana January 25, 1996 Members of American Institute of Certified Public Accountants GOLDEN ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS P.O. Box 967 769 E. Oglethorpe Hwy Hinesville, GA 31313 Larry R. Golden, CPA Janine D. Graham, CPA INDEPENDENT AUDITOR'S REPORT - ---------------------------- To The Partners Briarwood Village Limited Partnership We have audited the accompanying balance sheets of Briarwood Village Limited Partnership, as of December 31, 1995 and 1994, and the related statements of operations, changes in partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Briarwood Village Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. GOLDEN ASSOCIATES Certified Public Accountants April 1, 1996 Hinesville, Georgia Telephone (912) 369-7575 Fax (912) 876-8798 Members American Institute and Georgia Society of Certified Public Accountants SCHELL & HOGAN CERTIFIED PUBLIC ACCOUNTANTS P.O. Box 859 Brunswick, GA 31521 (912) 267-5300 P.O. Box 967 Hinesville, GA 31313 (912) 369-7575 INDEPENDENT AUDITOR'S REPORT - ---------------------------- The Partners Briarwood Village Limited Partnership Savannah, Georgia Gentlemen: We have audited the accompanying balance sheet of Briarwood Village Limited Partnership as of December 31, 1993, and the related statements of operations and partners' capital, and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Briarwood Village Limited Partnership as of December 31, 1993, and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles. SCHELL AND HOGAN Certified Public Accountants Hinesville, Georgia February 11, 1994 Brunswick Fax (912) 267-5315 Hinesville FAX (912) 876-8798 Members American Institute and Georgia Society of Certified Public Accountants DIMARCO, ABIUSI & PASCARELLA Certified Public Accountants, P.C. The Clinton Exchange 4 Clinton Square, Suite 104 Syracuse, New York 13202-1074 Phone (315) 475-6954 Fax (315) 475-2937 Alfred Dimarco Philip Abiusi L. Richard Pascarella Nakho Sung Leo N. Bonfardeci Carl T. Greco Michael A. Mammolito David R. Snyder INDEPENDENT AUDITORS' REPORT - ---------------------------- To The Partners CAIRO HOUSING COMPANY I East Syracuse, New York We have audited the accompanying balance sheets of Cairo Housing Company I (a Limited Partnership) as of December 31, 1995 and 1994, and the related statements of income, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the General Partners. Our responsibility is to express an pinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the partners, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cairo Housing Company I as of December 31, 1995 and 1994, and the results of its operations and cash flows for the years then ended in conformity with generally accepted accounting principles. DIMARCO, ABIUSI & PASCARELLA, P.C. Syracuse, New York February 13, 1996 DIMARCO, ABIUSI & PASCARELLA & FIRNSTEIN Certified Public Accountants, P.C. The Clinton Exchange 4 Clinton Square, Suite 104 Syracuse, New York 13202-1074 Phone (315) 475-6954 Fax (315) 475-2937 Alfred Dimarco Philip Abiusi L. Richard Pascarella Nakho Sung Leo N. Bonfardeci Carl T. Greco Michael A. Mammolito David R. Snyder INDEPENDENT AUDITORS' REPORT - ---------------------------- To The Partners CAIRO HOUSING COMPANY I East Syracuse, New York we have audited the accompanying balance sheet of Cairo Housing Company I (a Limited Partnership) as of December 31, 1993, and the related statements of income, partners' capital and cash flows for the year then ended. These financial statements are the responsibility of the General Partners. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the partners, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cairo Housing Company I as of December 31, 1993, and the results of its operations and cash flows for the year then ended in conformity with generally accepted accounting principles. DIMARCO, ABIUSI, PASCARELLA & FIRNSTEIN, P.C. Syracuse, New York March 8, 1994 HOWE & ASSOCIATES, PC CERTIFIED PUBLIC ACCOUNTANTS 104 EAST BROADWAY COLUMBIA, MO 65203 February 4, 1996 INDEPENDENT AUDITOR'S REPORT - ---------------------------- Partners CLINTON ESTATES, L.P. Re: For the Years Ended December 31, 1994 and December 31, 1995 We have audited the accompanying balance sheet and the related statements of income, owners equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position and results of operations and cash flows for the years then ended in conformity with generally accepted accounting principles. Howe and Associates, PC DANIEL G. DRANE CERTIFIED PUBLIC ACCOUNTANT - --------------------------- 209 East Third Street P. 0. Box 577 Hardinsburg, Kentucky 40143 (502) 756-5704 INDEPENDENT AUDITOR'S REPORT - ---------------------------- To the Partners Caneyville Properties, Ltd. Caney Creek, Kentucky I have audited the accompanying balance sheet of Caneyville Properties, Ltd. (a Kentucky limited partnership), Fmha Project No.: 2043-611191157 , as of December 31, 1993, and the related statements of operations, partners' capital, and cash flows for the nine-month period then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit, as of December 31, 1993 and for the nine-month period ended December 31, 1993 in accordance with Government Auditing Standards, issued by the Comptroller General of the United States. I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Caneyville Properties, Ltd., as of December 31, 1993, and the results of its operations and its cash flows for the nine-month period then ended in conformity with generally accepted accounting principles. Daniel G. Drane Certified Public Accountant March 1, 1994 DANIEL G. DRANE CERTIFIED PUBLIC ACCOUNTANT 209 East Third Street P. 0. Box 577 Hardinsburg, Kentucky 40143 (502) 756-5704 INDEPENDENT AUDITOR'S REPORT - ----------------------------- To the Partners Cloverport Properties, Ltd. Cloverport, Kentucky I have audited the accompanying balance sheet of Cloverport Properties, Ltd. (a Kentucky limited partnership), FMHA Project No.: 20-14-611202096 , as of December 31, 1993, and the related statements of operations, partners' capital, and cash flows for the five-month period then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit, as of December 31, 1993 and for the five-month period then ended in accordance with Government Auditing Standards, issued by the Comptroller General of the United States. I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cloverport Properties, Ltd., as of December 31, 1993, and the results of its operations and its cash flows for the five-month period then ended in conformity with generally accepted accounting principles. Daniel G. Drane Certified Public Accountant March 1, 1994 CRAIN & COMPANY Certified Public Accountants Madison Square 24 Corporate Blvd. Jackson, Tennessee 38305-2395 Telephone (901) 668-7070 Fax (901) 668-1218 S. Lawson Crain, CPA R. Thomas Crenshaw, CPA Mark M. Layne, CPA Katherine G. Watts, CPA - ----------------------- John E. Hudson, CPA Anita C. Hamilton, CPA Mickey Hannon, CPA Karen L. Taylor, CPA Jason T. Shanes, CPA Amy K. Santaniello, CPA Tony R. Jones, CPA Karen C. Miller, CPA Melinda Y. Chapman, CPA INDEPENDENT AUDITORS' REPORT - ---------------------------- To the Partners Crofton Associates 1, Limited Partnership We have audited the accompanying balance sheets of Crofton Associates I, Limited Partnership, FMHA Project No.: 20-024-0621467587 as of December 31, 1995 and 1994, and the related statements of operations, changes in partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Crofton Associates 1, Limited Partnership, FMHA Project No.: 20-0240621467587 as of December 31, 1995, and the results of its operations, changes in partners' capital and cash flows for the year then ended in conformity with generally accepted accounting principles. CRAIN & COMPANY Page 2 Our audit was for the purpose of forming an opinion on the basic financial statements taken as a whole. 'Me supplementary information as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. In accordance with Government Auditing Standards, we have also issued a report dated January 31, 1996 on our consideration of the limited partnership's internal control structure and a report dated January 31, 1996 on its compliance with laws and regulations. CRAIN & COMPANY Certified Public Accountants Jackson, Tennessee January 31, 1996 Member of Tennessee Society of Certified Public Accountants American Institute of Certified Public Accountants and Private Companies Practice Section CRAIN & COMPANY Certified Public Accountants Madison Square 24 Corporate Blvd. Jackson, Tennessee 38305-2395 Telephone (901) 668-7070 Fax (901) 668-1218 S. Lawson Crain, CPA R. Thomas Crenshaw, CPA Mark M. Layne, CPA Katherine G. Watts, CPA - ----------------------- John E. Hudson, CPA Anita C. Hamilton, CPA Mickey Hannon, CPA Karen L. Taylor, CPA Jason T. Shanes, CPA Amy K. Santaniello, CPA Tony R. Jones, CPA Karen C. Miller, CPA Melinda Y. Chapman, CPA INDEPENDENT AUDITORS' REPORT - ---------------------------- To the Partners Crofton Associates 1, Limited Partnership We have audited the accompanying balance sheets of Crofton Associates 1, Limited Partnership, FMHA Project No.: 20-024'0621467587 as of December 31, 1994 and 1993, and the related statements of operations, changes in partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Crofton Associates 1, Limited Partnership, FMHA Project No.: 20-0240621467587 as of December 31, 1994, and the results of its operations, changes in partners' capital and cash flows for the year then ended in conformity with generally accepted accounting principles. Our audit was for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on pages 12 through 16 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. CRAIN & COMPANY Certified Public Accountants Jackson, Tennessee February 8, 1995 Member of Tennessee Society of Certified Public Accountants POOLE CUNNINGHAM & REITANO, P.A. Certified Public Accountants INDEPENDENT AUDITORS' REPORT - ---------------------------- To the Partners Cypress Point, L.P. We have audited the accompanying balance sheet of Cypress Point, L.P. as of December 31, 1995, and the related statements of operations, changes in partners' equity, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cypress Point, L.P. as of December 31, 1995, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. April 25, 1996 4273 Interstate 55 North, Suite 102 Jackson, Mississippi 39216 (601) 366-2727 , FAX (601) 366-9735 Mailing Address: Post Office Drawer 55629 Jackson, Mississippi 39296-5629 GOLDEN ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS P.O. Box 967 769 E. Oglethorpe Hwy Hinesville, GA 31313 Larry R. Golden, CPA - -------------------- Janine D. Graham, CPA INDEPENDENT AUDITOR'S REPORT - ---------------------------- To The Partners Deerwood Village Limited Partnership We have audited the accompanying balance sheets of Deerwood Village Limited Partnership, as of December 31, 1995 and 1994, and the related statements of operations, changes in partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Deerwood Village Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. GOLDEN ASSOCIATES Certified Public Accountants April 1, 1996 Hinesville, Georgia Telephone (912) 369-7575 Fax (912) 876-8798 Members American Institute and Georgia Society of Certified Public Accountants GOLDEN ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS P.O. Box 967 769 Oglethorpe Hwy Hinesville, GA 31313 Larry R. Golden, CPA - -------------------- Janine D. Graham, CPA INDEPENDENT AUDITOR'S REPORT - ---------------------------- To The Partners Doyle Village Limited Partnership We have audited the accompanying balance sheets of Doyle Village Limited Partnership, as of December 31, 1995 and 1994, and the related statements of operations, changes in partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Doyle Village Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. GOLDEN ASSOCIATES Certified Public Accountants April 1, 1996 Hinesville, Georgia Telephone (912) 369-7575 Fax (912) 876-8798 Members American Institute and Georgia Society of Certified Public Accountants SCHELL & HOGAN CERTIFIED PUBLIC ACCOUNTANTS P.O. Box 859 Brunswick, GA 31521 (912) 267-5300 P.O. Box 967 Hinesville, GA 31313 (912) 369-7575 Jerry W. Harper, CPA James A. Szwast, CPA Larry R. Golden, CPA Joseph A. Whittle, Jr., CPA Steven P. Graham, CPA INDEPENDENT AUDITOR'S REPORT - ---------------------------- The Partners Doyle Village Limited Partnership Savannah, Georgia Gentlemen: We have audited the accompanying balance sheet of Doyle Village Limited Partnership as of December 31, 1993, and the related statements of operations and partners' capital, and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Doyle Village Limited Partnership as of December 31, 1993, and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles. SCHELL AND HOGAN Certified Public Accountants Hinesville, Georgia February 11, 1994 Brunswick Fax (912) 267-5315 Hinesville Fax (912) 876-8798 CRAIN & COMPANY Certified Public Accountants Madison Square 24 Corporate Blvd. Jackson, Tennessee 38305-2395 Telephone (901) 668-7070 Fax (901) 668-1218 S. Lawson Crain, CPA R. Thomas Crenshaw, CPA Mark M. Layne, CPA Katherine G. Watts, CPA - ----------------------- John E. Hudson, CPA Anita C. Hamilton, CPA Mickey Hannon, CPA Karen L. Taylor, CPA Jason T. Shanes, CPA Amy K. Santaniello, CPA Tony R. Jones, CPA Karen C. Miller, CPA Melinda Y. Chapman, CPA INDEPENDENT AUDITORS' REPORT - ---------------------------- To the Partners Gallaway Associates I, Limited Partnership We have audited the accompanying balance sheets of Gallaway Associates 1, Limited Partnership, FMHA Project No.: 48-024-621474763 as of December 31, 1995 and 1994, and the related statements of operations, changes in partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material in statement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Gallaway Associates I, Limited Partnership, FmHA Project No.: 48-024621474763 as of December 31, 1995 and 1994, and the results of its operations, changes in partners' capital and ash flows for the year then ended in conformity with generally accepted accounting principles. Our audit was for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Gallaway Associates I, Limited Partnership Page 2 In accordance with Government Auditing Standards, we have also issued a report dated January 3 1, 1996 on our consideration of the limited partnership's internal control structure and a report dated January 31, 1996 on its compliance with laws and regulations. CRAIN & COMPANY Certified Public Accountants Jackson, Tennessee January 31, 1996 Member of Tennessee Society of Certified Public Accountants American Institute of Certified Public Accountants and Private Companies Practice Section CRAIN & COMPANY Certified Public Accountants Madison Square 24 Corporate Blvd. Jackson, Tennessee 38305-2395 Telephone (901) 668-7070 Fax (901) 668-1218 S. Lawson Crain, CPA R. Thomas Crenshaw, CPA Mark M. Layne, CPA Katherine G. Watts, CPA - ----------------------- John E. Hudson, CPA Anita C. Hamilton, CPA Mickey Hannon, CPA Karen L. Taylor, CPA Jason T. Shanes, CPA Amy K. Santaniello, CPA Tony R. Jones, CPA Karen C. Miller, CPA Melinda Y. Chapman, CPA INDEPENDENT AUDITORS' REPORT - ---------------------------- To the Partners Gallaway Associates I, Limited Partnership We have audited the accompanying balance sheets of Gallaway Associates 1, Limited Partnership, FmHA Project No.: 48-024-621474763 as of December 31, 1994 and 1993, and the related statements of operations, changes in partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Gallaway Associates I, Limited Partnership, FMHA Project No.: 48-024621474763 as of December 31, 1994, and the results of its operations, changes in partners' capital and cash flows for the year then ended in conformity with generally accepted accounting principles. Our audit was for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on pages 12 through 16 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. CRAIN & COMPANY Certified Public Accountants Jackson, Tennessee February 9, 1995 Ruljancich, Blume, Loveridge & Co., PLLC Certified Public Accountants INDEPENDENT AUDITOR'S REPORT ON FINANCIAL STATEMENTS - ---------------------------------------------------- Partners Glenridge Housing Associates, a Washington Limited Partnership Bellevue, Washington We have audited the accompanying balance sheets of Glenridge Housing Associates, a Washington Limited Partnership, as of December 31, 1995 and 1994, and the related statements of operations, changes in partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform an audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Glenridge Housing Associates. a Washington Limited Partnership, as of December 31, 1995 and 1994. and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated March 8, 1996 on our consideration of the Partnership's internal control structure and a report dated March 8, 1996 on its compliance with laws and regulations. March 8, 1996 11100 NE 8th Street Suite 410 Bellevue, Washington 98004-4441 (206) 453-2088 Fax (206) 646-3368 THE GAUTREAU GROUP, L.L.C. Certified Public Accountants John C. Gautreau, II, CPA* J. Curt Gautreau, CPA* Crissie Head, CPA Letti Lowe, CPA Jennifer D. Derousselle, CPA * A Professional Accounting Corporation Independent Auditors' Report - ---------------------------- To the Partners of Greenwood Place, L. P. We have audited the accompanying balance sheets of Greenwood Place, L. P. (A Mississippi Limited Partnership) as of December 31, 1995 and 1994, and the related statements of operations, changes in partners, capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management,, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Greenwood Place, L. P. as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 12, 1996 on our consideration of Greenwood Place, L. P.'s internal control structure and a report dated February 12, 1996 on its compliance with laws and regulations. Certified Public Accountants February 12, 1996 P.O. Box 82430 8641 United Plaza Boulevard, Suite 202 Baton Rouge, Louisiana 70884-2430 Telephone (504) 924-6744 \FAX (504) 929-6916 Schoonover, Boyer, Gettman & Associates Certified Public Accountants/Financial Consultants INDEPENDENT AUDITORS' REPORT - ---------------------------- To the Partners Hackley-Barclay Limited Dividend Housing Association Limited Partnership We have audited the accompanying balance sheets of Hackley-Barclay Limited Dividend Housing Association Limited Partnership (a Michigan Limited Partnership), as of December 31, 1994 and 1993, and the related statements of operations, partners' equity and cash flows for the year ended December 31, 1994. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. 'nose standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hackley-Barclay Limited Dividend Housing Association Limited Partnership, as of December 31, 1994 and 1993, and the results of its operations and its cash flows for the year ended December 31, 1994 in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 17 and 18 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. January 27, 1995 Northwoods Corporate Center Suite 200 110 Northwoods Boulevard Worthington, Ohio 43235 (624) 888-8000 Fax (624) 888-8634 GOLDEN ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS P.O. Box 967 769 Oglethorpe Hwy Hinesville, GA 31313 Larry R. Golden, CPA - -------------------- Janine D. Graham, CPA INDEPENDENT AUDITOR'S REPORT - ---------------------------- To The Partners Houston Village Limited Partnership We have audited the accompanying balance sheets of Houston Village Limited Partnership, as of December 31, 1995 and 1994, and the related statements of operations, changes in partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Houston Village Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. GOLDEN ASSOCIATES Certified Public Accountants April 1, 1996 Hinesville, Georgia Telephone (912) 369-7575 Fax (921) 876-8798 Members American Institute and Georgia Society of Certified Public Accountants SCHELL & HOGAN CERTIFIED PUBLIC ACCOUNTANTS P.O. Box 859 Brunswick, GA 31521 (912) 267-5300 P.O. Box 967 Hinesville, GA 31313 (912) 369-7575 Jerry W. Harper, CPA James A. Szwast, CPA Larry R. Golden, CPA Joseph A. Whittle, Jr., CPA Steven P. Graham, CPA Independent Auditor's Report - ---------------------------- The Partners Houston Village Limited Partnership Savannah, Georgia Gentlemen: We have audited the accompanying balance sheet of Houston Village Limited Partnership as of December 31, 1993, and the related statements of operations and partners' capital, and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Houston Village Limited Partnership as of December 31, 1993, and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles. SCHELL AND HOGAN Certified Public Accountants Hinesville, Georgia February 11, 1994 Brunswick Fax (912) 267-5315 Hinesville Fax (912) 876-8798 THOMAS C. CUNNINGHAM, CPA PC 23 MOORE STREET BRISTOL, VIRGINIA 24201 (540) 669-5531 (540) 669-5576 fax INDEPENDENT AUDITOR'S REPORT - ---------------------------- To the Partners Lee Terrace Limited Partnership I have audited the accompanying balance sheet of Lee Terrace Limited Partnership, FMHA Case No.: 54-064-0541632971, as of December 31, 1995 and the related statement of operations for the period January 6, 1995 to December 31, 1995 and the related statements of partners' equity and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. believe that my audit provides a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lee Terrace Limited Partnership, as of December 31, 1995 and the results of its operations for the period September 1, 1995 to December 31, 1995 and cash flows for the year then ended in conformity with generally accepted accounting principles. My audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 15 is presented 'for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Thomas C. Cunningham, CPA PC Bristol, Virginia February 15, 1996 THOMAS C. CUNNINGHAM, CPA PC 23 MOORE STREET BRISTOL, VIRGINIA 24201 (703) 669-5531 (703) 669-5576 fax INDEPENDENT AUDITOR'S REPORT - ---------------------------- To the Partners Lee Terrace Limited Partnership I have audited the accompanying balance sheet of Lee Terrace Limited Partnership, as of December 31, 1994, the end of the initial accounting period of the Partnership. This financial statement is the responsibility of the Partnership's management. My responsibility is to express an opinion on this financial statement based on my audit. I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the balance sheet is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the balance sheet. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall balance sheet presentation. believe that my audit of the balance sheet provides a reasonable basis for my opinion. In my opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of Lee Terrace Limited Partnership as of December 31, 1994, in conformity with generally accepted accounting principles. Thomas C. Cunningham, CPA PC Bristol, Virginia February 15, 1995 PAGE, OLSON & COMPANY P C INDEPENDENT AUDITORS' REPORT - ---------------------------- February 15, 1996 To the Partners Midland Housing Limited Partnership We have audited the accompanying balance sheets of Midland Housing Limited Partnership as of December 3 1, 1995 and 1994, and the related statements of operations, partners equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits 'in accordance with generally accepted auditing standards. Those standards require that we plan and per-form the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also 'includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion the financial statements referred to above present fairly, in all material respects, the financial position of Midland Housing Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental 'information on page 13 is presented for the purposes of additional analysis and is d part of the basic financial statements. Such information has been subjected to the auditing not a require procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects 'in relation to the basic financial statements taken as a whole. 2865 SOUTH LINCOLN ROAD PO BOX 368 MT PLEASANT, MI 48804 517 773-5494 FAX 517 773-5816 COOPERS & LYBRAND A professional services firm REPORT OF INDEPENDENT ACCOUNTANTS - --------------------------------- To the Partners Mt. Vernon Associates, L.P. We have audited the accompanying balance sheet of Mt. Vernon Associates, L.P. (A Limited Partnership) , as of December 31, 1994, and the related statements of operations and partners' capital and cash flows for the period from November 4, 1994 (date partnership was formed) through December 31, 1994. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Mt. Vernon Associates, L.P., as of December 31, 1994, and the results of its operations and its cash flows for the period from November 4, 1994 through December 31, 1994 in conformity with generally accepted accounting principles. Rochester, New York July 6, 1995 Coopers & Lybrand L.L.P., a registered limited liability partnership is a member firm of Coopers & Lybrand (International) DURANT, SCHRAIBMAN & LINDSAY Certified Public Accountants INDEPENDENT ACCOUNTANTS' REPORT - ------------------------------- To the Partners Oakwood Manor of Bennettsville, A Limited Partnership Columbia, South Carolina We have audited the accompanying balance sheets of Oakwood Manor of Bennettsville, A Limited Partnership (A South Carolina Limited Partnership), as of December 31, 1995 and 1994, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Oakwood Manor of Bennettsville, A Limited Partnership, as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. January 26, 1996 4408 Forest Drive Third Floor Columbia, South Carolina 29206 Telephone 803-790-0020 Fax 803-790-0011 THE GAUTREAU GROUP, L.L.C Certified Public Accountants John C. Gautreau, II, CPA* J. Curt Gautreau, CPA* Crissie Head, CPA Letti Lowe, CPA Jennifer D. Derousselle, CPA *A Professional Accounting Corporation INDEPENDENT AUDITORS' REPORT - ----------------------------- To the Partners of Opelousas Point Partnership We have audited the accompanying balance sheets of Opelousas Point Partnership (A Louisiana Partnership in Commendam) as of December 31, 1995 and 1994, and the related statements of operations, changes in partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Opelousas Point Partnership as of December 31, 1995 and 1994, and the results of its operations and cash flows for the years then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 12, 1996 on our consideration of Opelousas Point Partnership's internal control structure and a report dated February 12, 1996 on its compliance with laws and regulations. Certified Public Accountants Baton Rouge, Louisiana February 12, 1996 P.O. Box 82430 8641 United Plaza Boulevard, Suite 202 Baton Rouge, Louisiana 70884-2430 Telephone (504) 924-6744 FAX (504) 929-6916 DUGGAN, JOINER, BIRKENMEYER, STAFFORD & FURMAN, P.A. Certified Public Accountants MALCOLM R. DUGGAN, JR., CPA C.D. JOINER, JR., CPA, RETIRED WAYNE J. BIRKENMEYER, CPA FRANK E. STAFFORD, JR., CPA EDWARD J. FURMAN, CPA O.H. DANIELS, JR., CPA R. PHILLIP BLEDSOE, CPA CAROLE A. WRIGHT, CPA ANNETTE C. FURMAN, CPA - ----------------------------- LAURA J. ALLEN, CPA JAMIE S. HAMPY, CPA PATRICIA A. LANCASTER, CPA JULIE A. POOLE, CPA DAVID A. YOUNG, JR., CPA MEMBERS: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 334 N.W. THIRD AVENUE OCALA, FLORIDA 34475 PHONE (352) 732-0171 FAX (352) 867-1370 INDEPENDENT AUDITORS' REPORT - ---------------------------- January 18, 1996 To the Partners Palmetto Properties, Ltd. We have audited the accompanying basic financial statements of Palmetto Properties, Ltd., as of and for he years ended December 31,1 995 and 1884 as listed in the table of contents. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. believe that our audits provide a reasonable basis for our opinion. In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of Palmetto Properties, Ltd. as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. DUGGAN, JOINER, BIRKENMEYER, STAFFORD & FURMAN, P.A. Page 2 Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Duggan, Joiner, Birkenmeyer, Stafford & Furman, P.A. Certified Public Accountants TAMA AND BUDAJ, P.C. Certified Public Accountants 32783 Middlebelt Road Farmington Hills, Michigan 48334-1726 (810) 626-3800 Fax No. (810) 626-2276 ELY TAMA, CPA* JEFFREY F. BUDAJ, CPA - ---------------------- BARTON A. LOWEN, CPA EMIL A. RAAB, CPA DIANE L. ISAACS, CPA JONATHON M. SHELDON, CPA JOHN W. WEIPERT, CPA * Also Licensed in Florida And South Carolina MEMBERS - ------- AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS MICHIGAN ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SOUTH CAROLINA ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT - ---------------------------- To the Partners of Park Place II, Ltd. We have audited the accompanying balance sheet of PARK PLACE II, LTD. as of December 31, 1995 and 1994, and the related statements of operations, changes in partners' equity (deficit) and cash flows - project operations for the year then ended and the period April 8, 1994 (date operational) to December 31, 1994. These financial statements are the responsibility of the general partner and management of the partnership. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly in all material respects, the financial position of PARK PLACE II, LTD., as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the year then ended and the period April 8, 1994 (date operational) to December 31, 1994 in conformity with generally accepted accounting principles. TAMA AND BUDAJ, P.C. Page 2 Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supporting data on pages 10 through 17 inclusive has been subjected to the auditing procedures applied in the examination of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as whole. We have also reviewed internal accounting controls and compliance with laws and regulations and have rendered our reports thereon on pages 18 through 20. TAMA AND BUDAJ, P C. Farmington Hills, Michigan February 9, 1996 TAMA AND BUDAJ, P.C. Certified Public Accountants 32783 Middlebelt Road Farmington Hills, Michigan 48334-1726 (810) 626-3800 Fax No. (810) 626-2276 ELY TAMA, CPA* JEFFREY F. BUDAJ, CPA - ---------------------- BARTON A. LOWN, CPA EMIL A. RAAB, CPA DIANE L. ISAACS, CPA JONATHON M. SHELDON, CPA JOHN W. WEIPERT, CPA * Also Licensed in Florida And South Carolina MEMBERS - ------- AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS MICHIGAN ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SOUTH CAROLINA ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT - ---------------------------- To the Partners of Seabreeze Manor RRH, Ltd. We have audited the accompanying balance sheet of SEABREEZE MANOR RRH, LTD. as of December 31, 1995, and the related statements of operations, changes in partners' equity (deficit) and cash flows - project operations for the period January 10, 1995 (date operational) to December 31, 1995. These financial statements are the responsibility of the general partner and management of the partnership. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that w plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly in all material respects, the financial position of SEABREEZE MANOR RRH, LTD., as of December 31, 1995, and the results of its operations and its cash flows for the period January 10, 1995 (date operational) to December 31, 1995 in conformity with generally accepted accounting principles. TAMA AND BUDAJ, P.C. Page 2 Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supporting data on pages 10 through 17 inclusive has been subjected to the auditing procedures applied in the examination of the basic financial statements and, in our opinion. is fairly stated in all material respects in relation to the basic financial statements taken as whole. We have also reviewed internal accounting controls and compliance with laws and regulations and have rendered our reports thereon on pages 18 through 20. TAMA AND BUDAJ, P.C. Farmington Hills, Michigan February 9, 1996 TAMA AND BUDAJ, P.C. Certified Public Accountants 32783 Middlebelt Road Farmington Hills, Michigan 48334-1726 (810) 626-3800 Fax No. (810) 626-2276 ELY TAMA, CPA* JEFFREY F. BUDAJ, CPA - ---------------------- BARTON A. LOWN, CPA EMIL A. RAAB, CPA DIANE L. ISAACS, CPA JONATHON M. SHELDON, CPA JOHN W. WEIPERT, CPA * Also Licensed in Florida And South Carolina MEMBERS - ------- AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS MICHIGAN ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SOUTH CAROLINA ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT - ---------------------------- To the Partners of Seabreeze Manor RRH, Ltd. We have audited the accompanying balance sheet of SEABREEZE MANOR RRH, LTD. (a Florida limited partnership in the development stage), as of December 31, 1994. This financial statement is the responsibility of the general partner and management of the partnership. Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the balance sheet is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the balance sheet. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall balance sheet presentation. We believe that our audit of the balance sheet provides a reasonable basis for our opinion. In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of SEABREEZE MANOR RRH, LTD. (a Florida limited partnership in the development stage), as of December 31, 1994, in conformity with generally accepted accounting principles. TAMA AND BUDAJ, P.C. Farmington Hills, Michigan April 5, 1995 BERRY, DUNN, McNEIL & PARKER CERTIFIED PUBLIC ACCOUNTANTS MANAGEMENT CONSULTANTS INDEPENDENT AUDITORS' REPORT - ---------------------------- The Partners Skowhegan Housing Limited Partnership We have audited the accompanying balance sheets of Skowhegan Housing Limited Partnership as of December 31, 1995 and 1994, and the related statements of operations, changes in partners' equity, and cash flows for the periods then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Skowhegan Housing Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the periods then ended, in conformity with generally accepted accounting principles. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information included in Schedules 1 through 5 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Portland, Maine January 19, 1996 Offices in: Bangor, Manx Portland, Maine Lebanon, New Hampshire Manchester, New Hampshire DIMARCO, ABIUSI & PASCARELLA CERTIFIED PUBLIC ACCOUNTANTS, P.C. The Clinton Exchange 4 Clinton Square, Suite 104 Syracuse, New York 13202-1074 - ------------------------------ Phone (315) 475-6954 Fax (315) 475-2937 Alfred DiMarco Philip Abiusi L. Richard Pascarella Nakho Sung Leo N. Bonfardeci Carl T. Greco Michael A. Mammolito David R. Snyder INDEPENDENT AUDITORS' REPORT - ---------------------------- To The Partners VOORHEESVILLE HOUSING COMPANY I Voorheesville, New York We have audited the accompanying balance sheets of Voorheesville Housing Company I (a Limited Partnership) as of December 31, 1995 and 1994, and the related statements of income, partners' capital and cash flows for the years then ended. These statements are the responsibility of the General Partners. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the partners, as well as evaluating the overall financial statement presentation. We believe that our audits provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Voorheesville Housing Company I as of December 31, 1995 and 1994, and the results Of its operations and cash flows for the years then ended, in conformity with generally accepted accounting principles. DIMARCO, ABIUSI & PASCARELLA, P.C. Syracuse, New York February 26, 1996 DIMARCO, ABIUSI, PASCARELLA & FIRNSTEIN CERTIFIED PUBLIC ACCOUNTANTS, P.C. The Clinton Exchange 4 Clinton Square, Suite 104 Syracuse, New York 13202-1074 - ------------------------------ Phone (315) 475-6954 Fax (315) 475-2937 Alfred DiMarco Philip Abiusi L. Richard Pascarella Nakho Sung Leo N. Bonfardeci Carl T. Greco Michael A. Mammolito David R. Snyder INDEPENDENT AUDITORS' REPORT - ---------------------------- To The Partners VOORHEESVILLE HOUSING COMPANY I Voorheesville, New York We have audited the accompanying balance sheet of Voorheesville Housing Company I (a Limited Partnership) as of December 31, 1993, and the related statements of income, partners, capital, and cash flows for the year then ended. These statements are the responsibility of the General Partners. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the partners, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Voorheesville Housing Company I as of December 31, 1993, and the results of its operations and cash flows for the year then ended, in conformity with generally accepted accounting principles. DIMARCO, ABIUSI, PASCARELLA & FIRNSTEIN, P.C. Syracuse, New York March 14, 1994 RAYMOND, BROUSSARD & BROWN A PROFESSIONAL CORPORATION Certified Public Accountants - ---------------------------- 2616 Toulon Drive Baton Rouge, Louisiana 70816 Telephone: (504) 292-9211 Fax: (504) 292-0727 Paul C. Raymond, Sr., C.P.A., Retired Kathryn R. Broussard, C.P.A. Richard E. Brown, C.P.A. Robert W. Brown, C.P.A. INDEPENDENT AUDITORS' REPORT - ---------------------------- To the Partners White Castle Senior citizens Partnership, Ltd. We have audited the accompanying balance sheets of White Castle Senior Citizens Partnership, Ltd., RHS project No.: 22-024-721149468, as of December 31, 1995 and 1994 and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of White Castle Senior Citizens Partnership, Ltd. as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Our audit was for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 15 is presented for the purpose of additional analysis and is not a required part of the basic financial statements. The supplementary information presented in the Year End Report/Analysis (Form RHS 1930-8) Parts I through III and in the Multiple Family Housing Project Budget (Form RHS 1930-7) Parts I through V for the year ended 31, 1995, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Baton Rouge, Louisiana February 15, 1996 Blackman & Associates, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT - ---------------------------- To the Partners Aspen Ridge Apartments Limited Partnership Omaha, Nebraska We have audited the accompanying balance sheet of Aspen Ridge Apartments Limited Partnership (a Nebraska Limited Partnership) as of December 31, 1995 and the related statements of operations, changes in partners' capital accounts and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a@ reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Partnership at December 31, 1995 and the results of its operations, changes in partners, capital accounts, and cash flows for the year then ended, in conformity with generally accepted accounting principles. Omaha, Nebraska March 4, 1996 11924 Arbor St., Ste. 200 Omaha, Nebraska 68144 Phone (402) 330-1040 Fax (402) 333-9189 Blackman & Associates, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT - --------------------------- Aspen Ridge Apartments Limited Partnership (A Nebraska Limited Partnership) We have audited the accompanying balance sheet of Aspen Ridge Apartments Limited Partnership as of December 31, 1994 and the related statements of operations, changes in partners' capital accounts and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of the Partnership at December 31, 1994 and the results of its operations and its cash flows for the year ended December 31, 1994 in conformity with generally accepted accounting principles. Omaha, Nebraska March 20, 1995 11924 Arbor St., Ste.200 Omaha, Nebraska 68144 Phone (402) 330-1040 Fax (402) 333-9189 Blackman & Associates, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT - --------------------------- Aspen Ridge Apartments Limited Partnership (A Nebraska Limited Partnership) we have audited the accompanying balance sheet of Aspen Ridge Apartments Limited Partnership as of December 31, 1993 and the related statements of operations, changes in partners' capital accounts and cash flows for the period from February 26, 1991 (date of inception) to December 31, 1993. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standard require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of Material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material - -respects, the financial position of the Partnership at December 31, 1993 and the results of its operations and its cash flows for the period from February 26, 1991 (date of inception) to December 31, 1993 in conformity with generally accepted accounting principles. Omaha, Nebraska February 1, 1994 KB PARRISH CO. Certified Public Accountants 151 North Delaware Street Suite 1600 Indianapolis, IN 46203 (317) 269-2455 FAX (317) 269-2464 Report of Independent Certified Public Accountants - -------------------------------------------------- To the Partners of Briarwood of Dekalb, L.P. (An Illinois Limited Partnership) We have audited the accompanying balance sheet of Briarwood of Dekalb, L.P. (an Illinois limited partnership) as of December 31, 1993. This financial statement is the responsibility of the company's management. Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the balance sheet is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the balance sheet. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall balance sheet presentation. We believe that our audit provides a reasonable basis for our opinion. For the period January 1, 1993 through December 31, 1993, the company was in a stage of development. Accordingly, a majority of the company's funds received and expenditures paid during the year related to the construction of this apartment project. In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of Briarwood of Dekalb, L.P. as of December 31, 1993, in conformity with generally accepted accounting principles. Respectfully submitted, K. B. Parrish & Co. Certified Public Accountants Indianapolis, Indiana June 14, 1994 ZINER & COMPANY, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT - ---------------------------- To the Partners of Cambridge Family YMCA Affordable Housing Limited Partnership We have audited the accompanying balance sheet of Cambridge Family YMCA Affordable Housing Limited Partnership (a Massachusetts limited partnership) as of December 31, 1993, and the related statements of operations, changes in partners, equity, and cash flows for the year then ended. These financial statements are the responsibility of the general partner. our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the general partner, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for-our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cambridge Family YMCA Affordable Housing Limited Partnership as of December 31, 1993, and the results of its operations, cash flows, and changes in partners' equity for the year then ended in conformity with generally accepted accounting principles. January 14, 1994 7 Winthrop Square Boston, Massachusetts 02110-1256 Phone(617)542-8880 Fax (617)542-8715 DANIEL G. DRANE CERTIFIED PUBLIC ACCOUNTANT 209 East Third Street P. 0. Box 577 Hardinsburg, Kentucky 40143 (502) 756-5704 INDEPENDENT AUDITOR'S REPORT - ---------------------------- To the Partners Caneyville Properties, Ltd. Leitchfield, Kentucky I have audited the accompanying balance sheets of Caneyville Properties, Ltd. (a Kentucky limited partnership), RECDS Project No.: 20-043-0611191157, as of December 31, 1994 and 1993, and the related statements of operations, partners' capital and cash flows for the year ended December 31, 1994 and the nine-month period ended December 31, 1993. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audits, as of and for the year ended December 31, 1994 and the nine-month period ended December 31, 1993 in accordance with Government Auditing Standards, issued by the Comptroller General of the United States. I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Caneyville Properties, Ltd., as of December 31, 1994 and 1993, and the results of its operations and its cash flows for the year ended December 31, 1994 and the nine-month period ended December 31, 1993, in conformity with generally accepted accounting principles. Daniel G. Drane Certified Public Accountant March 9, 1995 DANIEL G. DRANE CERTIFIED PUBLIC ACCOUNTANT 209 East Third Street P.O Box 577 Hardinsburg, Kentucky 40143 (502) 756-5704 INDEPENDENT AUDITOR' REPORT - --------------------------- To the Partners Cloverport Properties, Ltd. Leitchfield, Kentucky I have audited the accompanying balance sheets of Cloverport Properties, Ltd. (a Kentucky limited partnership), RECDS Project No.: 20-014-611202096, as of December 31, 1994 and 1993, and the related statements of operations, partners' capital, and cash flows for the year ended December 31, 1994 and the five-month period ended December 31, 1993. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit, as of and for the year ended December 31, 1994 and the five-month period ended December 31, 1993 in accordance with Government Auditing Standards, issued by the Comptroller General of the United States. I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant. estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cloverport Properties, Ltd., as of December 31, 1994 and 1993, and the results of its operations and its cash flows for the year ended December 31, 1994 and the five-month period ended December 31, 1993 in conformity with generally accepted accounting principles. Daniel G. Drane Certified Public Accountant March 9, 1995 SCHELL & HOGAN CERTIFIED PUBLIC ACCOUNTANTS P.O. Box 859 Brunswick, GA 31521 (912) 267-5300 P.O. Box 967 Hinesville, GA 31313 (912) 369-7575 Jerry W. Harper, CPA James A. Szwast, CPA Larry R. Golden, CPA Joseph A. Whittle. Jr., CPA Steven P. Graham, CPA INDEPENDENT AUDITOR'S REPORT - ----------------------------- To The Partners Deerwood Village Limited Partnership We have audited the accompanying balance sheets of Deerwood Village Limited Partnership, as of December 31, 1994 and 1993, and the related statements of operations, changes in partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Deerwood Village Limited Partnership as of December 31, 1994 and 1993, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. SCHELL AND HOGAN Certified Public Accountants February 28, 1995 Hinesville, Georgia Brunswick Fax (912) 267-5315 Members American Institute and Georgia Society of Certified Public Accountants CRAIN & COMPANY Certified Public Accountants Madison Square 24 Corporate Blvd. Jackson, Tennessee 38305-2395 Telephone (901) 668-7070 Fax (901) 668-1218 S. Lawson Crain, CPA R. Thomas Crenshaw, CPA Mark M, Layne, CPA Katherine G. Watts, CPA John E. Hudson, CPA Anita C. Hamilton, CPA Mickey Hannon, CPA Karen L. Taylor, CPA Jason T. Shanes, CPA INDEPENDENT AUDITORS' REPORT To the Partners Hickman Associates II, Limited Partnership We have audited the accompanying balance sheet of Hickman Associates II, Limited Partnership, FMHA Project No.: 20-038-621451228 as of December 31, 1994, and the related statements of operations, changes in partners' capital and cash flows for the year then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hickman Associates II, Limited Partnership, FMHA Project No.: 20-038621451228 as of December 31, 1994, and the results of its operations, changes in partners' capital and cash flows for the year then ended in conformity with generally accepted accounting principles. Our audit was for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on pages 12 through 16 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. CRAIN & COMPANY Certified Public Accountants Jackson, Tennessee April 27, 1995 Member of Tennessee Society of Certified Public Accountants American Institute of Certified Public Accountants and Private Companies Practice Section THE GAUTREAU GROUP, LLC Certified public Accountants John C. Gautreau, II, CPA* J. CURT Gautreau, CPA* Crissie Head, CPA Letti Lowe, CPA Jennifer D. Derousselle, CPA * A Professional Accounting Corporation INDEPENDENT AUDITORS' REPORT - ---------------------------- To the Partners of Jonestown Manor, L. P. We have audited the accompanying balance sheet of Jonestown Manor, L. P. (A Mississippi Limited Partnership) as of December 31, 1994, and the related statements of changes in partners, capital, operations, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based an our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Jonestown Manor, L. P. as of December 31, 1994, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Certified Public Accountants June 1, 1995 Baton Rouge, Louisiana P.O. Box 82430 8641 United Plaza Boulevard, Suite 202 Baton Rouge, Louisiana 70884-2430 Telephone (504) 924-6744 FAX (504) 929-6916 ROBBINS AND GAUTREAU Certified Public Accountants (A Professional Corporation) CALVIN L. ROBBINS, JR., CPA JOHN C. GAUTREAU, II, CPA JEFFREY CURT GAUTREAU, CPA CRISSIE H. PIPES, CPA INDEPENDENT AUDITORS' REPORT - ---------------------------- To the Partners of Jonestown Manor, L. P. We have audited the accompanying balance sheet of Jonestown Manor, L. P. (A Mississippi Limited Partnership) as of December 31, 1993, and the related statement of changes in partners' capital for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Jonestown Manor, L. P. as of December 31, 1993, and changes in partners' capital for the year then ended, in conformity with generally accepted accounting principles. Certified Public Accountants July 11, 1994 Baton Rouge, Louisiana PAGE, OLSON, & COMPANY PC INDEPENDENT AUDITORS' REPORT - ---------------------------- February 7, 1995 To the Partners Midland Housing Limited Partnership We have audited the accompanying balance sheets of Midland Housing Limited Partnership as of December 31, 1994 and 1993, and the related statements of operations, partners' equity and cash flows for the year then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Midland Housing I Limited Partnership as of December 31, 1994 and 1993, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 15 is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected, to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. 2865 SOUTH LINCOLN ROAD PO BOX 366 MT PLEASANT, MI 48804-0368 517 773-5494 FAX 517 773-5816 ROBBINS AND GAUTREAU CERTIFIED PUBLIC ACCOUNTANTS (A PROFESSIONAL CORPORATION) CALVIN L ROBBINS, JR., CPA, JOHN C GAUTREAU, II, CPA JEFFREY CURT GAUTREAU, CPA CORA CRISLER HEAD, CPA Independent Auditors' Report To the Partners of Opelousas Point Partnership We have audited the accompanying balance sheets of Opelousas Point Partnership (A Partnership in Commendam) as of December 31, 1994 and 1993, and the related statements of changes in partners' capital, operations and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and, significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Opelousas Point Partnership as of December 31, 1994 and 1593, and the results of its operations and cash flows for the years then ended, in conformity with generally accepted accounting principles. Certified Public Accountants February 15, 1995 Baton Rouge, Louisiana 8641 United Plaza Blvd, Suite Baton Rouge, Louisiana Habif, Arogeti, & Wynne, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners Quail Village Limited Partnership We have audited the accompanying balance sheet of QUAIL VILLAGE LIMITED PARTNERSHIP [a Georgia limited Partnership] , as of December 31, 1994, and the related statements of operations, changes in partners, capital and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of QUAIL VILLAGE LIMITED PARTNERSHIP, as of December 31, 1994, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Atlanta, Georgia February 3, 1995 MEMBERS GEORGIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AICPA DIVISION FOR CPA FIRMS PRIVATE COMPANIES PRACTICE SECTION Habif, Arogeti & Wynne, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners Quail Village, L.P. We have audited the accompanying balance sheet of QUAIL VILLAGE, L.P., (a development stage Georgia Limited Partnership] as of December 31, 1993, and the related statements of changes in partners, equity, operations, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion an these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of QUAIL VILLAGE, L.P. as of December 31, 1993, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Atlanta, Georgia February 28, 1994 MEMBERS GEORGIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AICPA DIVISION FOR CPA FIRMS PRIVATE COMPANIES PRACTICE SECTION MAYER HOFFMAN McCANN INDEPENDENT AUDITORS' REPORT To the Partners Sixth Street Partners, L.P. We have audited the accompanying balance sheet of SIXTH STREET PARTNERS, L.P. as of December 31, 1993. This balance sheet is the responsibility of the Partnership's management. Our responsibility is to express an opinion on this balance sheet based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the balance sheet is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the balance sheet. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall balance sheet presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of Sixth Street Partners, L.P. as of December 31, 1993, in conformity with generally accepted accounting principles. Kansas City, Missouri June 28, 1994 Certified Public Accountants 420 Nichols Road on the Country Club Plaza Kansas City, MO 64112 (816) 968-1000 FAX (816) 531-7695 DAVID G. PELLICCIONE, C.P.A., P. C. MEMBER OF AMERICAN INSTITUTE OF CPAs GEORGIA SOCIETY OF CPAs POST OFFICE BOX I SAVANNAH, GEORGIA 31402 TELEPHONE (912) 234-199Q FAX (912) 234-0139 DELIVERY ADDRESS 202 EAST LIBERTY STREET SAVANNAH, GEORGIA 31401 INDEPENDENT AUDITORS' REPORT To The Partners Sugarwood Park Limited Partnership We have audited the accompanying balance sheet of SUGARWOOD PARK LIMITED PARTNERSHIP (A Limited Partnership), as of December 31, 1994, and the related statement of income and partners' equity and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of SUGARWOOD PARK LIMITED PARTNERSHIP as of December 31, 1994, and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles. Savannah, Georgia March 22, 1995 Coopers & Lybrand L.L.P. a professional services firm Report of Independent Accountants To the Partners College Greene Rental Associates, L.P. We have audited the accompanying balance sheet of College Greene Rental Associates, L.P. (A Limited Partnership), as of December 31, 1995, and the related statements of operations and partners' capital and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of College Greene Rental Associates, L.P., as of December 31, 1995, and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles. Rochester, New York February 22, 1996 Coopers & Lybrand L.L.P., a registered limited liability partnership, is a member firm of Coopers & Lybrand (International). Ziner & Company, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners of Arch Development Limited Partnership We have audited the accompanying balance sheet of Arch Development Limited Partnership (a Massachusetts limited partnership) as of December 31, 1994, and the related statements of operations, changes in partners, equity and cash flows for the period from March 14, 1994 (date of inception) to December 31, 1994. These financial statements are the responsibility of the general partner. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the general partner, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Arch Development Limited Partnership as of December 31, 1994, and the results of its operations and its cash flows for the period from March 14, 1994 (date of inception) to December 31, 1994 in conformity with generally accepted accounting principles. January 23, 1995 7 WINTHROP SQUARE BOSTON, MASSACHUSETTS 02110-1256 Phone(617)542-8880 Fax(617)542-8715 RAJEEV RAJ Certified Public Accountant INDEPENDENT AUDITOR'S REPORT To the Partners of Chelsea Square Development Limited Partnership I have audited the accompanying balance sheet of Chelsea Square Development Limited Partnership (A Development Stage and a Massachusetts limited partnership) as of December 31, 1995, and the related statements of operations, changes in partners' capital, and cash flows for the year then ended. These financial statements are the responsibility of the general partner. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the general partner, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Chelsea Square Development Limited partnership as of December 31, 1995, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. January 31, 1996 Rajeev Raj C.P.A. 1600 Providence Highway Walpole, MA 02081 Tel: (508) 660-2592 Fax: (508) 660-1569 Edmund A. Restivo, Jr., Ltd. CERTIFIED PUBLIC ACCOUNTANT INDEPENDENT AUDITOR'S REPORT To the Partners Clarke School Limited Partnership Boston, MA I have audited the accompanying balance sheet of Clarke School Limited Partnership (a Rhode Island limited partnership) (a development stage enterprise)as of December 3 1, 1994, and the statement of partners' equity, for the year ended December 31, 1994. These financial statements are the responsibility of Clarke School Limited Partnership's management. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Clarke School Limited Partnership as of December 31, 1994, in conformity with generally accepted accounting principles. My audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information included in the report (shown on page 10) is presented for purposes of additional analysis and is not a required part of the basic financial statements of Clarke School Limited Partnership. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in my opinion, is fairly stated, in all material respects, in relation to the financial statements taken as a whole. March 22, 1995 The Wilcox Building Penthouse Suite 42 Weybosset Street Providence, Rhode Island 02903 Telephone 401-331-0210 Fax 401-421-6799 Habif, Arogeti, & Wynne, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners Ellijay Rental Housing, L.P. We have audited the accompanying balance sheet of ELLIJAY RENTAL HOUSING, L.P. (a development stage partnership), as of December 31, 1994. This financial statement is the responsibility of the Partnership's management. Our responsibility is to express an opinion an this financial statement based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the balance sheet is free of material misstatement. An audit includes examining, an a test basis, evidence supporting the amounts and disclosures in the balance sheet. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall balance sheet presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of ELLIJAY RENTAL HOUSING, L.P. as of December 31, 1994, in conformity with generally accepted accounting principles. Atlanta, Georgia January 1, 1995 MEMBERS Coopers & Lybrand L.L.P. a professional services firm REPORT OF INDEPENDENT ACCOUNTANTS To the Partners Evergreen Hills Associates, L.P. We have audited the accompanying balance sheet of Evergreen Hills Associates, L.P. (A Limited Partnership), as of December 31, 1994, and the related statements of operations and partners' capital and cash flows for the period from November 26, 1993 (date partnership was formed) through December 31, 1994. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Evergreen Hills Associates, L.P., as of December 31, 1994, and the results of its operations, changes in partners equity and its cash flows for the period from November 26, 1993 through December 31, 1994 in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 10 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Rochester, New York February 24, 1995 STIENESSEN SCHLEGEL & CO. LIMITED LIABILITY COMPANY CERTIFIED PUBLIC ACCOUNTANTS Independent Auditors' Report To the Partners Glen Place Apartments Limited Partnership We have audited the accompanying balance sheets of Glen Place Apartments Limited Partnership, as of December 31, 1995 and 1994, and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Glen Place Apartments Limited Partnership, as of December 31, 1995 and 1994, and the results of its operations, changes in partners' equity, and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 14-15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. CERTIFIED PUBLIC ACCOUNTANTS January 16, 1996 2411 N. HILLCREST PARKWAY, P.O. BOX 810, EAU CLAIRE, WI 54702-0810 PHONE (715) 832-3425 FAX (715) 832-1665 EDMUND A. RESTIVO, JR., LTD CERTIFIED PUBLIC ACCOUNTANT INDEPENDENT AUDITOR'S REPORT To the Partners Harris Housing Limited Partnership Boston, MA I have audited the accompanying balance sheet of Harris Housing Limited Partnership (a Florida Limited Partnership) as of December 31, 1995, and the related statements of operations, changes in partners' equity, and cash flows for the year then ended. These financial statements are the responsibility of Harris Housing Limited Partnership's management. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Harris Housing Limited Partnership as of December 31, 1995, and the results of its operations, changes in partners' equity and its cash flows for the year then ended in conformity with generally accepted accounting principles. My audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information included in the report (shown on pages 14 to 16) is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated, in all material respects, in relation to the financial statements taken as a whole. February 15, 1996 The Wilcox Building Penthouse Suite 42 Weybosset Street Providence, Rhode Island 02903 Telephone 401-331-0210 Fax 401-421-6799 PLANTE & MORAN, LLP Certified Public Accountants Management Consultants 1111 Michigan Avenue P.O. Box 2500 East Lansing, Michigan 48826-2500 517-332-6200 FAX 517-332-8502 Independent Auditor's Report To the Partners Lakeview Meadows II Limited Dividend Housing Association Limited Partnership We have audited the accompanying balance sheet of Lakeview Meadows II Limited Dividend Housing Association Limited Partnership (a Michigan limited partnership), MSHDA Development No. 905, for the years ended December 31, 1995 and 1994, and the related statements of profit and loss, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lakeview Meadows II Limited Dividend Housing Association Limited Partnership for the years ended December 31, 1995 and 1994, and the results of its operations, changes in partners' equity, and cash flows for the years then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 18, 1996 on our consideration of the Partnership's internal control structure and a report dated January 18, 1996 on its compliance with laws and regulations. January 18, 1996 A member of Moores Rowland International HOWE & ASSOCIATES, PC CERTIFIED PUBLIC ACCOUNTANTS 104 EAST BROADWAY COLUMBIA, MO 65203 February 17, 1996 INDEPENDENT AUDITOR'S REPORT Partners LATHROP PROPERTIES, LP Re: For the Years Ended December 31, 1994 and December 31, 1995 We have audited the accompanying balance sheet and the related statements of income, owners equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position and results of operations and cash flows for the years then ended in conformity with generally accepted accounting principles. Howe and Associates, PC ROSENBERG RICH BAKER BERMAN & COMPANY A Professional Association of Certified Public Accountants 380 Foothill Road, P.O. Box 6483, Bridgewater, NJ 08807-0483 908-231-1000 FAX: 908-231-6894 Independent Auditors' Report To the Partners Parvin's Limited Partnership We have audited the accompanying balance sheets of Parvin's Limited Partnership as of December 31, 1995 and 1994 and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Parvin's Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 8 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Bridgewater, New Jersey January 22, 1996 AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS / SEC PRACTICE SECTION PRIVATE COMPANIES PRACTICE SECTION /NATIONAL ASSOCIATED CPA FIRMS/ INDEPENDENT ACCOUNTANTS INTERNATIONAL REGARDIE, BROOKS & LEWIS Chartered CERTIFIED PUBLIC ACCOUNTANTS 7101 WISCONSIN AVENUE, BETHESDA, MARYLAND 20814 TEL (301) 654-9000 FAX (301) 656-3056 JEROME P. LEWIS, CPA JESSE A. KAISER, CPA NATHAN J. ROSEN, CPA PAUL J. GNATT, CPA CELSO T MATAAC, JR., CPA PHILIP R. BAKER, CPA DOUGLAS A. DOWLING, CPA DAVID A. BROOKS, CPA CONSULTANT BENJAMIN F. REGARDIE (1897-1973) INDEPENDENT AUDITOR'S REPORT February 16, 1996 To the Partners Peach Tree Limited Partnership Bethesda, Maryland We have audited the accompanying balance sheets of Peach Tree Limited Partnership as of December 31, 1995 and 1994, and the related statements of income, partnership equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Peach Tree Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Certified Public Accountants Boothe, Vassar, Fox, and Fox Certified Public Accountants 1001 East Farm Road 700 Big Spring, Texas 79720 915-263-1324 FAX 915-263-2124 INDEPENDENT AUDITORS' REPORT To the Partners Ponderosa Meadows, LTD. Limited Partnership We have audited the accompanying balance sheets of Ponderosa Meadows, LTD. Limited Partnership as of December 31, 1995 and the related statements of operations, partners' equity, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. The financial statements of Ponderosa Meadows, LTD. Limited Partnership as of December 31, 1994, were audited by other auditors whose report dated January 16, 1995, expressed an unqualified opinion on those statements. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Ponderosa Meadows, LTD. Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on pages 19 and 20 is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. February 8, 1996 Big Spring, Texas Boothe, Vassar, Fox, and Fox A Partnership Composed of Professional Corporations HOWE & ASSOCIATES, PC CERTIFIED PUBLIC ACCOUNTANTS 104 EAST BROADWAY COLUMBIA, MO 65203 February 28, 1996 INDEPENDENT AUDITOR'S REPORT Partners RICHMOND MANOR, LP. Re: For the Years Ended December 31, 1994 and December 31, 1995 We have audited the accompanying balance sheet and the related statements of income, owners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Governmental Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position and results of operations and cash flows for the years then ended in conformity with generally accepted accounting principles. Howe and Associates, PC GWEN WARD, P.C. CERTIFIED PUBLIC ACCOUNTANT 609 University Drive Fort Worth, Texas 76107 (817) 336-5880 MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS TEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's Report To the Partners of Rio Grande Apartments, Ltd. I have audited the accompanying balance sheet of Rio Grande Apartments, Ltd. as of December 31, 1995 and 1994 the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Rio Grande Apartments, Ltd. as of December 31, 1995 and 1994 and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages I-17 and I-18 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Fort Worth, Texas March 6, 1996 HOWE & ASSOCIATES, PC CERTIFIED PUBLIC ACCOUNTANTS 104 EAST BROADWAY COLUMBIA, MO 65203 February 10, 1996 INDEPENDENT AUDITOR'S REPORT Partners TROY ESTATES, LP Re: For the Years Ended December 31, 1994 and December 31, 1995 We have audited the accompanying balance sheet and the related statements of income, owners' equity and cash flow for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position and results of operations and cash flows of the Partnership for the years then ended in conformity with generally accepted accounting principles. Howe and Associates, PC Boothe, Vassar, Fox, and Fox Certified Public Accountants 1001 East Farm Road 700 Big Spring, Texas 79720 915-263-1324 FAX 915-263-2124 INDEPENDENT AUDITORS'REPORT To the Partners Vista Lama Apartments Limited Partnership We have audited the accompanying balance sheets of Vista Loma Apartments Limited Partnership as of December 31, 1995 and the related statements of operations, partners'equity, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. The financial statements of Vista Loma Apartments Limited Partnership as of December 3 1, 1994, were audited by other auditors whose report dated January 25, 1995, expressed an unqualified opinion on those statements. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Vista Loma Apartments Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on pages 19 and 20 is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. February 8, 1996 Big Spring, Texas Boothe, Vassar, Fox, and Fox A Partnership Composed of Professional Corporations RAJEEV RAJ Certified Public Accountant INDEPENDENT AUDITOR'S REPORT To the Partners of Chelsea Square Development Limited Partnership I have audited the accompanying balance sheet of Chelsea Square Development Limited Partnership (A Development Stage and a Massachusetts limited partnership) as of December 31, 1994, and the related statements of operations, changes in partners' capital, and cash flows for the year then ended and for the period ended April 30, 1993 (date of inception) to December 31, 1994. These financial statements are the responsibility of the general partner. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the general partner, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Chelsea Square Development Limited partnership as of December 31, 1994, and the results of its operations and its cash flows for the year then ended and for the period ended April 30, 1993 (date of inception) to December 31, 1994 in conformity with generally accepted accounting principles. January 25, 1995 Rajeev Raj C.P.A. 1600 Providence Highway Walpole, MA 02081 Tel: (508) 660-2592 Fax: (508) 660-1569 Habif, Arogeti, & Wynne, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners Jackson Rental Housing, L.P. We have audited the accompanying balance sheet of JACKSON RENTAL HOUSING, L.P. (a Limited Partnership], as of December 31, 1994, and the related statements of income and expenses, changes in partners, equity, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion an these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of JACKSON RENTAL HOUSING, L.P. as of December 31, 1994, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Atlanta, Georgia January 16, 1995 MEMBERS GEORGIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AICPA DIVISION FOR CPA FIRMS PRIVATE COMPANIES PRACTICE SECTION PLANTE & MORAN, LLP Certified Public Accountants Management Consultants 1111 Michigan Avenue P.O. Box 2500 East Lansing, Michigan 48826-2500 517-332-6200 FAX 517-332-8502 Independent Auditor's Report To the Partners Lakeview Meadows II Limited Dividend Housing Association Limited Partnership We have audited the accompanying balance sheet of Lakeview Meadows II Limited Dividend Housing Association Limited Partnership (a Michigan limited partnership), MSHDA Development No. 905, for the year ended December 31, 1994, and the period August 1, 1993 through December 31, 1993, and the related statements of profit and loss, partners' equity, and cash flows for the year and the period then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lakeview Meadows II Limited Dividend Housing Association Limited Partnership for the year ended December 31, 1994, and the period August 1, 1993 through December 31, 1993, and the results of its operations, changes in partners' equity, and cash flows for the year and the period then ended, in conformity with generally accepted accounting principles. January 20, 1995 A Member of Moores Rowland International HOWE & ASSOCIATES, PC CERTIFIED PUBLIC ACCOUNTANTS 104 EAST BROADWAY COLUMBIA, MO 65203 June 9, 1994 INDEPENDENT AUDITOR'S REPORT TROY ESTATES, LP Re: For the Year Ended December 31, 1993 We have audited the accompanying balance sheet for the year then ended. This financial statement is the responsibility of the Partnership's management. Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of the Partnership for the year then ended in conformity with generally accepted accounting principles. Howe and Associates WALLACE SANDERS& COMPANY Crosspoint Atrium 8131 LBJ Freeway, Suite 875 Dallas, Texas 75251 Tel. 214/690-6301 Fax,214/669-3462 Independent Auditors' Report To the Partners of Community Dynamics - Fort Worth, Ltd. We have audited the accompanying balance sheets of Community Dynamics - Fort Worth, Ltd., as of December 31, 1995 and 1994, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Community Dynamics - Fort Worth, Ltd., as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 15 and 16 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. February 23, 1996 Member Of ACPA international With Affiliated Offices Worldwide Certified Public Accountants and Consultants A Professional COLE, EVANS & PETERSON CERTIFIED PUBLIC ACCOUNTANTS FIFTH FLOOR TRAVIS PLACE POST OFFICE DRAWER 1768 SHREVEPORT, LOUISIANA 71166-1768 January 25, 1996 TELEPHONE (318) 222-8367 TELECOPIER (318) 425-4101 M. ALTON EVENS, JR. C.P.A PARTNER EMERITUS WILLIAM JEFFERSON COLE, C.P.A. WILLIAM PETERSON,C.P.A. CAROL T. BARNES, C.P.A. C. WILLIAM GERARDY,JR.,C.P.A. BARRY S. SHIPP, C. P. A. STEVEN W. H EDGEPETH, C.P.A. STEVEN R. BAYER, C.P.A. GWENDOLYN H. HARJU, C.P.A. TIMOTHY R. DURR, C.P.A. R. STEPHEN TILLEY, C.P.A. BAILEY S. BAYNHAM, C.P.A. JOHN A. CASKEY, C.P.A. ROBERT A. BUSBY, C.P.A. DEBORAH N. SHIVERS, C.P.A. JUDY E. MONCRIEF, C.P.A. ANNE-MARIE COLE CAIN, C.P.A. TIMOTHY W. BORST. C. P.A. RAYNELLE H.THOMPSON,C.P.A. BRENDA BISHOP LEACH,C.P.A. MARY WELLS CARMODY,C.P.A. ERIC D. SMITH, C.P.A. PETER R. MOORE, C. P. A. INDEPENDENT AUDITORS' REPORT To the Partners Hebbronville Apartments, Ltd. Mansfield, Louisiana We have audited the accompanying balance sheets of Hebbronville Apartments, Ltd. at December 31, 1995 and December 31, 1994, and the related statements of income, partners' capital, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. PAGE 1 OF 2 We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hebbronville Apartments, Ltd. at December 31, 1995 and December 31, 1994. and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Cole, Evans & Peterson PAGE 2 OF 2 ARTHUR ANDERSEN LLP REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Partners of Jefferson Square, Ltd.: We have audited the accompanying balance sheets of JEFFERSON SQUARE, LTD. (a Colorado limited partnership) as of December 31, 1995 and 1994, and the related statements of operations, partners' capital accounts and cash flows for the period from inception (December 1993) to December 31, 1994 and for the year ended December 31, 1995. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Jefferson Square, Ltd. as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the period from inception to December 31, 1994 and for the year ended December 31, 1995, in conformity with generally accepted accounting principles. Denver, Colorado, June 20, 1996. COLE, EVANS & PETERSON CERTIFIED PUBLIC ACCOUNTANTS FIFTH FLOOR TRAVIS PLACE POST OFFICE DRAWER 1768 SHREVEPORT, LOUISIANA 71166-1768 January 25, 1996 TELEPHONE (318) 222-8367 TELECOPIER (318) 425-4101 M. ALTON EVENS, JR. C.P.A PARTNER EMERITUS WILLIAM JEFFERSON COLE, C.P.A. WILLIAM PETERSON,C.P.A. CAROL T. BARNES, C.P.A. C. WILLIAM GERARDY,JR.,C.P.A. BARRY S. SHIPP, C. P. A. STEVEN W. H EDGEPETH, C.P.A. STEVEN R. BAYER, C.P.A. GWENDOLYN H. HARJU, C.P.A. TIMOTHY R. DURR, C.P.A. R. STEPHEN TILLEY, C.P.A. BAILEY S. BAYNHAM, C.P.A. JOHN A. CASKEY, C.P.A. ROBERT A. BUSBY, C.P.A. DEBORAH N. SHIVERS, C.P.A. JUDY E. MONCRIEF, C.P.A. ANNE-MARIE COLE CAIN, C.P.A. TIMOTHY W. BORST. C. P.A. RAYNELLE H.THOMPSON,C.P.A. BRENDA BISHOP LEACH,C.P.A. MARY WELLS CARMODY,C.P.A. ERIC D. SMITH, C.P.A. PETER R. MOORE, C. P. A. INDEPENDENT AUDITORS' REPORT To the Partners Lone Star Seniors Apartments, Ltd. Mansfield, Louisiana We have audited the accompanying balance sheets of Lone Star Seniors Apartments, Ltd. at December 31, 1995 and December 31, 1994, and the related statements of income, partners' capital, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. PAGE 1 OF 2 We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lone Star Seniors Apartments, Ltd. at December 31, 1995 and December 31, 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Cole, Evans & Peterson PAGE 2 OF 2 GRAHAM CARTER & JENNINGS, PLC CERTIFIED PUBLIC ACCOUNTANTS Harold D. Carter (1931-1993) Jack G. Jennings Walter H. Graham Michael J. Carter Diane B. Carter Independent Auditor's Report To the Partners Madison Limited Partnership We have audited the accompanying balance sheets of Madison Limited Partnership (a Virginia limited partnership) , FMHA Project No.: 54-068-0541436875, as of December 31, 1995 and 1994, and the related statements of operations, partners, capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Madison Limited Partnership, FMHA Project No. : 54-068-0541436875, as of December 31, 1995 and 1994, and the results of its operations, the changes in partners' capital and cash flows for the years then ended in conformity with generally accepted accounting principles. our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 13 and 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic f financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. February 26, 1996 601 Thimble Shoals Boulevard Suite 201 Newport News, Virginia 23606 (804) 873-0767 Fax (804) 873-6938 CARTER & JENNINGS, P.C. CERTIFIED PUBLIC ACCOUNTANTS Harold D. Carter (1931-1993) Jack G. Jennings Michael J. Carter 11832-B Canon Boulevard Newport News, Virginia 23606 (804) 873-0767 Facsimile (804) 873-0874 Independent Auditor's Report To the Partners Madison Limited Partnership We have audited the accompanying balance sheet of Madison Limited Partnership (a Virginia limited partnership) as of December 31, 1993. This financial statement is the responsibility of the Partnership's General Partners. Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the balance sheet is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the balance sheet. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall balance sheet presentation. We believe that our audit of the balance sheet provides a reasonable basis for our opinion. In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of Madison Limited Partnership as of December 31, 1993 in conformity with generally accepted accounting principles. Newport News, Virginia March 4, 1994 COLE, EVANS & PETERSON CERTIFIED PUBLIC ACCOUNTANTS FIFTH FLOOR TRAVIS PLACE POST OFFICE DRAWER 1768 SHREVEPORT, LOUISIANA 71166-1768 January 26, 1996 TELEPHONE (318) 222-8367 TELECOPIER (318) 425-4101 M. ALTON EVENS, JR. C.P.A PARTNER EMERITUS WILLIAM JEFFERSON COLE, C.P.A. WILLIAM PETERSON,C.P.A. CAROL T. BARNES, C.P.A. C. WILLIAM GERARDY,JR.,C.P.A. BARRY S. SHIPP, C. P. A. STEVEN W. H EDGEPETH, C.P.A. STEVEN R. BAYER, C.P.A. GWENDOLYN H. HARJU, C.P.A. TIMOTHY R. DURR, C.P.A. R. STEPHEN TILLEY, C.P.A. BAILEY S. BAYNHAM, C.P.A. JOHN A. CASKEY, C.P.A. ROBERT A. BUSBY, C.P.A. DEBORAH N. SHIVERS, C.P.A. JUDY E. MONCRIEF, C.P.A. ANNE-MARIE COLE CAIN, C.P.A. TIMOTHY W. BORST. C. P.A. RAYNELLE H.THOMPSON,C.P.A. BRENDA BISHOP LEACH,C.P.A. MARY WELLS CARMODY,C.P.A. ERIC D. SMITH, C.P.A. PETER R. MOORE, C. P. A. INDEPENDENT AUDITORS' REPORT To the Partners Martindale Apartments, Ltd. Mansfield, Louisiana We have audited the accompanying balance sheets of Martindale Apartments, Ltd. at December 31, 1995 and December 31, 1994, and the related statements of income, partners' capital, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. page 1 of 2 We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Martindale Apartments, Ltd. at December 31, 1995 and December 31, 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Cole, Evans & Peterson page 2 of 2 DONALD W. CAUSEY, CPA, P.C. Certified Public Accountant TELEPHONE, (205) 543-3707 516 WALNUT STREET GADSDEN, ALABAMA 35902 P.O. BOX 775 INDEPENDENT AUDITOR'S REPORT To the Partners Munford Village, Ltd. Munford, Alabwna I have audited the accompanying balance sheets of Munford Village, Ltd., a limited partnership, RECD Project No.: 01-061-631011774 as of December 31, 1995 and 1994, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted the audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that the audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Munford Village, Ltd., RECD Project No.: 01-061-631011774 as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 9 through 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Year End Report and Analysis (Form RECD 1930-8) Parts I through III for the year ended December 31, 1995 and 1994, is presented for purposes of complying with the requirements of the Rural Economic Community Development and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in my opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole. In accordance with Government Auditing Standards, I have also issued a report dated February 5, 1996 on my consideration of Munford Village, Ltd.'s internal control structure and a report dated February 5, 1996 on its compliance with laws and regulations. February 5, 1996 Scarbrough & Associates Certified Public Accountants For the financial solutions you need to succeed Michael Scarbrough Certified Public Accountant Over 17 years of experience. Member: American Institute of CPAs Missouri Society of CPAs Continuing Education: Financial Planning, Better Business Plans, Taxation, Retirement Planning, Effective Audits Low-Income Housing Tax credits Community Volunteer Eagle Scout To the Partners North pointe, L.P. We have audited the accompanying balance sheets of Northpointe, L.P. as Of December 31, 1995 and 19947 and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Northpointe, L.P. as of December 31, 1995 and 1994, and the results of its operations, changes in partners' equity (deficit) and cash flows for the years then ended in conformity with generally accepted accounting principles. Scarbrough & Associates Certified Public Accountants Page 2 Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 12 and 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. April 17, 1996 5500 NORTH OAK, SUITE 203 KANSAS CITY. MO 64118 FAX:(816) 455-5100 (816) 452-4272 DONALD W. CAUSEY, CPA, P.C. Certified Public Accountant TELEPHONE (205) 543-3707 516 WALNUT STREET GADSDEN, ALABAMA 359M P.O. BOX INDEPENDENT AUDITOR'S REPORT To the Partners Sherwood Knoll, Limited Partnership Rainsville, Alabama I have audited the accompanying balance sheets of Sherwood Knoll, Limited Partnership , a limited partnership, RECD Project No.: 01-025-631032411 as of December 31, 1995 and 1994, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted the audits in accordance with generally accepted auditing standards and Government Standards issued by the Comptroller General of the United States. Those standards require that I plan and performing the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the principles used and significant estimates made by management, as well as evaluating the overall financial presentation. I believe that the audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sherwood KnolL Limited Partnership, RECD Project No.: 01-025-631032411 as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. The audits were made for the purpose of forming an opinion on the basic financial taken as a whole. The supplemental information on pages 9 through 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Year End Report and Analysis (Form RECD 1930-8) Parts I through III for the year ended December 31, 1995 and 1994, is presented for purposes of complyingwith the of the Rural Economic Comrnunity Development and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in my opinion is fairly stated in all material respects in relation to the basic financial taken as a whole. DONALD W. CAUSEY, CPA, P.C. Certified Public Accountant Page 2 In accordance with Government Auditing Standards, I have also issued a report dated February 5, 1996 on my consideration of Sherwood Knoll, Limited Partnership's internal control structure and a report dated February 5, 1996 on its compliance with laws and regulations. February 5, 1996 DAVID G. PELLICCIONE, C.P.A., P.C. 340 EISENHOWER DRIVE, BLDG. 800 SAVANNAH, GEORGIA 31406 TELEPHONE (912) 354-2334 FAX (912) 354-2443 MEMBER OF AMERICAN INSTITUTE OF CPA'S MEMBER OF GEORGIA SOCIATY OF CPA'S INDEPENDENT AUDITORS' REPORT To The Partners Sugarwood Park Limited Partnership We have audited the accompanying balance sheets of SUGARWOOD PARK LIMITED PARTNERSHIP (A Limited Partnership), as of December 31, 1995 and 1994, and the related statement of operations, changes in partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of SUGARWOOD PARK LIMITED PARTNERSHIP as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Savannah, Georgia March 1, 1996 Ruljancich Blume Loveridge& CO., PLLC Certified Public Accountants INDEPENDENT AUDITOR'S REPORT ON FINANCIAL STATEMENTS Partners Wedgewood Lane Associates, a Washington Limited Partnership Bellevue, Washington We have audited the accompanying balance sheets of Wedgewood Lane Associates, a Washington Limited Partnership, as of December 31, 1995 and 1994, and the related statements of operations, changes in partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform an audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Wedgewood Lane Associates, a Washington Limited Partnership, as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 2, 1996 on our consideration of the Partnership's internal control structure and a report dated February 2, 1996 on its compliance with laws and regulations. February 2, 1996 11100 NE 8th Street, Suite 410 Bellevue, Washington 98004-4441 (206) 453-2088 Fax (206) 646-3368 HOWE & ASSOCIATES, PC CERTIFIED PUBLIC ACCOUNTANTS 104 EAST BROADWAY COLUMBIA, MO 65203 March 11, 1995 INDEPENDENT AUDITORS REPORT Partners CARROLLTON VILLA, LP Re: For the Year Ended December 31, 1994 We have audited the accompanying balance sheet for the year then ended. This financial statement is the responsibility of the Partnership's management. Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of the Partnership for the year then ended in conformity with generally accepted accounting principles. Howe and Associates, PC HOWE & ASSOCIATES, PC CERTIFIED PUBLIC ACCOUNTANTS 104 EAST BROADWAY COLUMBIA, MO 65203 March 12, 1995 INDEPENDENT AUDITORS REPORT Partners HOLTS SUMMIT SQUARE, LP Re: For the Year Ended December 31, 1994 We have audited the accompanying balance sheet for the year then ended. This financial statement is the responsibility of the Partnership's management. Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of the Partnership for the year then ended in conformity with generally accepted accounting principles. Howe and Associates, PC DAVID G. PELLICCIONE, C.P.A., P. C. POST OFFICE BOX 1 SAVANNAH, GEORGIA 31402 TELEPHONE (912) 234-1999 FAX (912) 234-0139 DELIVERY ADDRESS 202 EAST LlBERTY STREET SAVANNAH, GEORGIA 31401 MEMBER OF AMERICAN INSTITUTE OF CPAs GEORGIA SOCIETY OF CPAs INDEPENDENT AUDITORS' REPORT To The Partners Willowood Park Limited Partnership We have audited the accompanying balance sheet of WILLOWOOD PARK LIMITED PARTNERSHIP (A Limited Partnership), as of December 31, 1994 and 1993, and the related statement of operations, changes in partners' equity and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of WILLOWOOD PARK LIMITED PARTNERSHIP as of December 31, 1994 and 1993, and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles. Savannah, Georgia March 22, 1995 Habif, Arogeti & Wynne, P.C Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners SummerSet Housing, Limited L.P. We have audited the accompanying balance sheet of SUMMERSET HOUSING, LIMITED L.P. a development stage partnership], as of December 31, 1994. This financial statement is the responsibility of the Partnership's management. Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the balance sheet is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the balance sheet. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall balance sheet presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of SUMMERSET HOUSING, LIMITED L.P. as of December 31, 1994, in conformity with generally accepted accounting principles. Atlanta, Georgia January 26, 1995 MEMBERS GEORGIA SOCIETY OF CPA FIRMS Boston Capital Tax Credit Fund III L.P. BALANCE SHEETS March 31, 1996 and 1995 Total ----- 1996 1995 ---- ---- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and D) $147,259,013 $163,038,705 OTHER ASSETS Cash and cash equivalents (notes A and I) 4,958,860 10,181,096 Investments available for sale (notes A and B) 5,141,767 14,786,763 Notes receivable (note E) 4,962,160 7,296,623 Deferred acquisition costs, net of accumulated amortization (notes A and C) 2,144,343 2,009,637 Organization costs, net of accumulated amortization (note A) 399,040 577,998 Other assets (note F) 2,420,327 5,003,482 ----------- ----------- $167,285,510 $202,894,304 =========== =========== LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Accounts payable and accrued expenses $ 75,208 $ 4,766 Accounts payable - affiliates (note C) 4,454,405 2,262,689 Capital contributions payable (note D) 9,539,884 30,811,146 ----------- ----------- 14,069,497 33,078,601 ------------ ----------- PARTNERS' CAPITAL (note A) Assignor limited partner Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC's), $10 stated value per BAC, 21,996,102 issued and outstanding to the assignees at March 31, 1996 and 1995 - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 21,996,102 issued and outstanding at March 31, 1996 and 1995 153,561,702 170,108,871 General partner (357,619) (190,477) Unrealized gain (loss) on securities available for sale, net 11,930 (102,691) ----------- ----------- 153,216,013 169,815,703 ----------- ----------- $167,285,510 $202,894,304 =========== =========== (Continued) - F-5 - Boston Capital Tax Credit Fund III L.P. BALANCE SHEETS - CONTINUED March 31, 1996 and 1995 Series 15 --------- 1996 1995 ---- ---- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and D) $21,718,070 $24,934,491 OTHER ASSETS Cash and cash equivalents (notes A and I) 163,428 976,876 Investments available for sale (notes A and B) 151,943 185,348 Notes receivable (note E) 185,000 218,750 Deferred acquisition costs, net of accumulated amortization (notes A and C) 281,199 384,096 Organization costs, net of accumulated amortization (note A) 26,232 52,463 Other assets (note F) 292,164 426,386 ---------- ---------- $22,818,036 $27,178,410 ========== ========== LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Accounts payable and accrued expenses $ 68,856 $ 1,355 Accounts payable - affiliates (note C) 1,264,641 776,599 Capital contributions payable (note D) 202,750 1,480,039 ---------- ---------- 1,536,247 2,257,993 ---------- ---------- PARTNERS' CAPITAL (note A) Assignor limited partner Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC's), $10 stated value per BAC, 3,870,500 issued and outstanding to the assignees at March 31, 1996 and 1995 - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,870,500 issued and outstanding at March 31, 1996 and 1995 21,401,297 25,003,699 General partner (119,857) (83,469) Unrealized gain (loss) on securities available for sale, net 349 187 ---------- ---------- 21,281,789 24,920,417 ---------- ---------- $22,818,036 $27,178,410 ========== ========== (continued) - F-6 - Boston Capital Tax Credit Fund III L.P. BALANCE SHEETS - CONTINUED March 31, 1996 and 1995 Series 16 --------- 1996 1995 ---- ---- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and D) $37,074,575 $40,735,319 OTHER ASSETS Cash and cash equivalents (notes A and I) 1,429,491 2,757,494 Investments available for sale (notes A and B) 394,836 1,430,259 Notes receivable (note E) 483,464 705,464 Deferred acquisition costs, net of accumulated amortization (notes A and C) 445,554 592,742 Organization costs, net of accumulated amortization (note A) 89,261 133,891 Other assets (note F) 38,197 143,165 ---------- ---------- $39,955,378 $46,498,334 ========== ========== LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Accounts payable and accrued expenses $ 100 $ 1,143 Accounts payable - affiliates (note C) 1,251,118 679,138 Capital contributions payable (note D) 900,481 3,573,072 ---------- ---------- 2,151,699 4,253,353 ---------- ---------- PARTNERS' CAPITAL (note A) Assignor limited partner Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC's), $10 stated value per BAC, 5,429,402 issued and outstanding to the assignees at March 31, 1996 and 1995 - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,429,402 issued and outstanding at March 31, 1996 and 1995 37,891,343 42,355,854 General partner (88,581) (43,485) Unrealized gain (loss) on securities available for sale, net 917 (67,388) ---------- ---------- 37,803,679 42,244,981 ---------- ---------- $39,955,378 $46,498,334 ========== ========== (continued) - F-7 - Boston Capital Tax Credit Fund III L.P. BALANCE SHEETS - CONTINUED March 31, 1996 and 1995 Series 17 --------- 1996 1995 ---- ---- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and D) $34,318,721 $35,834,208 OTHER ASSETS Cash and cash equivalents (notes A and I) 285,417 1,690,922 Investments available for sale (notes A and B) 629,950 2,470,261 Notes receivable (note E) 1,658,475 2,317,005 Deferred acquisition costs, net of accumulated amortization (notes A and C) 415,482 690,994 Organization costs, net of accumulated amortization (note A) 90,262 129,991 Other assets (note F) 1,245,840 943,084 ---------- ---------- $38,644,147 $44,076,465 ========== ========== LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Accounts payable and accrued expenses $ - $ 417 Accounts payable - affiliates (note C) 1,021,686 414,865 Capital contributions payable (note D) 2,312,721 4,581,453 ----------- ---------- 3,334,407 4,996,735 ----------- ---------- PARTNERS' CAPITAL (note A) Assignor limited partner Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC's), $10 stated value per BAC, 5,000,000 issued and outstanding to the assignees at March 31, 1996 and 1995 - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,000,000 issued and outstanding at March 31, 1996 and 1995 35,384,872 39,118,588 General partner (76,596) (38,882) Unrealized gain (loss) on securities available for sale, net 1,464 24 ---------- ---------- 35,309,740 39,079,730 ---------- ---------- $38,644,147 $44,076,465 ========== ========== (continued) - F-8 - Boston Capital Tax Credit Fund III L.P. BALANCE SHEETS - CONTINUED March 31, 1996 and 1995 Series 18 --------- 1996 1995 ---- ---- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and D) $26,102,954 $28,633,478 OTHER ASSETS Cash and cash equivalents (notes A and I) 529,400 1,813,653 Investments available for sale (notes A and B) 647,930 4,266,323 Notes receivable (note E) 536,351 781,084 Deferred acquisition costs, net of accumulated amortization (notes A and C) 305,861 256,802 Organization costs, net of accumulated amortization (note A) 80,280 111,035 Other assets (note F) 8,052 1,518,728 ---------- ---------- $28,210,828 $37,381,103 ========== ========== LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Accounts payable and accrued expenses $ 1,751 $ 1,851 Accounts payable - affiliates (note C) 434,163 192,467 Capital contributions payable (note D) 861,315 7,453,173 ---------- ---------- 1,297,229 7,647,491 ---------- ---------- PARTNERS' CAPITAL (note A) Assignor limited partner Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC's), $10 stated value per BAC, 3,616,200 issued and outstanding to the assignees at March 31, 1996 and 1995 - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,616,200 issued and outstanding at March 31, 1996 and 1995 26,953,204 29,749,889 General partner (41,106) (12,857) Unrealized gain (loss) on securities available for sale, net 1,501 (3,420) ---------- ---------- 26,913,599 29,733,612 ---------- ---------- $28,210,828 $37,381,103 ========== ========== (continued) - F-9 - Boston Capital Tax Credit Fund III L.P. BALANCE SHEETS - CONTINUED March 31, 1996 and 1995 Series 19 --------- 1996 1995 ---- ---- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and D) $28,044,693 $32,901,209 OTHER ASSETS Cash and cash equivalents (notes A and I) 2,551,124 2,942,151 Investments available for sale (notes A and B) 3,317,108 6,434,572 Notes receivable (note E) 2,098,870 3,274,320 Deferred acquisition costs, net of accumulated amortization (notes A and C) 696,247 85,003 Organization costs, net of accumulated amortization (note A) 113,005 150,618 Other assets (note F) 836,074 1,972,119 ---------- ---------- $37,657,121 $47,759,992 ========== ========== LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Accounts payable and accrued expenses $ 4,501 $ - Accounts payable - affiliates (note C) 482,797 199,620 Capital contributions payable (note D) 5,262,617 13,723,409 --------- ---------- 5,749,915 13,923,029 --------- ---------- PARTNERS' CAPITAL (note A) Assignor limited partner Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC's), $10 stated value per BAC, 4,080,000 issued and outstanding to the assignees at March 31, 1996 and 1995 - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 4,080,000 issued and outstanding at March 31, 1996 and 1995 31,930,986 33,880,841 General partner (31,479) (11,784) Unrealized gain (loss) on securities available for sale, net 7,699 (32,094) ---------- ---------- 31,907,206 33,836,963 ---------- ---------- $37,657,121 $47,759,992 ========== ========== See notes to financial statements - F-10 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF OPERATIONS Years or periods ended March 31, 1996, 1995 and 1994 Total ----------------------------------- 1996 1995 1994 ---- ---- ---- Income Interest income $ 1,034,800 $ 2,192,832 $ 2,371,236 Miscellaneous income - 7,600 9,200 ----------- ----------- ---------- 1,034,800 2,200,432 2,380,436 ----------- ----------- ---------- Share of losses from operating limited partnerships (note A) (14,435,496)*(10,794,203) (4,998,241) ----------- ----------- ---------- Expenses Professional fees 277,646 279,121 346,663 Fund management fee (note C) 2,399,311 2,413,494 1,328,767 Amortization (note A) 246,807 168,554 144,950 General and administrative expenses (note C) 389,851 878,291 765,426 ----------- ----------- ---------- 3,313,615 3,739,460 2,585,806 ----------- ----------- ---------- NET INCOME (LOSS) (note A) $(16,714,311)$(12,333,231) $(5,203,611) =========== =========== ========== Net income (loss) allocated to general partner $ (167,142)$ (123,333) $ (52,036) =========== =========== ========== Net income (loss) allocated to assignees $(16,547,169)$(12,209,898) $(5,151,575) =========== =========== ========== Net income (loss) per BAC $ (.75)$ (.56) $ (.31) =========== =========== ========= * Net of gain on disposal of operating limited partnership (Series 19) of $888,473. (Continued) - F-11 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF OPERATIONS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 Series 15 --------------------------------------------- Year ended Year ended Year ended March 31, 1996 March 31, 1995 March 31, 1994 -------------- -------------- -------------- Income Interest income $ 192,705 $ 74,485 $ 195,213 Miscellaneous income - 1,600 2,225 ---------- ---------- ---------- 192,705 76,085 197,438 ---------- ---------- ---------- Share of losses from operating limited partnerships (note A) (3,201,668) (2,948,034) (2,724,135) ---------- ---------- ---------- Expenses Professional fees 50,472 49,598 71,747 Fund management fee (note C) 499,184 470,726 447,458 Amortization (note A) 36,843 26,231 45,457 General and administrative expenses (note C) 43,328 93,910 118,759 ---------- ---------- ---------- 629,827 640,465 683,421 ---------- ---------- ---------- NET INCOME (LOSS) (note A) $(3,638,790) $(3,512,414) $(3,210,118) ========== ========== ========== Net income (loss) allocated to general partner $ (36,388) $ (35,124) $ (32,101) ========== ========== ========== Net income (loss) allocated to assignees $(3,602,402) $(3,477,290) $(3,178,017) ========== ========== ========== Net income (loss) per BAC $ (.93) $ (.90) $ (.82) ========== ========== ========== (continued) - F-12 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF OPERATIONS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 Series 16 --------------------------------------------- Year ended Year ended Year ended March 31, 1996 March 31, 1995 March 31, 1994 -------------- -------------- -------------- Income Interest income $ 127,067 $ 437,207 $ 826,098 Miscellaneous income - 2,175 3,300 ---------- ---------- ---------- 127,067 439,382 829,398 ---------- ---------- ---------- Share of losses from operating limited partnerships (note A) (3,778,516) (2,784,673) (1,036,291) ---------- ---------- ---------- Expenses Professional fees 66,842 53,992 115,480 Fund management fee (note C) 646,906 658,346 493,242 Amortization (note A) 61,532 44,630 49,388 General and administrative expenses (note C) 82,878 204,503 278,446 ---------- ---------- ---------- 858,158 961,471 936,556 ---------- ---------- ---------- NET INCOME (LOSS) (note A) $(4,509,607) $(3,306,762)$(1,143,449) ========== ========== ========== Net income (loss) allocated to general partner $ (45,096) $ (33,068)$ (11,434) ========== ========== ========== Net income (loss) allocated to assignees $(4,464,511) $(3,273,694)$(1,132,015) ========== ========== ========== Net income (loss) per BAC $ (.82)$ (.60)$ (.21) ========== =========== ========== (continued) - F-13 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF OPERATIONS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 Series 17 --------------------------------------------- Year ended Year ended Year ended March 31, 1996 March 31, 1995 March 31, 1994 -------------- -------------- -------------- Income Interest income $ 85,172 $ 510,270 $ 758,875 Miscellaneous income - 1,475 2,000 ----------- ---------- ---------- 85,172 511,745 760,875 ---------- ---------- ---------- Share of losses from operating limited partnerships (note A) (3,144,888) (2,744,283) (1,050,293) ---------- ---------- ---------- Expenses Professional fees 71,386 72,281 109,447 Fund management fee (note C) 506,412 509,015 266,313 Amortization (note A) 55,408 39,729 36,167 General and administrative expenses (note C) 78,508 188,012 157,112 ---------- ---------- ---------- 711,714 809,037 569,039 ---------- ---------- ---------- NET INCOME (LOSS) (note A) $(3,771,430) $(3,041,575)$ (858,457) ========== ========== ========== Net income (loss) allocated to general partner $ (37,714) $ (30,416)$ (8,585) ========== ========== ========== Net income (loss) allocated to assignees $(3,733,716) $(3,011,159)$ (849,872) ========== ========== ========== Net income (loss) per BAC $ (.75)$ (.60)$ (.19) ========== =========== ========== (continued) - F-14 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF OPERATIONS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 Series 18 -------------------------------------------- Period June 17, 1993 (date of inception) Year ended Year ended through March 31, 1996 March 31, 1995 March 31, 1994 -------------- -------------- -------------- Income Interest income $ 139,504 $ 508,695 $399,964 Miscellaneous income - 1,250 1,075 ---------- ---------- ------- 139,504 509,945 401,039 ---------- ---------- ------- Share of losses from operating limited partnerships (note A) (2,451,672) (1,201,623) (183,664) ---------- ---------- ------- Expenses Professional fees 40,385 42,982 28,968 Fund management fee (note C) 363,632 371,536 50,831 Amortization (note A) 42,298 30,673 8,588 General and administrative expenses (note C) 66,451 127,358 150,487 ---------- ---------- ------- 512,766 572,549 238,874 ---------- ---------- ------- NET INCOME (LOSS) (note A) $(2,824,934) $(1,264,227) $(21,499) ========== ========== ======= Net income (loss) allocated to general partner $ (28,249) $ (12,642) $ (215) ========== ========== ======= Net income (loss) allocated to assignees $(2,796,685) $(1,251,585) $(21,284) ========== ========== ======= Net income (loss) per BAC $ (.77)$ (.35) $ (.02) ========== =========== ======= (continued) - F-15 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF OPERATIONS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 Series 19 -------------------------------------------- Period June 17, 1993 (date of inception) Year ended Year ended through March 31, 1996 March 31, 1995 March 31, 1994 -------------- -------------- -------------- Income Interest income $ 490,352 $ 662,175 $191,086 Miscellaneous income - 1,100 600 ---------- ---------- ------- 490,352 663,275 191,686 ---------- ---------- ------- Share of losses from operating limited partnerships (note A)* (1,858,752) (1,115,590) (3,858) ---------- ---------- ------- Expenses Professional fees 48,561 60,268 21,021 Fund management fee (note C) 383,177 403,871 70,923 Amortization (note A) 50,726 27,291 5,350 General and administrative expenses (note C) 118,686 264,508 60,622 ---------- ---------- ------- 601,150 755,938 157,916 ---------- ---------- ------- NET INCOME (LOSS) (note A) $(1,969,550) $(1,208,253) $ 29,912 ========== ========== ======= Net income (loss) allocated to general partner $ (19,695) $ (12,083) $ 299 ========== ========== ======= Net income (loss) allocated to assignees $(1,949,855) $(1,196,170) $ 29,613 ========== ========== ======= Net income (loss) per BAC $ (.48) $ (.29) $ (.02) ========== ========== ======= * Net of gain on disposal of operating limited partnership (Series 19) of $888,473. See notes to financial statements - F-16 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CHANGES IN PARTNERS' CAPITAL Years or periods ended March 31, 1996, 1995 and 1994 Unrealized gain (loss) on securities available General for Total Assignees partner sale, net Total ----- --------- ------- --------- ----- Partners' capital (deficit), March 31, 1993 $ 91,934,087 $ (15,108)$ -$ 91,918,979 Capital contributions 110,806,000 - - 110,806,000 Selling commissions and registration costs (15,193,734) - - (15,193,734) Net loss (5,151,575) (52,036) - (5,203,611) ----------- -------- -------- ----------- Partners' capital (deficit), March 31, 1994 182,394,778 (67,144) - 182,327,634 Selling commissions and registration costs (76,009) - - (76,009) Net change in unrealized gain (loss) on securities available for sale - - (102,691) (102,691) Net loss (12,209,898) (123,333) - (12,333,231) ----------- -------- -------- ----------- Partners' capital (deficit), March 31, 1995 170,108,871 (190,477) (102,691)169,815,703 Net change in unrealized gain (loss) on securities available for sale - - 114,621 114,621 Net loss (16,547,169) (167,142) - (16,714,311) ----------- -------- -------- ----------- Partners' capital (deficit), March 31, 1996 $153,561,702 $(357,619)$ 11,930$153,216,013 =========== ======== ======== =========== (Continued) - F-17 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 Unrealized gain (loss) on securities available General for Series 15 Assignees partner sale, net Total --------- --------- ------- --------- ----- Partners' capital (deficit), March 31, 1993 $31,551,155 $(16,244) $ - $31,534,911 Selling commissions and registration costs 108,807 - - 108,807 Net loss (3,178,017) (32,101) - (3,210,118) ---------- ------- ------- ---------- Partners' capital (deficit), March 31, 1994 28,481,945 (48,345) - 28,433,600 Selling commissions and registration costs (956) - - (956) Net change in unrealized gain (loss) on securities available for sale - - 187 187 Net loss (3,477,290) (35,124) - (3,512,414) ---------- ------- ------- ---------- Partners' capital (deficit), March 31, 1995 25,003,699 (83,469) 187 24,920,417 Net change in unrealized gain (loss) on securities available for sale - - 162 162 Net loss (3,602,402) (36,388) - (3,638,790) ---------- ------- ------- ---------- Partners' capital (deficit), March 31, 1996 $21,401,297 $(119,857) $ 349 $21,281,789 ========== ======= ======= ========== (continued) - F-18 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 Unrealized gain (loss) on securities available General for Series 16 Assignees partner sale, net Total --------- --------- ------- --------- ----- Partners' capital (deficit), March 31, 1993 $46,797,529 $ 1,017 $ - $46,798,546 Selling commissions and registration costs (30,259) - - (30,259) Net loss (1,132,015) (11,434) - (1,143,449) ---------- ------- ------- ---------- Partners' capital (deficit), March 31, 1994 45,635,255 (10,417) - 45,624,838 Selling commissions and registration costs (5,707) - - (5,707) Net change in unrealized gain (loss) on securities available for sale - - (67,388) (67,388) Net loss (3,273,694) (33,068) - (3,306,762) ---------- ------- ------- ---------- Partners' capital (deficit), March 31, 1995 42,355,854 (43,485) (67,388) 42,244,981 Net change in unrealized gain (loss) on securities available for sale - - 68,305 68,305 Net loss (4,464,511) (45,096) - (4,509,607) ---------- ------- ------- ---------- Partners' capital (deficit), March 31, 1996 $37,891,343 $(88,581) $ 917 $37,803,679 ========== ======= ======= ========== (continued) - F-19 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 Unrealized gain (loss) on securities available General for Series 17 Assignees partner sale, net Total --------- --------- ------- --------- ----- Partners' capital (deficit), March 31, 1993 $13,585,403 $ 119 $ - $13,585,522 Capital contributions 33,844,000 - - 33,844,000 Selling commissions and registration costs (4,445,890) - - (4,445,890) Net loss (849,872) (8,585) - (858,457) ---------- ------- ------- ---------- Partners' capital (deficit), March 31, 1994 42,133,641 (8,466) - 42,125,175 Selling commissions and registration costs (3,894) - - (3,894) Net change in unrealized gain (loss) on securities available for sale - - 24 24 Net loss (3,011,159) (30,416) - (3,041,575) ---------- ------- ------- ---------- Partners' capital (deficit), March 31, 1995 39,118,588 (38,882) 24 39,079,730 Net change in unrealized gain (loss) on securities available for sale - - 1,440 1,440 Net loss (3,733,716) (37,714) - (3,771,430) ---------- ------- ------- ---------- Partners' capital (deficit), March 31, 1996 $35,384,872 $(76,596) $ 1,464 $35,309,740 ========== ======= ======= ========== (continued) - F-20 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 Unrealized gain (loss) on securities available General for Series 18 Assignees partner sale, net Total --------- --------- ------- --------- ----- Capital contributions $36,162,000 $ - $ - $36,162,000 Selling commissions and registration costs (5,082,591) - - (5,082,591) Net loss (21,284) (215) - (21,499) ---------- ------- ------- ---------- Partners' capital (deficit), March 31, 1994 31,058,125 (215) - 31,057,910 Selling commissions and registration costs (56,651) - - (56,651) Net change in unrealized gain (loss) on securities available for sale - - (3,420) (3,420) Net loss (1,251,585) (12,642) - (1,264,227) ---------- ------- ------- ---------- Partners' capital (deficit), March 31, 1995 29,749,889 (12,857) (3,420) 29,733,612 Net change in unrealized gain (loss) on securities available for sale - - 4,921 4,921 Net loss (2,796,685) (28,249) - (2,824,934) ---------- ------- ------- ---------- Partners' capital (deficit), March 31, 1996 $26,953,204 $(41,106) $ 1,501 $26,913,599 ========== ======= ======= ========== (continued) - F-21 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 Unrealized gain (loss) on securities available General for Series 19 Assignees partner sale, net Total --------- --------- ------- --------- ----- Capital contributions $40,800,000 $ - $ - $40,800,000 Selling commissions and registration costs (5,743,801) - - (5,743,801) Net income 29,613 299 - 29,912 ---------- ------- ------- ---------- Partners' capital, March 31, 1994 35,085,812 299 - 35,086,111 Selling commissions and registration costs (8,801) - - (8,801) Net change in unrealized gain (loss) on securities available for sale - - (32,094) (32,094) Net loss (1,196,170) (12,083) - (1,208,253) ---------- ------- ------- ---------- Partners' capital (deficit), March 31, 1995 33,880,841 (11,784) (32,094) 33,836,963 Net change in unrealized gain (loss) on securities available for sale - - 39,793 39,793 Net loss (1,949,855) (19,695) - (1,969,550) ---------- ------- ------- ---------- Partners' capital (deficit), March 31, 1996 $31,930,986 $(31,479) $ 7,699 $31,907,206 ========== ======= ======= ========== See notes to financial statements - F-22 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Years or periods ended March 31, 1996, 1995 and 1994 Total ------------- Year ended Year ended Year ended March 31, 1996March 31, 1995March 31, 1994 ------------------------------------------ Cash flows from operating activities Net income (loss) $ (16,714,311)$(12,333,231)$ (5,203,611) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Share of losses from operating limited partnerships 14,435,496 10,794,203 4,998,241 Distributions received from operating limited partnerships 18,412 2,663 2,068 Amortization 246,807 168,554 144,950 Organization costs - (19,729) (285,959) Changes in assets and liabilities Prepaid expenses - - 124,609 Other assets (125,159) (536,095) 315,809 Accounts payable and accrued expenses70,442 (100,576) 56,132 Accounts payable - affiliates 2,191,716 1,937,641 210,883 ----------- ----------- ----------- Net cash provided by (used in) operating activities 123,403 (86,570) 363,122 ----------- ----------- ----------- Cash flows from investing activities Acquisition costs paid for operating limited partnerships (182,571) (1,405,772) (12,734,588) Capital contributions paid to operating limited partnerships (17,638,595) (43,529,250) (58,492,350) Deposits for purchases of operating limited partnerships - 949,420 (3,576,125) (Advances)/repayments (to)/from operating limited partnerships 2,945,152 (576,034) 2,580,690 Purchase of investments (net of proceeds from sale of investments) 9,530,375 35,069,451 (28,531,766) ----------- ----------- ----------- Net cash used in investing activities (5,345,639) (9,492,185)(100,754,139) ----------- ----------- ----------- Cash flows from financing activities Capital contributions received - - 117,840,702 Selling commissions and registration costs paid - (19,377) (15,817,462) ----------- ----------- ----------- Net cash provided by (used in) financing activities - (19,377) 102,023,240 ----------- ----------- ----------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (5,222,236) (9,598,132) 1,632,223 Cash and cash equivalents, beginning 10,181,096 19,779,228 18,147,005 ----------- ----------- ----------- Cash and cash equivalents, ending $ 4,958,860 $ 10,181,096 $ 19,779,228 =========== =========== =========== (continued) - F-23 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 Total --------------------------------------------- Year ended Year ended Year ended March 31, 1996March 31, 1995March 31, 1994 ------------------------------------------ Supplemental schedule of noncash investing and financing activities The partnership has increased its investments in operating limited partnerships for unpaid capital contributions due to the operating limited partnerships $ 1,426,703 $1,234,289 $29,316,644 ========== ========= ========== The partnership has adjusted its investment and decreased its capital contribution obligation in operating limited partnerships for low income tax credits not generated $ 381,901 $ 41,637 $ 652,332 ========== ========= ========== The partnership has recorded capital contributions (syndication proceeds) being held and subsequently released by the escrow agent $ 2,274,224 $ - $ - ========== ========= ========== The partnership has decreased its investment in operating limited partnerships for syndication costs from operating limited partnerships $ - $ 56,651 $ - ========== ========= ========== The partnership has adjusted its investment and increased its capital contribution obligation in operating limited partnerships for low income tax credits generated $ 117,717 $ - $ - ========== ========= ========== The partnership has decreased its invest- ments in operating limited partnerships for unpaid capital contributions due to the operating limited partnership dis- posed of during the year $ 2,424,400 $ - $ - ========== ========= ========== (continued) - F-24 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 Series 15 --------------------------------------------- Year ended Year ended Year ended March 31, 1996March 31, 1995March 31, 1994 ------------------------------------------ Cash flows from operating activities Net income (loss) $ (3,638,790) $(3,512,414) $(3,210,118) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Share of losses from operating limited partnerships 3,201,668 2,948,034 2,724,135 Distributions received from operating limited partnerships 6,337 9 2,068 Amortization 36,843 26,231 45,457 Organization costs - (4,604) 52,156 Changes in assets and liabilities Prepaid expenses - - 38,750 Other assets (711) (297,230) 365,451 Accounts payable and accrued expenses67,501 (95,125) 96,270 Accounts payable - affiliates 488,042 530,584 226,748 ---------- ---------- ---------- Net cash provided by (used in) operating activities 160,890 (404,515) 340,917 ---------- ---------- ---------- Cash flows from investing activities Acquisition costs paid for operating limited partnerships - (96,521) (51,753) Capital contributions paid to operating limited partnerships (1,269,931) (2,008,610) (8,556,711) Deposits for purchases of operating limited partnerships - - - (Advances)/repayments (to)/from operating limited partnerships 262,350 295,510 4,781,399 Purchase of investments (net of proceeds from sale of investments) 33,243 1,338,195 2,842,142 ---------- ---------- ---------- Net cash used in investing activities (974,338) (471,426) (984,923) ---------- ---------- ---------- Cash flows from financing activities Capital contributions received - - - Selling commissions and registration costs (paid) reimbursed - (956) 108,807 ---------- ---------- ---------- Net cash provided by (used in) financing activities - (956) 108,807 ---------- ---------- ---------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (813,448) (876,897) (535,199) Cash and cash equivalents, beginning 976,876 1,853,773 2,388,972 ---------- ---------- ---------- Cash and cash equivalents, ending $ 163,428 $ 976,876 $ 1,853,773 ========== ========== ========== (continued) - F-25 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 Series 15 --------------------------------------------- Year ended Year ended Year ended March 31, 1996March 31, 1995March 31, 1994 ------------------------------------------ Supplemental schedule of noncash investing and financing activities The partnership has increased its investments in operating limited partnerships for unpaid capital contributions due to the operating limited partnerships $ - $1,234,289 $ 342,170 ========== ========= ========= The partnership has adjusted its investment and decreased its capital contribution obligation in operating limited partnerships for low income tax credits not generated $ 11,832 $ 41,637 $ 225,280 ========== ========= ========= The partnership has recorded capital contributions (syndication proceeds) being held and subsequently released by the escrow agent $ - $ - $ - ========== ========= ========= The partnership has decreased its investment in operating limited partnerships for syndication costs from operating limited partnerships $ - $ - $ - ========== ========= ========= The partnership has adjusted its investment and increased its capital contribution obligation in operating limited partnerships for low income tax credits generated $ - $ - $ - ========== ========= ========== The partnership has decreased its invest- ments in operating limited partnerships for unpaid capital contributions due to the operating limited partnership dis- posed of during the year $ - $ - $ - ========== ========= ========== (continued) - F-26 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 Series 16 --------------------------------------------- Year ended Year ended Year ended March 31, 1996March 31, 1995March 31, 1994 ------------------------------------------ Cash flows from operating activities Net income (loss) $(4,509,607) $(3,306,762) $(1,143,449) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Share of losses from operating limited partnerships 3,778,516 2,784,673 1,036,291 Distributions received from operating limited partnerships 7,361 1,046 - Amortization 61,532 44,630 49,388 Organization costs - - 5,978 Changes in assets and liabilities Prepaid expenses - - 85,859 Other assets 18,315 60,304 37,679 Accounts payable and accrued expenses(1,043) 43 1,100 Accounts payable - affiliates 571,980 600,730 45,504 ---------- ---------- ---------- Net cash provided by (used in) operating activities (72,946) 184,664 118,350 ---------- ---------- ---------- Cash flows from investing activities Acquisition costs paid for operating limited partnerships - (369,682) (587,207) Capital contributions paid to operating limited partnerships (2,444,175) (8,563,244) (20,293,773) Deposits for purchases of operating limited partnerships - 949,420 424,725 (Advances)/repayments (to)/from operating limited partnerships 222,000 409,014 2,776,142 Purchase of investments (net of proceeds from sale of investments) 967,118 6,242,389 9,321,605 ---------- ---------- ---------- Net cash used in investing activities (1,255,057) (1,332,103) (8,358,508) ---------- ---------- ---------- Cash flows from financing activities Capital contributions received - - - Selling commissions and registration costs (paid) reimbursed - (5,707) (30,259) ---------- ---------- ---------- Net cash provided by (used in) financing activities - (5,707) (30,259) ---------- ---------- ---------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,328,003) (1,153,146) (8,270,417) Cash and cash equivalents, beginning 2,757,494 3,910,640 12,181,057 ---------- ---------- ---------- Cash and cash equivalents, ending $ 1,429,491 $ 2,757,494 $ 3,910,640 ========== ========== ========== (continued) - F-27 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 Series 16 --------------------------------------------- Year ended Year ended Year ended March 31, 1996March 31, 1995March 31, 1994 ------------------------------------------ Supplemental schedule of noncash investing and financing activities The partnership has increased its investments in operating limited partnerships for unpaid capital contributions due to the operating limited partnerships $ - $ - $5,367,611 ========== ========= ========= The partnership has adjusted its investment and decreased its capital contribution obligation in operating limited partnerships for low income tax credits not generated $ 40,727 $ - $ 365,950 ========== ========= ========= The partnership has recorded capital contributions (syndication proceeds) being held and subsequently released by the escrow agent $ 86,655 $ - $ - ========== ========= ========= The partnership has decreased its investment in operating limited partnerships for syndication costs from operating limited partnerships $ - $ - $ - ========== ========= ========= The partnership has adjusted its investment and increased its capital contribution obligation in operating limited partnerships for low income tax credits generated $ - $ - $ - ========== ========= ========== The partnership has decreased its invest- ments in operating limited partnerships for unpaid capital contributions due to the operating limited partnership dis- posed of during the year $ - $ - $ - ========== ========= ========== (continued) - F-28 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 Series 17 --------------------------------------------- Year ended Year ended Year ended March 31, 1996March 31, 1995March 31, 1994 ------------------------------------------ Cash flows from operating activities Net income (loss) $ (3,771,430) $(3,041,575) $ (858,457) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Share of losses from operating limited partnerships 3,144,888 2,744,283 1,050,293 Distributions received from operating limited partnerships 2,436 1,428 - Amortization 55,408 39,729 36,167 Organization costs - (872) (24,793) Changes in assets and liabilities Prepaid expenses - - - Other assets 47,464 (54,968) (16,281) Accounts payable and accrued expenses (417) (83) (48,500) Accounts payable - affiliates 606,821 414,240 (61,369) ---------- ---------- ---------- Net cash provided by (used in) operating activities 85,170 102,182 77,060 ---------- ---------- ---------- Cash flows from investing activities Acquisition costs paid for operating limited partnerships (182,571) (282,180) (4,305,709) Capital contributions paid to operating limited partnerships (3,724,505) (10,171,778) (17,582,877) Deposits for purchases of operating limited partnerships - - (855,700) (Advances)/repayments (to)/from operating limited partnerships 577,530 (1,133,153) (1,068,852) Purchase of investments (net of proceeds from sale of investments) 1,838,871 10,845,389 (13,315,626) ---------- ---------- ---------- Net cash used in investing activities (1,490,675) (741,722) (37,128,764) ---------- ---------- ---------- Cash flows from financing activities Capital contributions received - - 40,878,702 Selling commissions and registration costs (paid) reimbursed - (3,894) (5,069,618) ---------- ---------- ---------- Net cash provided by (used in) financing activities - (3,894) 35,809,084 ---------- ---------- ---------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,405,505) (643,434) (1,242,620) Cash and cash equivalents, beginning 1,690,922 2,334,356 3,576,976 ---------- ---------- ---------- Cash and cash equivalents, ending $ 285,417 $ 1,690,922 $ 2,334,356 ========== ========== ========== (continued) - F-29 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 Series 17 --------------------------------------------- Year ended Year ended Year ended March 31, 1996March 31, 1995March 31, 1994 ------------------------------------------ Supplemental schedule of noncash investing and financing activities The partnership has increased its investments in operating limited partnerships for unpaid capital contributions due to the operating limited partnerships $ 1,338,057 $ - $8,282,776 ========== ========= ========= The partnership has adjusted its investment and decreased its capital contribution obligation in operating limited partnerships for low income tax credits not generated $ - $ - $ 61,102 ========== ========= ========= The partnership has recorded capital contributions (syndication proceeds) being held and subsequently released by the escrow agent $ - $ - $ - ========== ========= ========= The partnership has decreased its investment in operating limited partnerships for syndication costs from operating limited partnerships $ - $ - $ - ========== ========= ========= The partnership has adjusted its investment and increased its capital contribution obligation in operating limited partnerships for low income tax credits generated $ 117,717 $ - $ - ========== ========= ========== The partnership has decreased its invest- ments in operating limited partnerships for unpaid capital contributions due to the operating limited partnership dis- posed of during the year $ - $ - $ - ========== ========= ========== (continued) - F-30 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 Series 18 --------------------------------------------- Period June 17, 1993 (date of inception) Year ended Year ended through March 31, 1996March 31, 1995March 31, 1994 ------------------------------------------ Cash flows from operating activities Net income (loss) $ (2,824,934) $(1,264,227) $ (21,499) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Share of losses from operating limited partnerships 2,451,672 1,201,623 183,664 Distributions received from operating limited partnerships 2,278 180 - Amortization 42,298 30,673 8,588 Organization costs (1,462) (148,833) Changes in assets and liabilities Prepaid expenses - - - Other assets (148) 391,635 (58,648) Accounts payable and accrued expenses (100) (2,474) 4,325 Accounts payable - affiliates 241,696 192,467 - ---------- ---------- ---------- Net cash provided by (used in) operating activities (87,238) 548,415 (32,403) ---------- ---------- ---------- Cash flows from investing activities Acquisition costs paid for operating limited partnerships - (312,377) (3,735,517) Capital contributions paid to operating limited partnerships (5,518,309) (13,335,939) (5,489,939) Deposits for purchases of operating limited partnerships - - (1,857,150) (Advances)/repayments (to)/from operating limited partnerships 707,822 733,925 (1,515,009) Purchase of investments (net of proceeds from sale of investments) 3,613,472 9,572,849 (13,842,592) ---------- ---------- ---------- Net cash used in investing activities (1,197,015) (3,341,542) (26,440,207) ---------- ---------- ---------- Cash flows from financing activities Capital contributions received - - 36,162,000 Selling commissions and registration costs (paid) reimbursed - (19) (5,082,591) ---------- ---------- ---------- Net cash provided by (used in) financing activities - (19) 31,079,409 ---------- ---------- ---------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,284,253) (2,793,146) 4,606,799 Cash and cash equivalents, beginning 1,813,653 4,606,799 - ---------- ---------- ---------- Cash and cash equivalents, ending $ 529,400 $ 1,813,653 $ 4,606,799 ========== ========== ========== (continued) - F-31 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 Series 18 --------------------------------------------- Period June 17, 1993 (date of inception) Year ended Year ended through March 31, 1996March 31, 1995March 31, 1994 ------------------------------------------ Supplemental schedule of noncash investing and financing activities The partnership has increased its investments in operating limited partnerships for unpaid capital contributions due to the operating limited partnerships $ - $ - $5,208,089 ========== ========= ========= The partnership has adjusted its investment and decreased its capital contribution obligation in operating limited partnerships for low income tax credits not generated $ 6,349 $ - $ - ========== ========= ========= The partnership has recorded capital contributions (syndication proceeds) being held and subsequently released by the escrow agent $ 1,067,200 $ - $ - ========== ========= ========= The partnership has decreased its investment in operating limited partnerships for syndication costs from operating limited partnerships $ - $ 56,651 $ - ========== ========= ========= The partnership has adjusted its investment and increased its capital contribution obligation in operating limited partnerships for low income tax credits generated $ - $ - $ - ========== ========= ========== The partnership has decreased its invest- ments in operating limited partnerships for unpaid capital contributions due to the operating limited partnership dis- posed of during the year $ - $ - $ - ========== ========= ========== (continued) - F-32 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 Series 19 --------------------------------------------- Period October 8, 1993 (date of inception) Year ended Year ended through March 31, 1996March 31, 1995March 31, 1994 ------------------------------------------ Cash flows from operating activities Net income (loss) $ (1,969,550) $(1,208,253) $ 29,912 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Share of losses from operating limited partnerships 1,858,752 1,115,590 3,858 Distributions received from operating limited partnerships - - - Amortization 50,726 27,291 5,350 Organization costs - (12,791) (170,467) Changes in assets and liabilities Prepaid expenses - - - Other assets (190,079) (635,836) (12,392) Accounts payable and accrued expenses 4,501 (2,937) 2,937 Accounts payable - affiliates 283,177 199,620 - ---------- ---------- ---------- Net cash provided by (used in) operating activities 37,527 (517,316) (140,802) ---------- ---------- ---------- Cash flows from investing activities Acquisition costs paid for operating limited partnerships - (345,012) (4,054,402) Capital contributions paid to operating limited partnerships (4,681,675) (9,449,679) (6,569,050) Deposits for purchases of operating limited partnerships - - (1,288,000) (Advances)/repayments (to)/from operating limited partnerships 1,175,450 (881,330) (2,392,990) Purchase of investments (net of proceeds from sale of investments) 3,077,671 7,070,629 (13,537,295) ---------- ---------- ---------- Net cash used in investing activities (428,554) (3,605,392) (27,841,737) ---------- ---------- ---------- Cash flows from financing activities Capital contributions received - - 40,800,000 Selling commissions and registration costs (paid) reimbursed - (8,801) (5,743,801) ---------- ---------- ---------- Net cash provided by (used in) financing activities - (8,801) 35,056,199 ---------- ---------- ---------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (391,027) (4,131,509) 7,073,660 Cash and cash equivalents, beginning 2,942,151 7,073,660 - ---------- ---------- ---------- Cash and cash equivalents, ending $ 2,551,124 $ 2,942,151 $ 7,073,660 ========== ========== ========== (continued) - F-33 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 Series 19 -------------------------------------------- Period October 8, 1993 (date of inception) Year ended Year ended through March 31, 1996March 31, 1995March 31, 1994 ------------------------------------------ Supplemental schedule of noncash investing and financing activities The partnership has increased its investments in operating limited partnerships for unpaid capital contributions due to the operating limited partnerships $ 88,646 $ - $10,115,998 ========== ========= ========== The partnership has adjusted its investment and decreased its capital contribution obligation in operating limited partnerships for low income tax credits not generated $ 322,993 $ - $ - ========== ========= ========== The partnership has recorded capital contributions (syndication proceeds) being held and subsequently released by the escrow agent $ 1,120,369 $ - $ - ========== ========= ========== The partnership has decreased its investment in operating limited partnerships for syndication costs from operating limited partnerships $ - $ - $ - ========== ========= ========= The partnership has adjusted its investment and increased its capital contribution obligation in operating limited partnerships for low income tax credits generated $ - $ - $ - ========== ========= ========== The partnership has decreased its invest- ments in operating limited partnerships for unpaid capital contributions due to the operating limited partnership dis- posed of during the year $ 2,424,400 $ - $ - ========== ========= ========== See notes to financial statements - F-34 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS Years or periods ended March 31, 1996, 1995 and 1994 NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Boston Capital Tax Credit Fund III L.P. (the "fund") was formed under the laws of the State of Delaware on September 19, 1991, for the purpose of acquiring, holding, and disposing of limited partnership interests in operating limited partnerships which will acquire, develop, rehabilitate, operate and own newly constructed, existing or rehabilitated apartment com- plexes, which qualify for the Low-Income Housing Tax Credit established by the Tax Reform Act of 1986. Certain of the apartment complexes may also qualify for the Historic Rehabilitation Tax Credit for their rehabilitation of a certified historic structure; accordingly, the apartment complexes are restricted as to rent charges and operating methods and are subject to the provisions of Section 42(g)(2) of the Internal Revenue Code relating to the Rehabilitation Investment Credit. The general partner of the fund is Boston Capital Associates III L.P. and the limited partner is BCTC III Assignor Corp. (the assignor limited partner). 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 originally registered 20,000,000 BACs at $10 per BAC for sale to the public in one or more series. An additional 2,000,000 BACS at $10 per BAC were registered for sale to the public in one or more series on September 4, 1994. BACs sold in bulk were offered to investors at a reduced cost per BAC. The BACs issued and outstanding in each series at March 31, 1996 and 1995 are as follows: 1996 and 1995 ------------ Series 15 3,870,500 Series 16 5,429,402 Series 17 5,000,000 Series 18 3,616,200 Series 19 4,080,000 ---------- 21,996,102 ========== In accordance with the limited partnership agreements, profits, losses, and cash flow (subject to certain priority allocations and distributions) and tax credits are allocated 99% to the assignees and 1% to the general partner. Investments in Operating Limited Partnerships --------------------------------------------- The fund accounts for its investments in operating limited partnerships using the equity method, whereby the fund adjusts its investment cost for its share of each operating limited partnership's results of operations - F-35 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Investments in Operating Limited Partnerships (Continued) --------------------------------------------- and for any distributions received or accrued. However, the partnership recognizes individual operating partnership's losses only to the extent of capital contributions and acquisition expenses. Unrecognized losses are suspended and offset against future individual operating partnership's income. During the years ended March 31, 1996, 1995 and 1994, the fund acquired interests in operating limited partnerships as follows: 1996 1995 1994 ---- ---- ---- Series 15 - 9 2 Series 16 1 7 26 Series 17 1 13 33 Series 18 - 17 17 Series 19 1 11 14 - -- -- 3 57 92 = == == Organization Costs ------------------ Initial organization and offering expenses, common to all series, are allocated on a percentage of equity raised to each series. Organization costs are being amortized on the straight-line method over sixty months. Accumulated amortization as of March 31, 1996 and 1995 is as follows: 1996 1995 ---- ---- Series 15 $140,845 $114,614 Series 16 138,648 94,018 Series 17 115,625 75,896 Series 18 70,016 39,261 Series 19 70,254 32,641 ------- ------- $535,388 $356,430 ======= ======= Deferred Acquisition Costs -------------------------- Acquisition costs were deferred until March 31, 1995. As of April 1, 1995, the partnership reallocated certain acquisition costs, common to all Series, based on a percentage of equity raised to each Series. Acquisition costs are being amortized on the straight-line method starting April 1, 1995, over 27.5 years (330 months). - F-36 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Accumulated amortization as of March 31, 1996 is as follows: 1996 -------- Series 15 $10,612 Series 16 16,902 Series 17 15,679 Series 18 11,543 Series 19 13,113 ------ $67,849 ====== Selling Commissions and Registration Costs ------------------------------------------ Selling commissions paid in connection with the public offering are charged against the assignees' capital upon admission of investors as assignees. Registration costs associated with the public offering are charged against assignees' capital as incurred. Income Taxes ------------ No provision or benefit for income taxes has been included in these financial statements since taxable income or loss passes through to, and is reportable by, the partners and assignees individually. Cash Equivalents ---------------- Cash equivalents include repurchase agreements tax exempt sweep accounts having original maturities at date of acquisition of three months or less. The carrying value approximates fair value because of the short maturity of these instruments. Fiscal Year ----------- For financial reporting purposes, the fund uses a March 31 year end, whereas for income tax reporting purposes, the fund uses a calendar year. The operating limited partnerships use a calendar year for both financial and income tax reporting. - F-37 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Net income (loss) per Beneficial Assignee Certificate - ----------------------------------------------------- Net income (loss) per beneficial assignee partnership unit is calculated based upon the weighted average number of units outstanding during the year or period. The weighted average in each series at March 31, 1996, 1995 and 1994 are as follows: 1996 and 1995 1994 ------------- ---- Series 15 3,870,500 3,870,500 Series 16 5,429,402 5,429,402 Series 17 5,000,000 4,509,296 Series 18 3,616,200 1,266,940 Series 19 4,080,000 1,586,257 ---------- ---------- 21,996,102 16,662,395 ========== ========== Investments ----------- Investments held to maturity are being carried at amortized cost and investments available-for-sale are being carried at fair market value. Use of Estimates ---------------- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Recent Accounting Statements Not Yet Adopted -------------------------------------------- In March 1995, the FASB issued SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of." SFAS No. 121 is effective for financial statements issued for fiscal years beginning after December 15, 1995, with earlier application permitted. SFAS No. 121 addresses the accounting for long-lived assets and certain identifiable intangibles to be held and used by an entity to be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Fund will adopt SFAS No. 121 on April 1, 1996, as required. Adopting SFAS No. 121 is not expected to have a significant effect on the Fund's financial statements. - F-38 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE B - INVESTMENTS AVAILABLE FOR SALE At March 31, 1996, the amortized cost and fair market value of investments are as follows: Gross Gross Fair Amortized unrealized unrealized market costs gains losses value ----- ----- ------ ----- Tax exempt municipal bonds $5,129,837 $14,224 $(2,294) $5,141,767 ========= ====== ====== ========= The amortized cost and approximate market value of investments by maturity at March 31, 1996 is shown below. Approximate Amortized market costs value ----- ----- Due in one year or less $4,356,502 $4,367,751 Due after one year through five years 773,335 774,016 --------- --------- $5,129,837 $5,141,767 ========= ========= Proceeds from sales and maturities of investments during the year ended March 31, 1996 was $6,065,995 resulting in a realized loss of $11,026 included in interest income. In selecting investments to purchase and sell the general partner and its advisors stringently monitor the ratings of the investments and safety of principal. The tax-exempt coupon rates for the investments held during the year ended March 31, 1996 ranged from 4% to 9%. At March 31, 1995, the amortized cost and fair market value of investments are as follows: Gross Gross Fair Amortized unrealized unrealized market costs gains losses value ----- ----- ------ ----- Tax exempt municipal bonds $14,177,653 $21,539 $(124,230) $14,074,962 Other 711,801 - - 711,801 ---------- ------ -------- ---------- $14,889,454 $21,539 $(124,230) $14,786,763 ========== ====== ======== ========== The amortized cost and approximate market value of investments by maturity at March 31, 1995 is shown below. Approximate Amortized market costs value ----- ----- Due in one year or less $9,770,601 $9,688,806 Due after one year through five years 3,420,408 3,434,892 Due after five years through ten years 1,543,445 1,512,715 Due after ten years 155,000 150,350 ---------- ---------- $14,889,454 $14,786,763 ========== ========== - F-39 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE B - INVESTMENTS AVAILABLE FOR SALE (Continued) Proceeds from sales and maturities of investments during the year ended March 31, 1995 were $12,410,910 resulting in a realized loss of $103,573 included in interest income. In selecting investments to purchase and sell the general partner and its advisors stringently monitor the ratings of the investments and safety of principal. The tax-exempt coupon rates for the investments held during the year ended March 31, 1995 ranged from 4% to 9%. NOTE C - RELATED PARTY TRANSACTIONS During the years ended March 31, 1996, 1995 and 1994, the fund entered into several transactions with various affiliates of the general partner, including Boston Capital Partners, Inc., Boston Capital Services, Inc., and Boston Capital Communications Limited Partnership as follows: Boston Capital Communications Limited Partnership is entitled to an annual fund management fee based on .5 percent of the aggregate cost of all apartment complexes acquired by the operating limited partnerships, less the amount of certain partnership management and reporting fees paid or payable by the operating limited partnerships. The aggregate cost is comprised of the capital contributions made by each series to the operating limited partnership and 99% of the permanent financing at the operating limited partnership level. The annual fund fee charged to operations, net of reporting fees, during the years ended March 31, 1996, 1995 and 1994 by series, is as follows: 1996 1995 1994 ---- ---- ---- Series 15 $ 499,184 $ 470,726 $ 447,458 Series 16 646,906 658,346 493,242 Series 17 506,412 509,015 266,313 Series 18 363,632 371,536 50,831 Series 19 383,177 403,871 70,923 --------- --------- --------- $2,399,311 $2,413,494 $1,328,767 ========= ========= ========= Boston Capital Services, Inc. received dealer-manager fees for the marketing advice and investment banking services performed at the time of the fund's offering of BACs. The dealer-manager fees during the year ended March 31, 1994 for Boston Capital Services, Inc., included in partners' capital as selling commissions and registration costs, received by series is as follows: 1994 ---- Series 15 $ - Series 16 - Series 17 606,655 Series 18 637,865 Series 19 747,010 --------- $1,991,530 ========= - F-40 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE C - RELATED PARTY TRANSACTIONS (Continued) Boston Capital Partners, Inc. is entitled to asset acquisition fees for selecting, evaluating, structuring, negotiating, and closing the fund's acquisition of interests in the operating limited partnerships, and is included in the investment in operating limited partnerships. The acquisition fees incurred to Boston Capital Partners, Inc. during the year ended March 31, 1994 by series is as follows: 1994 ---- Series 15 $ - Series 16 - Series 17 2,876,740 Series 18 3,073,770 Series 19 3,468,000 --------- $9,418,510 ========= General and administrative expenses incurred by Boston Capital Partners, Inc. and Boston Capital Communications Limited Partnership during the years ended March 31, 1996, 1995 and 1994 charged to each series' operations are as follows: 1996 1995 1994 ---- ---- ---- Series 15 $ 26,729 $ 20,294 $ 26,839 Series 16 30,324 25,281 33,222 Series 17 29,426 23,579 30,274 Series 18 23,400 20,590 14,409 Series 19 30,652 22,659 9,457 ------- ------- ------- $140,531 $112,403 $114,201 ======= ======= ======= Accounts payable - affiliates at March 31, 1996 and 1995 represents general and administrative expenses, fund management fees, and commissions which are payable to Boston Capital Partners, Inc., Boston Capital Services, Inc., and Boston Capital Communications Limited Partnership. The carrying value of the accounts payable - affiliates approximates fair value. - F-41 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS At March 31, 1996, 1995 and 1994 the fund has limited partnership interests in operating limited partnerships which own or are constructing operating apartment complexes. During February, 1996, the partnership disposed of its limited partnership interest in one of the operating limited partnerships owned in Series 19. The number of operating limited partnerships in which the fund has limited partnership interests at March 31, 1996, 1995 and 1994 by series are as follows: 1996 1995 1994 ---- ---- ---- Series 15 68 68 59 Series 16 65 64 57 Series 17 49 48 35 Series 18 34 34 17 Series 19 25 25 14 --- --- --- 241 239 182 === === === Under the terms of the fund's investment in each operating limited partnership, the fund is required to make capital contributions to the operating limited partnerships. These contributions are payable in installments over several years upon each operating limited partnership achieving specified levels of construction and/or operations. The contributions payable to operating limited partnerships at March 31, 1996 and 1995 by series are as follows: 1996 1995 ---- ---- Series 15 $ 202,750 $ 1,480,039 Series 16 900,481 3,573,072 Series 17 2,312,721 4,581,453 Series 18 861,315 7,453,173 Series 19 5,262,617 13,723,409 ---------- ---------- $9,539,884 $30,811,146 ========== ========== - F-42 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The fund's investment in operating limited partnerships at March 31, 1996 is summarized as follows: Total Series 15 Series 16 --------- --------- --------- Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters $159,865,851 $ 28,921,383 $40,237,199 Acquisition costs of operating limited partnerships 19,010,382 2,988,415 4,445,291 Syndication costs from operating limited partnerships (56,632) - - Cumulative cash flows from operating limited partnerships (23,143) (8,414) (8,407) Cumulative losses from operating limited partnerships (31,537,445) (10,183,314)(7,599,508) ----------- ----------- ----------- Investment per balance sheet 147,259,013 21,718,070 37,074,575 The fund has recorded capital contribu tions to the operating limited partner ships during the year ended March 31, 1996 which have not been included in the partnership's capital account included in the operating limited partnerships' financial statements as of December 31, 1995 (11,853,350) (1,259,391) (656,367) The fund has recorded a disposition of an operating limited partnership which was included in the operating limited partnerships financial statements as of December 31, 1995 1,884,641 - - The fund has recorded acquisition costs at March 31, 1996 which have not been recorded in the net assets of the operating limited partnerships. (3,638,699) (399,087) (794,528) Cumulative losses from operating limited partnerships for the three months ended March 31, 1996 which the operating limited partnerships have not included in their capital as of December 31, 1995 2,866,341 472,214 631,571 - F-43 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) Total Series 15 Series 16 --------- --------- --------- Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (1,329) (1,329) - The fund has recorded low income housing tax credit adjusters not recorded by operating limited partnerships 983,223 320,665 196,992 Other (43,923) 30,765 (128,241) --------- --------- ---------- Equity per operating limited partnerships' combined financial statements $137,455,917 $20,881,907 $36,324,002 =========== ========== ========== - F-44 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The fund's investment in operating limited partnerships at March 31, 1996 is summarized as follows: Series 17 Series 18 Series 19 --------- --------- --------- Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters $36,697,182 $26,411,471 $27,598,616 Acquisition costs of operating limited partnerships 4,564,867 3,587,532 3,424,277 Syndication costs from operating limited partnerships - (56,632) - Cumulative cash flows from operating limited partnerships (3,864) (2,458) - Cumulative losses from operating limited partnerships (6,939,464) (3,836,959) (2,978,200) ---------- ---------- ---------- Investment per balance sheet $34,318,721 $26,102,954 $28,044,693 The fund has recorded capital contribu- tions to the operating limited partner ships during the year ended March 31, 1996 which have not been included in the partnership's capital account included in the operating limited partnerships' financial statements as of December 31, 1995 (3,020,091) (1,280,489) (5,637,012) The fund has recorded a disposition of an operating limited partnership which was included in the operating limited partnerships financial statements as of December 31, 1995 - - 1,884,641 The fund has recorded acquisition costs at March 31, 1996 which have not been recorded in the net assets of the operating limited partnerships. (1,566,291) (399,578) (479,215) Cumulative losses from operating limited partnerships for the three months ended March 31, 1996 which the operating limited partnerships have not included in their capital as of December 31, 1995 752,440 617,653 392,463 Equity in loss of operating limited partnerships not recognizable under the equity method of accounting - - - - F-45 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) Series 17 Series 18 Series 19 --------- --------- --------- The fund has recorded low income housing tax credit adjusters not recorded by operating limited partnerships 177,979 78,887 208,700 Other (116,649) 67,402 102,800 ---------- ---------- ---------- Equity per operating limited part- nerships' combined financial statements $30,546,109 $25,186,829 $24,517,070 ========== ========== ========== - F-46 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The fund's investment in operating limited partnerships at March 31, 1995 is summarized as follows: Total Series 15 Series 16 --------- --------- --------- Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters $161,015,390 $28,929,799 $40,112,066 Acquisition costs of operating limited partnerships 19,186,627 2,988,415 4,445,291 Syndication costs from operating limited partnerships (56,632) - - Cumulative cash flows from operating limited partnerships (4,731) (2,077) (1,046) Cumulative losses from operating limited partnerships (17,101,949) (6,981,646) (3,820,992) ----------- ---------- ---------- Investment per balance sheet 163,038,705 24,934,491 40,735,319 The fund has recorded capital contribu tions to the operating limited partner ships during the year ended March 31, 1995 which have not been included in the partnership's capital account included in the operating limited partnerships' financial statements as of December 31, 1994 (37,789,231) (2,857,391)(5,240,945) The fund has recorded acquisition costs at March 31, 1995 which have not been recorded in the net assets of the operating limited partnerships. (3,378,947) (399,087) (838,498) Cumulative losses from operating limited partnerships for the three months ended March 31, 1995 which the operating limited partnerships have not included in their capital as of December 31, 1994 2,866,341 472,214 631,571 The fund has recorded low income housing tax credit adjusters not recorded by operating limited partnerships 1,269,607 350,370 224,890 Other (113,619) 25,739 (87,908) ---------- ---------- ---------- Equity per operating limited part- nerships' combined financial statements $125,892,856 $22,526,336 $35,424,429 =========== ========== ========== - F-47 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The fund's investment in operating limited partnerships at March 31, 1995 is summarized as follows: Series 17 Series 18 Series 19 --------- --------- --------- Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters $35,247,916 $26,488,045 $30,237,564 Acquisition costs of operating limited partnerships 4,382,296 3,587,532 3,783,093 Syndication costs from operating limited partnerships - (56,632) - Cumulative cash flows from operating limited partnerships (1,428) (180) - Cumulative losses from operating limited partnerships (3,794,576) (1,385,287) (1,119,448) ---------- ---------- ---------- Investment per balance sheet 35,834,208 28,633,478 32,901,209 The fund has recorded capital contribu- tions to the operating limited partner- ships during the year ended March 31, 1995 which have not been included in the partnership's capital account included in the operating limited partnerships' financial statements as of December 31, 1994 (7,504,004) (8,492,462)(13,694,429) The fund has recorded acquisition costs at March 31, 1995 which have not been recorded in the net assets of the operating limited partnerships. (1,393,014) (387,564) (360,784) Cumulative losses from operating limited partnerships for the three months ended March 31, 1995 which the operating limited partnerships have not included in their capital as of December 31, 1994 752,440 617,653 392,463 The fund has recorded low income housing tax credit adjusters not recorded by operating limited partnerships 559,921 88,614 45,812 Other (34,969) 358 (16,839) --------- ---------- ---------- Equity per operating limited part- nerships' combined financial statements $28,214,582 $20,460,077 $19,267,432 ========== ========== ========== - F-48 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized balance sheets of the operating limited partnerships as of December 31, 1995 are as follows: COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED Total Series 15 Series 16 --------- --------- --------- ASSETS Buildings and improvements, net of accumulated depreciation $539,103,162 $113,668,476 $126,199,103 Construction in progress 193,990 - - Land 27,734,587 6,243,813 5,144,862 Other assets 28,033,356 5,795,086 6,985,673 ----------- ----------- ----------- $595,065,095 $125,707,375 $138,329,638 =========== =========== =========== LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Mortgage and construction loans payable $362,444,150 $ 86,436,656 $ 86,209,846 Accounts payable and accrued expenses 9,470,881 1,929,259 2,818,227 Other liabilities 34,833,775 2,786,315 7,750,687 ---------- ----------- ----------- 406,748,806 91,152,230 96,778,760 ----------- ----------- ----------- PARTNERS' CAPITAL Boston Capital Tax Credit Fund III L.P. 137,455,917 20,881,907 36,324,002 Other partners 50,860,372 13,673,238 5,226,876 ---------- ------------ ---------- 188,316,289 34,555,145 41,550,878 ----------- ------------ ---------- $595,065,095 $125,707,375 $138,329,638 =========== =========== =========== - F-49 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized balance sheets of the operating limited partnerships as of December 31, 1995 are as follows: COMBINED SUMMARIZED BALANCE SHEETS Series 17 Series 18 Series 19 --------- --------- --------- ASSETS Buildings and improvements, net of accumulated depreciation $133,490,551 $74,873,256 $ 90,871,776 Construction in progress - - 193,990 Land 7,474,365 3,357,967 5,513,580 Other assets 6,904,773 4,186,182 4,161,642 ----------- ---------- ----------- $147,869,689 $82,417,405 $100,740,988 =========== ========== =========== LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Mortgage and construction loans payable $ 86,012,478 $47,975,446 $ 55,809,724 Accounts payable and accrued expenses 1,989,866 1,068,333 1,665,196 Other liabilities 10,409,918 3,994,355 9,892,500 ----------- ---------- ---------- 98,412,262 53,038,134 67,367,420 ----------- ---------- ---------- PARTNERS' CAPITAL Boston Capital Tax Credit Fund III L.P. 30,546,109 25,186,829 24,517,070 Other partners 18,911,318 4,192,442 8,856,498 ----------- ---------- ----------- 49,457,427 29,379,271 33,373,568 ----------- ---------- ----------- $147,869,689 $82,417,405 $100,740,988 =========== ========== =========== - F-50 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized balance sheets of the operating limited partnerships as of December 31, 1994 are as follows: COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED Total Series 15 Series 16 --------- --------- --------- ASSETS Buildings and improvements, net of accumulated depreciation $457,749,609 $110,717,252 $126,863,859 Construction in progress 48,209,210 3,203,496 - Land 26,993,610 6,163,973 5,140,689 Other assets 25,719,231 5,654,575 6,605,279 ----------- ----------- ----------- $558,671,660 $125,739,296 $138,609,827 =========== =========== =========== LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Mortgage and construction loans payable $331,606,237 $ 82,829,772 $ 84,564,854 Accounts payable and accrued expenses 10,302,194 1,092,277 2,022,579 Other liabilities 44,216,934 4,045,404 12,598,846 ----------- ----------- ----------- 386,125,365 87,967,453 99,186,279 ----------- ----------- ----------- PARTNERS' CAPITAL Boston Capital Tax Credit Fund III L.P. 125,892,856 22,526,336 35,424,429 Other partners 46,653,439 15,245,507 3,999,119 ----------- ----------- ----------- 172,546,295 37,771,843 39,423,548 ----------- ----------- ----------- $558,671,660 $125,739,296 $138,609,827 =========== =========== =========== - F-51 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized balance sheets of the operating limited partnerships as of December 31, 1994 are as follows: COMBINED SUMMARIZED BALANCE SHEETS Series 17 Series 18 Series 19 --------- --------- --------- ASSETS Buildings and improvements, net of accumulated depreciation $117,365,307 $61,429,682 $41,373,509 Construction in progress 7,114,467 9,667,792 28,223,455 Land 7,210,866 3,354,148 5,123,934 Other assets 6,485,629 4,443,526 2,530,222 ----------- ---------- ---------- $138,176,269 $78,895,148 $77,251,120 =========== ========== ========== LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Mortgage and construction loans payable $ 79,210,868 $41,517,247 $43,483,496 Accounts payable and accrued expenses 2,910,630 598,956 3,677,752 Other liabilities 10,176,089 12,661,913 4,734,682 ----------- ---------- ----------- 92,297,587 54,778,116 51,895,930 ----------- ---------- ----------- PARTNERS' CAPITAL Boston Capital Tax Credit Fund III L.P. 28,214,582 20,460,077 19,267,432 Other partners 17,664,100 3,656,955 6,087,758 ----------- ---------- ----------- 45,878,682 24,117,032 25,355,190 ----------- ---------- ----------- $138,176,269 $78,895,148 $77,251,120 =========== ========== ========== - F-52 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized operating limited partnerships for the year ended December 31, 1995 are as follows: COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED Total Series 15 Series 16 --------- --------- --------- Income Rental $48,007,916 $11,787,514 $11,522,708 Interest and other 2,994,488 424,833 1,198,885 ---------- ---------- ---------- 51,002,404 12,212,347 12,721,593 ---------- ---------- ---------- Expenses Interest 20,933,757 5,020,371 4,852,495 Depreciation and amortization 20,645,596 5,007,542 5,024,457 Taxes and insurance 5,966,207 1,506,536 1,624,158 Repairs and maintenance 5,958,052 1,383,389 1,535,410 Operating expenses 12,301,918 2,358,298 1,493,038 Other expenses 4,228,266 1,560,681 2,111,125 ---------- ---------- ---------- 70,033,796 16,836,817 16,640,683 ---------- ---------- ---------- NET LOSS $(19,031,392) $(4,624,470) $(3,919,090) ========== ========== ========== Net loss allocated to Boston Capital Tax Credit Fund III L.P.* $(15,325,298) $(3,202,997) $(3,778,516) ========== ========== ========== Net loss allocated to other partners $(3,706,094) $(1,421,473) $(140,574) ========== ========== ======== * Amounts include $1,329 for series 15 of loss not recognized under the equity method of accounting as described in Note A. - F-53 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized operating limited partnerships for the year ended December 31, 1995 are as follows: COMBINED SUMMARIZED STATEMENTS OF OPERATIONS Series 17 Series 18 Series 19 --------- --------- --------- Income Rental $12,671,492 $ 5,411,512 $ 6,614,690 Interest and other 773,346 336,942 260,482 ---------- ---------- ---------- 13,444,838 5,748,454 6,875,172 ---------- ---------- ---------- Expenses Interest 5,497,670 2,297,759 3,265,462 Depreciation and amortization 5,064,624 2,889,611 2,659,362 Taxes and insurance 1,406,849 645,800 782,864 Repairs and maintenance 1,560,858 788,461 689,934 Operating expenses 4,148,029 1,801,704 2,500,849 Other expenses 261,102 213,680 81,678 ---------- ---------- ---------- 17,939,132 8,637,015 9,980,149 ---------- ---------- ---------- NET LOSS $(4,494,294) $(2,888,561) $(3,104,977) ========== ========== ========== Net loss allocated to Boston Capital Tax Credit Fund III L.P.* $(3,144,888) $(2,451,672) $(2,747,225) ========== ========== ========== Net loss allocated to other partners $(1,349,406) $ (436,889) $ (357,752) ========== ========== ========== * Amounts include $1,329 for Series 15 of loss not recognized under the equity method of accounting as described in Note A. - F-54 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized operating limited partnerships for the year ended December 31, 1994 are as follows: COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED Total Series 15 Series 16 --------- --------- --------- Income Rental $ 30,951,071 $11,974,323 $ 8,308,518 Interest and other 1,930,413 287,264 995,495 ----------- ---------- ---------- 32,881,484 12,261,587 9,304,013 ----------- ---------- ---------- Expenses Interest 15,064,290 6,012,957 3,779,853 Depreciation and amortization 13,356,704 4,843,518 3,700,167 Taxes and insurance 3,293,612 1,273,505 975,575 Repairs and maintenance 3,251,670 1,152,959 863,610 Operating expenses 9,336,088 3,168,680 2,375,337 Other expenses 455,380 80,575 179,888 ----------- ---------- ---------- 44,757,744 16,532,194 11,874,430 ----------- ---------- ---------- NET LOSS $(11,876,260) $(4,270,607) $(2,570,417) =========== ========== ========== Net loss allocated to Boston Capital Tax Credit Fund III L.P. $(9,146,655) $(2,948,034) $(2,497,346) ========== ========== ========== Net loss allocated to other partners $(2,729,605) $(1,322,573) $ (73,071) ========== ========== ========== - F-55 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized operating limited partnerships for the year ended 1994 are as follows: COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED Series 17 Series 18 Series 19 --------- --------- --------- Income Rental $ 7,869,171 $1,983,004 $ 816,055 Interest and other 359,633 171,283 116,738 ---------- --------- --------- 8,228,804 2,154,287 932,793 ---------- --------- --------- Expenses Interest 3,808,514 852,584 610,382 Depreciation and amortization 3,499,006 882,359 431,654 Taxes and insurance 757,837 177,626 109,069 Repairs and maintenance 903,246 257,611 74,244 Operating expenses 2,621,580 717,849 452,642 Other expenses 137,107 42,260 15,550 ---------- --------- --------- 11,727,290 2,930,289 1,693,541 ---------- --------- --------- NET LOSS $(3,498,486) $ (776,002) $ (760,748) ========== ========= ========= Net loss allocated to Boston Capital Tax Credit Fund III L.P. $(2,259,051) $ (719,097) $ (723,127) ========== ========= ========= Net loss allocated to other partners$(1,239,435) $ (56,905) $ (37,621) ========== ========= ========= - F-56 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE E - NOTES RECEIVABLE Notes receivable at March 31, 1996 and 1995 consist of advance installments of capital contributions to operating limited partnerships. The notes at March 31, 1996 and 1995 are comprised of noninterest bearing and interest bearing notes with rates ranging from 3.66% to prime plus 1% to 3%. Prime was 8.25% and 9% as of March 31, 1996 and 1995, respectively. The notes receivable will be converted to capital and are deemed to be short term in nature. Therefore, the carrying value of the notes receivable is deemed to approximate fair value. The notes at March 31, 1996 and 1995 by series are as follows: 1996 1995 ----------- ---------- Series 15 $ 185,000 $ 218,750 Series 16 483,464 705,464 Series 17 1,658,475 2,317,005 Series 18 536,351 781,084 Series 19 2,098,870 3,274,320 --------- --------- $4,962,160 $7,296,623 ========= ========= NOTE F - OTHER ASSETS Other assets include cash held by an escrow agent at March 31, 1996 and 1995. The cash held for the series at March 31, 1996 and 1995 represents capital contributions to be released to the operating limited partnerships when certain criteria are met. The escrows held at March 31, 1996 and 1995 by series are as follows: 1996 1995 ---- ---- Series 15 $ 242,579 $ 304,712 Series 16 - 86,655 Series 17 38,229 523,627 Series 18 - 1,067,200 Series 19 - 1,120,369 --------- --------- $ 280,808 $3,102,563 ========= ========= - F-57 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF OPERATIONS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE G - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO TAX RETURN For income tax purposes, the fund reports using a December 31 year end. The fund's net loss for financial reporting and tax return purposes for the year ended March 31, 1996 are reconciled as follows: Total Series 15 Series 16 --------- --------- --------- Net loss for financial reporting purposes $(16,714,311) $(3,638,790) $(4,509,607) Operating limited partnership rents received in advance (3,339) (3,001) (6,561) Fund management fees not deducted for tax purposes 2,583,102 491,926 697,451 Other 814,029 258,965 141,622 Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting (1,329) (1,329) - Excess of tax depreciation over book depreciation on operating limited partnership assets (1,969,304) (290,445) (373,507) Difference due to fiscal year for book purposes and calendar year for tax purposes 241,178 30,558 880,443 ----------- ---------- ---------- Loss for tax return purposes, December 31, 1995 $(15,049,974) $(3,152,116) $(3,170,159) =========== ========== ========== - F-58 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE G - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO TAX RETURN For income tax purposes, the fund reports using a December 31 year end. The fund's net loss for financial reporting and tax return purposes for the year ended March 31, 1996 are reconciled as follows: Series 17 Series 18 Series 19 --------- --------- --------- Net loss for financial reporting purposes $(3,771,430) $(2,824,934) $(1,969,550) Operating limited partnership rents received in advance (739) 5,087 1,875 Fund management fees not deducted for tax purposes 554,890 399,698 439,137 Other 394,590 228,046 (209,194) Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting - - - Excess of tax depreciation over book depreciation on operating limited partnership assets (628,554) (288,111) (388,687) Difference due to fiscal year for book purposes and calendar year for tax purposes 133,714 87,287 (890,824) ---------- ---------- ---------- Loss for tax return purposes, December 31, 1995 $(3,317,529) $(2,392,927) $(3,017,243) ========== ========== ========== - F-59 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF OPERATIONS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE G - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO TAX RETURN For income tax purposes, the fund reports using a December 31 year end. The fund's net loss for financial reporting and tax return purposes for the year ended March 31, 1995 are reconciled as follows: Total Series 15 Series 16 --------- --------- --------- Net loss for financial reporting purposes $(12,333,231) $(3,512,414) $(3,306,762) Operating limited partnership rents received in advance 1,621 - - Fund management fees not deducted for tax purposes 1,280,172 466,112 431,356 Other 739,074 315,341 (143,523) Excess of tax depreciation over book depreciation on operating limited partnership assets (1,045,521) (261,228) (352,964) Difference due to fiscal year for book purposes and calendar year for tax purposes 1,867,736 63,560 280,080 ----------- ---------- ---------- Loss for tax return purposes, December 31, 1994 $ (9,490,149) $(2,928,629) $(3,091,813) =========== ========== ========== - F-60 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE G - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO TAX RETURN For income tax purposes, the fund reports using a December 31 year end. The fund's net loss for financial reporting and tax return purposes for the year ended March 31, 1995 are reconciled as follows: Series 17 Series 18 Series 19 --------- --------- --------- Net loss for financial reporting purposes $(3,041,575) $(1,264,227) $(1,208,253) Operating limited partnership rents received in advance - 1,621 - Fund management fees not deducted for tax purposes 237,504 73,358 71,842 Other 293,359 (76,893) 350,790 Excess of tax depreciation over book depreciation on operating limited partnership assets (241,803) (113,528) (75,998) Difference due to fiscal year for book purposes and calendar year for tax purposes 556,017 575,411 392,668 ---------- ---------- ---------- Loss for tax return purposes, December 31, 1994 $(2,196,498) $ (804,258) $ (468,951) ========== ========== ========== - F-61 - Boston Capital Tax Credit Fund III L.P. STATEMENTS OF OPERATIONS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE G - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO TAX RETURN The difference between the investments in operating limited partnerships for tax purposes and financial statements purposes are primarily due to the differences in the estimated share of losses recognized and the historic tax credits taken for income tax purposes. At March 31, 1996, the differences are as follows: Total Series 15 Series 16 --------- --------- --------- Investments in operating limited partnership - per tax return, December 31, 1995 $144,310,058 $22,108,209 $35,452,741 Operating limited partnership acquired for the three months end March 31, 1996 - - - Estimated share of loss for the three months ended March 31, 1996 (2,866,341) (472,214) (631,571) Add back operating limited partnership losses not recognized for financial reporting purposes 1,329 1,329 - Historic tax credits 5,333,539 1,852,569 - Other 480,428 (1,771,823) 2,253,405 ----------- ---------- ---------- Investment in operating limited partnerships - as reported $147,259,013 $21,718,070 $37,074,575 =========== ========== ========== - F-62 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE G - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO TAX RETURN (Continued) The difference between the investments in operating limited partnerships for tax purposes and financial statements purposes are primarily due to the differences in the estimated share of losses recognized and the historic tax credits taken for income tax purposes. At March 31, 1996, the differences are as follows: Series 17 Series 18 Series 19 --------- --------- ---------- Investments in operating limited partnership - per tax return, December 31, 1995 $32,438,357 $24,424,457 $29,886,294 Operating limited partnership acquired for the three months end March 31, 1996 - - - Estimated share of loss for the three months ended March 31, 1996 (752,440) (617,653) (392,463) Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method - - - Historic tax credits 1,100,310 2,062,333 318,327 Other 1,532,494 233,817 (1,767,465) ---------- ---------- ----------- Investment in operating limited partnerships - as reported $34,318,721 $26,102,954 $28,044,693 ========== ========== ========== - F-63 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE G - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO TAX RETURN (Continued) The difference between the investments in operating limited partnerships for tax purposes and financial statements purposes are primarily due to the differences in the estimated share of losses recognized and the historic tax credits taken for income tax purposes. At March 31, 1995, the differences are as follows: Total Series 15 Series 16 --------- --------- --------- Investments in operating limited partnership - per tax return, December 31, 1994 $160,325,457 $25,051,267 $38,688,326 Operating limited partnership acquired for the three months end March 31, 1995 1,535,060 397,101 - Estimated share of loss for the three months ended March 31, 1995 (2,866,341) (472,214) (631,571) Historic tax credits 4,708,998 - 1,852,569 Other (664,469) (41,663) 825,995 ----------- ---------- ---------- Investment in operating limited partnerships - as reported $163,038,705 $24,934,491 $40,735,319 =========== ========== ========== - F-64 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE G - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO TAX RETURN (Continued) The difference between the investments in operating limited partnerships for tax purposes and financial statements purposes are primarily due to the differences in the estimated share of losses recognized and the historic tax credits taken for income tax purposes. At March 31, 1995, the differences are as follows: Series 17 Series 18 Series 19 --------- --------- --------- Investments in operating limited partnership - per tax return, December 31, 1994 $35,756,328 $27,533,094 $33,296,442 Operating limited partnership acquired for the three months end March 31, 1995 638,855 - 499,104 Estimated share of loss for the three months ended March 31, 1995 (752,440) (617,653) (392,463) Historic tax credits 890,336 1,647,766 318,327 Other (698,871) 70,271 (820,201) ---------- ---------- ----------- Investment in operating limited partnerships - as reported $35,834,208 $28,633,478 $32,901,209 ========== ========== =========== - F-65 - Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED Years or periods ended March 31, 1996, 1995 and 1994 NOTE H - CONCENTRATION OF CREDIT RISK The partnership maintains its cash balances at a number of banks. The deposits are insured by the Federal Deposit Insurance Corporation up to $100,000 at each bank. The balances in and between banks fluctuates daily. The amount of deposits, as well as the institutions that they are deposited in, are continuously monitored by the general partner. As of March 31, 1996, the uninsured portion of the cash balances on deposit was $93,973. NOTE I - CASH EQUIVALENTS Cash equivalents of $0 and $8,000,000 as of March 31, 1996 and 1995, respectively, include tax exempt sweep accounts with interest at rates ranging from 2.25% to 5.3% per annum. In addition, on March 31, 1996 and 1995, Boston Capital Tax Credit Fund III L.P. purchased $4,000,000 and $8,000,000 of U.S. Government Securities under agreements to resell on April 1, 1996 and 1995, respectively. Interest is earned at rates ranging from 2.15% to 3.5% per annum. - F-66 - BOSTON CAPITAL TAX CREDIT FUND III L.P. SCHEDULE I - MARKETABLE SECURITIES - OTHER INVESTMENTS AS OF March 31, 1996 Amount at which each Portfolio of equity secur- ity and each Market Value other security Name of issuer Number of shares of each issue issue is carried and title of or units, principal Cost of at balance on the balance each issue amount of bonds each issue sheet date sheet - ------------- ------------------ ---------- ------------- ---------------- Armstrong Cnty PA MBIA Regd UT BQ Prerefd 200,000 $104.443 $ 208,886 $ 208,886 Baltimore MD Rev RFDG Balt City Pkg Sys FACS-A FGIC Regd B/E Prerefd 200,000 $104.961 209,922 209,922 Brockton MA Area Tran Auth Rev Antic NTS REGD B/E N/C 500,000 $ 99.982 499,910 499,910 Clark Cnty NV Santn Dist MBIA Regd U/T Prerefd 400,000 $102.928 411,712 411,712 Dade Cnty FL Pub Impt Ser CC Regd U/T 300,000 $103.136 309,408 309,408 Illinois ST Sales Tax Rev Ser U Regd B/E N/C 500,000 $100.107 500,535 500,535 Maine MUN BD BK Ser a Regd B/E N/C 500,000 $102.186 510,930 510,930 Millcreek TWP PA WTR Auth GTD WTR Rev FGIC Regd BQ N/C 355,000 $100.059 355,209 355,209 -F-67- BOSTON CAPITAL TAX CREDIT FUND III L.P. SCHEDULE I - MARKETABLE SECURITIES - OTHER INVESTMENTS AS OF March 31, 1996 Amount at which each Portfolio of equity secur- ity and each Market Value other security Name of issuer Number of shares of each issue issue is carried and title of or units, principal Cost of at balance on the balance each issue amount of bonds each issue sheet date sheet - ------------- ------------------ ---------- ------------- ---------------- Pennsylvania ST Higher EDL Facs Auth Rev Susquehanna Univ Regd AMBAC N/C 250,000 $102.624 $ 256,560 $ 256,560 Pittsfield MA Regd Prerefd 250,000 $104.157 260,392 260,392 Schenectady Cnty NY Regd B/E UT N/C 425,000 $100.358 426,522 426,522 Washington DC Met Area Tran Auth Gross Rev RFDG Regd FGIC B/E OID N/C 500,000 $100.289 501,445 501,445 Worcester MA Mun Purp LN Ser C MBIA Regd B/E LT N/C 680,000 $101.52 690,336 690,336 --------- --------- $5,141,767 $5,141,767 ========= ========= -F-68- Boston Capital Tax Credit Fund III L.P. - Series 15 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - ------------------------------------------------------------------------------------------------------------------------------ April Gardens 1,476,547 50,000 1,773,331 0 50,000 1,773,331 1,823,331 196,282 5/93 9/92 5-27.5 Arkansas City 834,392 15,870 1,016,757 0 15,870 1,016,757 1,032,627 47,310 12/94 9/94 5-25 Autumnwood LP 1,361,324 50,000 1,669,609 0 50,000 1,669,609 1,719,609 193,717 1/93 8/92 5-27.5 Barton Village 513,541 47,898 683,991 0 47,898 683,991 731,889 79,136 3/93 10/92 5-27.5 Beckwood Manor Eight 1,227,025 60,000 1,498,746 0 58,000 1,498,746 1,556,746 44,647 8/95 8/94 5-27.5 Bergen Meadows 1,027,491 42,000 1,256,858 8,828 42,000 1,265,686 1,307,686 191,958 7/92 7/92 7-27.5 Bridlewood LP 796,549 42,000 211,635 781,185 42,000 992,820 1,034,820 26,945 1/95 1/94 5-27.5 Brunswick LP 833,058 69,000 953,553 416 69,000 953,969 1,022,969 130,089 9/92 4/92 7-27.5 Buena Vista Apts. 1,462,607 75,000 1,767,511 0 75,000 1,767,511 1,842,511 296,728 1/92 3/92 7-27.5 - F-69 - Boston Capital Tax Credit Fund III L.P. - Series 15 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - ------------------------------------------------------------------------------------------------------------------------------ Calexico Sr 1,933,565 213,000 2,047,255 0 213,000 2,047,255 2,260,255 161,608 9/92 9/92 7-27.5 California Inv. VII 8,874,224 820,000 9,361,922 16,786,917 803,050 26,148,839 26,951,889 2,317,477 12/93 10/92 5-27.5 Chestnut Hill 752,728 40,000 904,814 3,545 40,000 908,359 948,359 90,044 9/92 9/92 7-27.5 Coralville Housing 2,649,097 258,000 4,683,541 29,262 258,000 4,712,803 4,970,803 737,719 10/92 3/92 7-27.5 Curwensville Housing 1,224,140 31,338 1,435,553 1,137 125,042 1,436,690 1,561,732 105,251 7/93 9/92 5-27.5 Deerfield Assoc. 1,237,021 65,400 1,495,473 0 65,400 1,495,473 1,560,873 211,863 6/92 4/92 7-27.5 East Machias 1,046,574 77,963 1,478,171 1,729 77,963 1,479,900 1,557,863 116,055 1/93 9/92 10-40 East Park Apts. I 504,552 2,000 980,413 0 2,000 980,413 982,413 66,529 1/94 6/94 5-27.5 Edgewood Properties 792,628 36,000 967,796 0 36,000 967,796 1,003,796 126,384 8/92 6/92 7-27.5 Far View Housing 927,287 100,000 1,066,418 (12,825) 119,500 1,053,593 1,173,093 91,327 11/92 6/92 10-40 - F-70 - Boston Capital Tax Credit Fund III L.P. - Series 15 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - ------------------------------------------------------------------------------------------------------------------------------ Graham Housing 1,348,733 85,006 2,451,794 0 85,006 2,451,794 2,536,800 43,924 6/95 10/94 5-27.5 Grantsville Assoc. 1,496,542 85,099 1,795,971 0 85,599 1,795,971 1,881,570 149,777 2/93 5/92 5-27.5 Greentree Apts. 691,678 15,000 1,143,223 0 15,000 1,143,223 1,158,223 603,098 10/75 4/94 5-27.5 Greenwood Village 680,335 20,123 893,915 0 20,123 893,915 914,038 99,902 5/93 8/92 5-27.5 Harrisonville Prop. II 611,545 15,000 744,677 575 15,000 745,252 760,252 153,089 11/91 3/92 7-27.5 Headlton Properties 709,514 15,000 868,469 0 15,000 868,469 883,469 28,274 12/94 8/94 5-27.5 Hearthside II LDHA 1,965,350 95,000 2,967,134 (46,169) 95,000 2,920,965 3,015,965 355,030 11/92 04/92 7-27.5 Heron's Landing 1,213,328 176,121 1,410,573 0 176,121 1,410,573 1,586,694 198,511 10/92 10/92 7-27.5 Hidden Cove 2,970,654 707,848 4,334,916 2,786 707,848 4,337,702 5,045,550 1,164,917 8/88 2/94 5-27.5 Higgensville Estates 631,156 40,000 738,056 1,622 40,000 739,678 779,678 162,776 3/91 3/92 7-27.5 - F-71 - Boston Capital Tax Credit Fund III L.P. - Series 15 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - ------------------------------------------------------------------------------------------------------------------------------ Inv. Group of Payson 1,495,824 211,500 1,767,942 0 211,500 1,767,942 1,979,442 146,549 8/92 8/92 7-27.5 Kearney Estates 638,301 30,000 763,159 0 30,000 763,159 793,159 149,494 1/92 5/92 7-27.5 Lake View Associates 893,100 30,000 1,077,130 350 30,000 1,077,480 1,107,480 160,321 7/92 4/92 7-27.5 Laurelwood Apts. 1,075,076 58,500 1,268,491 750 58,500 1,269,241 1,327,741 192,054 2/92 3/92 7-27.5 Lebanon II LP 932,577 40,000 1,090,397 0 40,000 1,090,397 1,130,397 124,872 2/93 8/92 5-27.5 Lebanon III Prop. 636,219 26,750 766,992 2,651 26,750 769,643 796,393 145,771 2/92 3/92 7-27.5 Lilac Properties 734,209 36,000 897,897 0 36,000 897,897 933,897 126,472 7/92 6/92 7-27.5 Livingston Plaza 682,346 32,500 868,525 0 32,500 868,525 901,025 49,788 11/93 12/92 5-27.5 Madison Partners 1,207,547 47,340 1,452,910 0 47,340 1,452,910 1,500,250 81,016 12/94 3/95 5-27.5 Manning Lane 1,481,532 73,600 1,771,816 0 73,600 1,771,816 1,845,416 214,446 3/93 8/92 5-27.5 - F-72 - Boston Capital Tax Credit Fund III L.P. - Series 15 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - ------------------------------------------------------------------------------------------------------------------------------ Marshall Lane 557,331 20,000 672,691 0 20,000 672,691 692,691 84,628 12/92 8/92 5-27.5 Maryville Prop. 722,743 57,000 834,823 8,489 57,000 843,312 900,312 158,841 3/92 5/92 7-27.5 Monark Village 336,950 68,900 570,916 0 68,900 570,916 639,816 38,862 3/94 6/94 5-27.5 North Prairie 887,809 5,000 1,121,143 4,840 5,000 1,125,983 1,130,983 151,188 5/93 9/92 5-27.5 Oak Grove Villa 407,329 5,000 460,291 3,571 5,000 463,862 468,862 98,432 11/91 4/92 7-27.5 Oakwood Village 1,114,744 42,000 1,341,412 0 42,000 1,341,412 1,383,412 211,573 5/92 5/92 7-27.5 Osage Housing 1,297,540 110,000 2,309,861 14,089 110,000 2,323,950 2,433,950 355,340 6/92 4/92 7-27.5 Osceola Estates 679,995 54,600 797,763 68,868 54,600 866,631 921,231 138,363 5/92 5/92 7-27.5 PDC Fifty Five LP 1,304,260 50,170 1,576,823 5,770 50,170 1,582,593 1,632,763 159,608 9/93 10/92 5-27.5 Rainier Manor 3,733,381 521,000 5,852,852 0 521,000 5,852,852 6,373,852 498,305 1/93 4/92 5-27.5 - F-73 - Boston Capital Tax Credit Fund III L.P. - Series 15 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - ----------------------------------------- ------------------------------------------------------------------------------------ Ridgeview of Brainerd 866,472 42,800 1,027,499 1,978 42,800 1,029,477 1,072,277 159,711 1/92 3/92 7-27.5 Rio Members II 778,239 48,938 930,376 3,520 48,938 933,896 982,834 92,641 12/95 7/94 5-27.5 Rolling Brook III 832,324 35,000 1,006,667 1,207 35,000 1,007,874 1,042,874 160,538 11/92 6/92 7-27.5 School Street I 781,822 127,852 1,353,622 93,625 38,509 1,447,247 1,485,756 252,441 5/92 4/92 5-27.5 Shenandoah Village 1,482,331 67,500 1,754,599 0 67,500 1,754,599 1,822,099 195,850 2/93 8/92 5-27.5 Showboat Manor 801,032 31,200 968,253 0 31,200 968,253 999,453 137,083 2/92 7/92 5-27.5 Sioux Falls Housing 1,393,377 146,694 2,656,753 (18,040) 146,694 2,638,713 2,785,407 401,606 9/92 5/92 7-27.5 Sunset Square 745,177 50,000 896,507 4,250 50,000 900,757 950,757 91,966 8/92 90/2 7-27.5 Taylor Mill 772,776 24,000 936,166 0 24,000 936,166 960,166 139,287 5/92 4/92 7-27.5 Timmons Village 626,200 15,000 754,172 2,927 38,500 757,099 795,599 108,597 7/92 5/92 7-27.5 University Meadows 1,848,328 62,985 3,579,473 0 62,985 3,579,473 3,642,458 507,494 12/92 6/92 5-28 - F-74 - Boston Capital Tax Credit Fund III L.P. - Series 15 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - ------------------------------------------------------------------------------------------------------------------------------ Valatie LP 1,399,064 30,000 1,712,263 4,760 30,000 1,717,023 1,747,023 276,213 4/93 6/92 7-27.5 Virgen Del Pozo 3,350,576 120,000 4,274,133 13,012 120,000 4,287,145 4,407,145 371,292 7/93 8/92 5-27.5 Villa Del Mar 1,472,769 50,000 1,792,888 0 50,000 1,792,888 1,842,888 250,171 8/92 8/92 7-27.5 Wauchula Ltd. 1,485,527 66,720 1,770,669 1,662 66,720 1,772,331 1,839,051 248,069 10/92 9/92 5-27.5 Weedpatch Inv. Grp. 1,986,913 272,000 2,246,927 378 272,000 2,247,305 2,519,305 76,662 9/94 1/94 5-50 Westernport Assoc. 1,498,433 18,645 1,833,384 0 18,645 1,833,384 1,852,029 203,538 2/93 7/92 5-27.5 Whitewater Village 526,896 18,542 637,048 0 18,542 637,048 655,590 86,013 11/92 8/92 7-27.5 Wood Park Pointe 1,176,402 117,500 1,329,664 1,348 117,500 1,331,012 1,448,512 202,047 5/92 6/92 5-27.5 ---------- --------- ----------- ---------- --------- ----------- ----------- ---------- 86,436,656 6,214,902 111,326,972 17,779,013 6,243,813 129,105,985 135,349,798 15,437,509 ========== ========= =========== ========== ========= =========== =========== ========== Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as ofDecember31,1995. *Decrease due to a reallocation of acquisition costs. **There were no carrying costs as of December 31, 1995. The column has been omitted for presentation purposes. - F-75 -
Notes to Schedule III Boston Capital Tax Credit Fund III L.P. - Series 15 Reconciliation of Land, Building & Improvements current year changes Balance at beginning of period-04/01/92..........................$ 0 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 64,786,120 Improvements, etc................................. 0 Other............................................. 0 ---------- $ 64,786,120 Deductions during period: Cost of real estate sold..........................$ 0 Other............................................. 0 ---------- $ 0 ----------- Balance at close of period - 03/31/93............................$ 64,786,120 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 52,271,170 Improvements, etc................................. 0 Other............................................. 0 ---------- $ 52,271,170 Deductions during period: Cost of real estate sold..........................$ 0 Other............................................. (69,144) ---------- $ (69,144) ----------- Balance at close of period - 03/31/94............................$116,988,146 Additions during period: Acquisitions through foreclosure.................$ 0 Other acquisitions............................... 10,630,188 Improvements, etc................................ 182,886 Other............................................ 0 ----------- $ 10,813,074 Deductions during period: Cost of real estate sold.........................$ 0 Other............................................ (927,768) ----------- $ (927,768) ----------- Balance at close of period - 03/31/95............................$126,873,452 - F-76 - Notes to Schedule III - continued Boston Capital Tax Credit Fund III L.P. - Series 15 Reconciliation of Land Building & Improvements current year changes Balance at close of period - 03/31/95............................$126,873,452 Additions during period: Acquisitions through foreclosure.................$ 0 Other acquisitions............................... 7,477,482 Improvements, etc................................ 998,864 Other............................................ 0 ----------- $ 8,476,346 Deductions during period: Cost of real estate sold.........................$ 0 Other............................................ 0 ----------- $ 0 ----------- Balance at close of period - 03/31/96............................$135,349,798 =========== - F-77 - Notes to Schedule III - Continued Boston Capital Tax Credit Fund III - Series 15 Reconciliation of Accumulated Depreciation current year changes Balance at beginning of period - 04/01/92........................$ 0 Current year expense..................................$1,151,027 --------- Balance at close of period - 3/31/93..............................$ 1,151,027 Current year expense..................................$4,194,293 --------- Balance at close of period - 3/31/94..............................$ 5,345,320 Current year expense..................................$4,646,907 --------- Balance at close of period - 3/31/95..............................$ 9,992,227 ========== Current year expense..................................$5,445,282 --------- Balance at close of period - 3/31/96..............................$15,437,509 ========== - F-78 - Boston Capital Tax Credit Fund III L.P.- Series 16 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - ------------------------------------------------------------------------------------------------------------------------------ 1413 Leaven- Worth 1,686,078 8,000 2,927,089 455,610 8,000 3,382,699 3,390,699 379,206 3/93 12/92 5-27.5 Anson 1,295,853 40,202 1,683,348 0 40,202 1,683,348 1,723,550 118,447 9/93 12/92 10-40 Aztec II 1,023,554 115,000 1,299,311 1,369 115,000 1,300,680 1,415,680 167,713 5/93 5/93 5-27.5 Bentonia Elderly 848,634 21,000 678,677 382,120 21,000 1,060,797 1,081,797 64,687 2/94 7/93 5-27.5 Bernice Villa 973,251 37,000 1,204,665 238 37,000 1,204,903 1,241,903 71,743 10/93 5/93 5-40 Blairs- ville Rental I 760,205 58,377 866,980 40,526 35,000 907,506 942,506 42,626 9/94 12/92 5-27.5 Blairs- ville Rental II 744,129 84,359 804,895 60,360 49,500 865,255 914,755 43,153 7/94 12/92 5-27.5 Blowing Rock 514,694 47,500 663,473 686 47,500 664,159 711,659 27,813 11/94 12/93 5-27.5 Branson Chris- tian I 1,579,958 163,350 2,990,564 3,771 163,350 2,994,335 3,157,685 220,034 6/94 3/94 5-27.5 - F-79 - Boston Capital Tax Credit Fund III L.P. - Series 16 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - ------------------------------------------------------------------------------------------------------------------------------ Branson Chris- tian II 1,144,209 0 2,497,066 3,272 0 2,500,338 2,500,338 159,479 8/94 7/94 5-27.5 Butler Rental 760,279 0 937,495 15,782 0 953,277 953,277 81,177 9/93 12/92 7-27.5 Canter- field 773,258 48,000 934,169 1,252 48,000 935,421 983,421 116,263 1/93 11/92 5-27.5 Cape Ann 603,173 18,000 1,833,366 51,824 18,000 1,885,190 1,903,190 158,436 12/93 1/93 7-31.5 Cass Partners 326,543 45,250 2,026,740 0 45,250 2,026,740 2,071,990 110,804 12/93 12/93 5-27.5 Cedar Trace 508,396 18,000 639,500 2,925 18,000 642,425 660,425 82,420 7/93 10/92 5-27.5 Concord Assoc. 1,143,424 61,532 1,223,133 117,640 61,532 1,340,773 1,402,305 176,135 2/93 2/93 5-27.5 Clymer Park Assoc 1,445,110 35,800 1,831,813 0 35,800 1,831,813 1,867,613 25,491 11/94 12/92 5-27.5 Crosby Country 855,601 40,020 1,472,655 0 40,020 1,472,655 1,512,675 106,204 12/94 12/95 5-27.5 Cumberland Wood 1,461,617 114,449 1,780,622 59,361 113,625 1,839,983 1,953,608 58,005 10/94 12/93 6-40 - F-80 - Boston Capital Tax Credit Fund III L.P.- Series 16 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - ------------------------------------------------------------------------------------------------------------------------------ Davenport Housing 3,459,829 223,889 6,598,309 3,926 223,889 6,602,235 6,826,124 594,984 2/94 10/93 7-27.5 Deer Run 727,624 30,000 1,536,783 0 30,000 1,536,783 1,566,783 166,308 3/93 8/93 5-27.5 Eastman Elderly 1,191,199 80,000 1,428,172 23,947 36,900 1,452,119 1,489,019 122,214 10/93 12/92 5-27.5 Fairmeadow Apts. 890,304 53,296 1,184,327 39,079 53,296 1,223,406 1,276,702 74,132 7/93 1/93 5-27.5 Falcon Ridge 1,055,747 25,000 1,332,798 19,150 25,000 1,351,948 1,376,948 34,162 1/95 4/94 5-27.5 Gibson 917,655 30,290 1,138,786 350 30,290 1,139,136 1,169,426 98,874 6/93 12/92 5-27.5 Green- field 536,994 25,000 649,793 0 25,000 649,793 674,793 92,675 5/93 1/93 7-27.5 Green- wood 1,488,252 62,076 1,480,776 336,322 62,076 1,817,098 1,879,174 187,867 10/93 11/93 5-27.5 Harmony House 1,486,888 57,000 1,764,438 0 57,000 1,764,438 1,821,438 135,112 7/93 11/92 5-27.5 Haynes House 3,561,260 685,381 5,956,903 2,252,686 674,499 8,209,589 8,884,088 207,026 u/c 8/94 12-40 - F-81 - Boston Capital Tax Credit Fund III L.P. - Series 16 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - ------------------------------------------------------------------------------------------------------------------------------ Holly Tree 891,262 58,900 1,069,733 4,696 58,900 1,074,429 1,133,329 132,173 2/93 11/92 5-27.5 Idabel Prop. 1,398,174 50,000 1,791,971 0 50,000 1,791,971 1,841,971 175,881 12/93 4/93 5-25.5 Isola Square 977,204 22,300 250,691 972,885 22,300 1,223,576 1,245,876 54,166 4/94 11/93 7-40 Joiner Elderly 829,320 47,719 1,026,013 0 47,719 1,026,013 1,073,732 118,443 6/93 1/93 5-40 Lawrence- ville Manor 1,428,150 61,370 1,660,796 281 61,370 1,661,077 1,722,447 110,937 7/94 2/94 5-27.5 Lawtell Manor 939,648 45,000 1,201,948 6,660 45,000 1,208,608 1,253,608 77,198 8/93 4/93 7-40 Logan Lane 1,307,235 54,000 1,602,465 2,962 54,000 1,605,427 1,659,427 188,855 3/93 9/92 5-27.5 Mariners Pointe I &II 4,038,376 170,020 7,548,131 34,595 170,020 7,582,726 7,752,746 839,261 8/93 12/92 7-27.5 Meadows of Southgate 2,352,555 252,000 4,575,879 0 252,000 4,575,879 4,827,879 151,456 5/94 7/93 12-40 Mendota Village 1,992,960 136,140 2,421,001 0 136,140 2,421,001 2,557,141 144,547 5/93 12/92 5-50 - F-82 - Boston Capital Tax Credit Fund III L.P. - Series 16 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - ------------------------------------------------------------------------------------------------------------------------------ Midcity 3,175,335 15,058 6,611,666 4,800 15,058 6,616,466 6,631,524 350,616 6/94 9/93 5-27.5 Newport Housing 1,271,327 160,000 1,405,411 (3,274) 160,000 1,402,137 1,562,137 88,419 10/93 2/93 5-27.5 Newport Manor 966,919 31,908 1,175,109 19,539 31,908 1,194,648 1,226,556 70,784 12/93 9/93 5-40 Palantine LP 1,444,261 37,400 1,785,282 854 37,400 1,786,136 1,823,536 137,543 5/94 5/94 5-27.5 Riviera Apts. 1,722,487 100,000 2,979,700 579,524 132,400 3,559,224 3,691,624 275,109 12/93 12/92 5-27.5 Sable Chase 5,280,000 502,774 12,248,475 8,201 502,774 12,256,676 12,759,450 644,951 12/94 12/93 7-27.5 St.Croix Commons 930,000 44,681 2,607,046 (666,994) 44,681 1,940,052 1,984,733 108,988 12/94 10/94 5-27.5 St. Joseph SQ 967,914 37,500 1,167,702 473 37,500 1,168,175 1,205,675 72,840 9/93 5/93 5-40 Simmes- port 961,478 60,000 1,171,005 228 60,000 1,171,233 1,231,233 77,729 6/93 4/93 7-40 Stony- Ground 1,444,120 127,380 1,794,961 (3,650) 129,005 1,791,311 1,920,316 198,394 6/93 12/92 5-27.5 - F-83 - Boston Capital Tax Credit Fund III L.P. - Series 16 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - ----------------------------------------- ------------------------------------------------------------------------------------ Summers- ville 626,403 20,000 774,259 0 20,000 774,259 794,259 109,059 6/93 5/93 5-27.5 Talbot Village 686,557 22,300 883,494 0 22,300 833,494 855,794 97,024 4/93 8/92 5-27.5 Tchula Elderly 841,572 20,000 1,071,899 (428) 20,000 1,071,471 1,091,471 76,001 12/93 7/93 5-27.5 Toulumne City 1,615,051 190,000 1,912,157 0 190,000 1,912,157 2,102,157 101,109 8/93 12/92 5-50 Turtle Creek 856,555 23,141 1,113,511 2,484 23,141 1,115,995 1,139,136 128,051 10/93 5/93 7-40 Twin Oaks Assoc. 1,482,666 45,000 1,776,674 0 45,000 1,776,674 1,821,674 123,970 9/93 12/92 5-27.5 Victoria Pointe 1,453,978 153,865 1,437,570 352,716 128,900 1,790,286 1,919,186 68,021 1/95 10/94 5-27.5 Viste Linda Apts. 2,517,865 143,253 2,961,671 449 143,253 2,962,120 3,105,373 247,917 12/93 1/93 5-27.5 Wakefield Housing 1,270,785 88,564 1,480,003 1,399 88,564 1,481,402 1,569,966 122,008 2/93 9/92 10-40 West End Manor 998,372 52,300 1,188,913 (1,048) 52,300 1,187,865 1,240,165 136,125 5/93 5/93 5-27.5 Westchester Oak Grove 1,262,176 38,010 2,281,529 35,649 35,000 2,317,178 2,352,178 314,804 4/93 12/92 5-27.5 - F-84 - Boston Capital Tax Credit Fund III L.P. - Series 16 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - ------------------------------------------------------------------------------------------------------------------------------ Westchester St. Joe 1,738,317 100,000 3,211,620 55,426 100,000 3,267,046 3,367,046 389,476 6/93 7/93 5-27.5 Westville Prop. 728,695 25,000 912,139 0 25,000 912,139 937,139 104,065 7/93 2/93 5-25 Wilcox Investment group 1,115,600 58,500 1,376,329 0 58,500 1,376,329 1,434,829 79,914 6/93 1/93 7-50 Woodlands Apts 932,811 30,000 668,555 533,513 30,000 1,202,068 1,232,068 37,963 2/95 9/94 5-27.5 ---------- --------- ----------- ---------- --------- ----------- ----------- ---------- 86,209,846 5,251,854 130,461,954 5,814,136 5,144,862 136,276,090 141,420,952 10,076,987 ========== ========= =========== ========== ========= =========== =========== ========== Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 1995. *Decrease due to a reallocation of acquisition costs. **There were no carrying costs as of December 31, 1995. The column has been omitted for presentation purposes. - F-85 -
Notes to Schedule III Boston Capital Tax Credit Fund III L.P. - Series 16 Reconciliation of Land, Building & Improvements current year changes Balance at beginning of period-04/01/92..........................$ 0 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 4,191,631 Improvements, etc................................. 0 Other............................................. 0 ---------- $ 4,191,631 Deductions during period: Cost of real estate sold..........................$ 0 Other............................................. 0 ---------- $ 0 ----------- Balance at close of period - 03/31/93............................$ 4,191,631 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 32,686,042 Improvements, etc................................. 43,162,006 Other............................................. 0 ---------- $ 75,848,048 Deductions during period: Cost of real estate sold..........................$ 0 Other............................................. 0 ---------- $ 0 ----------- Balance at close of period - 03/31/94............................$ 80,039,679 Additions during period: Acquisitions through foreclosure.................$ 0 Other acquisitions............................... 15,495,343 Improvements, etc................................ 41,448,097 Other............................................ 0 ----------- $ 56,943,440 Deductions during period: Cost of real estate sold.........................$ 0 Other............................................ 0 ----------- $ 0 ----------- Balance at close of period - 03/31/95............................$136,983,119 - F-86 - Notes to Schedule III - continued Boston Capital Tax Credit Fund III L.P. - Series 16 Reconciliation of Land Building & Improvements current year changes Balance at close of period - 03/31/95............................$136,983,119 Additions during period: Acquisitions through foreclosure.................$ 0 Other acquisitions............................... 106,204 Improvements, etc................................ 5,007,023 Other............................................ 0 ----------- $ 106,204 Deductions during period: Cost of real estate sold.........................$ 0 Other............................................ (675,394) ----------- $ (675,394) ----------- Balance at close of period - 03/31/96............................$141,420,952 =========== - F-87 - Notes to Schedule III - Continued Boston Capital Tax Credit Fund III L.P. - Series 16 Reconciliation of Accumulated Depreciation current year changes Balance at beginning of period - 04/01/92........................$ 0 Current year additions*...............................$ 0 --------- Balance at close of period - 3/31/93..............................$ 0 Current year additions*...............................$1,347,806 --------- Balance at close of period - 3/31/94..............................$ 1,347,806 Current year additions*...............................$3,630,765 --------- Balance at close of period - 3/31/95..............................$ 4,978,571 ========== Current year additions*...............................$5,098,416 --------- Balance at close of period - 3/31/96..............................$10,076,987 ========== *-Total includes current year expense and amounts capatalized to building basis. - F-88 - Boston Capital Tax Credit Fund III L.P. - Series 17 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - ------------------------------------------------------------------------------------------------------------------------------ Artesia Prop. 1,434,774 30,730 1,865,231 1,115 30,730 1,866,346 1,897,076 117,599 9/94 9/94 5-27.5 Aspen Ridge 893,164 36,000 2,004,059 ( 2,800) 36,000 2,001,259 2,037,259 192,052 11/93 9/93 5-27.5 Bladen- boro 1,024,601 16,000 1,213,015 0 16,000 1,213,015 1,229,015 18,547 7/95 3/95 5-27.5 Brewer St. 1,219,045 0 2,296,514 13,502 0 2,310,016 2,310,016 256,406 7/93 6/93 5-27.5 Briarwood Apts. 923,134 38,500 20,850 1,203,704 38,952 1,224,554 1,263,506 40,904 7/93 6/93 5-27.5 Briarwood Village 1,138,340 42,594 1,418,259 0 42,594 1,418,259 1,460,853 99,774 5/94 10/93 5-27.5 Briarwood Dekalb 1,653,627 96,000 2,943,443 15,207 96,000 2,958,650 3,054,650 135,746 6/94 10/93 5-40 Cairo Housing 1,078,635 17,000 1,309,062 (7,600) 17,000 1,301,462 1,318,462 150,972 4/93 5/93 7-27.5 - F-89 - Boston Capital Tax Credit Fund III L.P. - Series 17 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - ------------------------------------------------------------------------------------------------------------------------------ California Inv VI 4,000,683 400,000 7,446,261 1,586 400,000 7,447,847 7,847,847 1,405,584 5/89 1/94 5-27.5 California Inv VII 8,874,224 803,050 25,913,966 234,873 803,050 26,148,839 26,951,889 2,317,477 12/93 12/93 5-27.5 Cambridge YMCA 2,756,197 95,200 5,135,233 0 95,200 5,135,233 5,230,433 519,631 12/93 4/93 5-27.5 Caneyville Prop. 482,426 36,000 601,775 (13,800) 36,000 587,975 623,975 69,403 4/93 5/93 5-27.5 Clinton Estates 744,029 47,533 891,872 0 47,533 891,872 939,405 47,501 12/94 12/94 5-27.5 Cloverport Prop. 764,716 21,500 947,659 688 21,500 948,347 969,847 103,082 7/93 4/93 5-27.5 College Green 3,820,685 225,000 6,774,847 0 225,000 6,774,847 6,999,847 143,806 8/95 3/95 5-27.5 Croften Assoc. 812,880 46,511 961,097 0 46,511 961,097 1,007,608 61,804 3/93 4/93 5-27.5 Cypress Point 2,980,052 265,000 4,794,440 13,901 265,000 4,808,341 5,073,341 158,908 12/94 2/94 5-27.5 Deerwood Villlage 641,995 29,138 804,512 0 29,138 804,512 833,650 48,648 7/94 2/94 5-27.5 - F-90 - Boston Capital Tax Credit Fund III L.P.- Series 17 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - ------------------------------------------------------------------------------------------------------------------------------ Doyle Village 1,179,426 100,000 1,435,520 0 100,000 1,435,520 1,535,520 100,052 4/94 9/93 5-27.5 Gallaway Assoc. 1,065,387 35,500 1,307,158 1,252 35,600 1,308,410 1,344,010 81,395 5/93 4/93 5-27.5 Glen- Ridge 2,060,951 350,000 2,208,213 0 350,000 2,208,213 2,558,213 107,088 6/94 6/94 5-27.5 Green Acres 1,247,182 173,447 1,366,874 0 173,447 1,366,874 1,540,321 99,818 1/95 11/94 5-27.5 Greenwood Place 1,067,494 44,400 299,685 1,119,901 44,400 1,419,586 1,463,986 46,987 8/94 11/93 7-40 Hackley Barclay 3,918,615 174,841 4,603,493 282,397 175,000 4,885,890 5,060,890 263,360 12/94 12/93 5-27.5 Henson Creek 4,066,120 945,000 7,971,879 0 945,000 7,971,879 8,916,879 370,868 4/94 5/93 5-27.5 Hickman Assoc. 550,281 24,000 673,642 0 24,000 673,642 697,642 34,494 12/93 11/93 5-27.5 Houston Village 676,970 11,500 850,901 0 11,500 850,901 862,401 60,514 5/94 12/93 5-27.5 Ivywood 3,122,506 290,542 5,712,656 6,434 290,542 5,719,090 6,009,632 580,999 10/93 6/93 5-27.5 Jonestown Manor 873,984 0 311,764 930,552 36,900 1,242,316 1,279,216 35,216 12/94 12/93 7-40 - F-91 - Boston Capital Tax Credit Fund III L.P. - Series 17 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - ------------------------------------------------------------------------------------------------------------------------------ Largo Center 3,918,855 1,012,500 7,262,001 20,000 1,012,500 7,282,001 8,294,501 302,278 6/94 3/93 5-27.5 Lee Terrace 1,499,279 93,246 4,573 1,701,560 93,246 1,706,133 1,799,379 68,317 12/94 2/94 5-27.5 Midland 1,021,651 60,000 2,422,788 1,565 60,000 2,424,353 2,484,353 139,500 6/94 9/93 5-27.5 Mount Vernon 2,364,625 200,000 3,141,984 (92,001) 200,000 3,049,983 3,249,983 127,970 12/88 2/89 5-27.5 Oakwood of Bennet- sville 884,849 60,000 1,074,857 1,774 60,000 1,076,631 1,136,631 110,367 12/93 9/93 5-27.5 Opelousas Point 1,403,722 50,000 559,121 1,360,512 50,000 1,919,633 1,969,633 92,392 3/94 1/93 5-27.5 Palmetto Villas 1,628,319 60,724 2,034,151 0 60,724 2,034,151 2,094,875 130,682 4/94 5/94 5-27.5 Park Place II 1,187,398 112,000 1,408,102 1 112,000 1,408,103 1,520,103 104,021 4/94 2/94 7-27.5 Pinehurst 814,847 24,000 1,033,022 30,826 24,000 1,063,848 1,087,848 86,992 2/94 2/94 5-27.5 Quail Village 889,981 30,450 1,060,273 2,468 30,450 1,062,741 1,093,191 69,597 2/94 9/93 7-27.5 Sea Breeze 1,243,429 94,000 1,515,733 0 94,000 1,515,733 1,609,733 58,536 1/95 3/94 5-27.5 - F-92 - Boston Capital Tax Credit Fund III L.P. - Series 17 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - ------------------------------------------------------------------------------------------------------------------------------ Shawnee Village 1,278,396 182,786 2,347,227 3,384 281,875 6,231,555 2,533,397 326,464 10/92 2/93 7-27.5 Sixth St. Apts 2,375,549 151,687 1,123,504 3,180,171 162,687 4,303,675 4,466,362 162,662 12/94 12/93 5-27.5 Skowhegan Housing 1,739,899 100,000 2,121,472 43,625 100,000 2,165,097 2,265,097 135,354 6/94 9/93 5-27.5 Soledad 1,975,248 340,000 2,005,222 0 340,000 2,005,222 2,345,222 89,690 1/94 10/96 5-50 Sugarwood Park 3,323,100 281,875 5,949,680 0 218,875 5,949,680 6,231,164 153,164 7/95 4/94 5-27.5 Voorhees- ville 1,109,476 74,600 1,254,914 2,991 74,600 1,257,905 1,332,505 134,729 5/93 7/93 7-27.5 Waynesburg Housing 1,500,000 169,200 2,113,822 0 18,100 2,113,822 2,131,922 12,735 12/95 7/94 5-27.5 White Castle 781,732 84,800 948,687 810 84,800 949,497 1,034,297 58,975 5/94 6/94 27.5 ---------- --------- ----------- ---------- --------- ----------- ----------- ---------- 86,012,478 7,576,954 133,465,013 10,058,598 7,474,365 143,523,611 150,997,976 10,033,060 ========== ========= =========== ========== ========= =========== =========== ========== Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 1995. *Decrease due to a reallocation of acquisition costs. **There were no carrying costs as of December 31, 1995. The column has been omitted for presentation purposes. - F-93 -
Notes to Schedule III Boston Capital Tax Credit Fund III L.P. - Series 17 Reconciliation of Land, Building & Improvements current year changes Balance at beginning of period-04/01/93..........................$ 0 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 58,662,502 Improvements, etc................................. 0 Other............................................. 0 ---------- $ 58,662,582 Deductions during period: Cost of real estate sold..........................$ 0 Other............................................. 0 ---------- $ 0 ----------- Balance at close of period - 03/31/94............................$ 58,662,502 Additions during period: Acquisitions through foreclosure..................$ 0 Other acquisitions................................ 31,044,766 Improvements, etc................................. 39,965,487 Other............................................. 0 ---------- $ 71,010,253 Deductions during period: Cost of real estate sold..........................$ 0 Other............................................. 0 ---------- $ 0 ----------- Balance at close of period - 03/31/95............................$129,646,075 Additions during period: Acquisitions through foreclosure.................$ 0 Other acquisitions............................... 9,769,183 Improvements, etc................................ 11,596,518 Other............................................ 0 ----------- $ 21,365,701 Deductions during period: Cost of real estate sold.........................$ 0 Other............................................ (13,800) ----------- $ (13,800) ----------- Balance at close of period - 03/31/96............................$150,997,976 =========== - F-94 - Notes to Schedule III - Continued Boston Capital Tax Credit Fund III L.P. - Series 17 Reconciliation of Accumulated Depreciation current year changes Balance at beginning of period - 04/01/93.........................$ 0 Current year expense..................................$ 727,342 --------- Balance at close of period - 3/31/94..............................$ 727,342 Current year expense..................................$4,342,560 --------- Balance at close of period - 3/31/95..............................$ 5,069,902 Current year expense..................................$4,963,158 --------- Balance at close of period - 3/31/96..............................$10,033,060 ========== - F-95 - Boston Capital Tax Credit Fund III L.P. - Series 18 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - --------------------------------------------------------------------------------------------------------------------------- Arch Develop- ment 2,733,870 107,387 6,724,849 14,069 107,387 6,738,918 6,846,305 267,306 12/94 4/94 7-27.5 Aurora LP 1,427,923 65,000 1,704,709 1,590 65,000 1,706,299 1,771,299 189,536 9/93 6,93 5-27.5 Bear Creek of Naples 5,009,069 488,011 8,884,145 0 491,639 8,884,145 9,375,784 348,532 4/95 3/94 5-27.5 Chatham LP 1,443,158 75,000 1,727,394 4,634 75,000 1,732,028 1,807,028 172,910 12/93 1/94 5-27.5 Chelsea Square 301,393 21,000 939,281 0 21,000 939,281 960,281 31,578 12/94 8/94 7-34 Clarke School 2,570,044 200,000 5,493,464 193,861 200,000 5,687,325 5,887,325 145,449 12/94 12/94 5-27.5 Ellijay Rental 828,540 48,000 1,000,609 0 48,000 1,000,609 1,048,609 25,015 1/95 1/94 40 Evergreen Hills 2,844,485 157,537 4,337,312 558,173 157,537 4,895,485 5,053,022 285,883 1/95 8/94 5-27.5 Glen Place 1,262,316 60,610 3,489,218 (171,258) 60,610 3,317,960 3,317,960 177,840 6/94 4/94 5-27.5 - F-96 - Boston Capital Tax Credit Fund III L.P. - Series 18 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - --------------------------------------------------------------------------------------------------------------------------- Harris Housing 1,160,532 200,000 266,624 2,453,235 160,000 2,719,859 2,879,859 4,568 11/95 6/94 5-27.5 Humboldt I 711,555 40,191 845,252 0 40,191 845,252 885,443 26,928 4/95 8/94 5-27.5 Jackson Housing 870,890 30,250 1,080,272 0 30,250 1,080,272 1,110,522 60,560 6/94 1/94 5-27.5 Lakeview Meadows II 1,651,769 88,920 2,775,712 0 88,920 2,775,712 2,864,632 111,020 5/94 8/93 5-27.5 Lanthrop Properties 748,858 34,800 931,788 485 34,800 932,273 967,073 71,415 5/94 4/94 5-27.5 Leesville Elderly 1,279,870 144,000 2,018,242 0 144,000 2,018,242 2,162,242 78,122 6/94 6/94 7-40 Lockport Elderly 1,003,634 125,000 1,524,202 0 125,000 1,524,202 1,649,202 49,680 9/94 7/94 5-27.5 Maple Leaf Apts. 1,110,590 22,860 1,355,390 1,192 22,860 1,356,582 1,379,442 40,440 12/94 8/94 5-27.5 Marengo Park 738,178 50,010 886,695 0 50,010 886,695 936,705 71,696 3/94 10/93 5-27.5 Natchitoches Elderly 976,423 50,000 1,634,279 0 50,000 1,634,279 1,684,279 42,866 12/94 6/94 7-40 - F-97 - Boston Capital Tax Credit Fund III L.P. - Series 18 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - --------------------------------------------------------------------------------------------------------------------------- Newton I 815,232 57,500 979,345 0 57,500 979,345 1,036,845 53,322 9/94 11/93 5-27.5 Oskaloosa I 486,425 32,000 589,423 476 32,000 589,899 621,899 30,888 9/94 11/93 5-27.5 Parvins LP 881,429 41,508 1,741,048 4,742 41,508 1,745,790 1,787,298 150,267 11/93 8/93 5-27.5 Peach Tree LP 1,496,616 157,027 1,617,470 1,607 157,027 1,619,077 1,776,104 203,123 7/93 1/94 5-27.5 Ponderosa Meadows 1,502,162 82,454 1,903,972 1,932 82,454 1,905,904 1,988,358 84,229 5/94 3/94 5-27.5 Preston Wood 1,350,683 66,000 2,515,136 0 66,000 2,515,136 2,581,136 136,889 12/94 12/93 5-27.5 Richmond Manor 1,040,787 54,944 1,285,522 265 54,944 1,285,787 1,340,731 98,091 6/94 6/94 5-27.5 Rio Grande 2,310,997 96,480 2,999,680 821 96,480 3,000,501 3,096,981 140,371 5/94 6/94 5-27.5 Ripley Housing 508,951 14,000 646,850 2,515 14,000 649,365 663,365 25,184 7/94 1/94 5-40 San Joaquin Entpr. III 1,846,679 55,000 2,463,181 0 55,000 2,463,181 2,518,181 56,050 12/94 3/94 5-50 Troy Estates 703,905 45,000 826,432 3,023 45,000 829,455 874,455 74,758 1/94 12/93 5-27.5 - F-98 - Boston Capital Tax Credit Fund III L.P.- Series 18 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - --------------------------------------------------------------------------------------------------------------------------- Virginia Avenue 1,720,795 121,238 3,510,339 5,299 121,238 3,515,638 3,636,876 188,151 10/94 10/94 5-27.5 Vista Loma 1,496,624 267,612 1,600,128 3,439 267,612 1,603,567 1,871,179 57,397 9/94 5/94 5-27.5 Vivian Elderly 1,016,268 45,000 1,668,938 0 45,000 1,668,938 1,713,938 54,112 9/94 7/94 7-40 Westminister Meadows 2,124,796 250,000 3,605,890 5,880 250,000 3,611,770 3,861,770 231,339 11/94 12/93 5-27.5 ---------- --------- ---------- --------- --------- ---------- ---------- --------- 47,975,446 3,394,339 75,572,791 3,085,980 3,357,967 78,658,771 82,016,738 3,785,515 ========== ========= ========== ========= ========= ========== ========== ========= Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 1995. *Decrease due to a reallocation of acquisition costs. **There were no carrying costs as of December 31, 1995. The column has been omitted for presentation purposes. - F-99 - /TABLE Notes to Schedule III Boston Capital Tax Credit Fund III L.P. - Series 18 Reconciliation of Land, Building & Improvements current year changes Balance at beginning of period-04/01/93.......................$ 0 Additions during period: Acquisitions through foreclosure...............$ 0 Other acquisitions............................. 4,002,185 Improvements, etc.............................. 0 Other.......................................... 0 ---------- $ 4,002,185 Deductions during period: Cost of real estate sold.......................$ 0 Other.......................................... 0 ---------- $ 0 ----------- Balance at close of period - 03/31/94.........................$ 4,002,185 Additions during period: Acquisitions through foreclosure...............$ 0 Other acquisitions............................. 42,200,169 Improvements, etc.............................. 19,531,960 Other.......................................... 0 ---------- $ 61,732,129 Deductions during period: Cost of real estate sold.......................$ 0 Other.......................................... 0 ---------- $ 0 ----------- Balance at close of period - 03/31/95.........................$ 65,734,314 Additions during period: Acquisitions through foreclosure...............$ 0 Other acquisitions............................. 0 Improvements, etc.............................. 16,282,424 Other.......................................... 0 ----------- $ 16,282,424 Deductions during period: Cost of real estate sold.......................$ 0 Other.......................................... 0 ----------- $ 0 ----------- Balance at close of period - 03/31/96..........................$ 82,016,738 =========== - F-100 - Notes to Schedule III - Continued Boston Capital Tax Credit Fund III L.P. - Series 18 Reconciliation of Accumulated Depreciation current year changes Balance at beginning of period - 04/01/93.........................$ 0 Current year expense..................................$ 39,475 --------- Balance at close of period - 3/31/94..............................$ 39,475 Current year expense..................................$ 911,009 --------- Balance at close of period - 3/31/95..............................$ 950,484 Current year expense..................................$2,835,031 --------- Balance at close of period - 3/31/96..............................$ 3,785,515 ========== - F-101 -
Boston Capital Tax Credit Fund III L.P. - Series 19 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - --------------------------------------------------------------------------------------------------------------------------- Ankeney Housing 3,793,128 217,500 8,144,577 57,804 217,500 8,202,381 8,419,881 219,706 3/95 8/94 10-40 Ballinger Oaks 6,813,028 195,143 7,250,357 1,275,204 195,143 8,525,561 8,720,704 434,750 12/94 10/93 5-27.5 Carrollton Villa 1,346,138 60,015 2,682,843 0 60,015 2,682,843 2,742,858 106,419 3/95 6/94 5-27.5 Clarke School 2,570,044 200,000 5,493,464 193,861 200,000 5,687,325 5,887,375 145,449 12/94 12/94 12-40 Forest Associates 268,665 13,900 396,391 0 13,900 396,391 410,291 289,206 3/78 4/95 5-27.5 Garden Gate, Ft. Worth 4,198,946 678,867 2,532,572 6,301,971 678,867 8,834,534 9,513,410 277,902 5/95 5/95 5-27.5 Garden Gate, Plano 6,022,449 689,318 844,673 8,426,771 689,318 9,271,444 9,960,762 285,326 3/95 2/94 5-27.5 Hebbronville Apts. 523,789 50,711 650,002 0 50,711 650,002 700,713 28,085 4/94 12/93 7-40 Hollister Inv. Group 1,750,546 400,000 1,906,641 0 400,000 1,906,641 2,306,641 25,725 5/95 3/95 5-50 - F-102 - Boston Capital Tax Credit Fund III L.P. - Series 19 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - --------------------------------------------------------------------------------------------------------------------------- Holts Summit Square 1,348,453 110,373 524,966 2,033,253 110,373 2,558,219 2,668,592 108,877 12/94 6/94 5-27.5 Independence Properties 863,297 38,500 503,166 517,210 38,500 1,020,376 1,058,876 41,211 12/94 6/94 5-40 Jefferson Square 2,852,740 385,000 4,548,650 0 385,000 4,548,650 4,933,650 72,670 8/95 5/94 5-27.5 Jenny Lynn Properties 817,315 65,000 958,809 7,000 65,000 965,809 1,030,809 52,369 9/94 1/94 5-27.5 Lone Star Senior 619,348 20,492 835,453 0 20,492 835,453 855,945 32,586 5/94 12/93 7-40 Madison L.P. 655,555 42,707 810,978 0 32,500 810,978 843,478 40,374 10/94 12/93 5-27.5 Manasura Villa 973,070 20,254 301,687 990,157 25,000 1,291,844 1,316,844 11,202 8/95 5/94 5-27.5 Martindale Apts. 693,838 40,270 861,302 0 40,270 861,032 901,302 42,212 1/94 12/93 7-40 Munford Village 769,154 24,800 980,102 229 24,800 980,331 1,005,131 44,818 4/94 10/93 5-40 Northpointe LP 4,350,000 371,000 9,834,451 0 371,000 9,834,451 10,205,451 150,771 6/95 7/94 5-27.5 - F-103 - Boston Capital Tax Credit Fund III L.P. - Series 19 Schedule III - Real Estate and Accumulated Depreciation March 31, 1996 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ----------------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - --------------------------------------------------------------------------------------------------------------------------- Sahale Heights 865,742 72,000 1,062,350 110 72,000 1,062,460 1,134,460 67,494 6/94 1/94 5-27.5 Sherwood Knoll 784,781 45,000 963,996 0 45,000 963,996 1,008,996 44,608 4/94 10/93 5-40 Sugarwood Park 3,323,100 281,875 5,949,680 0 281,875 5,949,680 6,231,555 153,164 7/95 4/94 5-27.5 Summerset Housing 945,068 68,665 1,160,825 0 68,665 1,160,825 1,229,490 3,525 11/95 1/94 7-27.5 Vista's Associates 3,344,577 831,600 7,055,338 0 831,600 7,055,338 7,886,938 204,383 1/95 12/93 5-27.5 Wedgewood Lane 1,006,953 85,000 1,106,604 3,859 85,000 1,110,463 1,195,463 42,769 9/94 6/94 5-40 Willowood Park 4,310,000 511,051 6,867,791 133,294 511,051 7,001,085 7,512,136 370,744 12/94 11/93 5-27.5 ---------- --------- ---------- ---------- --------- ---------- ---------- --------- 55,809,724 5,519,041 74,227,398 19,940,723 5,513,580 94,168,121 99,681,701 3,296,345 ========== ========= ========== ========== ========= ========== ========== ========= Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 1995. *Decrease due to a reallocation of acquisition costs. There were no carrying costs as of December 31, 1995. The column has been omitted for presentation purposes. - F-104 - /TABLE Notes to Schedule III Boston Capital Tax Credit Fund III L.P. - Series 19 Reconciliation of Land, Building & Improvements current year changes Balance at beginning of period-04/01/93.......................$ 0 Additions during period: Acquisitions through foreclosure...............$ 0 Other acquisitions............................. 9,012,131 Improvements, etc.............................. 0 Other.......................................... 0 ---------- $ 9,012,131 Deductions during period: Cost of real estate sold.......................$ 0 Other.......................................... 0 ---------- $ 0 ----------- Balance at close of period - 03/31/94.........................$ 9,012,131 Additions during period: Acquisitions through foreclosure...............$ 0 Other acquisitions............................. 24,845,235 Improvements, etc.............................. 13,156,474 Other.......................................... 0 ---------- $ 38,001,709 Deductions during period: Cost of real estate sold.......................$ 0 Other.......................................... 0 ---------- $ 0 ----------- Balance at close of period - 03/31/95.........................$ 47,013,840 Additions during period: Acquisitions through foreclosure...............$ 0 Other acquisitions............................. 410,291 Improvements, etc.............................. 52,257,570 Other.......................................... 0 ----------- $ 52,667,861 Deductions during period: Cost of real estate sold.......................$ 0 Other.......................................... 0 ----------- $ 0 ----------- Balance at close of period - 03/31/96..........................$ 99,681,701 =========== - F-105 - Notes to Schedule III - Continued Boston Capital Tax Credit Fund Limited Partnership - Series 19 Reconciliation of Accumulated Depreciation current year changes Balance at beginning of period - 04/01/93.........................$ 0 Current year expense..................................$ 98,220 --------- Balance at close of period - 3/31/94..............................$ 98,220 Current year expense..................................$ 418,117 --------- Balance at close of period - 3/31/95..............................$ 516,397 Current year expense..................................$2,779,948 --------- Balance at close of period - 3/31/96..............................$ 3,296,345 ========== - F-106 - EX-27 2
CT 0000879555 BOSTON CAPITAL TAX CREDIT FUND III L.P. 12-MOS MAR-31-1996 APR-01-1995 MAR-31-1996 167,285,510 0 0 0 0 167,285,510 1,034,800 0 (17,749,111) 0 0 0 (16,714,311) 0 0
-----END PRIVACY-ENHANCED MESSAGE-----