-----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, BoIhBWP4tUe6ydZ5KST5+bn7Q9vsgsjKZaPMpKeAbk/GJFJ4F3NG8UCYqL8kRXDo YhysrqeBGnZ0WiIuyJRPQw== 0000879555-97-000004.txt : 19970716 0000879555-97-000004.hdr.sgml : 19970716 ACCESSION NUMBER: 0000879555-97-000004 CONFORMED SUBMISSION TYPE: 10-K405 PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970715 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: 97640378 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, 1997 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, 1997 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, 1997, 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, 1997 the Fund had invested in 68 Operating Partnerships on behalf of Series 15, 64 Operating Partnerships on behalf of Series 16, 49 Operating Partnerships on behalf of Series 17, 34 Operating Partnerships on behalf of Series 18 and 26 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, 1997 Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/96 Date Comp. 3/31/97 3/31/97 - --------------------------------------------------------------------------- April Gardens Las Piedras, Apts. III PR 32 $1,473,645 9/92 5/93 100% $ 279,823 Autumwood Keysville, Heights VA 40 1,355,355 8/92 1/93 100% 256,700 Barton Village Arlington, Apartments GA 18 512,441 10/92 3/93 100% 101,154 Bergen Bergen, Meadows NY 24 1,024,570 7/92 7/92 100% 199,420 Bridlewood Horse Cave, Terrace KY 24 794,924 1/94 1/95 100% 167,679 Brunswick Lawrenceville, Commons VA 24 829,994 3/92 9/92 100% 152,282 Buena Vista Apartments, Union, Phase II SC 44 1,459,496 3/92 1/92 100% 281,000 Calexico Calexico, Senior Apts. CA 38 1,929,914 9/92 9/92 100% 366,220 Chestnut Altoona, Hills Estates AL 24 746,277 9/92 9/92 100% 146,500 Columbia Camden, Heights Apts. AR 32 1,300,766 10/92 9/93 100% 247,599 Coral Ridge Coralville, Apartments IA 102 2,628,498 3/92 11/92 100% 2,257,827 Country Meadows Sioux Falls, II, III, IV SD 55 1,371,889 5/92 9/92 100% 1,220,825 Curwensville Curwensville, House Apts. PA 28 1,221,138 9/92 7/93 100% 262,000 Deerfield Crewe, Commons VA 39 1,234,613 4/92 6/92 100% 242,430 4 Boston Capital Tax Credit Fund III L.P. - Series 15 PROPERTY PROFILES AS OF March 31, 1997 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/96 Date Comp. 3/31/97 3/31/97 - --------------------------------------------------------------------------- East Park Dilworth, Apts. I MN 24 $ 506,285 6/94 1/94 100% $ 385,824 Edgewood Apts. Munfordville, KY 24 790,831 6/92 8/92 100% 156,605 Golden Age Oak Grove, Apts. MO 17 406,090 4/92 11/91 100% 84,410 Graham Graham, Village Apts. NC 50 1,340,848 10/94 6/95 100% 794,669 Greentree Utica, Apts. OH 24 688,129 4/94 10/75 100% 64,069 Greenwood Fort Gaines, Village GA 24 678,621 8/92 5/93 100% 131,268 Hadley's Lake East Machias Apts. ME 18 1,044,316 9/92 1/93 100% 291,400 Hammond Westernport, Heights Apts. MD 35 1,495,201 7/92 2/93 100% 327,944 Harrisonville Harrisonville, Properties II MO 24 610,418 3/92 11/91 100% 144,004 Harvest Point Madison, Apts. SD 30 1,204,968 3/95 12/94 100% 268,760 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, 1997 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/96 Date Comp. 3/31/97 3/31/97 - --------------------------------------------------------------------------- Heron's Lake Placid, Landing I FL 37 $1,210,640 10/92 10/92 100% $ 255,339 Hidden W. Pittsburg, Cove CA 88 2,922,342 2/94 8/88 100% 200,000 Higginsville Higginsville, Estates MO 24 629,932 3/92 3/91 100% 146,111 Kearney Kearney, Estates MO 24 637,035 5/92 1/92 100% 138,103 Lakeside Lake Village Apts. AR 32 1,227,232 8/94 8/95 100% 282,004 Lake View Lake View, Green Apts. SC 24 891,378 3/92 7/92 100% 183,603 Laurelwood Apartments, Winnsboro, Phase II SC 32 1,072,959 3/92 2/92 100% 229,986 Lebanon Properties Lebanon, III MO 24 634,958 3/92 2/92 100% 152,171 Lebanon Spring Grove, Village II VA 24 929,928 8/92 2/93 100% 169,000 Lilac Apts. Leitchfield, KY 24 732,250 6/92 7/92 100% 148,015 Livingston Livingston, Plaza TX 24 680,192 12/92 11/93 100% 176,534 6 Boston Capital Tax Credit Fund III L.P. - Series 15 PROPERTY PROFILES AS OF March 31, 1997 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/96 Date Comp. 3/31/97 3/31/97 - --------------------------------------------------------------------------- Manning Manning, Lane Apts. SC 42 $1,478,336 8/92 3/93 100% $ 296,436 Marshall Marshallville, Lane Apts. GA 18 556,113 8/92 12/92 100% 114,200 Maryville Maryville, Properties MO 24 721,333 5/92 3/92 100% 156,636 Meadow Grantsville, View Apts. MD 36 1,493,335 5/92 2/93 100% 291,322 Millbrook Sanford, Commons ME 16 925,247 6/92 11/92 100% 227,100 Monark Van Buren & Barling, Homes AR 10 331,775 6/94 3/94 100% 239,800 North Prairie Plainwell, Manor Apts. MI 28 885,589 9/92 5/93 100% 206,820 North Trail Arkansas City, Apts. KS 24 831,930 9/94 12/95 100% 194,118 Oakwood Century, Village FL 39 1,112,767 5/92 5/92 100% 249,374 Osceola Osceola, Estates Apts.IA 24 678,684 5/92 5/92 100% 161,325 Payson Senior Payson, Center Apts. AZ 39 1,492,979 8/92 8/92 100% 365,755 Rainier Mt. Rainier, Manor Apts. MD 104 2,712,816 4/92 1/93 100% 1,095,382 Ridgeview Brainerd, Apartments MN 24 865,020 3/92 1/92 100% 165,434 7 Boston Capital Tax Credit Fund III L.P. - Series 15 PROPERTY PROFILES AS OF March 31, 1997 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/96 Date Comp. 3/31/97 3/31/97 - --------------------------------------------------------------------------- Rio Mimbres Deming, II Apartments NM 24 $ 776,727 4/92 4/92 100% $ 149,811 River Chase Wauchula, Apts. FL 47 1,482,965 8/92 10/92 100% 322,944 Rolling Brook Algonac, III Apts. MI 26 830,505 6/92 11/92 100% 185,632 School St. Marshall, Apts.Phase I WI 24 774,226 4/92 5/92 100% 666,025 Shenandoah Shenandoah, Village PA 34 1,479,154 8/92 2/93 100% 317,136 Showboat Chesaning, Manor Apts. MI 26 799,316 7/92 2/93 100% 178,084 Spring Creek Derby, II Apts. KS 50 1,277,530 4/92 6/92 100% 1,060,282 Summit Ridge Palmdale, Apartments CA 304 9,004,859 10/92 12/93 100% 5,639,000 Sunset Sq. Scottsboro, Apts. AL 24 743,697 9/92 8/92 100% 143,900 Taylor Mill Hodgenville, Apartments KY 24 771,275 4/92 5/92 100% 173,606 Timmons Lynchburg, Village Apts. SC 18 624,810 5/92 7/92 100% 122,450 University Detroit, Meadows MI 53 1,896,828 6/92 12/92 100% 1,676,750 Valatie Valatie, Woods NY 32 1,390,380 6/92 4/92 100% 277,600 8 Boston Capital Tax Credit Fund III L.P. - Series 15 PROPERTY PROFILES AS OF March 31, 1997 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/96 Date Comp. 3/31/97 3/31/97 - --------------------------------------------------------------------------- Village Healdton, Woods OK 24 $ 707,444 8/94 12/94 100% $ 173,616 Urb. Corales Villas de Hatillo, Del Mar PR 32 1,470,358 8/92 8/92 100% 307,200 Virgen del Pozo Garden Sabana Grande, Apts. PR 70 3,345,226 8/92 7/93 100% 772,550 Weedpatch Weedpatch, Country Apts. CA 36 1,982,359 1/94 9/94 100% 461,197 Whitewater Ideal, Village Apts. GA 18 528,920 8/92 11/92 100% 108,000 Wood Park Arcadia, Pointe FL 36 1,173,664 6/92 5/92 100% 243,672 9 Boston Capital Tax Credit Fund III L.P. - Series 16 PROPERTY PROFILES AS OF March 31, 1997 Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/96 Date Comp. 3/31/97 3/31/97 - --------------------------------------------------------------------------- 1413 Leavenworth Omaha, Apts. NE 60 $1,633,327 12/92 3/93 100% $1,287,526 Abbey Nixa, Orchards Apts. MO 48 1,554,682 3/94 6/94 100% 1,163,875 Abbey Orchards Nixa, Apts.II MO 56 1,127,842 8/94 7/94 100% 1,137,750 Bernice Bernice, Villa Apts. LA 32 967,583 5/93 10/93 100% 200,476 Branch River Wakefield, Commons Apts. NH 24 1,268,043 9/92 2/93 100% 246,105 Brunswick Lawrenceville, Manor Apts. VA 40 1,424,777 2/94 7/94 100% 278,519 Canterfield Denmark, Manor SC 20 771,568 11/92 1/93 100% 175,959 Cape Ann YMCA Gloucester, Community Ctr. MA 23 585,086 1/93 12/93 100% 693,132 Carriage Westville, Park Village OK 24 725,358 2/93 7/93 100% 144,714 Cedar Brown City, Trace Apts. MI 16 507,133 10/92 7/93 100% 102,500 Cielo Azul Aztec, Apts. NM 30 1,021,549 5/93 5/93 100% 389,749 Clymer Clymer, Park Apts. PA 32 1,445,104 12/92 11/94 100% 317,428 10 Boston Capital Tax Credit Fund III L.P. - Series 16 PROPERTY PROFILES AS OF March 31, 1997 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/96 Date Comp. 3/31/97 3/31/97 - --------------------------------------------------------------------------- Crystal Davenport, Ridge Apts. IA 126 $3,131,544 10/93 2/94 100% $ 3,032,972 Cumberland Middlesboro, Woods Apts. KY 40 1,457,998 12/93 10/94 100% 412,700 Deer Run Warrenton, Apts. NC 31 719,606 8/93 3/93 100% 572,200 Derry Round Borough of Derry, House Court PA 26 1,139,214 2/93 2/93 100% 248,019 Fairmeadow Latta, Apts. SC 24 888,116 1/93 7/93 100% 195,400 Falcon Beattyville, Ridge Apts. KY 40 1,052,571 4/94 1/95 100% 247,200 Forest Butler, Pointe Apts. GA 24 757,892 12/92 9/93 100% 162,397 Gibson Gibson, Manor Apts. NC 24 914,089 12/92 6/93 100% 161,412 Greenfield Greenfield, Properties MO 20 535,408 1/93 5/93 100% 126,046 Greenwood Mt. Pleasant, Apts. PA 36 1,483,607 11/93 10/93 97% 352,000 Harmony Galax, House Apts. VA 40 1,482,213 11/92 7/93 100% 285,588 Haynes House Roxbury, Apartments MA 131 3,495,929 8/94 9/95 80% 1,955,670 Holly Tree Holly Hill, Manor SC 24 889,327 11/92 2/93 100% 201,490 Isola Square Isola, Apartments MS 32 974,908 11/93 4/94 100% 246,722 11 Boston Capital Tax Credit Fund III L.P. - Series 16 PROPERTY PROFILES AS OF March 31, 1997 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/96 Date Comp. 3/31/97 3/31/97 - --------------------------------------------------------------------------- Joiner Joiner, Manor AR 25 $ 825,160 1/93 6/93 100% $149,670 Landview Bentonia, Manor MS 28 846,603 7/93 2/94 100% 190,109 Laurel Idabel, Ridge Apts. OK 52 1,393,760 4/93 12/93 100% 282,606 Lawtell Lawtell, Manor Apts. LA 32 935,317 4/93 8/93 100% 202,603 Logan Ridgeland, Lane Apts SC 36 1,304,434 9/92 3/93 100% 274,750 Mariner's Milwaukee, Pointe Apts WI 64 2,022,863 12/92 8/93 100% 1,684,121 Mariner's Pointe Milwaukee, Apts. II WI 52 1,980,429 12/92 8/93 100% 1,676,219 Meadows of Southgate, Southgate MI 83 2,338,538 7/93 5/94 100% 1,716,000 Mendota Mendota, Village Apts.CA 44 1,987,883 12/92 5/93 100% 438,300 Mid City Jersey City, Apts. NJ 58 3,140,774 9/93 6/94 100% 3,097,210 Newport Elderly Newport, Apts. VT 24 1,259,482 2/93 10/93 100% 221,626 Newport Newport, Manor Apts. TN 30 963,498 9/93 12/93 100% 204,863 Oak Forest Eastman, Apts. GA 41 1,187,160 12/92 10/93 100% 251,269 12 Boston Capital Tax Credit Fund III L.P. - Series 16 PROPERTY PROFILES AS OF March 31, 1997 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/96 Date Comp. 3/31/97 3/31/97 - --------------------------------------------------------------------------- Parkwoods Anson, Apts. ME 24 $1,292,673 12/92 9/93 100% $ 320,206 Plantation Tchula, Manor MS 28 838,860 7/93 12/93 100% 195,030 Ransom St. Blowing Rock, Apartments NC 13 513,727 12/93 11/94 100% 102,697 Riviera Miami Beach, Apts. FL 56 1,717,110 12/92 12/93 100% 1,442,978 Sable Chase McDonough, of McDonough GA 222 5,220,944 12/93 12/94 100% 5,618,968 Simmesport Simmesport, Square Apts. LA 32 956,744 4/93 6/93 100% 198,500 St. Croix Woodville, Commons Apts. WI 40 1,129,146 10/94 12/94 60% 534,847 St. Joseph St. Joseph, Square Apts. LA 32 964,859 5/93 9/93 100% 206,086 Summersville Summersville, Estates MO 24 624,702 5/93 6/93 100% 157,976 Stony Ground St. Croix, Villas VI 22 1,440,543 12/92 6/93 100% 358,414 Talbot Talbotton, Village II GA 24 684,816 8/92 4/93 100% 129,683 Tan Yard Branch Blairsville, Apts. I GA 24 758,885 12/92 9/94 100% 151,154 Tan Yard Branch Blairsville, Apts. II GA 25 742,836 12/92 7/94 100% 144,304 13 Boston Capital Tax Credit Fund III L.P. - Series 16 PROPERTY PROFILES AS OF March 31, 1997 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/96 Date Comp. 3/31/97 3/31/97 - --------------------------------------------------------------------------- The Fitzgerald Plattsmouth, Building NE 20 $ 313,744 12/93 12/93 100% $ 924,780 The Woodlands Tupper Lake, NY 18 931,255 9/94 2/95 100% 205,631 Tuolumne City Tuolumne, Senior Apts. CA 30 1,606,725 12/92 8/93 100% 376,535 Turtle Monticello, Creek Apts. AR 27 854,522 5/93 10/93 100% 185,392 Valley View Palatine Bridge, Apartments NY 32 1,439,175 5/94 5/94 100% 326,870 Victoria North Port, Pointe Apts. FL 42 1,450,728 10/94 1/95 100% 338,058 Vista Linda Sabana Grande, Apartments PR 50 2,513,808 1/93 12/93 100% 435,530 West End Union, Manor SC 28 995,844 5/93 5/93 100% 231,741 Westchester Village Oak Grove, of Oak Grove MO 33 1,239,211 12/92 4/93 100% 889,700 Westchester Village of St. Joseph, St. Joseph MO 60 1,683,311 7/93 6/93 100% 1,316,500 Willcox Willcox, Senior Apts. AZ 30 1,112,794 1/93 6/93 100% 268,747 Woods Damascus, Landing Apts.VA 40 1,478,071 12/92 9/93 100% 286,171 14 Boston Capital Tax Credit Fund III L.P. - Series 17 PROPERTY PROFILES AS OF March 31, 1997 Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/96 Date Comp. 3/31/97 3/31/97 - --------------------------------------------------------------------------- Annadale Fresno, Apartments CA 222 $4,543,744 1/96 6/90 100% $ -0- Artesia Artesia, Properties NM 40 1,429,409 9/94 9/94 100% 399,464 Aspen Ridge Omaha, Apts. NE 42 888,302 9/93 11/93 100% 809,750 Briarwood Clio, Apartments SC 24 920,368 12/93 8/94 100% 211,133 Briarwood Apartments DeKalb, of DeKalb IL 48 1,605,843 10/93 6/94 100% 1,041,834 Briarwood Buena Vista, Village GA 38 1,135,894 10/93 5/94 100% 252,700 Brookwood Blue Springs, Village MO 72 2,346,480 12/93 12/94 100% 1,629,100 Cairo Senior Cairo, Housing NY 24 1,076,324 5/93 4/93 100% 201,711 Caney Creek Caneyville, Apts. KY 16 481,070 5/93 4/93 100% 118,800 Central Cambridge, House MA 128 2,638,126 4/93 12/93 100% 2,498,109 Clinton Clinton, Estates MO 24 742,356 12/94 12/94 100% 162,717 Cloverport Cloverport, Apts. KY 24 761,938 4/93 7/93 100% 174,575 College Greene Chili, Senior Apts. NY 110 3,791,301 3/95 8/95 100% 228,545 15 Boston Capital Tax Credit Fund III L.P. - Series 17 PROPERTY PROFILES AS OF March 31, 1997 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/96 Date Comp. 3/31/97 3/31/97 - --------------------------------------------------------------------------- Crofton Crofton, Manor Apts. KY 24 $ 810,301 4/93 3/93 100% $ 168,420 Deerwood Adrian, Village Apts.GA 20 640,514 2/94 7/94 100% 160,900 Doyle Darien, Village GA 38 1,176,673 9/93 4/94 100% 235,509 Fuera Bush Senior Fuera Bush, Housing NY 24 1,106,702 7/93 5/93 100% 189,364 Gallaway Gallaway, Manor Apts. TN 36 1,062,724 4/93 5/93 100% 221,432 Glenridge Bullhead City, Apartments AZ 52 2,056,548 6/94 6/94 100% 520,500 Green Acres West Bath, Estates ME 48 1,232,302 1/95 11/94 100% 135,849 Green Court Mt. Vernon, Apartments NY 76 2,335,842 11/94 11/94 84% 874,878 Henson Oxon Hill, Creek Manor MD 105 4,038,834 5/93 4/94 100% 2,980,421 Hickman Manor Hickman, Apts. II KY 16 543,802 11/93 12/93 100% 134,094 Hill Bladenboro, Estates, II NC 24 1,021,728 3/95 7/95 100% 132,300 Houston Alamo, Village GA 24 675,389 12/93 5/94 100% 169,418 Isola Greenwood, Square Apts. MS 36 1,065,623 11/93 8/94 100% 304,556 16 Boston Capital Tax Credit Fund III L.P. - Series 17 PROPERTY PROFILES AS OF March 31, 1997 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/96 Date Comp. 3/31/97 3/31/97 - --------------------------------------------------------------------------- Ivywood Smyrna, Park Apts. GA 106 $3,088,640 6/93 10/93 100% $2,093,847 Jonestown Jonestown, Manor Apts. MS 28 872,018 12/93 12/94 100% 243,605 Largo Ctr. Largo, Apartments MD 100 3,892,268 3/93 6/94 100% 2,753,475 Laurel Naples, Ridge Apts. FL 78 2,956,048 2/94 12/94 100% 1,788,844 Lee Terrace Pennington Gap, Apartments VA 40 1,495,907 2/94 12/94 100% 288,268 Maplewood Union City, Park Apts. GA 110 3,573,147 4/94 7/95 100% 1,194,911 Oakwood Manor of Bennettsville, Bennettsville SC 24 882,841 9/93 12/93 100% 189,200 Opelousas Opelousas, Point Apts. LA 44 1,399,414 11/93 3/94 100% 439,277 Orchard Beaumont, Park CA 144 3,968,211 1/94 5/89 100% 250,000 Palmetto Palmetto, Villas FL 49 1,621,942 5/94 4/94 100% 421,795 Park Lehigh Acres, Place FL 35 1,183,754 2/94 4/94 100% 283,687 Pinehurst Farwell, Senior Apts. MI 24 812,347 2/94 2/94 100% 183,176 Quail Reedsville, Village GA 31 887,250 9/93 2/94 100% 171,855 Royale Glen Muskegon, Townhomes MI 79 3,803,078 12/93 12/94 100% 909,231 17 Boston Capital Tax Credit Fund III L.P. - Series 17 PROPERTY PROFILES AS OF March 31, 1997 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/96 Date Comp. 3/31/97 3/31/97 - --------------------------------------------------------------------------- Seabreeze Inglis, Manor FL 37 $1,240,666 3/94 1/95 100% $ 294,387 Soledad Soledad, Senior Apts. CA 40 1,969,082 10/93 1/94 100% 407,894 Stratford Midland, Place MI 53 999,723 9/93 6/94 100% 892,915 Summit Palmdale, Ridge Apt. CA 304 9,004,859 12/93 12/93 100% 5,191,039 Villa West Topeka, V Apartments KS 52 1,260,000 2/93 10/92 100% 902,700 Waynesburg Waynesburg, House Apts. PA 34 1,503,621 7/94 12/95 100% 501,140 West Front Skowhegan, Residence ME 30 1,725,054 9/94 8/94 100% 487,390 West Oaks Raleigh, Apartments NC 50 1,210,441 6/93 7/93 100% 811,994 White White Castle, Castle Manor LA 24 780,073 6/94 5/94 100% 198,684 18 Boston Capital Tax Credit Fund III L.P. - Series 18 PROPERTY PROFILES AS OF March 31, 1997 Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/96 Date Comp. 3/31/97 3/31/97 - --------------------------------------------------------------------------- Arch Boston, Apartments MA 75 $2,771,622 4/94 12/94 100% $3,017,845 Bear Creek Naples, Apartments FL 118 4,967,259 3/94 4/95 100% 3,586,687 Briarwood Humbolt, Apartments IA 20 710,376 8/94 4/95 100% 162,536 California San Joaquin, Apartments CA 42 1,841,293 3/94 12/94 100% 519,100 Chatham Chatham, Manor NY 32 1,436,031 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 2,561,998 12/94 12/94 100% 1,804,536 Cox Creek Ellijay, Apartments GA 25 827,488 1/94 1/95 100% 176,504 Evergreen Macedon, Hills Apts. NY 72 2,832,672 8/94 1/95 100% 1,464,564 Glen Place Duluth, Apartments MN 35 1,249,800 4/94 6/94 100% 1,328,621 Harris Music West Palm Beach, Building FL 38 1,340,429 6/94 11/95 100% 749,953 Kristine Bakersfield, Apartments CA 60 1,372,124 10/94 10/94 100% 1,636,293 Lakeview Battle Creek, Meadows II MI 60 1,642,076 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, 1997 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/96 Date Comp. 3/31/97 3/31/97 - --------------------------------------------------------------------------- Lathrop Lathrop, Properties MO 24 $ 746,947 4/94 5/94 100% $ 171,579 Leesville Leesville, Elderly Apts.LA 54 1,268,354 6/94 6/94 100% 776,500 Lockport Lockport, Seniors Apts.LA 40 994,779 7/94 9/94 100% 595,439 Maple Leaf Franklinville, Apartments NY 24 1,155,850 8/94 12/94 100% 296,587 Maple Aurora, Terrace NY 32 1,422,546 9/93 9/93 96% 279,988 Marengo Marengo, Park Apts. IA 24 735,876 10/93 3/94 100% 133,552 Meadowbrook Oskaloosa, Apartments IA 16 485,330 11/93 9/94 100% 96,908 Meadows Show Low, Apartments AZ 40 1,498,659 3/94 5/94 100% 420,302 Natchitoches Senior Natchitoches, Apartments LA 40 969,552 6/94 12/94 100% 644,175 Newton Newton, Plaza Apts. IA 24 813,387 11/93 9/94 100% 166,441 Oakhaven Ripley, Apartments MS 24 507,010 1/94 7/94 100% 116,860 Parvin's Branch Vineland, Townhouses NJ 24 876,286 8/93 11/93 100% 761,856 20 Boston Capital Tax Credit Fund III L.P. - Series 18 PROPERTY PROFILES AS OF March 31, 1997 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/96 Date Comp. 3/31/97 3/31/97 - --------------------------------------------------------------------------- Peach Tree Felton, Apartments DE 32 $1,492,898 1/94 7/93 100% $ 206,100 Pepperton Jackson, Villas GA 29 868,707 1/94 6/94 100% 222,762 Prestonwood Bentonville, Apartments AR 62 1,280,350 12/93 12/94 100% 1,067,200 Richmond Richmond, Manor MO 36 1,050,188 6/94 6/94 100% 231,593 Rio Grande Eagle Pass, Apartments TX 100 2,294,897 6/94 5/94 100% 666,840 Troy Troy, Estates MO 24 701,094 12/93 1/94 100% 159,007 Vista Loma Bullhead City, Apartments AZ 41 1,493,214 5/94 9/94 100% 465,650 Vivian Vivian, Seniors Apts. LA 40 1,007,559 7/94 9/94 100% 625,691 Westminster Meadow Grand Rapids, Apartments MI 64 2,112,848 12/93 11/94 100% 1,378,000 21 Boston Capital Tax Credit Fund III L.P. - Series 19 PROPERTY PROFILES AS OF March 31, 1997 Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/96 Date Comp. 3/31/97 3/31/97 - --------------------------------------------------------------------------- Callaway Holt's Summit, Villa MO 48 $1,320,544 6/94 12/94 100% $ 1,181,010 Carrollton Carrollton, Villa MO 48 1,315,865 6/94 3/95 100% 1,121,758 Clarke Newport, School RI 56 2,561,998 12/94 12/94 100% 1,153,719 Coopers Irving, Crossing TX 93 3,682,888 6/96 12/95 100% 1,716,000 Delaware Crossing Ankeny, Apartments IA 152 3,749,681 8/94 3/95 100% 3,337,884 Garden Gate Forth Worth, Apartments TX 240 5,882,264 2/94 4/95 100% 3,526,605 Garden Gate Plano, Apartments TX 240 7,379,150 2/94 5/95 100% 3,116,064 Hebbronville Hebbronville, Senior TX 20 522,191 12/93 4/94 100% 82,592 Jefferson Denver, Square CO 64 2,568,896 5/94 8/95 100% 1,705,351 Jenny Lynn Morgantown, Apts. KY 24 808,393 1/94 9/94 100% 182,800 Lone Star Lone Star, Senior TX 24 617,540 12/93 5/94 100% 138,740 Mansura Villa II Mansura, Apartments LA 32 970,372 5/94 8/95 100% 227,910 Maplewood Union City, Park Apts. GA 110 3,573,147 4/94 7/95 100% 1,194,911 Martindale Martindale, Apts. TX 24 687,611 12/93 1/94 100% 154,790 22 Boston Capital Tax Credit Fund III L.P. - Series 19 PROPERTY PROFILES AS OF March 31, 1997 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/96 Date Comp. 3/31/97 3/31/97 - --------------------------------------------------------------------------- Munford Munford, Village AL 24 $ 766,822 10/93 4/94 100% $ 165,800 Northpoint Kansas City, Commons MO 158 4,788,505 7/94 6/95 100% 2,076,401 Poplar Madison, Ridge Apts. VA 16 654,071 12/93 10/94 100% 124,704 Prospect Villa III Hollister, Apartments CA 30 1,747,061 3/95 5/95 100% 499,104 Sahale Heights Elizabethtown, Apts. KY 24 863,752 1/94 6/94 100% 238,600 Seville Forest Village, Apartments OH 24 666,962 3/94 3/78 100% 47,780 Sherwood Rainsville, Knoll AL 24 783,096 10/93 4/94 100% 162,500 Summerset Swainsboro, Apartments GA 30 942,924 1/94 11/95 100% 223,029 Tanglewood Lawrenceville, Apartments GA 130 4,282,021 11/93 12/94 100% 3,020,840 Village Independence, North I KS 24 860,855 6/94 12/94 100% 190,471 Vistas at Largo, Lake Largo MD 110 3,316,561 12/93 1/95 100% 2,833,420 Wedgewood Lane Cedar City, Apartments UT 24 1,004,645 6/94 9/94 100% 262,800 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, 1997, the Fund has 14,094 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 2,610 investors holding 3,870,500 BACs, Series 16 consists of 3,677 investors holding 5,429,402 BACs, Series 17 consists of 3,094 investors holding 5,000,000 BACs, Series 18 consists of 2,187 investors holding 3,616,200 BACs, and Series 19 consists of 2,526 investors holding 4,080,000 BACs at March 31, 1997. (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, 1997. 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 March 31, 1993 through March 31, 1997. Additional detailed financial information is set forth in the audited financial statements listed in Item 14 hereof. Operations - ---------- March 31, March 31, March 31, March 31, March 31, 1997 1996 1995 1994 1993 -------- -------- -------- -------- -------- Interest & Other Income $ 555,991 $ 1,034,800 $ 2,200,432 $ 2,380,436$ 707,838 Share of Loss of Operating Partnerships (15,051,842) (14,435,496) (10,794,203) (4,998,241) (1,294,781) Operating Exp.$ (3,210,372) (3,313,615) (3,739,460) (2,585,806) (909,201) ----------- ----------- ---------- ---------- ---------- Net Loss $(17,706,223)$(16,714,311)$(12,333,231)$ (5,203,611)$(1,496,144) =========== =========== ========== ========== ========== Net Loss per BAC $ (.80)$ (.75)$ (.56) $ (.31)$ (.21) =========== =========== ========== =========== ========== As of As of As of As of As of March 31, March 31, March 31, March 31, March 31, 1997 1996 1995 1994 1993 -------- -------- -------- -------- -------- Balance Sheet - ------------- Total Assets $145,845,635 $167,285,510 $202,894,304 $215,591,233 $110,044,342 =========== =========== =========== =========== ========== Total Liab. $ 10,350,261 $ 14,069,497 $ 33,078,601 $ 33,263,599 $ 18,125,363 Partners' =========== =========== =========== =========== ========== Equity $135,495,374 $153,216,013 $169,815,703 $182,327,634 $ 91,918,979 =========== =========== =========== =========== ========== Other Data - ---------- Tax Credits per BAC for the Investors Tax Year, the Twelve Months Ended December 31, 1996, 1995, 1994, 1993 and 1992* $ 1.37 $ 1.26 $ .66 $ .42 $ .21 =========== =========== =========== =========== ========== * 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, 1997 were $2,125,305, and total fund management fees accrued as of March 31, 1997 were $6,379,932. 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 its investors. The Fund anticipates that the investments it purchases will be available for sale. Many of the investments sold during the years ended March 31, 1995, 1996 and 1997 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, 1997, 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, 1997, the Fund used $21,600 of Series 15 net offering proceeds to pay additional installments of its capital contributions to 3 Operating Partnerships. As of March 31, 1997 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 $29,390,546, and the Fund had completed payment of all installments of its capital contributions to 63 of the 68 Operating Partnerships. Series 15 has $178,680 in capital contributions that remain to be paid to the other 5 Operating Partnerships. (Series 16). The Fund commenced offering BACs in Series 16 on July 10, 1992. As of March 31, 1997, 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, 1997, the Fund used $292,588 of Series 16 net offering proceeds to pay additional installments of its capital contributions to 7 Operating Partnerships. As of March 31, 1997 the net proceeds from the offer and sale of BACs in Series 16 had been used to invest in a total of 64 Operating Partnerships in an aggregate amount of $40,829,228, and the Fund had completed payment of all installments of its capital contributions to 56 of the 64 Operating Partnerships. Series 16 has $155,225 in capital contributions that remain to be paid to the other 8 Operating Partnerships. (Series 17). The Fund commenced offering BACs in Series 17 on January 24, 1993. As of March 31, 1997, 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, 1997, the Fund used $155,696 of Series 17 net offering proceeds to pay additional installments of its capital contributions to 8 Operating Partnerships. As of March 31, 1997 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 $37,223,407, and the Fund had completed payments of all installments of its capital contributions to 38 of the 49 Operating Partnerships. Series 17 has $1,844,259 in capital contributions that remain to be paid to the other 11 11 Operating Partnerships. (Series 18). The Fund commenced offering BACs in Series 18 on June 17, 1993. As of March 31, 1997, 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, 1997, the Fund used $118,711 of Series 18 net offering proceeds to pay additional installments of its capital contributions to 5 Operating Partnerships. As of March 31, 1997 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 $26,652,205, and the Fund had completed payments of all installments of its capital contributions to 29 of the 34 Operating Partnerships. Series 18 has $755,887 in capital contributions that remain to be paid to the other 5 Operating Partnerships. (Series 19). The Fund commenced offering BACs in Series 19 on October 8, 1993. As of March 31, 1997, 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, 1997, the Fund used $3,691,719 of Series 19 net offering proceeds to pay initial installments of its capital contributions to 14 Operating Partnerships. As of March 31, 1997 proceeds from the offer and sale of BACs in Series 19 had been used to invest in a total of 26 Operating Partnerships in an aggregate amount of $30,164,485, and the Fund had completed payments of all installments of its capital contributions to 19 of the 26 Operating Partnerships. Series 19 has $831,803 in capital contributions that remain to be paid to the other 7 Operating Partnerships. Results of Operations - --------------------- The Fund incurred 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, 1997 and 1996 was $2,253,062 and $2,399,311, respectively. The amount is anticipated to continue to decrease in subsequent fiscal years as additional Operating Partnerships begin to pay their annual partnership management 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, 1997 and 1996, the average Qualified Occupancy for the series was 100% and 99.9%, respectively. The series had a total of 68 properties at March 31, 1997, all of which were at 100% qualified occupancy. 29 For the tax years ended December 31, 1996 and 1995, the series, in total, generated $3,647,435 and $3,225,596, respectively, in passive income tax losses that were passed through to the investors and also provided $1.47 and $1.43, respectively, in tax credits per BAC to the investors. As of March 31, 1997 and 1996 the Investments in Operating Partnerships for Series 15 was $18,675,081, and $21,718,070 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 December 31, 1996 and 1995 the Operating Partnerships reflected a net income of $468,378 and $383,072, respectively, when adjusted for depreciation which is a non-cash item. California Investors VII Limited Partnership was operating at a deficit due to higher than projected operating expenses and a competitive rental market. Operating shortfalls caused the accrual of accounts payable. The Operating Partnership closed on a debt refinancing in the fourth quarter of 1996. The favorable interest rate enabled the Operating Partnership to payoff the accrued accounts payable and reduced the monthly debt payment. The refinancing should also create increased operating stability for the Operating Partnership. The new management company at Hidden Cove continues to make improvements to the tenant base and physical occupancy, which stands at 92% at March 31, 1997, however, the property is still generating operating deficits. As such, the management company is implementing cost saving measures to mitigate these deficits and stabilize the property. The Operating General Partner of School Street Limited Partnership I pledged his general partnership interest in the Operating Partnership as collateral for another loan. As this was a violation of the terms of the partnership agreement, the Operating General Partner was removed and replaced. Operations of the property are stable. (Series 16). As of March 31, 1997 and 1996, the average Qualified Occupancy for the series was 99.0% and 99.7%, respectively. The series had a total of 64 properties at March 31, 1997. Out of the total, 61 were at 100% qualified occupancy. For the tax years ended December 31, 1996 and 1995, the series, in total, generated $4,236,913 and $3,276,922, respectively, in passive income tax losses that were passed through to the investors and also provided $1.41 and $1.37 respectively, in tax credits per BAC to the investors. As of March 31, 1997 and 1996 the Investments in Operating Partnerships for Series 16 was $33,987,844 and $37,074,575, respectively. Investments in Operating Partnerships was affected by the removal of one Operating Partnership. Investments in Operating Partnerships was also affected by the way the Fund accounts for such investments, the equity method. 30 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 December 31, 1996 and 1995 the Operating Partnerships reflected a net income of $1,866,459 and $1,105,367, respectively, when adjusted for depreciation which is a non-cash item. The improved operations are mainly a result of an increase in rental income and a decrease in interest expense. In the prior fiscal year an Operating Partnership was admitted to the series without an initial outlay of capital. This short form admission was an agreement between the Operating Partnership's General Partner and the General Partner, that upon further due diligence, the Fund had the option to purchase the Operating Partnership if it was in the best interest of the Fund. Subsequent studies indicated that the Operating Partnership would not generate the originally anticipated amount of credits, and the General Partner elected to have the Fund's interest repurchased. As a result the number of Operating Partnerships has decreased by one from the year ended March 31, 1996. The Operating General Partner of Mariner's Pointe Limited Partnership I and Mariner's Pointe Limited Partnership II pledged his general partner interest to an unaffiliated lending institution in violation of the partnership agreement. The Operating General Partner and the Management Agent, an affiliate of the Operating General Partner, have been replaced. This did not affect property operations. (Series 17). As of March 31, 1997 and 1996, the average Qualified Occupancy for the Series was 99.7% and 99.6%, respectively. The series had a total of 49 properties at March 31, 1997. Out of the total 48 were at 100% qualified occupancy. For the tax years ended December 31, 1996 and 1995, the series, in total, generated $4,183,368 and $3,393,637, respectively, in passive income tax losses that were passed through to the investors and also provided $1.40 and $1.30, respectively, in tax credits per BAC to the investors. As of March 31, 1997 and 1996 the Investments in Operating Partnerships for Series 17 was $30,804,793 and $34,318,721, 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 years ended December 31, 1996 and 1995 the Operating Partnerships reflected a net (loss) income of $(183,610) and $570,330, respectively, when adjusted for depreciation which is a non-cash item. The decrease was a result of two Operating Partnerships' 1996 operations. Annadale Housing Partners had experienced a net loss, when adjusted for depreciation, due to operational issues associated with the property. The Operating Partnership has stabilized since the completion of rehabilitation and occupancy has shown steady improvement. Occupancy is at 100% as of March 31, 1997. California 31 Investors VII Limited Partnership was operating at a deficit, when adjusted for depreciation, due to higher than projected operating expenses and a competitive rental market. Operating shortfalls caused the accrual of accounts payable. The Operating Partnership closed on a debt refinancing in the fourth quarter of 1996. The favorable interest rate enabled the Operating Partnership to payoff the accrued accounts payable and reduced the monthly debt payment. The refinancing should also create increased operating stability for the Operating Partnership. The property owned by California Investors VI L.P. has experienced a reduction in physical occupancy, which stands at 80% at March 31, 1997. The management company is increasing their marketing efforts, as well as implementing capital improvements to the property to attract tenants. These efforts should improve occupancy and stabilize the property. (Series 18). As of March 31, 1997 and 1996, the average Qualified Occupancy for the series was 99.9% and 99.6%, respectively. The series had a total of 34 properties at March 31, 1997. Out of the total, 33 were at 100% qualified occupancy. For the tax years ended December 31, 1996 and 1995, the series, in total, generated $3,122,862 and $2,516,225, respectively, in passive income tax losses that were passed through to the investors and also provided $1.33 and $1.15, respectively, in tax credits per BAC to the investors. As of March 31, 1997 and 1996, the Investments in Operating Partnerships for Series 18 was $23,513,680 and $26,102,954, 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 years ended December 31, 1996 and 1995 the Operating Partnerships reflected a net income of $168,510 and $1,050, respectively, when adjusted for depreciation which is a non-cash item. The main reason for the improved operations was an increase in rental income due to higher occupancies in 1996. In August 1996 the General Partner was notified that Virginia Avenue Housing Limited Partnership was named as defendant in a land encroachment complaint. The Operating General Partner and its council are confident that the Operating Partnership owns a clean title to all property in question, however, research is being conducted into the title and title insurance. (Series 19). As of March 31, 1997 and 1996, the average Qualified Occupancy for the series was 100% and 99.6%, respectively. The series had a total of 26 properties at March 31, 1997, all of which were at 100% qualified occupancy. For the tax year ended December 31, 1996 and 1995, the series, in total, generated $3,660,628 and $3,299,830, respectively, in passive income tax losses that were passed through to the investors and also provided $1.24 and $1.0, respectively, in tax credits per BAC to the investors. 32 As of March 31, 1997 and 1996 the Investments in Operating Partnerships for Series 19 was $27,405,515 and $28,044,693, 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 December 31, 1996 and 1995 the Operating Partnerships reflected a net income (loss)of $69,927 and $(445,615), respectively, when adjusted for depreciation which is a non-cash item. The main reason for the improved operations was an increase in rental income due to higher occupancies in 1996. In all series there was an increase in the tax credits provided to the investors from tax years ended December 31, 1995 to December 31, 1996. A greater number of credits was generated by properties which were under construction or in initial lease-up as of December 31, 1995, and subsequently completed construction and lease-up phases as of December 31, 1996. The Fund expects the stream of tax credits to level off within the next year as the properties in all series reach stabilized operations. Recent Accounting Statements Not Yet Adopted - -------------------------------------------- In February 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards ("SFAS') No. 128, "Earnings per Share" and SFAS No. 129, "Disclosure of Information about Capital Structure." SFAS No. 128 provides accounting and reporting standards for the amount of earnings per share. SFAS No. 129 requires the disclosure in summary form within the financial statements of the pertinent rights and privileges of the various securities outstanding. SFAS No. 128 and SFAS No. 129 are effective for fiscal years ending after December 15, 1997 and earlier application is not permitted. The implementation of these standards is not expected to materially impact the Partnership's financial statements because the Partnership's earnings per share would not be significantly affected and the disclosures regarding the capital structure in the financial statements would not be significantly changed. 33 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. 34 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 67, is co-founder and Chairman of the Board of Boston Capital Corporation. Founded in 1974, Boston Capital, through its five companies, offers a wide range of investment banking services to its domestic and international clients. Mr. Collins has received Presidential appointments from both President George Bush and President Bill Clinton. In 1992, President Bush appointed Mr. Collins to the Presidential Advisory Committee on the Arts at The Kennedy Center. In 1995, Mr. Collins was appointed by President Clinton to the Thrift Depositor Protection Oversight Board. Mr. Collins is Chairman- emeritus of the Council for Rural Housing and Development and former Chairman of the Federal Home Loan Bank Board of Boston. Mr. Collins currently serves as a member of the National Rural Housing Council, the Fannie Mae Housing Impact Advisory Council, and is a member of the board of the National Housing Conference. Mr. Collins is also involved with a number of civic and charitable organizations with a particular interest in assisting disadvantaged urban youth. These activities include serving on the boards of Youth Build - Boston, the I Have a Dream Foundation, the Pine Street Inn and The Ron Burton Training Village. Mr. Collins is a graduate of Harvard College and served in the U.S. Marine Corps. He and his wife, Sheila, have six children. They reside in Gloucester, Massachusetts. John P. Manning, age 49, is co-founder, President and Chief Executive Officer of Boston Capital Partners, Inc., and serves as member of the Investment Committee. He has twenty-five years of experience in the financing, development and operation of multi-family housing, especially affordable housing. In addition to his responsibilities at Boston Capital, Mr. Manning has been a proactive leader in the industry. He served as a member of the Mitchell-Danforth Task Force, established by Senators Mitchell and Danforth in 1990, to review and reform the Low Income Housing Tax Credit. He was the founding President of the Affordable Housing Tax Credit Coalition, is a member of the board of the National Leased Housing Association and sits on the Advisory Board of the Housing Development Reporter, three Washington D.C. based housing organizations. In 1996, he was asked to be a judge by the FNMA Foundation for its prestigious Maxwell Awards, given to the most outstanding affordable housing projects in America. He served as a member of the Massachusetts Housing Policy Committee, Executive Office of Communities & Development, having been appointed by the Governor of Massachusetts. In similar capacities, Mr. Manning has been asked to testify as an expert witness before the U.S. House Ways and Means Committee and the U.S. Senate Finance Committee, on the efficacy of the Low Income Housing Tax Credit, private sector participation and the effects on the capital markets and the economy. 35 In 1996, President Clinton appointed him to the President's Advisory Committee on the Arts at the John F. Kennedy Center for the Performing Arts, Washington, D.C. Mr. Manning graduated from Boston College. Richard J. DeAgazio, age 52, 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 served as Chairman of the NASD's Statutory Disqualification Subcommittee of the National Business Conduct Committee. He also served 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 42, 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 36, is Senior Vice President and Chief Financial Officer of Boston Capital Partners, Inc. and has over fourteen 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. 36 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 1997 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 Asset Management Limited Partnership (formerly Boston Capital Communications Limited Partnership). The annual fund management fee charged to operations during the year ended March 31, 1997 was $2,253,062. 2. The Fund has reimbursed an affiliate of the General Partner a total of $116,188 for amounts charged to operations during the year ended March 31, 1997. 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, 1997, 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. 37 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. 38 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, 1997 and 1996 Statements of Operations for the years ended March 31, 1997, 1996 and 1995. Statements of Changes in Partners' Capital for the years and period ended March 31, 1997, 1996, and 1995. Statements of Cash Flows for the years ended March 31, 1997, 1996 and 1995. Notes to Financial Statements March 31, 1997, 1996 and 1995 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.) 39 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). 40 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). 41 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. 42 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. -------------------------------------------------------- 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 Date: July 14, 1997 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 14, 1997 /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 44 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 14, 1997 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 14, 1997 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 44 1 FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT BOSTON CAPITAL TAX CREDIT FUND III L.P. - SERIES 15 THROUGH SERIES 19 MARCH 31, 1997 AND 1996 2 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-72 SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION F-74 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. 3 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, 1997 and 1996 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 ended March 31, 1997, 1996 and 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 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, 29% and 25% of the assets as of March 31, 1997 and 1996 and 26%, 26% and 19% of the operating limited partnership loss for years ended March 31, 1997, 1996 and 1995, respectively; of the assets for Series 15 as of March 31, 1997 and 1996, 23% and 27%, respectively, of the operating limited partnership loss for Series 15 for the years ended March 31, 1997, 1996 and 1995, 28%, 29% and 20%, respectively; of the assets for Series 16 as of March 31, 1997 and 1996, 28% and 29%, respectively, of the limited partnership loss for Series 16 for the years ended March 31, 1997, 1996 and 1995, 27%, 28% and 26%, respectively; of the assets for Series 17 as of March 31, 1997 and 1996, 29% and 24%, of the limited partnership loss for Series 17 for the years ended March 31, 1997, 1996 and 1995, 22%, 23% and 23%, respectively; of the assets for Series 18 as of March 31, 1997 and 1996, 24% and 19% and of the operating limited partnership loss for Series 18 for the years ended March 31, 1997, 1996 and 1995, 22%, 19% and 19%, respectively; and of the assets for Series 19 as of March 31, 1997, 1996 and 1995, 28% and 33% and of the operating limited partnership loss for Series 19 for the years ended March 31, 1997, 1996 and 1995, 30%, 22% and 11%, 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. F-3 4 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 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, 1997 and 1996 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 ended March 31, 1997, 1996 and 1995, 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, 1997. 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 1, 1997 F-4 Torres Llompart, Sanchez Ruiz & Co. Certified Public Accountants and Business Consultants (A member of Kreston International) Partners: Luis J. Torres Llompart, CPA Frank Sanchez Ruiz, CPA, CMA, CIA Members of: Division for CPA Firms - American Institute of CPAs - Puerto Rico Society of Certified Public Accountants INDEPENDENT AUDITORS'REPORT ON FINANCIAL STATEMENTS Partners April Gardens Apartments III Limited Partnership San Juan, Puerto Rico We have audited the accompanying balance sheet of April Gardens Apartments III Limited Partnership as of December 31, 1996, and the related statements of operations, partners' equity and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of April Gardens III Limited Partnership as of December 31, 1995, were audited by other auditors whose report dated January 26, 1996, expressed an unqualified opinion on those statements. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of April Gardens III Limited Partnership as of December 31, 1996, 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. In accordance with Government Auditing Standards, we have also issued a report dated February 20, 1997 on our consideration of the Partnership's internal control structure and a report dated February 20, 1997 on its compliance with laws, regulations, contracts, loan covenants and agreements. Our audit was made for the purpose of forming an opinion on the basic financial statements for the year ended December 31, 1996, taken as a whole. The accompanying schedules of administrative, utilities, maintenance, taxes, insurance and interest expenses 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 for the year ended December 31, 1996 and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements for the year ended December 31, 1996, taken as a whole. February 20, 1997 License No. 169 San Juan, Puerto Rico Stamp number 1412231 was affixed to the original of this report. P.O. Box 193488, San Juan, Puerto Rico 00919-3488 Tel. (787) 758-4620 Fax (787) 767-4709 Torres Llompart, Sanchez Ruiz & Co. Certified Public Accountants, and Business Consultants Graham Carter & Jennings, PLC Certified Public Accountants Harold D. Carter (1931-1993) Jack G. Jennings Walter H. Graham Michael J. Carter INDEPENDENT AUDITOR'S REPORT To the Partners 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, 1996 and 1995, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing, Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits 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 Autumnwood Limited Partnership, FmHA Project No.: 54-025621447815, as of December 31, 1996 and 1995, and the results of its operations, the changes in partners' equity (deficit) and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 12 and 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. February 3, 1997 601 Thimble Shoals Boulevard Suite 201 Newport News, Virginia 23606 (757) 873-0767 Fax (757) 873-6938 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 sheets of Beckwood Manor Eight Limited Partnership, RHCD Project No. 03-009-0710677267 (the Partnership), as of December 31, 1996 and 1995, and the related statements of profit (lose), changes in partners, equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. in our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Beckwood Manor Eight Limited Partnership as of December 31, 1996 and 1995, and its results of operations, changes in partners, equity (deficit), and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated March 12, 1997, on our consideration of the Partnership's internal control structure and a report dated March 12, 1997 on its compliance with laws, regulations, contracts and grants. our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplementary information shown on pages 10 to 11 is presented for the purposes of additional analysis and are not a required part of the basic financial statements of the Partnership. 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. Little, Shaneyfelt & Co. March 12, 1997 DONALD W. CAUSEY, CPA, P.C. Certified Public Accountant P.O. Box 775 516 Walnut Street Gadsden, Alabama 35902 (205)543-3707 Fax (205)543-9800 INDEPENDENT AUDITOR S REPORT To the Partners Bridlewood, Limited Partnership Horse Cave, Kentucky I have audited the accompanying balance sheets of Bridlewood, Limited Partnership, a limited partnership, RHS Project No.: 20-050-611149839 as of December 31, 1996 and 1995, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted the audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. 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 Bridlewood, Limited Partnership, RHS Project No.: 20-050-611149839 as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 10 through 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I through II for the year ended December 31, 1996 and 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 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 6, 1997 on my consideration of Bridlewood, Limited Partnership's internal control structure and a report dated March 6, 1997 on its compliance with laws and regulations. March 6, 1997 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, 1996 and 1995 and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our 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, 1996 and 1995, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. January 21, 1997 4408 Forest Drive, Third Floor * Columbia, South Carolina 29206 * Telephone 803-790-0020 Fax 803-790-0011 Thomas, Judy & Tucker, P.A. Certified Public Accountant 16 East Rowan Street, Suite 100 Raleigh, NC 27609 571-7055 FAX (919) 571-7089 Clifton W. Thomas Chris P. Judy David W. Tucker C. Gilbert Smith INDEPENDENT AUDITOR S 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, 1996 and 1995 and the related statements of operations and 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 Graham Housing Associates Limited Partnership as of December 31, 1996 and 1995, 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 reports dated February 13, 1997 on our consideration of Graham Housing Associates Limited Partnership's internal control structure, compliance with specific requirements applicable to Major HUD Programs and compliance with specific requirements applicable to Affirmative Fair Housing. Our audits were 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 13, 1997 Schoonover, Boyer, Gettman & Associates Certified Public Accountants - Financial Consultants INDEPENDENT AUDITORS' REPORT 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 limited partnership) as of December 31, 1996 and - 1995, and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on the financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the 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 mentioned above present fairly, in all material respects, the financial position of The Hearthside II Limited Dividend Housing Association Limited Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. We conducted our audits for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. 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. January 25, 1997 Northwoods Corporate Center Suite 200 110 Northwoods Boulevard Worthington, Ohio 43235 614/888-8000 Fax 614/888-8634 TAMA AND BUDAJ, P.C. Certified Public Accountants 32783 Middlebelt Road Farmington Hills, Michigan 48334-1726 (810) 626-3800 Fax (810) 626-2276 ELY TAMA, CPA JEFFREY F. BUDAJ, CPA BARTON A. LOWEN, CPA EMIL A. RAAB, CPA DIANE L. ISAACS, CPA JOHN W. WEIPERT, CPA SEAN M. DONOVAN, CPA American, Michigan, Florida & South Carolina Institutes of CPAs INDEPENDENT AUDITOR S REPORT To the Partners of Heron's Landing RRH, Ltd. We have audited the accompanying balance sheet of HERON'S LANDING RRH, LTD. as of December 31, 1996 and 1995, and the related statements of operations, changes in partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the general partner and management of the partnership. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly in all material respects, the financial position of HERON'S LANDING RRH, LTD., as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying information listed in the table of contents is presented for the purpose of additional analysis and is not a required part of the basic financial statements. This accompanying information is the responsibility of the partnership's management. Such information, except for the portion marked "unaudited" on which we express no opinion, has been subjected to the auditing procedures applied in our audit of the basic financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole. TAMA AND BUDAJ, P.C. Farmington Hills, Michigan January 31, 1997 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, 1996 and 1995 and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our 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, 1996 and 1995, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. January 18, 1997 4408 Forest Drive, Third Floor Columbia, South Carolina 29206 Telephone 803-790-0020 Fax 803-790-0011 Hawkins, Ash, Baptie & Company, LLP 99 Milwaukee Street P.0. Box 1508 La Crosse, WI 54602-1508 PHONE:(608) 784-7737 FAX:(608) 785-2140 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, 1996 and 1995, and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Projects 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, 1996 and 1995, and the results of its operations, the changes in partners' equity, and cash flows for the years then ended in conformity with generally accepted accounting principles. Our 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 4, 1997 LITTLE, SHANEYFELT & CO. Certified Public Accountants 1501 N. University, Suite 300 Little Rock, Arkansas 72207-5232 Telephone (501) 666-2879 INDEPENDENT AUDITORIS 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, RHCD Project No. 03-052-710665737 (the Partnership), as of December 31, 1996 and 1995, 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, 1996 and 1995, and its results of operations, changes in partners, equity (deficit), and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing standards, we have also issued a report dated March 16, 1997, on our consideration of the Partnership s internal control structure and a report dated March 16, 1997 on its compliance with laws, regulations, contracts and grants. Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplementary information shown on pages 10 to 11 is presented for the purposes of additional analysis and are not a required part of the basic financial statements of the Partnership. 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. Little, Shaneyfelt & Co. March 16, 1997 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, 1996 and 1995, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates. made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to -,above present fairly, in all material respects, the financial position of Ridgeview Apartments of Brainerd, A Limited Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Fargo, North Dakota February 11, 1997 McGEE & Associates, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners Rio Mimbres 11, Ltd. and Rural Housing Service We have audited the accompanying balance sheets of Rio Mimbres II, Ltd. (a limited partnership) as of December 31, 1996 and 1 995, 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, 1996 and 1995, and the results of its operations, changes in partners' equity and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 15, 1997, on our consideration of the Partnership's internal control structure and a report dated January 15, 1997, on its compliance with laws and regulations. Our audits were conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental information included in the report is presented for purposes of additional analysis and is not a required part of the financial statements of Rio Mimbres II, Ltd. Such information has been subjected to the auditing procedures applied in the audits of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. January 15, 1997 Farmington, New Mexico Suby, Von Haden & Associates, S.C. Certified Public Accountants Business and Management Consultants INDEPENDENT AUDITOR'S REPORT To the Partners School Street Limited Partnership I Madison, Wisconsin We have audited the accompanying balance sheet of WHEDA Project No. 01 1/001 217 of School Street Limited Partnership I as of December 31, 1996, 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. The financial statements of School Street Limited Partnership I for the year ended December 31, 1995 were audited by other auditors, whose report dated January 18, 1996, expressed an unqualified opinion on those 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 WHEDA Project No. 011/001217 of School Street Limited Partnership I as of December 31, 1 996, 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. January 9, 1997 1221 John 0. Hammons Dr. P.O. Box 44966 Madison, WI 53744-4966 (608) 831-8181 FAX (608) 831-4243 MADISON - MILWAUKEE - ROCKFORD FLOYD & COMPANY Certified Public Accountant 306 Commercial Drive, Suite 202 Savannah, Georgia 31406 Phone:(912) 355-9969 Post Office Box 14251 Savannah, Georgia 31416 INDEPENDENT AUDITORS' REPORT To the General Partners of Timmons Village Limited Partnership We have audited the accompanying balance sheets of Timmons Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the related statements of operations, partners' equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. our responsibility 'is to express an opinion on these financial statements based on our audits. The financial statement information for the year ending December 31, 1995 was audited by another independent certified public accountant who expressed an unqualified opinion dated March 16, 1996. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Timmons Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1997 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 University Meadows Limited Dividend Housing Association Limited Partnership We have audited the accompanying balance sheet of University Meadows Limited Dividend Housing Association Limited Partnership (a Michigan limited partnership), MSHDA Development No. 889, as of December 31, 1996 and 1995, and the related statements of profit and loss, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements refer-red to above present fairly, in all material respects, the financial position of University Meadows Limited Dividend Housing Association Limited Partnership at December 31, 1996 and 1995, and the results of its operations and 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 February 12, 1997, on our consideration of the Partnership's internal control structure and a report dated February 12, 1997, on its compliance with laws and regulations. February 12, 1997 A member of Moores Rowland A world wide association of independent accounting firms Torres Llompart, Sanchez Ruiz & Co. Certified Public Accountants and Business Consultants (A member of Kreston International) Partners: Luis J. Torres Llompart, CPA Frank Sanchez Ruiz, CPA, CMA, CIA Members of: Division for CPA Firms - American Institute of CPAs - Puerto Rico Society of Certified Public Accountants INDEPENDENT AUDITORS'REPORT ON FINANCIAL STATEMENTS Partners Villa del Mar Limited Partnership San Juan, Puerto Rico We have audited the accompanying balance sheet of Villa del Mar Limited Partnership as of December 31, 1996, and the related statements of operations, partners' equity and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of Villa del Mar Limited Partnership as of December 3 1, 1995, were audited by other auditors whose report dated January 25, 1996, expressed an unqualified opinion on those statements. We conducted our audit in accordance with generally, accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Villa del Mar Limited Partnership as of December 31, 1996, 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. In accordance with Government Auditing Standards, we have also issued a report dated February 20, 1997 on our consideration of the Partnership's internal control structure and a report dated February 20, 1997 on its compliance with laws, regulations, contracts, loan covenants and agreements. Our audit was made for the purpose of forming an opinion on the basic financial statements for the year ended December 31, 1996, taken as a whole. The accompanying schedules of administrative, utilities, maintenance, taxes, insurance and interest expenses 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 for the year ended December 31, 1996 and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements for the year ended December 3 1, 1996, taken as a whole. February 20, 1997 License No. 169 San Juan, Puerto Rico Stamp number 1412234 was affixed to the original this report. P.O. Box 193488, San Juan, Puerto Rico 00919-3488 Tel. (787) 758-4620 Fax (787) 767-4709 Torres Llompart, Sanchez Ruiz & Co. Certified Public Accountants, and Business Consultants Ortiz Lopez & Co. Certified Public Accountants Calle Post 183 Sur Altos P.O. Box 3944 - Marina Station Mayaguez, 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, 1996 and 1995, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Virgen del Pozo Limited Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 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 31, 1997 FLOYD & COMPANY Certified Public Accountant 306 Commercial Drive, Suite 202 Savannah, Georgia 31406 Phone: (912) 355-9969 Post Office Box 14251 Savannah, Georgia 31416 INDEPENDENT AUDITORS' REPORT To the General Partners of Whitewater Village Limited Partnership We have audited the accompanying balance sheets of Whitewater Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the related statements of operations, partners' equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. The financial statement information for the year ending December 31, 1995 was audited by another independent certified public accountant who expressed an unqualified opinion dated March 16, 1996. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Whitewater Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1997 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 TELEPHONE (912)369-7575 FAX (912) 876-8798 Members American Institute and Georgia Society of Certified Public Accountants GRAHAM, CARTER & JENNINGS,PLC CERTIFIED PUBLIC ACCOUNTANTS Harold D. Carter (1931-1993) Jack G. Jennings Walter H. Graham Michael J. Carter Independent Auditor's Report To the Partners 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 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 Brunswick Limited Partnership, FMHA Project No.: 54-017-621447814, as of December 31, 1995 and 1994, and the results of its operations, the changes in partners' capital and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 13 and 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. February 26, 1996 601 Thimble Shoals Boulevard Suite 201 Newport News, Virginia 23606 (757) 873-0767 Fax (757) 873-6938 Ludvigson, Braun & Co. Accountants and Auditors 117 NW 3rd Street P.O. Box 845 Valley City, North Dakota 58072-0845 Telephone: (701) 845-1457 Fax: (701) 845-8OO3 R.B. Ludvigson, CPA (Retired) Raymond J. Braun LPA Muriel G. Haugen, CFA 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 GOLDEN ASSOCIATES Certified Public Accountants P.O. Box 967 769 E. Oglethorpe Hwy Hinesville, GA 31313 Larry R. Golden, CPA Janine D. Graham, CPA 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 TELEPHONE (912)369-7575 FAX (912) 876-8798 Members American Institute and Georgia Society of Certified Public Accountants TAMA AND BUDAJ, P.C. Certified Public Accountants 32783 Middlebelt Road Farmington Hills, Michigan 48334-1726 (810) 626-3800 Fax (810) 626-2276 Ely Tama, CPA Jeffrey F. Budaj, CPA Barton A. Lowen, CPA Emil A. Raab, CPA Diane L. Isaacs, CPA John W. Weipert, CPA Sean M. Donovan, CPA American, Michigan, Florida & South Carolina Institutes of CPAs To the Partners of 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 years then ended. These financial statements are the responsibility of the general partner and management of the partnership. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly in all material respects, the financial position of HERON'S LANDING RRH, LTD. , as of December 31, 1995 and 1994, and the results of its' operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supporting data on pages 10 through 17 inclusive has been subjected to the auditing procedures applied in the examination of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. We have also reviewed internal accounting controls and compliance with laws and regulations and have rendered our reports thereon on pages 18 through 20. TAMA AND BUDAJ, P.C. Farmington Hills, Michigan February 9, 1996 GRAHAM, CARTER & JENNINGS, PLC CERTIFIED PUBLIC ACCOUNTANTS Harold D. Carter(1931-1993) Jack G. Jennings Walter H. Graham Michael J. Carter Independent Auditor's Report To the Partners Lebanon II Limited Partnership We have audited the accompanying balance sheets of Lebanon 11 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 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 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. 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 601 Thimble Shoals Boulevard Suite 201 Newport News, Virginia 23606 (757) 873-0767 Fax (757) 873-6938 Hawkins, Ash, Baptie & Company, LLP Certified Public Accountants EPENDENT 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 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 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 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 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: 27-018-04116 25811 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 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 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. 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 Velez, Semprit, Nieves & Co. Certified Public Accounts/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, 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 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, 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 25, 1996 on our consideration of the Partnership's internal control structure and a report dated January 25, 1996 on its compliance with laws, regulations, contracts, loan covenants and agreements. 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. January 25, 1996 Stamp number 1340337 was affixed to the original of this report. Velez, Semprit, Nieves & Co. Certified Public Accounts/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 April Gardens Apartments M Limited Partnership San Juan, Puerto Rico We have audited the accompanying balance sheets of April Gardens Apartments III 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 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 April Gardens Apartments III 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 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. March 30, 1995 Stamp number l282933 was affixed to the original of this report. DONALD W. CAUSEY, CPA, P.C. Certified Public Accountant P.O. Box 775 516 Walnut Street Gadsden, Alabama 35902 Telephone (205) 543-3707 Fax (205) 543-9800 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, FmHA Project No.: 01-028-631016355 as of December 31, 1994 and 1993, and the related statements of operations, partners' deficit and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. 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 arc free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. 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 Chestnut Hill Estates, Ltd., FmHA Project No.- 01-028-631016355 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. 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 III for the year ended December 31, 1994 and 1993, 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 20, 1995 YOUNG & PRICKITT P.C. Certified Public Accountants 111 Franklin Road, Suite 302 Roanoke, Virginia 24011-2100 540/982-3852 INDEPENDENT AUDITOR S REPORT 540/343-9231 To the Partners Deerfield Associates Roanoke, Virginia We have audited the accompanying balance sheets of Deerfield Associates (A Virginia Limited Partnership) 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. Our responsibility is to express an opinion on these financial statements based on our audit. We 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 we plan and perform the audits to obtain reasonable assurance about whether the financial statements arc free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the 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 Deerfield Associates 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. 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 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. February 25, 1995 - Page 4 - BERRY, DUNN, McNEIL & PARKER CERTIFIED PUBLIC ACCOUNTANTS MANAGEMENT CONSULTANTS INDEPENDENT AUDITORS' REPORT The Partners East Machias Limited Partnership We have audited the accompanying balance sheet of East Machias Limited Partnership, a limited partnership, FMHA Case No. 23-015-0010465014 as of December 31, 1994, 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. The financial statements and additional information of East Machias Limited Partnership as of December 31, 1993, and for the ten months then ended, were audited by other auditors whose report dated January 26, 1994, expressed an unqualified opinion on those statements. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the 1994 financial statements referred to above present fairly, in all material respects, the financial position of East Machias Limited Partnership, a limited partnership, as of 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 audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying additional information on pages 14 through 15 as of and for the year ended December 31, 1994, is presented solely for the use of the Farmers Home Administration and is not a required part of the basic financial statements. The additional information presented in the Multiple Family Housing Borrower Balance Sheet, Form FMHA 1930-8, as of December 31, 1994, 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 February 2, 1995 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, 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. 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, 1994 and 1993 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 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, 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. Daniel G. Drane Certified Public Accountant March 9, 1995 THOMAS, JUDY & TUCKER Certified Public Accountants 16 East Rowan Street, Suite 100 Raleigh, NC 27609 (919) 571-7055 Fax(919) 571-7089 Clifton W. Thomas Chris P. Judy David W. Tucker C. Gilbert Smith 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 that 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 HOWE AND ASSOCIATES Certified Public Accountants 104 East Broadway Columbia, MO 65203 February 15, 1995 INDEPENDENT AUDITOR'S REPORT Partners HARRISONVILLE PROPERTIES II, LP Re: For the Years Ended December 31, 1993 and December 31, 1994 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 HOWE AND ASSOCIATES, PC Certified Public Accountants 104 East Broadway Columbia, MO 65203 February 25, 1995 INDEPENDENT AUDITOR'S REPORT Partners HIGGINSVILLE ESTATES, LP Re: For the Years Ended December 31, 1993 and December 31, 1994 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 AND ASSOCIATES, PC Certified Public Accountants 104 East Broadway Columbia, MO 65203 February 15, 1995 INDEPENDENT AUDITOR'S REPORT Partners KEARNEY ESTATES, L.P. Re: For the Years Ended December 31, 1993 and December 31, 1994 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 HOWE AND ASSOCIATES, PC Certified Public Accountants 104 East Broadway Columbia, MO 65203 February 15, 1995 INDEPENDENT AUDITOR'S REPORT Partners LEBANON PROPERTIES III, LP Re: For the Years Ended December 31, 1993 and December 31, 1994 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.: 20-043-0611158011, 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. 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, 1994 and 1993 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 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, 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. Daniel G. Drane Certified Public Accountant March 9, 1995 David G. Pelliccione, C.P.A., P. C. Post Office Box 1 Savannah, Georgia 31402 Delivery Address 202 East Liberty Street Savannah, Georgia 31401 Telephone (912) 234-1999 Fax (912) 234-0139 Member of American Institute of CPAs/ Georgia Society of CPAs INDEPENDENT AUDITORS' REPORT To The Partners Marshall Lane Limited Partner,-,hip We have audited the accompanying balance sheets of MARSHALL LANE 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 MARSHALL LANE 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 February 24, 1995 HOWE AND ASSOCIATES, PC Certified Public Accountants 104 East Broadway Columbia, MO 65203 February 17, 1995 INDEPENDENT AUDITOR'S REPORT Partners MARYVILLE PROPERTIES, LP. Re: For the Year Ended December 31, 1993 and December 31, 1994 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 HOWE AND ASSOCIATES, PC Certified Public Accountants 104 East Broadway Columbia, MO 65203 February 24, 1995 INDEPENDENT AUDITOR'S REPORT Partners OAK GROVE VILLA APARTMENTS, LP Re: For the Years Ended December 31, 1993 and December 31, 1994 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 AND ASSOCIATES, PC Certified Public Accountants 104 East Broadway Columbia, MO 65203 February 20, 1995 INDEPENDENT AUDITORS REPORT Partners OSCEOLA ESTATES, L.P. Re: For the Years Ended December 31, 1993 and December 31, 1994 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 McGee & Associates, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners Rio Mimbres II, Ltd. and Farmers Home Administration We have audited the accompanying balance sheets of Rio Mimbres II, Ltd. (a limited partnership) as of December 31, 1994 and 1993, and the related statements of operations, partners' equity and cash flows for the years ended December 31, 1994 and 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 Rio Mimbres II, Ltd. as of December 31, 1994 and 1993, and the results of its operations and the changes in partners' equity and cash flows for the years ended December 31, 1994 and 1993 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 included in the report is presented for the 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, 1995 Farmington, New Mexico Suby, Von Haden & Associates, S.C. Certified Public Accountants Business and Management Consultants INDEPENDENT AUDITOR'S REPORT To the Partners School Street Limited Partnership I Madison, Wisconsin We have audited the accompanying balance sheets of WHEDA Project No. 011/001217 of School Street Limited Partnership I as of December 31, 1994 and 1993, and the related statements of loss, 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 WHEDA Project No. 011/001217 of School Street Limited Partnership I as of December 31, 1994 and 1993, 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. January 24, 1995 1221 John Q. Hammons Dr. - P.O. Box 44966 - Madison, WI 53744-4966 (608) 831-8181 - FAX (608) 831-4243 MADISON - MILWAUKEE - ROCKFORD DONALD W. CAUSEY, CPA, P.C. Certified Public Accountant P.O. Box 775 - 516 Walnut Street Gadsden, Alabama 35902 Telephone (205) 543-3707 Fax (205) 543-9800 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, a limited partnership, FmHA Project No.: 01-036-631030935 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. 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, 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. 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 III for the year ended December 31, 1994 and 1993, 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 24, 1995 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 NEII Properties, Ltd. (a Kentucky limited partnership), RECDS Project No.: 20-062- 0611174245, as of December 31, 1994 and 1993, and the related statements of operations, partners' capital, and cash flows for the years ended December 31, 1994 and 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 audits. I conducted my audits, as of and for the year ended December 31, 1994 and 1993 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, 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. Daniel G. Drane Certified Public Accountant March 9, 1995 Blackman & Associated, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners 1413 Leavenworth Historic Limited Partnership Omaha, Nebraska We have audited the accompanying balance sheets of 1413 Leavenworth Historic Limited Partnership (a Nebraska Limited Partnership) as of December 31, 1996 and 1995 and the related statements of operations, changes in partners' capital accounts and cash flows for the years then ended. 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 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 1413 Leavenworth Historic Limited Partnership at December 31, 1996 and 1995 and the results of its operations, changes in partners' capital accounts 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 additional information on pages 9 and 10 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Omaha, Nebraska January 31, 1997 11924 Arbor St., Ste. 200 Omaha, Nebraska 68144 Phone (402) 330-1040 Fax (402) 333-9189 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, 1996 and 1995 and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our 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, 1996 and 1995, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. February 7, 1997 4408 Forest Drive, Third Floor Columbia, South Carolina 29206 Telephone 803-790-0020 Fax 803-790-0011 DAVID P. PHILLIPS, P.C. 6846 Pacific Street Suite 100 Omaha, Nebraska 68106 Office (402) 558-2596 Fax (402) 558-2914 INDEPENDENT AUDITOR'S REPORT To the Partners Cass Partners Limited Partnership I have audited the accompanying balance sheets of Cass Partners Limited Partnership as of December 31, 1996 and 1995, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cass Partners Limited Partnership as of December 3 1, f996 and 1995, and the results of its operations, and changes in partners' equity (deficit) and cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 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 7, 1997 Oscar N. Harris & Associates, P.A. Certified Public Accountants OSCAR N. HARRIS, C.P.A. SHERRY S. JOHNSON, C.P.A. KENNETH E. MILTON, C.P.A. CONNIE P. STANCIL, C.P.A. American Institute of CPAs - North Carolina Association of CPAs INDEPENDENT AUDITOR'S 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. as of December 31, 199G and 1995, and the related statements of partners, capital, income, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards, and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well. as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cumberland Woods Associates of Middlesboro, KY, Ltd. as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards we have also issued a report dated January 31, 1997 on our consideration of Cumberland Woods Associates of Middlesboro, KY, Ltd. s internal control structure and a report dated January 31, 1997 on its compliance with laws and regulations. Our audits were made for the purpose of forming an opinion on the-basic financial statements taken as a whole. Schedules 1, 2, 3, and 4 on pages 15, 16, 17, and 18 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. January 31, 1997 100 EAST CUMBEPLAND STREET, P.O. BOX 578, DUNN, N.C. 28335 (910) 892-1021 FAX (910) 892-6084 PHILLIPS, DORSEY, THOMAS, WATERS & BRAFFORD, P.A. Certified Public Accounts DRAWER 1359 - 215 HORNER ST. HENDERSON, NC 27537 919/438-8154 - NC WATS 800/356-7674 FAX 919/492-5066 Ronald S. Dorsey, CPA H. Timothy Thomas, CPA Susan R. Waters, CPA Michael H. Brafford, CPA W. Haywood Phillips, CPA Carleen P. Evans, CPA Holly B. Perryman, CPA Franklin L. Irvin, Jr., CPA INDEPENDENT AUDITORS' 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, 1996 and 1995, and the related statements of operations, partners, equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our 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, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 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 17,1997 AMERICAN INSTITUTE OF CPAS NC ASSOCIATION OF CPAS Henderson, Godbee & Nichols, P.C. Certified Public Accountants Members of American Institute of Certified Public Accountants Georgia Society of Certified Public Accountants Robert A. Goddard, Jr., CPA (1943-1989) Gerald H. Henderson, CPA Wendell Godbee, CPA M. Paul Nichols, Jr., CPA Susan S. Swader, CPA Mark S. Rogers, CPA Janine M. Megginson, CPA Maureen P Collins, CPA Amy McGill Smith, CPA Krystal P. Hiers, CPA Marguerite J. Joyner, CPA Kenny L. Carter, CPA Shirley S. Miller, CPA INDEPENDENT AUDITORS' REPORT To the Partners Eastman Elderly Housing, L.P. Valdosta, Georgia We have audited the accompanying balance sheet of Eastman Elderly Housing, L.P. (a limited partnership), Federal ID No.: 58-1965562, as of December 31, 1996, and the related statements of income, partners' equity, and cash flows for the year then ended. These financial statements ate the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of Eastman Elderly Housing, L.P. as of December 31, 1995, were audited by other auditors whose report dated January 27, 1996, expressed an unqualified opinion on those statements. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a 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, 1996, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 24, 1997 on our consideration of the Eastman Elderly Housing, L.P. s internal control structure and a report dated January 24, 1997. Henderson, Godbee & Nichols, P.C. Certified Public Accountants January 24, 1997 3488 North Valdosta Road / P. 0. Box 2241 / Valdosta, Georgia 31604-2241 / Phone: (912) 245-6040 / FAX: (912) 245-1669 Crisp, Hughes & Co., LLP Certified Public Accountants and Consultants INDEPENDENT AUDITORS' REPORT To The Partners Fairmeadow Apartments, Limited Partnership We have audited the accompanying balance sheets of Fairmeadow Apartments, Limited Partnership as of December 31, 1996 and 1995, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards, 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 b y 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 position of Fairmeadow Apartments, Limited Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 11, 1997 on our consideration of Fairmeadow Apartments,, Limited Partnership's internal control structure and a, report dated February 11, 1997 on its compliance with laws and regulations. February 11, 1997 1 Creekview Court P.O. Box 25849 Greenville, South Carolina 29616 (864) 288-5544 FAX (864) 458-8519 Other Offices: Asheville, Boone, Burnsville, Charlotte, Durham, Sylva, NC Member of: The American Institute of Certified Public Accountants The Continental Association of CPA Firms, Inc., The Intercontinental Accounting Associates and The North Carolina and South Carolina Associates of CPAs DuRANT, SCHRAIBMAN & LINDSAY Certified Public Accountants INDEPENDENT ACCOUNTANTS' REPORTS 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, 1996 and 1995, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our 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, 1996 and 1995, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. January 25, 1997 4408 Forest Drive, Third Floor Columbia, South Carolina 29206 Telephone 803-790-0020 Fax 803-790-0011 THOMAS C. CUNNINGHAM, CPA PC 23 Moore Street Bristol, Virginia 24201 (703) 669-5531 Fax (703)669-5576 INDEPENDENT AUDITOR'S REPORT To the Partners Lawrenceville Manor Limited Partnership I have audited the accompanying balance sheets of Lawrenceville Manor Limited Partnership, FMHA Case No.: 54-017-0541572408, as of December 31, 1996 and 1995 and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller, General of the United States. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lawrenceville Manor Limited Partnership, as of December 31, 1996 and 1995 and the results of its operations and cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. In accordance with Government Auditing Standards, I have also issued a report dated February 15, 1997 on my consideration of Lawrenceville Manor Limited Partnership's internal control structure and a report dated February 15, 1997 on its compliance with laws and regulations applicable to the financial statements. Thomas C. Cunningham, CPA PC Bristol, Virginia February 15, 1997 Suby, Von Haden & Associates, S.C. Certified Public Accountants - Business and Management Consultants INDEPENDENT AUDITOR'S 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 11 as of December 31, 1996, 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. The combined financial statements of Mariner's Pointe Limited Partnership I and Mariner's Pointe Limited Partnership 11 for the year ended December 31, 1995 were audited by other auditors, whose report dated January 18, 1996, expressed an unqualified opinion on those 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 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 11 as of December 31, 1996, 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. January 16, 1997 1221 John 0. Hammons Dr. P.O. Box 44966 Madison, WI 53744-4966 (608) 831-8181 FAX (608) 831-4243 MADISON - MILWAUKEE - ROCKFORD 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 Meadows of Southgate Limited Dividend Housing Association Limited Partnership We have audited the accompanying balance sheet of Meadows of Southgate Limited Dividend Housing Association Limited Partnership (a Michigan limited partnership), as of December 31, 1996 and 1995, and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Meadows of Southgate Limited Dividend Housing Association Limited Partnership, for the years ended December 31, 1996 and 1995, and the results of its operations, partners' equity, and cash flows for the years then ended, in conformity with generally accepted accounting principles. February 12, 1997 A Member of Moores Rowland International A Worldwide Association of Independent Accounting Firms BLOOM, GETTIS, HABIB & TERRONE, P.A. Certified Public Accountants Suite 1450 2601 South Bayshore Drive Miami, Florida 33133-9893 Telephone (305)858-6211 Fax (305) 858-9696 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. Members: American Institute of CPAs - Florida Institute of CPAs To the Partners Riviera Apts., Ltd. Boston, Massachusetts INDEPENDENT AUDITORS' REPORT We have audited the accompanying Balance Sheets of Riviera Apts., Ltd. (a Florida Limited Partnership), as of December 31, 1996 and 1995, and the related Statements of Operations, Partners' Equity and Cash Flows for the years then ended. These financial statements are the responsibility of the management of Riviera Apts., Ltd. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis,- evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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, 1996 and 1995, and the results of its operations, the changes in partners' equity and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information 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 28, 1997 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, 1996 and 1995, and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our, audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of St. Croix Commons Limited Partnership, as of December 31, 1996 and 1995, and the results of its operations, the changes in partners' equity, and cash flows for the years then ended in conformity with generally accepted accounting principles. Our 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 15, 1997 2411 N. Hillcrest Parkway, P.O. Box 810 Eau Claire, WI 54702-0810 Phone (715) 832-3425 Fax (715) 832-1665 TAMA AND BUDAJ, P.C. Certified Public Accountants 32783 Middlebelt Road Farmington Hills, Michigan 48334-1726 (810) 626-3800 Fax (810) 626-2276 ELY TAMA, CPA JEFFREY F. BUDAJ, CPA BARTON A. LOWEN, CPA EMIL A. RAAB, CPA DIANE L. ISAACS, CPA JOHN W. WEIPERT, CPA SEAN M. DONOVAN, CPA American, Michigan, Florida & South Carolina Institutes of CPAs INDEPENDENT AUDITOR S REPORT To the Partners of Victoria Pointe RRH, Ltd. We have audited the accompanying balance sheet of VICTORIA POINTE RRH, LTD. as of December 31, 1996 and 1995, and the related statements of operations, changes in partners' equity (deficit) and cash flows for the year ended December 31, 1996 and 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 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 VICTORIA POINTE RRH, LTD., as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the year ended December 31, 1996 and for the period January 23, 1995 (date operational) to December 31, 1995 in conformity with generally accepted accounting principles. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying information listed in the table of contents is presented for the purpose of additional analysis and is not a required part of the basic financial statements. This accompanying information is the responsibility of the partnership's management. Such information, except for the portion marked "unaudited" on which we express no opinion, has been subjected to the auditing procedures applied in our audit of the basic financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole. TAMA AND BUDAJ, P.C. Farmington Hills, Michigan January 31, 1997 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, 1996 and 1995, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our 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, 1996 and 1995, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. January 27, 1997 4408 Forest Drive, Third Floor Columbia, South Carolina 29206 Telephone 803-790-0020 Fax 803-790-0011 OSCAR N. HARRIS & ASSOCIATES, P.A. Certified Public Accountant 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.A. Certified Public Accounts DRAWER 1359 - 215 HORNER ST. HENDERSON, NC 27537 919/438-8154 - NC WATS 800/356-7674 FAX 919/492-5066 Ronald S. Dorsey, CPA H. Timothy Thomas, CPA Susan R. Waters, CPA Michael H. Brafford, CPA W. Haywood Phillips, CPA Carleen P. Evans, CPA Holly B. Perryman, CPA Franklin L. Irvin, Jr., CPA INDEPENDENT AUDITORS' 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 Bob T. Robinson Certified Public Accountant 2084 Dunbarton Drive Jackson, Mississippi 39216 (601) 982-3875 To the Partners Joiner Elderly, L.P. INDEPENDENT AUDITOR'S REPORT 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 THOMAS C. CUNNINGHAM, CPA PC 23 MOORE STREET BRISTOL, VIRGINIA 24201 (703) 669-5531 (703) 669-5576 fax INDENDENT AUDITOR'S REPORT To the Partners Lawrenceville Manor Limited Partnership I have audited the accompanying balance sheets of Lawrenceville Manor Limited Partnership, FMHA Case No.: 54-017-0541572408, as of December 31, 1995 and 1994 and the related statements of operations for the year ended December 31, 1995 and for the period August 30, 1994 to December 31, 1994 and the related statements of partners' equity and cash flows for the years ended December 31, 1995 and 1994. These financial statements are the responsibility of the Partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. 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 Lawrenceville Manor Limited Partnership, as of December 31, 1995 and 1994 and the results of its operations for the year ended December 31, 1995 and for the period August 30, 1994 to December 31, 1994 and cash flows for the years ended December 31, 1995 and 1994 in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Thomas C. Cunningham, CPA PC Bristol , Virginia February 15, 1996 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 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 Telephone (912) 369-7575 Fax (912) 876-8798 Members American Institute and Georgia Society of CPAs 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 CPAs 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 TAMA AND BUDAJ, P.C. Certified Public Accountants 32783 Middlebelt Road Farmington Hills, Michigan 48334-1726 (810) 626-3800 Fax (810) 626-2276 ELY TAMA, CPA JEFFREY F. BUDAJ, CPA BARTON A. LOWEN, CPA EMIL A. RAAB, CPA DIANE L. ISAACS, CPA JOHN W. WEIPERT, CPA SEAN M. DONOVAN, CPA American, Michigan, Florida & South Carolina Institutes of CPAs To the Partners of 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 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 Otis, Atwell & Timberlake Professional Association Certified Public Accountants James C. Otis, CPA., CFP 980 Forest Avenue Stephen W AtwelL C.P.A. Portland Maine 04103 Fred 1. Timberlake, C.PA. (207) 797-0990 Bruce E. Fritzson, C.P.A. FAX (207) 797-8618 Thomas J. Gioia, C.P.A. INDEPENDENT AUDITOR'S REPORT To the Partners Anson Limited Partnership We have audited the accompanying balance sheets of Anson Limited Partnership, a limited partnership, FMHA Case No. 23-013-010459470, as of December 31, 1994 and 1993, and the related statements of income, partners' equity and cash flows for the year ended December 31, 1994 and for the period August 1, 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 audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a rest basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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, 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 August 1, 1993 to December 31, 1993 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 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 additional information presented in 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 a whole. Certified Public Accountants January 26, 1995 Portland, Maine Bob T. Robinson Certified Public Accountant 2084 Dunbarton Drive Jackson, Mississippi 39216 (601) 982-3875 INDEPENDENT AUDITOR'S REPORT To the Partners Bentonia Elderly, L.P. I have audited the accompanying balance sheet of Bentonia Elderly, 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. 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 Bentonia 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 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 BLAIRSVILLE RENTAL HOUSING, L.P. [a Limited Partnership], as of December 31, 1994, and the related statements of income and expenses, 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. 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 BLAIRSVILLE 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 February 22, 1995 Members: Georgia Society & American Institute of CPAs, AICPA Division for CPA Firms, Private Companies 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 sheet of BLAIRSVILLE RENTAL HOUSING, L.P. II (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 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 BLAIRSVILLE RENTAL HOUSING, L.P. II 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 22, 1995 Members: Georgia Society & American Institute of CPAs, AICPA Division for CPA Firms, Private Companies Practice Section To the Partners Blowing Rock Limited Partnership We have audited the accompanying balance sheet of Blowing Rock Limited Partnership as of December 31, 1994, and the related statements of operations, partners' equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our 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 Blowing Rock Limited Partnership as of December 31, 1994, and the results of its operations, the changes in partners' equity (deficit) and cash flows for the years then ended in conformity with generally accepted accounting principles. John B. Barry, CPA, P.A. Boone, North Carolina February 28, 1995 HOWE & ASSOCIATES, PC Certified Public Accountants 104 East Broadway Columbia, MO 65203 March 11, 1995 INDEPENDENT AUDRTOR'S REPORT Partners BRANSON CHRISTIAN COUNTY I, LP Re: For the Year Ended December 31, 1994 We have audited the accompanying balance sheet and the related statements of income, owners' equity, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and 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 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 10, 1995 INDEPENDENT AUDITOR S REPORT Partners BRANSON CHRISTIAN COUNTY II, LP Re: For the Year Ended December 31, 1994 We have audited the accompanying balance sheet and the related statements of income, owners' equity, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and 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 year 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 sheets of BUTLER RENTAL HOUSING, L.P. as of December 31, 1994 and 1993, 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 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 BUTLER RENTAL HOUSING, 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. Atlanta, Georgia January 14, 1995 Members: Georgia Society & American Institute of CPAs, AICPA Division for CPA Firms, Private Companies Practice Section Ziner & Company, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners of Cape Ann YMCA Community Center Limited Partnership We have audited the accompanying balance sheet of Cape Ann YMCA Community Center 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 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 Cape Ann YMCA Community Center 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. January 21, 1995 7 Winthrop Square Boston, Massachusetts 02110-1256 Phone (617) 542-8880 Fax (617) 542-871 Crisp Hughes & Co., L.L.P. Certified Public Accountants and Consultants Independent Auditors' Report To The Partners Fairmeadow Apartments, Limited Partnership W6 have audited the accompanying balance, sheets of Fairmeadow Apartments Limited Partners 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 expressed opinion on these financial statements based on our audit. We conducted our audits in accordance with generally accepted auditing standards, and with Government Auditing Standards issued by the Comptroller@-Gener2d 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, 8 well as evaluating the over all 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 Fairmeadow 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. In accordance with Government Auditing Standards, we have also issued a report dated March 1 1996 on our consideration of Fairmeadow Apartments, 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 Member of the American Institute Certified Public Accountants Bradley, Snipes, Gower & Associates, P.A. Certified Public Accountants P.O. Box 1009 Dunn, North Carolina 28335 (910) 892-6001 P.O. Box 1568 Lillington, North Carolina 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, 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 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, 1994 and 1993, 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 25, 1995 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 15, 1995 INDEPENDENT AUDITOR'S REPORT Partners GREENFIELD PROPERTIES, LP. Re: For the Years Ended December 31, 1993 and December 31, 1994 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 Ziner & Company, P.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners of Haynes House Associates II Limited Partnership We have audited the accompanying balance sheet (MHFA Forms F. C. -3A & -3B) of Haynes House Associates II Limited Partnership (a Massachusetts limited partnership) (Project No. 72-108-N) as of December 31, 1994, and the related statements of changes in partners' equity (MHFA Form F.C. 3C) , operations (MHFA Form F. C. -2A) and cash flows (MHFA Forms F. C. -4A, - 4B & -4C) 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 and Government Auditing Standards, issued by the Comptroller 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 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 Haynes House Associates II Limited Partnership as of December 31, 1994, and the changes in its partners' equity, the results of its operations and its cash flows for the year then ended, in accordance with generally accepted accounting principles. March 17, 1995 7 WINTHROP SQUARE BOSTON, MASSACHUSUSETS 02110-1256 Phone (617) 542-8880 Fax (617) 542-8715 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, 1994 and 1993, and the related statements of operations, partners' equity and cash flows for the year ended December 31, 1994 and 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 option 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 a test basis, evidence supporting, the amounts and disclosures in the financial statements. An audit also includes 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, 1994 and 1993, and the results of its operations and its cash flows for the Year ended December 31, 1994 and from February 12, 1993 to December 31, 1993, in conformity with generally accepted accounting principles. February 17, 1995 4408 Forest Drive, Third Floor Columbia, South Carolina 29206 Telephone 803-790-0020 Fax 803-790-0011 Robbins and Gautreau Certified Public Accountants (A Professional Corporation) Calvin L. Robbins, Jr., CPA, CFE John C. Gautreau, II, CPA Jeffrey Curt Gautreau, CPA Cora Crisler Head, CPA INDEPENDENT AUDITORS REPORT To the Partners of Isola Squarer L.P. We have audited the accompanying balance sheet of Isola Square, L.P. as of December 31, 1994, and the related statements of changes in partners I 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 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 Isola Square, 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 February 15, 1995 Baton Rouge, Louisiana 8641 United Plaza Blvd., Suite 202 Baton Rouge, Louisiana 70809 Phone (504) 924-6744 Fax (504) 929-6916 Robbins and Gautreau Certified Public Accountants (A Professional Corporation) Calvin L. Robbins, Jr., CPA, CFE John C. Gautreau, II, CPA Jeffrey Curt Gautreau, CPA Cora Crisler Head, CPA INDEPENDENT AUDITORS REPORT To the Partners of Lawtell Manor Partnership We have audited the accompanying balance sheets of Lawtell Manor 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 I s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lawtell Manor 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. Certified Public Accountants February 15, 1995 Baton Rouge, Louisiana 8641 United Plaza Blvd., Suite 202 Baton Rouge, Louisiana 70809 Phone (504) 924-6744 Fax (504) 929-6916 Otis, Atwell & Timberlake Professional Association CERTIFIED PUBLIC ACCOUNTANTS James C. Otis, C.P.A., CFP 980 Forest Avenue Stephen W. AtwelL C.P.A. Portland,Maine 04103 Fred I. Timberlake, C.P.A. (207) 797-0990 Bruce E. Fritzsom C.P.A FAX (207) 797-8618 Thomas J. Gioia, C.P.A. INDEPENDENT AUDITOR'S REPORT The Partners Newport Housing Associates We have audited the accompanying balance sheets of Newport Housing Associates Limited Partnership, FMHA Case No. 53-010-0010466168, as of December 31, 1994 and 1993, and the related statements of income and partners' equity, and cash flows for the year ended December 31, 1994 and for the period from November 1, 1993 through 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 Newport Housing Associates 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 November 1, 1993 through December 31, 1993 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 additional information on pages 12 and 13 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 a whole. Certified Public Accountants February 2, 1995 Portland, Maine DONALD W. CAUSEY, CPA, P.C. Certified Public Accountant P.O. Box 775 - 516 Walnut Street Gadsden, Alabama 35902 Telephone (205) 543-3707 Fax (205) 543-9800 INDEPENDENT AUDITOR S REPORT To the Partners Newport Manor, Limited Partnership Newport, Tennessee I have audited the accompanying balance sheet of Newport Manor, Limited Partnership, a limited partnership, FmHA Project No.: 48-015-631011392 as of December 31, 1994, and the related statements of operations, partners' capital and cash flows for the year then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audit. I conducted the 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 the 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 Newport Manor, Limited Partnership, FmHA Project No.: 48-015-631011392 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. The audit was 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 III for the year ended December 31, 1994, 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 25, 1995 Robbins and Gautreau Certified Public Accountants (A Professional Corporation) Calvin L. Robbins, Jr., CPA, CFE John C. Gautreau, II, CPA Jeffrey Curt Gautreau, CPA Cora Crisler Head, CPA 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, 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 Standard 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, 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. Certified Public Accountants February 15, 1995 Baton Rouge, Louisiana 8641 United Plaza Blvd., Suite 202 Baton Rouge, Lousiana 70809 Phone (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 sheet of St. Croix Commons Limited Partnership, as of December 31, 1994, and the related statements of operations, partners' equity, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of St. Croix Commons 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. 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 22, 1995 2411 N. Hillcrest Parkway, P.O. Box 810 Eau Claire, WI 54702-0810 Phone (715) 832-3425 # Fax (715) 832-1665 Robbins and Gautreau Certified Public Accountants (A Professional Corporation) Calvin L. Robbins, Jr., CPA, CFE John C. Gautreau, II, CPA Jeffrey Curt Gautreau, CPA Cora Crisler Head, CPA INDEPENDENT AUDITORS REPORT To the Partners of St. Joseph Square Partnership We have audited the accompanying balance sheets of St. Joseph Square 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 St. Joseph Square 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. Certified Public Accountants February 15, 1995 Baton Rouge, Louisiana 8641 United Plaza Blvd., Suite 202 Baton Rouge, Indiana 70809 Phone (504) 924-6744 Fax (504) 929-6916 HOWE & ASSOCIATES Certified Public Accountants 104 East Broadway Columbia, MO 65203 February 15, 1995 INDEPENDENT AUDITOR'S REPORT Partners SUMMERSVILLE ESTATES, LP Re: For the Years Ended December 31, 1993 and December 31, 1994 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 Bob T. Robinson Certified Public Accountant 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 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 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 TAMA AND BUDAJ, P.C. Certified Public Accountants 32783 Middlebelt Road Farmington Hills, Michigan 48334-1726 (810) 626-3800 Fax (810) 626-2276 ELY TAMA, CPA JEFFREY F. BUDAJ, CPA BARTON A. LOWEN, CPA EMIL A. RAAB, CPA DIANE L. ISAACS, CPA JOHN W. WEIPERT, CPA SEAN M. DONOVAN, CPA American, Michigan, Florida & South Carolina Institutes of CPAs INDEPENDENT AUDITOR'S REPORT To the Partners of 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 Otis, Atwell & Timberlake Professional Association Certified Public Accountants James C. Otis, C.P.A., CFP Stephen W AtwelL C.PA. 980 Forest Avenue Fred I. Timberlake, C.PA. Portland Maine 04103 Bruce E. Fritzson C.PA. (207) 797-0990 Thomas J. Gioia, C.P.A. FAX (207) 797-8618 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 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, 1994 and 1993, and the related statements of operations, partners' equity and cash flows for the year ended December 31, 1994 and 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 or, 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, 1994 and 1993, and the results of its operations and its cash flows for the year ended December 31, 1994 and from May 19, 1993 to December 31, 1993, in conformity accepted accounting principles. February 17, 1995 4408 Forest Drive, Third Floor Columbia, South Carolina 29206 Telephone 803-790-0020 Fax 803-790-0011 TOSKI, SCHAEFER & CO., P.C. Certified Public Accountants 555 International Drive Williamsville, New York 14221 Telephone (716) 634-0700 Fax (716) 634-0764 INDEPENDENT AUDITOR'S REPORT The Partners Woodlands Apartments, L.P.: We have audited the accompanying balance sheet of Woodlands Apartments, L.P. as of December 31, 1994 and the related statement of partners, equity 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 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 Woodlands Apartments, L.P. as of December 31, 1994, in conformity with generally accepted accounting principles. Williamsville, New York February 24, 1995 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, 1996 and 1995, and the related statements of operations, changes in partners' capital and cash flows for the years ended December 31, 1996 and 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, and with Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Briarwood Apartments, A Limited Partnership as of December 31, 1996 and 1995 and the results of its operations and its cash flows for the years ended December 31, 1996 and 1995 in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 11, 1997 on our consideration of Briarwood Apartments, A Limited Partnership's internal control structure and a report dated February 11, 1997 on its compliance with laws and regulations. February 11, 1997 1 Creekview Court, P.O. Box 25849 Greenville, South Carolina 29616 (864) 28M544 9 FAX (864) 458-8519 Other Offices: Asheville, Boone, Burnsville, Charlotte, Durham, Sylva, NC Member of the American Institute of CPAS, The Continental Association of CPA Firms, Inc., The Intercontinental Accounting Associates and the North Carolina and South Carolina Associates of CPAs 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, 1996 and 1995, and the related statements of income, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis 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, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Greensboro, North Carolina January 21, 1997 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 Philip Abiusi Michael A. Mammolito L. Richard Pascarella David R. Snyder Nakho Sung Charles R. Petty Leo N. Bonfardeci Scott J. Martin Carl T. Greco 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, 1996 and 1995, 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 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 diSC10BUreB 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, 1996 and 1995, 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 7, 1997 CREELMAN SMITH, P.C. Certified Public Accountants To the Partners Cambridge Family YMCA Affordable Housing Limited Partnership Cambridge, Massachusetts REPORT OF INDEPENDENT AUDITORS We have audited the accompanying balance sheet of Cambridge Family YMCA Affordable Housing Limited Partnership (A Massachusetts limited partnership) as of December 31, 1996, and the related statements of operations, changes in partners I equity (deficit) 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, 1996, and the results of its operations, changes in partners' equity (deficit) and cash flows for the year then ended in conformity with generally accepted accounting principles. Creelman & Smith, P.C. Certified Public Accountants Boston, Massachusetts January 13, 1997 330 Congress Street, Boston, Massachusetts 02210 (617) 542-4114 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 I, 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, 1996 and 1995, 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 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 Crofton Associates 1, Limited Partnership, FmHA Project No.: 20-0240621467587 as of December 31, 1996 and 1995, and the results of its operations, changes in partners' capital and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were 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 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, 1997 Member of Tennessee Society of CPAs, American Institute of CPAs and Private Companies Practice Section Matthews, Hearon & Cutrer Certified Public Accountants Erik Hearson, CPA Brett C. Matthews, CPA J. Raleigh Cutrer, CPA Charles R. Lindsay, Jr. CPA Tammy L. Burney, CPA A. Joseph Tommasini, CPA Elizabeth Hulen Barr, CPA Members: American Institute of CPAs, Private Companies Practice Section Mississippi Society of CPAs, National Litigation Support Services Association INDEPENDENT AUDITOR'S REPORT To the Partners Cypress Point, LP We have audited the accompanying balance sheet of Cypress Point, LP (a Florida limited partnership), as of December 31, 1996 and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the partnerships 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 audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also Includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cypress Point LP, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Jackson, Mississippi January 29, 1997 633 North State Street, Suite 407 Jackson, Mississippi 39202-3306 Telephone (601) 355-9266 Fax (601) 352-6826 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 I, Limited Partnership, FmHA Project No.: 48-024-621474763 as of December 31, 1996 and 1995, 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 Gallaway Associates I. Limited Partnership, FmHA Project No.: 48-024621474763 as of December 31, 1996 and 1995, and the results of its operations, changes in partners' capital and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were 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 audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. In accordance with Government Auditing Standards, we have also issued a report dated February 6, 1997 on our consideration of the limited partnership's internal control structure and a report dated February 6, 1997 on its compliance with laws and regulations. Jackson, Tennessee February 6, 1997 Member of Tennessee Society of CPAs, American Institute of CPAs and Private Companies Practice Section 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, 1996 and 1995, and the related statements of operations, changes in partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the 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, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 27, 1997 on our consideration of the Partnership's internal control structure and a report dated January 27, 1997 on its compliance with laws and regulations. January 27, 1997 11100 NE 8th Street, Suite 410 Bellevue, Washington 98004-4441 (206) 453-2088 Fax (206) 646-3368 BERRY, DUNN, McNEIL & PARKER Certified Public Accountants Management Consultants INDEPENDENT AUDITORS' REPORT The Partners Green Acres Limited Partnership We have audited the accompanying balance sheets of Green Acres Limited Partnership as of December 31, 1996 and 1995, and the related statements of operations, changes in partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the 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 Green Acres Limited Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Our audits were 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 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. Portland, Maine January 15, 1997 Offices in: Bangor, Maine Portland, Maine Lebanon, New Hampshire Manchester, New Hampshire 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 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, 1996 and 1995, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hickman Associates II, Limited Partnership, FmHA Project No.: 20-038621451228 as of December 31, 1996 and 1995, and the results of, its operations, changes in partners' equity and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Jackson, Tennessee February 7, 1997 Member of Tennessee Society of CPAs, American Institute of CPAs and Private Companies Practice Section THOMAS C. CUNNINGHAM, CPA PC 23 Moore Street Bristol, Virginia 24201 (540) 669-5531 Fax (540) 669-5576 INDEPENDENT AUDITOR'S REPORT To the Partners Lee Terrace Limited Partnership I have audited the accompanying balance sheets of Lee Terrace Limited Partnership, FmHA Case No.: 54-064-0541632971, as of December 31, 1996 and 1995 and the related statement of operations for the year ended December 31, 1996 and for the period January 6, 1995 to December 31, 1995 and the related statements of partners' equity and cash flows for the years ended December 31, 1996 and 1995. These financial statements are the responsibility of the Partnership's management. MY responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards and Government 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 Lee Terrace Limited Partnership, as of December 31, 1996 and 1995 and the results of its operations for the year ended December 31, 1996 and for the period January 6, 1995 to December 31, 1995, the changes in partners' equity and cash flows 'or the years ended December 31, 1996 and 1995 in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 16 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. In accordance with Government Auditing Standards, I have also issued a report dated February 15, 1997 on my consideration of Lee Terrace Limited Partnership's internal control structure and a report dated February 15, 1997 on its compliance with laws and regulations applicable to the financial statements. Thomas C. Cunningham, CPA PC Bristol, Virginia February 15, 1997 Certified Public Accountants Page, Olson & Company PC INDEPENDENT AUDITORS'REPORT January 31, 1997 To the Partners Midland Housing Limited Partnership We have audited the accompanying balance sheets of Midland Housing Limited Partnership as of December 31, 1996 and 1995, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion the financial statements referred to above present fairly, in all material respects, the financial position of Midland Housing Limited Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 13 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 368 MT PLEASANT, Ml 48804-0368 517 773 5494 FAX 517 773 5816 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, 1996 and 1995, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our 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, 1996 and 1995, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. January 28, 1997 4408 Forest Drive, Third Floor Columbia, South Carolina 29206 Telephone 803-790-0020 Fax 803-790-0011 DUGGAN, JOINER, BIRKENMEYER, STAFFORD, & FURMAN, P.A. CERTIFIED PUBLIC ACCOUNTANTS 334 N.W. Third Avenue Ocala, Florida 34475 Phone (352) 732-0171 Fax (352) 867-1370 Malcolm R. Duggan, Jr., C.P.A. C.D. Joiner, Jr., C.P.A., Retired Wayne J. Birkenmeyer, C.P.A. Frank E. Stafford, Jr., C.P.A. Edward J. Furman, C.P.A. O.H. Daniels, Jr., C.P.A. R. Phillip Bledsoe, C.P.A. Carole A. Wright, C.P.A. Annette C. Furman, C.P.A. David A. Young, Jr., C.P.A. Laura J. Allen, C.P.A. Jamie S. Hampy, C.P.A. Patricia A. Lancaster, C.P.A. Julie A. Poole, C.P.A. Robert K. Hund, C.P.A. INDEPENDENT AUDITORS' REPORT February 5, 1997 To the Partners Palmetto Properties, Ltd. We have audited the accompanying basic financial statements of Palmetto Properties, Ltd., as of and for the year ended December 31, 1996, as listed in the table of contents. These basic financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our 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 basic financial statements referred to above present fairly, in all material respects, the financial position of Palmetto Properties, Ltd. as of December 31, 1996 and 1995, 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 additional information as listed in the table of contents 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 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 (810) 626-2276 ELY TAMA, CPA JEFFREY F. BUDAJ, CPA BARTON A. LOWEN, CPA EMIL A. RAAB, CPA DIANE L. ISAACS, CPA JOHN W. WEIPERT, CPA SEAN M. DONOVAN, CPA American, Michigan, Florida & South Carolina Institutes of CPAs To the Partners of Park Place II, Ltd. We have audited the accompanying balance sheet of PARK PLACE II, LTD. as of December 31, 1996 and 1995, and the related statements of operations, changes in partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the general partner and management of the partnership. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly in all material respects, the financial position of PARK PLACE II, LTD., as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying information listed in the table of contents is presented for the purpose of additional analysis and is not a required part of the basic financial statements. This accompanying information is the responsibility of the partnership's management. Such information, except for the portion marked "unaudited" on which we express no opinion, has been subjected to the auditing procedures applied in our audit of the basic financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole. TAMA AND BUDAJ, Farmington Hills, Michigan January 31, 1997 TAMA AND BUDAJ, P.C. Certified Public Accountants 32783 Middlebelt Road Farmington Hills, Michigan 48334-1726 (810) 626-3800 Fax (810) 626-2276 ELY TAMA, CPA JEFFREY F. BUDAJ, CPA BARTON A. LOWEN, CPA EMIL A. RAAB, CPA DIANE L. ISAACS, CPA JOHN W. WEIPERT, CPA SEAN M. DONOVAN, CPA American, Michigan, Florida & South Carolina Institutes of CPAs To the Partners of Seabreeze Manor RRH, Ltd. We have audited the accompanying balance sheet of SEABREEZE MANOR RRH, LTD. as of December 31, 1996 and 1995, and the related statements of operations, changes in partners' equity (deficit) and cash flows for the year ended December 31, 1996 and 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 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 SEABREEZE MANOR RRH, LTD., as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the year ended December 31, 1996 and for the period January 10, 1995 (date operational) to December 31, 1995 in conformity with generally accepted accounting principles. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying information listed in the table of contents is presented for the purpose of additional analysis and is not a required part of the basic financial statements. This accompanying information is the responsibility of the partnership's management. Such information, except for the portion marked "unaudited" on which we express no opinion, has been subjected to the auditing procedures applied in our audit of the basic financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole. TAMA AND BUDAJ, P.C. Farmington Hills, Michigan January 31, 1997 MAYER HOFFMAN McCANN L.C. Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Partners Sixth Street Partners Limited Partnership We have audited the accompanying balance sheets of SIXTH STREET PARTNERS LIMITED PARTNERSHIP as of December 31, 1996 and 1995, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sixth Street Partners Limited Partnership as of December 31, 1996 and 1995 and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 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. Kansas City, Missouri January 20, 1997 420 Nichols Road, Kansas City, MO 64112 (816)968-1000 Fax (816) 531-7695 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, 1996 and 1995, and the related statements of operations, changes in partners' equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the 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 Skowhegan Housing Limited Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Our audits were 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 8, 1997 Offices in: Bangor, Maine 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 Philip Abiusi Michael A. Mammolito L. Richard Pascarella David R. Snyder Nakho Sung Charles R. Petty Leo N. Bonfardeci Scott J. Martin Carl T. Greco 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, 1996 and 1995, 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 partner, 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 Voorheesville Housing Company I as of December 31, 1996 and 1995, and the results of its operations and cash flows for the years then ended, in conformity with generally accepted accounting principles. DIMARCO, ABIUSI & PASCARELLA, P.C. Syracuse, New York February 7, 1997 RAYMOND, BROUSSARD & BROWN A PROFESSIONAL CORPORATION 2616 Toulon Drive Baton Rouge, Louisiana 70816 Telephone: (504) 292-9211 Fax: (504) 292-0727 CERTIFIED PUBLIC ACCOUNTANTS 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. 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, 1996 and 1995 and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. our responsibility is to express an opinion on these financial statements based on our audit. We conducted our 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, White Castle Senior Citizens Partnership, Ltd. as of 31, 1996 and 1995, 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 purpose of additional analysis and is not a required part of the basic financial statements. The supplementary information presented in the Year End Report and Analysis (Form PHS 1930-8) Parts I through III and in the Multiple Family Housing Project Budget (Form P.HS 19307) Parts I through V for the year ended 31, 1996, 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, 1997 4 Crisp Hughes & Company, 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 3l, 1995 and 1994, and the related statements operations, and 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 Standard issued by the Comptroller General of the United States. Those standards required that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of -material misstatement.' And audit. includes examining on a test ,basis,- evidence supporting the amounts and disclosures in the financial statements. -An audit also includes 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 Apartment . s, A Limited Partnership's internal control structure and a report dated March 1, 1996 on its compliance with laws and regulations. March 1, 1996 I Creekview Court o P.O. Box 25849 o Greenville, South Carolina 29616 (864) 288-5544 FAX (864) 458-8519 Other Offices: Asheville, Boone, Burnsville, Charlotte, Durham, Sylva, NC Member of The American Institute of Certified Public Accountants, The Continental Association of CPA Firms, Inc., The Intercontinental Accounting Associates and The North Carolina and South Carolina Associates of CPAs GOLDEN ASSOCIATES Certified Public Accountants P.O. Box 967 769 E. Oglethorpe Hwy Hinesville, GA 31313 Telephone (912) 369-7575 Fax (912) 876-8798 Larry R. Golden, CPA Janine D. Graham, CPA Members American Institute and Georgia Society of CPAs 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 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 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, 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 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. is a member of Coopers & Lybrand International, a limited liability association incorporated in Switzerland 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 I, 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 I, 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. 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. 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 CPAs, American Institute of CPAs and Private Companies Practice Section GOLDEN ASSOCIATES Certified Public Accountants P.O. Box 967 769 E. Oglethorpe Hwy Hinesville, GA 31313 Telephone (912) 369-7575 Fax (912) 876-8798 Larry R. Golden, CPA Janine D. Graham, CPA Members American Institute and Georgia Society of CPAs 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 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 GOLDEN ASSOCIATES Certified Public Accountants P.O. Box 967 769 E. Oglethorpe Hwy Hinesville, GA 31313 Telephone (912) 369-7575 Fax (912) 876-8798 Larry R. Golden, CPA Janine D. Graham, CPA Members American Institute and Georgia Society of CPAs 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 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 I, 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 misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 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 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 CPAs, American Institute of CPAs 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 Hickman Associates II, Limited Partnership We have audited the accompanying balance sheets of Hickman Associates H, 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. 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 Hickman Associates II, Limited Partnership, FmHA Project No.: 20-038621451228 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 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. CRAIN & COMPANY Certified Public Accountant Jackson, Tennessee February 7, 1996 Member of Tennessee Society of CPAs, American Institute of CPAs and Private Companies Practice Section GOLDEN ASSOCIATES Certified Public Accountants P.O. Box 967 769 E. Oglethorpe Hwy Hinesville, GA 31313 Telephone (912) 369-7575 Fax (912) 876-8798 Larry R. Golden, CPA Janine D. Graham, CPA Members American Institute and Georgia Society of CPAs 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 Coopers & Lybrand L.L.P. 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, 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 Mt. Vernon 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 March 12, 1996 Coopers & Lybrand L.L.P. is a member of Coopers & Lybrand International, a limited liability association incorporated in Switzerland. TAMA AND BUDAJ, P.C. Certified Public Accountants 32783 Middlebelt Road Farmington Hills, Michigan 48334-1726 (810) 626-3800 Fax (810) 626-2276 ELY TAMA, CPA JEFFREY F. BUDAJ, CPA BARTON A. LOWEN, CPA EMIL A. RAAB, CPA DIANE L. ISAACS, CPA JOHN W. WEIPERT, CPA SEAN M. DONOVAN, CPA American, Michigan, Florida & South Carolina Institutes of CPAs To the Partners of 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 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 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. 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, PC. Farmington Hills, Michigan February 9, 1996 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 HOWE & ASSOCIATES, PC Certified Public Accountants 104 East Broadway Columbia, MO 65203 March 8, 1995 INDEPENDENT AUDITOR'S REPORT Partners ARTESIA PROPERTIES, LP Re: For the Year Ended December 31, 1994 We have audited the accompanying balance sheet and the related statements of income, owners' equity, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and 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 year then ended in conformity with generally accepted accounting principles. Howe and Associates, PC 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, 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, the financial statements referred to above present fairly, in all material respects, the financial position of Aspen Ridge Apartments Limited Partnership at December 31, 1994 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 20, 1995 11924 Arbor St., Ste. 200 Omaha, Nebraska 68144 Phone (402) 330-1040 Fax (402) 333-9189 Crisp Hughes & Company L.L.P. Certified Public Accountants and Consultants Independent Auditors' Report T0 The Partners Briarwood Apartments, A Limited Partnership We have audited the, accompanying balance sheet of Briarwood Apartments, A Limited Partnership as of December 31, 1994 and the related statements of operations changes in-partners' capital and cash flows 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 Governmental Auditing Standards issued by the Comptroller General of the United States. Those standards require that we obtain 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, 1994. and the results of its operations and its cash flows for the period August 17, 1994 through December 31, 1994 in conformity, with generally accepted accounting principles. January 25, 1995 1 Creekview Court o P.O. Box 25849 e Greenville, South Carolina 29616 o (864) 288-5544 FAX (864) 458-8519 Other Offices: Asheville, Boone, Burnsville, Charlotte, Durham, Sylva, NC Member of. The American Institute of Certified Public Accountants, The Continental Association of CPA Firms, Inc., The Intercontinental Accounting Associates and The North Carolina and South Carolina Associates of CPAs K.B. 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 sheet of Briarwood of Dekalb, L.P. (a limited partnership) as of December 31, 1994, and the related statements of operations, changes in partnership capital and cash flows for 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 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. 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, 1994, and the results of its operations, and cash flows for the period then ended, in conformity with generally accepted accounting principles. Respectfully submitted, K.B. Parrish Co. Certified Public Accountants Indianapolis, Indiana January 16, 1995 Members of American Institute of Certified Public Accountants DANIEL G. DRANE Certified Public Accountant P.O. Box 577 - 209 East Third Street 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 audits. 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 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 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 HOWE & ASSOCIATES, PC Certified Public Accountants 104 East Broadway Columbia, MO 65203 March 5, 1995 INDEPENDENT AUDITORS REPORT Partners CLINTON ESTATES, L.P. Re: For the Year Ended December 31, 1994 We have audited the accompanying balance sheet and the related statements of income, owners' 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 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 year then ended in conformity with generally accepted accounting principles. Howe and Associates, PC DANIEL G. DRANE Certified Public Accountant P.O. Box 577 - 209 East Third Street Hardinsburg, Kentucky 40143 (502) 756-5704 INDEPENDENT AUDITOR!S 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 audits. 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 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 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 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 sheet of Glenridge Housing Associates, a Washington Limited Partnership, as of December 31, 1994, 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 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 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 Glenridge Housing Associates, a Washington 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. Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The additional information shown on pages 14 to 16 is presented for the purpose of complying with the requirements of the Farmers Home Administration and is not a required part of the financial statements. Such additional information, presented in Column 2 of Parts I, II and III of the Multiple Family Housing Project Budget (Form FmHA 1930-7) 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. Columns 1, 3 and 4 of Parts I, II and III and Parts IV, V and VI of the Multiple Family Housing Project Budget have not been subjected to the auditing procedures applied in the audit of the financial statements and accordingly, we express no opinion on Columns 1, 3 and 4 of Parts I, II and III and Parts IV, V and VI of the Multiple Family Housing Project Budget. February 12, 1995 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 A Professional Accounting Corporation John C. Gautreau, II, CPA J. Curt Gautreau, CPA Crissie Head, CPA Jennifer D. Derousselle, CPA Kati M. Williamson, CPA INDEPENDENT AUDITORS' REPORT To the Partners of Greenwood Place, L. P. We have audited the accompanying balance sheet of Greenwood Place, L. P. 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 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 Greenwood Place, 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, Lousiana 70884-2430 \ Telephone (504) 924-6744 \ FAX (504) 929-6916 The Gautreau Group, L.L.C. Certified Public Accountants A Professional Accounting Corporation John C. Gautreau, II, CPA J. Curt Gautreau, CPA Crissie Head, CPA Jennifer D. Derousselle, CPA Kati M. Williamson, 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, 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 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, 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 THOMAS C. CUNNINGHAM, CPA PC 23 Moore Street Bristol, Virginia 24201 (703) 669-5531 Fax(703)669-5576 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 Coopers & Lybrand L.L.P. 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. is a member of Coopers & Lybrand International, a limited liability association incorporated in Switzerland. DuRANT, SCHRAIBMAN & LINDSAY Certified Public Accountants INDEPENDENT ACCOUTNTANTS 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, 1994 and 1993, and the related statements of operations, partners' equity and cash flows for the year ended December 31, 1994 and from September 14, 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 Oakwood Manor of Bennettsville, 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 from September 14, 1993 to December 31, 1993 in conformity with generally accepted accounting principles. February 17, 1995 4408 Forest Drive, Third Floor Columbia, South Carolina 292069 Telephone 803-790-0020 Fax 803-790-0011 ROBBINS AND GAUTREAU CERTIFIED PUBLIC ACCOUNTANTS (A PROFESSIONAL CORPORATION) Calvin L. Robbins, Jr., CPA , CFE 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 1993, 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 202 Baton Rouge, Louisiana 70809 Phone (504) 924-6744 Fax (504) 929-6916 DUGGAN, JOINER, BIRKENMEYER, STAFFORD, & FURMAN, P.A. Certified Public Accountants 334 N.W. Third Avenue Ocala, Florida 34475 Phone (352) 732-0171 Fax (352) 867-1370 Malcolm R. Duggan, Jr., C.P.A. C.D. Joiner, Jr., C.P.A., Retired Wayne J. Birkenmeyer, C.P.A. Frank E. Stafford, Jr., C.P.A. Edward J. Furman, C.P.A. O.H. Daniels, Jr., C.P.A. R. Phillip Bledsoe, C.P.A. Carole A. Wright, C.P.A. Annette C. Furman, C.P.A. David A. Young, Jr., C.P.A. Laura J. Allen, C.P.A. Jamie S. Hampy, C.P.A. Patricia A. Lancaster, C.P.A. Julie A. Poole, C.P.A. Robert K. Hund, C.P.A. INDEPENDENT AUDITORS' REPORT February 5, 1997 To the Partners Palmetto Properties, Ltd. We have audited the accompanying basic financial statements of Palmetto Properties, Ltd., as of and for the year ended December 31, 1994, as listed in the table of contents. These basic financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our 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 basic financial statements referred to above present fairly, in all material respects, the financial position of Palmetto Properties, Ltd. 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. Our audit was 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 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. Duggan, Joiner, Birkenmeyer, Stafford & Furman, P.A. Certified Public Accountants 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 CPAs - American Institute of CPAs - AICPA Division for CPA Firms, Private Companies and SEC Practice Sections David G. Pelliccione, C.P.A., P. C. Post Office Box 1 Savannah, Georgia 31402 Delivery Address 202 East Liberty Street Savannah, Georgia 31401 Telephone (912) 234-1999 Fax (912) 234-0139 Member of American Institute of CPAs/ Georgia Society of CPAs 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 RAYMOND, BROUSSARD & BROWN CERTIFIED PUBLIC ACCOUNTANTS A PROFESSIONAL CORPORATION 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 Auditor s Report To The Partners White Castle Senior Citizens Partnership, Ltd. We have audited the accompanying balance sheet of White Castle Senior Citizens Partnership, Ltd., FMHA. Project No.: 22-024-721149468, as of December 31, 1994 and the related statements of operations, partners' equity and cash flows for the year then ended. These financial statements are the responsibility of the partnerships 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, on a test basis, evidence supporting the amounts and disclosures in the final statements. An audit also includes assessing the accounting principles used and significant estimates made by the 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, 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 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 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 FmHA 1930-8) Parts I through V for the year ended December 31, 1994, is presented for purposes of complying with the requirements of the Farmers Home Administration and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Baton Rouge, Louisiana June 15, 1995 - -4- 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, 1996, 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, 1996, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. February 1, 1997 Rajeev Raj C.P.A. 1600 Providence Highway Tel: (508) 660-2592 Walpole, MA 02081 Fax: (508) 660-1569 STIENESSEN - SCHLEGEL & CO. Limited Liability Company Certified Public Accountants INDEPENDENT AUDITOR'S 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, 1996 and 1995, and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Glen Place Apartments Limited Partnership, as of December 31, 1996 and 1995, and the results of its operations, changes in partners' equity, and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 14 and 15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. CERTIFIED PUBLIC ACCOUNTANTS January 15, 1997 2411 N. HILLCREST PARKWAY, P.O. BOX 810, EAU CLAIRE, WI 54702-0810 PHONE (715) 832-3425 FAX (715) 832-1665 Henderson, Godbee & Nichols, P.C. Certified Public Accountants Members of American Institute of CPAs Georgia Society of CPAs Robert A. Goddard, Jr., CPA (1943-1989) Gerald H. Henderson, CPA J. Wendell Godbee, CPA M. Paul Nichols, Jr., CPA Susan S. Swader, CPA Mark S. Rogers, CPA Maureen P. Collins, CPA Amy McGill Smith, CPA Krystal P. Hiers, CPA Marguerite J. Joyner, CPA Kenny L. Carter, CPA Shirley S. Miller, CPA INDEPENDENT AUDITORS' REPORT To the Partners Jackson Housing, L.P. Valdosta, Georgia We have audited the accompanying balance sheet of Jackson Housing, L.P. (a limited partnership), Federal ID No.: 58-2031912, as of December 31, 1996, and the related statements of income, partners, equity, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of Jackson Housing, L.P. as of December 31, 1995, were audited by other auditors whose report dated January 18, 1996., expressed an unqualified opinion on those statements. We conducted our audit in accordance with generally accepted auditing standards and Government 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 Jackson Housing, L.P. as of December 31, 1996, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 24, 1997 on our consideration of the Jackson Housing, L.P. s internal control structure and a report dated January 24, 1997 on its compliance with laws and regulations. Henderson, Godbee & Nichols, P.C. Certified Public Accountants January 24, 1997 3488 North Valdosta Road / P. 0. Box 2241 / Valdosta, Georgia 31604-2241 Phone: (912) 245-6040 / FAX: (912) 245-1669 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 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,,1996 and 1995, and the related statements of profit and loss, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lakeview Meadows II Limited Dividend Housing Association Limited Partnership for the years ended December 31, 1996 and 1995, and the results of its operations, changes in partners, equity, and cash flows for the years then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 12, 1997, on our consideration of the Partnership's internal control structure and a report dated February 12, 1997,. on its compliance with laws and regulations. February 12, 1997 A member of Moores Rowland International Rosenberg, Rich, Baker, Berman & Company A Professional Association of CPAs 380 Foothill Road - P.O. Box 6483 Bridgewater, NJ 08807-0483 908-231-1000 Fax 908-231-6894 E-mail: rrbb@net-lynx.com Other Offices: 195 Maplewood Avenue Maplewood, NJ 07040 201-763-6363 Fax 201-763-4430 Splugenstrasse 10 CH-8002 Zurich, Switzerland 011-41-1-202-4742 Fax 011-41-1-202-4744 P.O. Box 61 Grand Cayman, Cayman Islands 809-949-4244 Fax 809-949-8635 Kalman A. Barson, CPA Kenneth A. Berman, CPA Barry D. Kopp, CPA Frank S. LaForgia, CPA Alvin P. Levine, CPA Aaron A. Rich, CPA David N. Roth, CPA Carl S. Schwartz, CPA Nicholas L. Truglio, CPA Steven J. Truppo, CPA Howard Baker, CPA Daniel M. Brooks, CPA Leonard M. Friedman, CPA Dorvin M. Rosenberg, CPA 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, 1996 and 1995 and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Parvin's Limited Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 9 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the 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 15, 1997 American Institute Of CPAs - 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 R. Dowling, CPA Brian J. Giganti, CPA David A. Brooks, CPA Consultant Benjamine F. Regardie (1897-1973 INDEPENDENT AUDITOR'S REPORT February 21, 1997 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, 1996 and 1995, and the related statements of income, partnership equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States, and the U. S. Department of Agriculture, Farmers Home Administration Audit Program handbook, dated December 1989. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Peach Tree Limited Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our reports dated February 21, 1997 on our consideration of Peach Tree Limited Partnership's internal control structure and on its compliance with laws and regulations. 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, LID. Limited Partnership as of December 31, 1996 and 1995, and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion On these financial statements based on our audit. We conducted our 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 Ponderosa Meadows, LTD. Limited Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards issued by the Comptroller General of the United States, we have also issued a report dated January 29, 1997, on our consideration of Ponderosa Meadows, Ltd. Limited Partnership's internal control structure and a report dated January 29, 1997, on its compliance with laws and regulations. Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplementary information shown on Pages 19 through 21 is presented for purposes of additional analysis and is not a required part of the basic financial statements of the Partnership. 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. BOOTHE, VASSAR, FOX AND FOX January 29 1997 Big Spring, Texas A Partnership Composed of Professional Corporations GWEN WARD, P.C. Certified Public Accountant 609 University Drive Fort Worth, Texas 76107 (817) 336-5880 Member: American Institute and Texas Society of CPAs INDEPENDENT AUDITOR'S REPORT To the Partners of Rio Grande Apartments, Ltd. Eagle Pass, Texas I have audited the accompanying balance sheet of Rio Grande Apartments, Ltd. as of December 31, 1996 and 1995 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 Rio Grande Apartments, Ltd. as of December 31, 1996 and 1995 and the results of its operations, changes in partners' equity (deficit) and cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages I-17 and I-18 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Fort Worth, Texas March 11, 1997 HOWE & ASSOCIATES, PC Certified Public Accountants 104 East Broadway Columbia, MO 65203 February 13, 1997 INDEPENDENT AUDITOR'S REPORT Partners TROY ESTATES, LP Re: For the Years Ended December 31, 1995 and December 31, 1996 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. WA/ Howe and Associates, PC Martin A, Starr, C.P.A. INDEPENDENT AUDITOR'S REPORT To the Partners Virginia Avenue Affordable Housing Limited Partnership I have audited the accompanying balance sheets of Virginia Avenue Affordable Housing Limited Partnership as of December 31, 1996 and 1995, and the related statements oil 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. 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 Virginia Avenue Affordable Housing Limited Partnership as of December 31, 1996 and 1995, and the results of its operations, the changes in partners' equity and cash flows for the years then ended in conformity with generally accepted accounting principles. 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 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 financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Martin A. Starr Certified Public Accountant February 5, 1997 Certified Public Accountant 4260 Truxtun Avenue, Ste. 140, Bakersfield, CA 93309 805-635-3185 FAX 805- 635-3190 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 Loma Apartments Limited Partnership We have audited the accompanying balance sheets of Vista Loma Apartments Limited Partnership as of December 31, 1996 and 1995, and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our 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 Vista Loma Apartments Limited Partnership as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards issued by the Comptroller General of the United States, we have also issued a report dated January 29, 1997, on our consideration of Vista Loma Apartments Limited Partnership's internal control structure and a report dated January 29, 1997, on its compliance with laws and regulations. Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplementary information shown on Pages 19 through 21 is presented for purposes of additional analysis and is not a required part of the basic financial statements of the Partnership. 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. BOOTHE, VASSAR, FOX AND FOX January 29, 1997 Big Spring, Texas 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, 1996, 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, 1996, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. February 1, 1997 Rajeev Raj C.P.A. 1600 Providence Highway Tel: (508) 660-2592 Walpole, MA 02081 Fax: (508) 660-1569 Coopers & Lybrand L.L.P. Coopers & Lybrand 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, 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 Evergreen Hills Associates, L.P., as of December 31, 1995, and the results of its operations, changes in partners' capital and its cash flows for the year then ended in conformity with generally accepted accounting principles. Rochester, New York February 5, 1996 Coopers & Lybrand L.L.P. is a member of Coopers & Lybrand International, a limited-liability association incorporated in Switzerland. STIENESSEN - SCHLEGEL & Co. Limited Liability Company Certified Public Accountants INDEPENDENT AUDITOR'S 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 Regardie, Brooks & Lewis Jerome P. Lewis, CPA Chatered Jesse A. Kaiser, CPA Certified Public Accountants Nathan J. Rosen, CPA 7101 Wisconsin Ave Bethesda MD 20814 Paul J. Gnatt, CPA TEL (301) 654-9000 FAX (301) 656-3056 Celso T. Mataac, CPA Independent Auditor s Report Phillip R. Baker, CPA Douglas A. Dowling, CPA February 16, 1996 Brian J. Giganti, CPA David A. Brooks, CPA Benjamine F. Regardie, To the Partners Consultant Peach Tree Limited Partnership (1897-1973) 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 Gwen Ward, P.C. Certified Public Accountant 609 University Drive Fort Worth, Texas 76107 (817) 336-5880 Member American Institute of CPAs - Texas Society of CPAs 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 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, 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 Tel: (508) 660-2592 Walpole, MA 02081 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 31, 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 Accountant 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 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 ELLIJAY RENTAL HOUSING, L.P. as of December 31, 1994, in conformity with generally accepted accounting principles. Atlanta, Georgia January 1, 1995 Members: Georgia Society and American Institutes of CPAs, AICPA Division for CPA Firms, Private Companies Practice Section 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 Coopers & Lybrand L.L.P. is a member of Coopers & Lybrand International, a limited-liability association incorporated in Switzerland. Habif, Arogeti & Wynne, P.C. Certified Public Accountant 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 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 JACKSON RENTAL HOUSING, L.P. as of December 31, 1994, and the results of its operation 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 Institutes of Certified Public Accountants, AICPA Division for CPA Firms, Private Companies Practice Section SEC Practice Scetion 1073 West Peachtree Street, N.E. Atlanta, Georgia 30309-3837 (404)892-9651 Fax (404) 876-3913 Regardie, Brooks & Lewis Jerome P. Lewis, CPA Chatered Jesse A. Kaiser, CPA Certified Public Accountants Nathan J. Rosen, CPA 7101 Wisconsin Ave Bethesda MD 20814 Paul J. Gnatt, CPA TEL (301) 654-9000 FAX (301) 656-3056 Celso T. Mataac, CPA Independent Auditor s Report Phillip R. Baker, CPA Douglas A. Dowling, CPA Brian J. Giganti, CPA David A. Brooks, CPA Consultant Benjamine F. Regardie, February 24, 1995 To the Partners Peach Tree Limited Partnership Bethesda, Maryland We have audited the accompanying balance sheet of Peach Tree Limited Partnership as of December 31, 1994, and the related statements of income, partnership equity, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and 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 Peach Tree 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. Certified Public Accountants HOWE & ASSOCIATES, PC CERTIFIED PUBLIC ACCOUNTANTS 104 EAST BROADWAY COLUMBIA, MO 65203 March 4, 1995 INDEPENDENT AUDITORS REPORT Partners RICHMOND MANOR, L.P. Re: For the Year Ended December 31, 1994 We have audited the accompanying balance sheet and the related statements of income, owners' equity, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and 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 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 10, 1995 INDEPENDENT AUDTIOR'S REPORT Partners TROY ESTATES, LP Re: For the Year Ended December 31, 1994 We have audited the accompanying balance sheet and the related statements of income, owners' equity and cash flow 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 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 year then ended in conformity with generally accepted accounting principles. For 1993, the balance sheet was audited by us, and our report thereon, dated June 9, 1994, stated that the balance sheet presented fairly, in all material respects, the financial position of the Partnership for the year ended December 31, 1993, in conformity with generally accepted accounting principles. Howe and Associates, PC WALLACE SANDERS & COMPANY Crosspoint Atrium 8131 LBJ Freeway, Suite 875 Dallas, Texas 75251 Tel. 972/690-6301 Fax 972/669-3462 E-mail: wallaces@onramp.net INDEPENDENT AUDITOR S 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, 1996 and 1995, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Community Dynamics - Fort Worth, Ltd., as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The 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. February 11, 1997 Member of ACPA International Certified Public Accountants and Consultants Affiliated Offices Worldwide A Professional Corporation WALLACE SANDERS & COMPANY Crosspoint Atrium 8131 LBJ Freeway, Suite 875 Dallas, Texas 75251 Tel. 9721690-6301 Fax 972/669-3462 Email: wallacesoonramp.net INDEPENDENT AUDITORS' REPORT To the Partners of Community Dynamics - Plano, Ltd. We have audited the accompanying balance sheets of Community Dynamics - Plano, Ltd., as of December 31, 1996 and 1995, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Community Dynamics - Plano, Ltd., as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The 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. February 11, 1997 Member of ACPA International Certified Public Accountants and Consultants Affiliated Offices Worldwide A Professional Corporation 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, 1996 and 1995, and the related statements of operations, partners' capital accounts 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 Jefferson Square, Ltd. as of December 31, 1996 and 1995, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Denver, Colorado February 12, 1997 Scarbrough & Associates Certified Public Accountants For the financial solutions you need to succeed. Michael Scarbrough CPA Over 17 years of experience. Member: American Institute of CPAs, Missouri Society of CPAs; Community Education: Financial Planning, Better Business Plans, Taxation, Retirement Planning, Effective Audits, Low-Income Housing Tax Credits; Community Volunteer; Eagle Scout Experienced service for: Individuals, Business, Real estate developers, Retailers, Constructioncontractors and Medical professionals Business expertise: Tax planning & preparation, Monthly financial statements, Audits, Advisory services, Valuations, Software consulting, Computerized bookkeeping, Payroll services, Forecasting & budgeting, Loan packaging, Business entity selection, Commercial real estate expertise and Acquisition consulting Individual services: Income tax planning & preparation, IRS representation, Money-saving tax advice, Financial guidance and Retirement and estate planning Personal Attention: Accessible, Phone calls returned promptly, On- site meetings, Evening & weekend appointments, Walk-ins welcome, Guaranteed accuracy, Affordable fees To the Partners Northpointe, L.P. We have audited the accompanying balance sheets of Northpointe L.P. as Of December 31, 1996 and 1995, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. 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, 1996 and 1995, and the results of its operations, changes in partners' equity (deficit) and cash flows for the years then ended in conformity with generally accepted accounting principles. 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 and 15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Scarbrough & Associates, L.L.C. March 10, 1997 5500 North Oak, Suite 203 Kansas City, MO 64118 FAX:(816) 455-5100 (816) 452-4272 Henderson, Godbee & Nichols, P. C. Certified Public Accountants Members of American Institute of CPAs - Georgia Society of CPAs Robert A. Goddard, Jr., CPA (1943-1989) Gerald H. Henderson, CPA J. Wendell Godbee, CPA M. Paul Nichols, Jr., CPA Susan S. Swader, CPA Mark S. Rogers, CPA Janine M. Megginson, CPA Maureen P. Collins, CPA Amy McGill Smith, CPA Krystal P. Hiers, CPA Marguerite J. Joyner, CPA Kenny L. Carter, CPA Shirley S. Miller, CPA INDEPENDENT AUDITORS' REPORT To the Partners Summerset Housing Limited, L.P. Valdosta, Georgia We have audited the accompanying balance sheet of Summerset Housing, Limited, L.P. (a limited partnership), Federal ID No.: 58-1982979, as of December 31, 1996, and the related statements of income, partners' equity, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of Summerset Housing Limited, L.P. as of December 31, 1995, were audited by other auditors whose report dated February 1, 1996, expressed an unqualified opinion on those statements. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Summerset Housing Limited, L.P. as of December 31, 1996, and the results of its operations and its cash flow 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 January 24, 1997 on our consideration of the Summerset Housing Limited, L.P. s internal control structure and a report dated January 24, 1997 on its compliance with laws and regulations. Henderson, Godbee & Nichols, P.C. Certified Public Accountants January 24, 1997 3488 North Valdosta Road / P. 0. Box 2241 / Valdosta, Georgia 31604-2241 / Phone: (912) 245-6040 / FAX: (912) 245-1669 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, 1996, and 1995, and the related statements of operations, changes in partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the 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, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Standards, we have also issued a report, dated January 29, 1997, on our consideration of the Partnership's internal control structure and a report, dated January 29, 1997, on its compliance with laws and regulations. January 29, 1997 11100 NE 8th Street, Suite 410 Bellevue, Washington 98004-4441 (206) 453-2088 Fax (206) 646-3368 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 GRAHAM, CARTER & JENNINGS, PLC CERTIFIED PUBLIC ACCOUNTANTS Harold D. Carter (1931-1993) Jack G. Jennings Walter H. Graham Michael J. Carter Independent Auditor's Report To the Partners 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 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 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 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 601 Thimble Shoals Boulevard Suite 201 Newport News, Virginia 23606 (757) 873-0767 Fax (757) 873-6938 Scarbrough & Associates Certified Public Accountants For the financial solutions you need to succeed. Michael Scarbrough CPA Over 17 years of experience. Member: American Institute of CPAs, Missouri Society of CPAs; Community Education: Financial Planning, Better Business Plans, Taxation, Retirement Planning, Effective Audits, Low-Income Housing Tax Credits; Community Volunteer; Eagle Scout Experiencedservice for: Individuals, Business, Real estate developers, Retailers, Constructioncontractors and Medical professionals Business expertise: Tax planning & preparation, Monthly financial statements, Audits, Advisory services, Valuations, Software consulting, Computerized bookkeeping, Payroll services, Forecasting & budgeting, Loan packaging, Business entity selection, Commercial real estate expertise and Acquisition consulting Individual services: Income tax planning & preparation, IRS representation, Money-saving tax advice, Financial guidance and Retirement and estate planning Personal Attention: Accessible, Phone calls returned promptly, On- site meetings, Evening & weekend appointments, Walk-ins welcome, Guaranteed accuracy, Affordable fees To the Partners Northpointe, L.P. We have audited the accompanying balance sheets of Northpointe 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. 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. 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 HOWE & ASSOCIATES, PC Certified Public Accountants 104 East Broadway Columbia, MO 65203 March 11, 1995 INDEPENDENT AUDITOR'S 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 Cole, Evans & Peterson Fifth Floor Travis Place Post Office Drawer 1768 Shreveport, Louisiana 71166-1768 Telephone (318) 222-8367 Telecopier (318) 425-4101 M. Alton Evans, Jr, C.P.A. Partner Emeritus William Jefferson Cole, C.P.A. 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. Hedgepeth, C.P.A. Steven R.Bayer, C.P.A. Gwendolyn H. Harju, C.P.A. Timothy R. Durr, C.P.A. Bailey B. Baynham, C.P.A. Robert A. Busby, C.P.A. John A. Caskey,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 J. Bishop, C.P. A. Mary Wells Carmody,C.P.A. Eric D. Smith,C.P.A. David W. Sullock,C.P.A. Nina G. Glorioso,C.P.A. J. Amy Hemmings,C.P.A. January 31, 1995 INDEPENDENT AUDITORS' REPORT To the Partners Hebbronville Apartments, Ltd. Mansfield, Louisiana We have audited the accompanying balance sheet of Hebbronville Apartments, Ltd. at December 31, 1994, and the related statements of income, 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 Hebbronville Apartments, Ltd. at 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. Cole, Evans & Peterson HOWE & ASSOCIATES, PC Certified Public Accountants 104 East Broadway Columbia, MO 65203 March 12, 1995 INDEPENDENT AUDITOR'S 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 Cole, Evans & Peterson Fifth Floor Travis Place Post Office Drawer 1768 Shreveport, Louisiana 71166-1768 Telephone (318) 222-8367 Telecopier (318) 425-4101 M. Alton Evans, Jr, C.P.A. Partner Emeritus William Jefferson Cole, C.P.A. 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. Hedgepeth, C.P.A. Steven R.Bayer, C.P.A. Gwendolyn H. Harju, C.P.A. Timothy R. Durr, C.P.A. Bailey B. Baynham, C.P.A. Robert A. Busby, C.P.A. John A. Caskey,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 J. Bishop, C.P. A. Mary Wells Carmody,C.P.A. Eric D. Smith,C.P.A. David W. Sullock,C.P.A. Nina G. Glorioso,C.P.A. J. Amy Hemmings,C.P.A. February 1, 1995 INDEPENDENT AUDITORS' REPORT To the Partners Lone Star Seniors Apartments, Ltd. Mansfield, Louisiana We have audited the accompanying balance sheet of Lone Star Seniors Apartments, Ltd. at December 31, 1994, and the related statements of income, 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 Lone Star Seniors Apartments, Ltd. at 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. Cole, Evans & Peterson Cole, Evans & Peterson Fifth Floor Travis Place Post Office Drawer 1768 Shreveport, Louisiana 71166-1768 Telephone (318) 222-8367 Telecopier (318) 425-4101 M. Alton Evans, Jr, C.P.A. Partner Emeritus William Jefferson Cole, C.P.A. 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. Hedgepeth, C.P.A. Steven R.Bayer, C.P.A. Gwendolyn H. Harju, C.P.A. Timothy R. Durr, C.P.A. Bailey B. Baynham, C.P.A. Robert A. Busby, C.P.A. John A. Caskey,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 J. Bishop, C.P. A. Mary Wells Carmody,C.P.A. Eric D. Smith,C.P.A. David W. Sullock,C.P.A. Nina G. Glorioso,C.P.A. J. Amy Hemmings,C.P.A. INDEPENDENT AUDITORS' REPORT To the Partners Martindale Apartments, Ltd. Mansfield, Louisiana We have audited the accompanying balance sheet of Martindale Apartments, Ltd. at December 31, 1994, and the related statements of income, 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 Martindale Apartments, Ltd. at 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. Cole, Evans & Peterson DONALD W. CAUSEY, CPA, P.C. Certified Public Accountant P.O. Box 775 - 516 Walnut Street Gadsden, Alabama 35902 TELEPHONE (205) 543-3707 Fax(205) 543-9800 INDEPENDENT AUDITOR S REPORT To the Partners Munford Village, Ltd. Munford, Alabama I have audited the accompanying balance sheet of Munford Village, Ltd., a limited partnership, FmHA Project No.: 01-061-631011774 as of December 31, 1994, and the related statements of operations, partners' capital and cash flows for the year then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audit. I conducted the 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 the 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 Munford Village, Ltd., FmHA Project No.: 0 1-061-631011774 as of December 3 1, 1994, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. The audit was 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 III for the year ended December 31, 1994, 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 20, 1995 DONALD W. CAUSEY, CPA, P.C. Certified Public Accountant P.O. Box 775 - 516 Walnut Street Gadsden, Alabama 35902 TELEPHONE (205) 543-3707 Fax(205) 543-9800 INDEPENDENT AUDITOR S REPORT To the Partners Sherwood Knoll, Limited Partnership Rainsville, Alabama I have audited the accompanying balance sheet of Sherwood Knoll, Limited Partnership, a limited partnership, FmHA Project No.: 01- 025-631032411 as of December 31, 1994, and the related statements of operations, partners' capital and cash flows for the year then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audit. I conducted the 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 support the amounts and disclosures in the financial statements. 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 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 Sherwood Knoll, Limited Partnership, FmHA Project No.: 01-025- 631032411 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. The audit was 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 HI for the year ended December 31, 1994, 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 24, 1995 Habif, Arogeti & Wynne, P.C. Certified Public Accountant INDEPENDENT AUDITOR S 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 Certified Public Accountants American Institutes of Certified Public Accountants, AICPA Division for CPA Firms, Private Companies Practice Section SEC Practice Scetion 1073 West Peachtree Street, N.E. Atlanta, Georgia 30309-3837 (404)892-9651 Fax (404) 876-3913 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, 1994, 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 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 audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above resent fairly, in all material respects, the financial position of Wedgewood Lane Associates, a Washington 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. Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The additional information shown on pages 14 to 16 is presented for the purpose of complying with the requirements of the Farmers Home Administration and is not a required part of the financial statements. Such additional information, presented in Column 2 of Parts I, II and III of the Multiple Family Housing Project Budget (Form FmHA 1930-7) 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. Columns 1, 3 and 4 of Parts I, II and III and Parts IV, V and VI of the Multiple Family Housing Project Budget have not been subjected to the auditing procedures applied in the audit of the financial statements and accordingly, we express no opinion on Columns 1, 3 and 4 of Parts I, II and III and Parts IV, V and VI of the Multiple Family Housing Project Budget. February 3, 1995 11100 NE 8th Street, Suite 4l0 Bellevue, Washington 98004- 4441 (206)453-2088 Fax(206)646-3368 David G. Pelliccione, C.P.A., P. C. Post Office Box 1 Savannah, Georgia 31402 Delivery Address 202 East Liberty Street Savannah, Georgia 31401 Telephone (912) 234-1999 Fax (912) 234-0139 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 5 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 BALANCE SHEETS March 31, 1997 and 1996 Total ----------------------------------- 1997 1996 ---------------- --------------- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and D) $ 134,386,913 $ 147,259,013 OTHER ASSETS Cash and cash equivalents (notes A and I) 3,925,706 4,958,860 Investments available for sale (notes A and B) 1,393,309 5,141,767 Notes receivable (note E) 2,081,333 4,962,160 Deferred acquisition costs, net of accumulated amortization (notes A and C) 1,757,808 2,144,343 Organization costs, net of accumulated amortization (note A) 220,083 399,040 Other assets (note F) 2,080,483 2,420,327 ---------------- --------------- $ 145,845,635 $ 167,285,510 ================ =============== LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Accounts payable and accrued expenses $ 4,681 $ 75,208 Accounts payable - affiliates (note C) 6,579,726 4,454,405 Capital contributions payable (note D) 3,765,854 9,539,884 ---------------- --------------- 10,350,261 14,069,497 ---------------- --------------- PARTNERS' CAPITAL (note A) Assignor limited partner Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 21,996,102 issued and outstanding to the assignees at March 31, 1997 and 1996 - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 21,996,102 issued and outstanding at March 31, 1997 and 1996 136,032,541 153,561,702 General partner (534,681) (357,619) Unrealized gain (loss) on securities available for sale, net (2,486) 11,930 ---------------- --------------- 135,495,374 153,216,013 ---------------- --------------- $ 145,845,635 $ 167,285,510 ================ ===============
(continued) F-5 6 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 BALANCE SHEETS - CONTINUED March 31, 1997 and 1996 Series 15 ----------------------------------- 1997 1996 ---------------- --------------- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and D) $ 18,675,081 $ 21,718,070 OTHER ASSETS Cash and cash equivalents (notes A and I) 246,845 163,428 Investments available for sale (notes A and B) - 151,943 Notes receivable (note E) 135,000 185,000 Deferred acquisition costs, net of accumulated amortization (notes A and C) 268,047 281,199 Organization costs, net of accumulated amortization (note A) - 26,232 Other assets (note F) 475,563 292,164 ---------------- --------------- $ 19,800,536 $ 22,818,036 ================ =============== LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Accounts payable and accrued expenses $ 1,144 $ 68,856 Accounts payable - affiliates (note C) 1,812,693 1,264,641 Capital contributions payable (note D) 178,680 202,750 ---------------- --------------- 1,992,517 1,536,247 ---------------- --------------- PARTNERS' CAPITAL (note A) Assignor limited partner Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 3,870,500 issued and outstanding to the assignees at March 31, 1997 and 1996 - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,870,500 issued and outstanding at March 31, 1997 and 1996 17,962,610 21,401,297 General partner (154,591) (119,857) Unrealized gain (loss) on securities available for sale, net - 349 ---------------- --------------- 17,808,019 21,281,789 ---------------- --------------- $ 19,800,536 $ 22,818,036 ================ ===============
(continued) F-6 7 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 BALANCE SHEETS - CONTINUED March 31, 1997 and 1996 Series 16 ----------------------------------- 1997 1996 ---------------- --------------- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and D) $ 33,987,844 $ 37,074,575 OTHER ASSETS Cash and cash equivalents (notes A and I) 1,183,424 1,429,491 Investments available for sale (notes A and B) 283,537 394,836 Notes receivable (note E) - 483,464 Deferred acquisition costs, net of accumulated amortization (notes A and C) 429,721 445,554 Organization costs, net of accumulated amortization (note A) 44,630 89,261 Other assets (note F) 8,790 38,197 ---------------- --------------- $ 35,937,946 $ 39,955,378 ================ =============== LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Accounts payable and accrued expenses $ - $ 100 Accounts payable and accrued expenses 1,743,106 1,251,118 Capital contributions payable (note D) 155,225 900,481 ---------------- --------------- 1,898,331 2,151,699 ---------------- --------------- PARTNERS' CAPITAL (note A) Assignor limited partner Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 5,429,402 issued and outstanding to the assignees at March 31, 1997 and 1996 - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,429,402 issued and outstanding at March 31, 1997 and 1996 34,166,449 37,891,343 General partner (126,206) (88,581) Unrealized gain (loss) on securities available for sale, net (628) 917 ---------------- --------------- 34,039,615 37,803,679 ---------------- --------------- $ 35,937,946 $ 39,955,378 ================ ===============
(continued) F-7 8 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 BALANCE SHEETS - CONTINUED March 31, 1997 and 1996 Series 17 ----------------------------------- 1997 1996 ---------------- --------------- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and D) $ 30,804,793 $ 34,318,721 OTHER ASSETS Cash and cash equivalents (notes A and I) 539,185 285,417 Investments available for sale (notes A and B) - 629,950 Notes receivable (note E) 1,409,982 1,658,475 Deferred acquisition costs, net of accumulated amortization (notes A and C) 396,522 415,482 Organization costs, net of accumulated amortization (note A) 50,533 90,262 Other assets (note F) 1,329,684 1,245,840 ---------------- --------------- $ 34,530,699 $ 38,644,147 ================ =============== LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Accounts payable and accrued expenses $ - $ - Accounts payable - affiliates (note C) 1,593,932 1,021,686 Capital contributions payable (note D) 1,844,259 2,312,721 ---------------- --------------- 3,438,191 3,334,407 ---------------- --------------- PARTNERS' CAPITAL (note A) Assignor limited partner Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 5,000,000 issued and outstanding to the assignees at March 31, 1997 and 1996 - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,000,000 issued and outstanding at March 31, 1997 and 1996 31,211,262 35,384,872 General partner (118,754) (76,596) Unrealized gain (loss) on securities available for sale, net - 1,464 ---------------- --------------- 31,092,508 35,309,740 ---------------- --------------- $ 34,530,699 $ 38,644,147 ================ ===============
(continued) F-8 9 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 BALANCE SHEETS - CONTINUED March 31, 1997 and 1996 Series 18 ----------------------------------- 1997 1996 ---------------- --------------- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and D) $ 23,513,680 $ 26,102,954 OTHER ASSETS Cash and cash equivalents (notes A and I) 766,409 529,400 Investments available for sale (notes A and B) 173,619 647,930 Notes receivable (note E) 536,351 536,351 Deferred acquisition costs, net of accumulated amortization (notes A and C) 291,983 305,861 Organization costs, net of accumulated amortization (note A) 49,526 80,280 Other assets (note F) 41,564 8,052 ---------------- --------------- $ 25,373,132 $ 28,210,828 ================ =============== LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Accounts payable and accrued expenses $ 129 $ 1,751 Accounts payable - affiliates (note C) 741,114 434,163 Capital contributions payable (note D) 755,887 861,315 ---------------- --------------- 1,497,130 1,297,229 ---------------- --------------- PARTNERS' CAPITAL (note A) Assignor limited partner Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 3,616,200 issued and outstanding to the assignees at March 31, 1997 and 1996 - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,616,200 issued and outstanding at March 31, 1997 and 1996 23,947,845 26,953,204 General partner (71,463) (41,106) Unrealized gain (loss) on securities available for sale, net (380) 1,501 ---------------- --------------- 23,876,002 26,913,599 ---------------- --------------- $ 25,373,132 $ 28,210,828 ================ ===============
(continued) F-9 10 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 BALANCE SHEETS - CONTINUED March 31, 1997 and 1996 Series 19 ----------------------------------- 1997 1996 ---------------- --------------- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and D) $ 27,405,515 $ 28,044,693 OTHER ASSETS Cash and cash equivalents (notes A and I) 1,189,843 2,551,124 Investments available for sale (notes A and B) 936,153 3,317,108 Notes receivable (note E) - 2,098,870 Deferred acquisition costs, net of accumulated amortization (notes A and C) 371,535 696,247 Organization costs, net of accumulated amortization (note A) 75,394 113,005 Other assets (note F) 224,882 836,074 ---------------- --------------- $ 30,203,322 $ 37,657,121 ================ =============== LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Accounts payable and accrued expenses $ 3,408 $ 4,501 Accounts payable - affiliates (note C) 688,881 482,797 Capital contributions payable (note D) 831,803 5,262,617 ---------------- --------------- 1,524,092 5,749,915 ---------------- --------------- PARTNERS' CAPITAL (note A) Assignor limited partner Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 4,080,000 issued and outstanding to the assignees at March 31, 1997 and 1996 - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 4,080,000 issued and outstanding at March 31, 1997 and 1996 28,744,375 31,930,986 General partner (63,667) (31,479) Unrealized gain (loss) on securities available for sale, net (1,478) 7,699 ---------------- --------------- 28,679,230 31,907,206 ---------------- --------------- $ 30,203,322 $ 37,657,121 ================ ===============
See notes to financial statements F-10 11 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF OPERATIONS Years ended March 31, 1997, 1996 and 1995 Total ------------------------------------------------------ 1997 1996 1995 ---------------- ---------------- ---------------- Income Interest income $ 555,991 $ 1,034,800 $ 2,192,832 Miscellaneous income - - 7,600 ---------------- ---------------- ---------------- 555,991 1,034,800 2,200,432 ---------------- ---------------- ---------------- Share of losses from operating limited partnerships (note A) (15,051,842)* (14,435,496)* (10,794,203) ---------------- ---------------- ---------------- Expenses Professional fees 290,823 277,646 279,121 Partnership management fee (note C) 2,253,062 2,399,311 2,413,494 Amortization (note A) 246,638 246,807 168,554 General and administrative expenses (note C) 419,849 389,851 878,291 ---------------- ---------------- ---------------- 3,210,372 3,313,615 3,739,460 ---------------- ---------------- ---------------- NET INCOME (LOSS) (note A) $ (17,706,223) $ (16,714,311) $ (12,333,231) ================ ================ ================ Net income (loss) allocated to general partner $ (177,062) $ (167,142) $ (123,333) ================ ================ ================ Net income (loss) allocated to assignees $ (17,529,161) $ (16,547,169) $ (12,209,898) ================ ================ ================ Net income (loss) per BAC $ (0.80) $ (0.75) $ (0.56) ================ ================ ================
* Net of gain on disposal of operating limited partnership (Series 16) of $761 during 1997 and (Series 19) of $888,473 during 1996, respectively. (continued) F-11 12 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF OPERATIONS - CONTINUED Years ended March 31, 1997, 1996 and 1995 Series 15 ------------------------------------------------------ 1997 1996 1995 ---------------- ---------------- ---------------- Income Interest income $ 173,892 $ 192,705 $ 74,485 Miscellaneous income - - 1,600 ---------------- ---------------- ---------------- 173,892 192,705 76,085 ---------------- ---------------- ---------------- Share of losses from operating limited partnerships (note A) (3,039,112) (3,201,668) (2,948,034) ---------------- ---------------- ---------------- Expenses Professional fees 60,084 50,472 49,598 Partnership management fee (note C) 473,378 499,184 470,726 Amortization (note A) 36,743 36,843 26,231 General and administrative expenses (note C) 37,996 43,328 93,910 ---------------- ---------------- ---------------- 608,201 629,827 640,465 ---------------- ---------------- ---------------- NET INCOME (LOSS) (note A) $ (3,473,421) $ (3,638,790) $ (3,512,414) ================ ================ ================ Net income (loss) allocated to general partner $ (34,734) $ (36,388) $ (35,124) ================ ================ ================ Net income (loss) allocated to assignees $ (3,438,687) $ (3,602,402) $ (3,477,290) ================ ================ ================ Net income (loss) per BAC $ (0.89) $ (0.93) $ (0.90) ================ ================ ================
(continued) F-12 13 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF OPERATIONS - CONTINUED Years ended March 31, 1997, 1996 and 1995 Series 16 ------------------------------------- ---------------- 1997 1996 1995 ---------------- ---------------- ---------------- Income Interest income $ 71,599 $ 127,067 $ 437,207 Miscellaneous income - - 2,175 ---------------- ---------------- ---------------- 71,599 127,067 439,382 ---------------- ---------------- ---------------- Share of losses from operating limited partnerships (note A) (3,052,073)* (3,778,516) (2,784,673) ---------------- ---------------- ---------------- Expenses Professional fees 53,174 66,842 53,992 Partnership management fee (note C) 572,972 646,906 658,346 Amortization (note A) 61,438 61,532 44,630 General and administrative expenses (note C) 94,461 82,878 204,503 ---------------- ---------------- ---------------- 782,045 858,158 961,471 ---------------- ---------------- ---------------- NET INCOME (LOSS) (note A) $ (3,762,519) $ (4,509,607) $ (3,306,762) ================ ================ ================ Net income (loss) allocated to general partner $ (37,625) $ (45,096) $ (33,068) ================ ================ ================ Net income (loss) allocated to assignees $ (3,724,894) $ (4,464,511) $ (3,273,694) ================ ================ ================ Net income (loss) per BAC $ (0.69) $ (0.82) $ (0.60) ================ ================ ================
* Net of gain on disposal of operating limited partnership (Series 16) of $761. (continued) F-13 14 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF OPERATIONS - CONTINUED Years ended March 31, 1997, 1996 and 1995 Series 17 ------------------------------------------------------ 1997 1996 1995 ---------------- ---------------- ---------------- Income Interest income $ 43,090 $ 85,172 $ 510,270 Miscellaneous income - - 1,475 ---------------- ---------------- ---------------- 43,090 85,172 511,745 ---------------- ---------------- ---------------- Share of losses from operating limited partnerships (note A) (3,504,918) (3,144,888) (2,744,283) ---------------- ---------------- ---------------- Expenses Professional fees 78,784 71,386 72,281 Partnership management fee (note C) 512,189 506,412 509,015 Amortization (note A) 55,279 55,408 39,729 General and administrative expenses (note C) 107,688 78,508 188,012 ---------------- ---------------- ---------------- 753,940 711,714 809,037 ---------------- ---------------- ---------------- NET INCOME (LOSS) (note A) $ (4,215,768) $ (3,771,430) $ (3,041,575) ================ ================ ================ Net income (loss) allocated to general partner $ (42,158) $ (37,714) $ (30,416) ================ ================ ================ Net income (loss) allocated to assignees $ (4,173,610) $ (3,733,716) $ (3,011,159) ================ ================ ================ Net income (loss) per BAC $ (0.83) $ (0.75) $ (0.60) ================ ================ ================
(continued) F-14 15 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF OPERATIONS - CONTINUED Years ended March 31, 1997, 1996 and 1995 Series 18 ------------------------------------------------------ 1997 1996 1995 ---------------- ---------------- ---------------- Income Interest income $ 46,186 $ 139,504 $ 508,695 Miscellaneous income - - 1,250 ---------------- ---------------- ---------------- 46,186 139,504 509,945 ---------------- ---------------- ---------------- Share of losses from operating limited partnerships (note A) (2,594,599) (2,451,672) (1,201,623) ---------------- ---------------- ---------------- Expenses Professional fees 35,490 40,385 42,982 Partnership management fee (note C) 326,168 363,632 371,536 Amortization (note A) 42,167 42,298 30,673 General and administrative expenses (note C) 83,478 66,451 127,358 ---------------- ---------------- ---------------- 487,303 512,766 572,549 ---------------- ---------------- ---------------- NET INCOME (LOSS) (note A) $ (3,035,716) $ (2,824,934) $ (1,264,227) ================ ================ ================ Net income (loss) allocated to general partner $ (30,357) $ (28,249) $ (12,642) ================ ================ ================ Net income (loss) allocated to assignees $ (3,005,359) $ (2,796,685) $ (1,251,585) ================ ================ ================ Net income (loss) per BAC $ (0.83) $ (0.77) $ (0.35) ================ ================ ================
(continued) F-15 16 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF OPERATIONS - CONTINUED Years ended March 31, 1997, 1996 and 1995 Series 19 ------------------------------------------------------ 1997 1996 1995 ---------------- ---------------- ---------------- Income Interest income $ 221,224 $ 490,352 $ 662,175 Miscellaneous income - - 1,100 ---------------- ---------------- ---------------- 221,224 490,352 663,275 ---------------- ---------------- ---------------- Share of losses from operating limited partnerships (note A)* (2,861,140) (1,858,752)* (1,115,590) ---------------- ---------------- ---------------- Expenses Professional fees 63,291 48,561 60,268 Partnership management fee (note C) 368,355 383,177 403,871 Amortization (note A) 51,011 50,726 27,291 General and administrative expenses (note C) 96,226 118,686 264,508 ---------------- ---------------- ---------------- 578,883 601,150 755,938 ---------------- ---------------- ---------------- NET INCOME (LOSS) (note A) $ (3,218,799) $ (1,969,550) $ (1,208,253) ================ ================ ================ Net income (loss) allocated to general partner $ (32,188) $ (19,695) $ (12,083) ================ ================ ================ Net income (loss) allocated to assignees $ (3,186,611) $ (1,949,855) $ (1,196,170) ================ ================ ================ Net income (loss) per BAC $ (0.78) $ (0.48) $ (0.29) ================ ================ ================
* Net of gain on disposal of operating limited partnership (Series 19) of $888,473. See notes to financial statements F-16 17 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CHANGES IN PARTNERS' CAPITAL Years ended March 31, 1997, 1996 and 1995 Unrealized gain (loss) in securities available for Total Assignees General partner sale, net Total - ------------------------- ---------------- ---------------- ---------------- ---------------- 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 Net change in unrealized gain (loss) on securities available for sale - - (14,416) (14,416) Net loss (17,529,161) (177,062) - (17,706,223) ---------------- ---------------- ---------------- ---------------- Partners' capital (deficit), March 31, 1997 $ 136,032,541 $ (534,681) $ (2,486) $ 135,495,374 ================ ================ ================ ================
(continued) F-17 18 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - CONTINUED Years ended March 31, 1997, 1996 and 1995 Unrealized gain (loss) in securities available for Series 15 Assignees General partner sale, net Total - ------------------------- ---------------- ---------------- ---------------- ---------------- 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 Net change in unrealized gain (loss) on securities available for sale - - (349) (349) Net loss (3,438,687) (34,734) - (3,473,421) ---------------- ---------------- ---------------- ---------------- Partners' capital (deficit), March 31, 1997 $ 17,962,610 $ (154,591) $ - $ 17,808,019 ================ ================ ================ ================
(continued) F-18 19 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - CONTINUED Years ended March 31, 1997, 1996 and 1995 Unrealized gain (loss) in securities available for Series 16 Assignees General partner sale, net Total - --------------------------- ---------------- ---------------- ---------------- ---------------- 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 Net change in unrealized gain (loss) on securities available for sale - - (1,545) (1,545) Net loss (3,724,894) (37,625) - (3,762,519) ---------------- ---------------- ---------------- ---------------- Partners' capital (deficit), March 31, 1997 $ 34,166,449 $ (126,206) $ (628) $ 34,039,615 ================ ================ ================ ================
(continued) F-19 20 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - CONTINUED Years ended March 31, 1997, 1996 and 1995 Unrealized gain (loss) in securities available for Series 17 Assignees General partner sale, net Total - --------------------------- ---------------- ---------------- ---------------- ---------------- 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 Net change in unrealized gain (loss) on securities available for sale - - (1,464) (1,464) Net loss (4,173,610) (42,158) - (4,215,768) ---------------- ---------------- ---------------- ---------------- Partners' capital (deficit), March 31, 1997 $ 31,211,262 $ (118,754) $ - $ 31,092,508 ================ ================ ================ ================
(continued) F-20 21 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - CONTINUED Years ended March 31, 1997, 1996 and 1995 Unrealized gain (loss) in securities available for Series 18 Assignees General partner sale, net Total - --------------------------- ---------------- ---------------- ---------------- ---------------- 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 Net change in unrealized gain (loss) on securities available for sale - - (1,881) (1,881) Net loss (3,005,359) (30,357) - (3,035,716) ---------------- ---------------- ---------------- ---------------- Partners' capital (deficit), March 31, 1997 $ 23,947,845 $ (71,463) $ (380) $ 23,876,002 ================ ================ ================ ================
(continued) F-21 22 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - CONTINUED Years ended March 31, 1997, 1996 and 1995 Unrealized gain (loss) in securities available for Series 19 Assignees General partner sale, net Total - --------------------------- ---------------- ---------------- ---------------- ---------------- Partners' capital (deficit), 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 Net change in unrealized gain (loss) on securities available for sale - - (9,177) (9,177) Net loss (3,186,611) (32,188) - (3,218,799) ---------------- ---------------- ---------------- ---------------- Partners' capital (deficit), March 31, 1997 $ 28,744,375 $ (63,667) $ (1,478) $ 28,679,230 ================ ================ ================ ================
See notes to financial statements F-22 23 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS Years ended March 31, 1997, 1996 and 1995 Total ------------------------------------------------------ 1997 1996 1995 ---------------- ---------------- ---------------- Cash flows from operating activities Net income (loss) $ (17,706,223) $ (16,714,311) $ (12,333,231) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Share of losses from operating limited partnerships 15,051,842 14,435,496 10,794,203 Distributions received from operating limited partnerships 18,811 18,412 2,663 Amortization 246,638 246,807 168,554 Organization costs - - (19,729) Changes in assets and liabilities Other assets (93,710) (125,159) (536,095) Accounts payable and accrued expenses (70,527) 70,442 (100,576) Accounts payable - affiliates 2,125,321 2,191,716 1,937,641 ---------------- ---------------- ---------------- Net cash provided by (used in) operating activities (427,848) 123,403 (86,570) ---------------- ---------------- ---------------- Cash flows from investing activities Acquisition costs (paid)/reimbursed (for)/from operating limited partnerships 15,000 (182,571) (1,405,772) Capital contributions paid to operating limited partnerships (4,280,314) (17,638,595) (43,529,250) Deposits for purchases of operating limited partnerships - - 949,420 (Advances)/repayments (to)/from operating limited partnerships (74,034) 2,945,152 (576,034) Purchase of investments (net of proceeds from sale of investments) 3,734,042 9,530,375 35,069,451 ---------------- ---------------- ---------------- Net cash used in investing activities (605,306) (5,345,639) (9,492,185) ---------------- ---------------- ---------------- Cash flows from financing activities Selling commissions and registration costs paid - - (19,377) ---------------- ---------------- ---------------- Net cash provided by (used in) financing activities - - (19,377) ---------------- ---------------- ---------------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,033,154) (5,222,236) (9,598,132) Cash and cash equivalents, beginning 4,958,860 10,181,096 19,779,228 ---------------- ---------------- ---------------- Cash and cash equivalents, end $ 3,925,706 $ 4,958,860 $ 10,181,096 ================ ================ ================
(continued) F-23 24 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1997, 1996 and 1995 Total ------------------------------------------------------ 1997 1996 1995 ---------------- ---------------- ---------------- 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 $ 2,504,963 $ 1,426,703 $ 1,234,289 ================ ================ ================ The partnership has adjusted its investment and decreased its capital contribution obligation in operating limited partnerships for low- income tax credits not generated $ 287,710 $ 381,901 $ 41,637 ================ ================ ================ 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 in and increased its capital contribution obligation in operating limited partnerships for low- income tax credits generated $ 13,283 $ 117,717 $ - ================ ================ ================ The partnership has decreased its investments in operating limited partnerships for unpaid capital contributions due to the operating limited partnership disposed of during the year $ 32,504 $ 2,424,400 $ - ================ ================ ================ The partnership has applied notes receivable and advances against installments of capital contributions $ 3,691,747 $ - $ - ================ ================ ================ The partnership has increased its deferred acquisition costs for operating limited partnership disposed of during year $ 4,675 $ - $ - ================ ================ ================ The partnership has increased (decreased) its investments available for sale for unrealized gains(losses) $ (14,416) $ 114,621 $ (102,691) ================ ================ ================
(continued) F-24 25 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1997, 1996 and 1995 Series 15 ------------------------------------------------------ 1997 1996 1995 ---------------- ---------------- ---------------- Cash flows from operating activities Net income (loss) $ (3,473,421) $ (3,638,790) $ (3,512,414) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Share of losses from operating limited partnerships 3,039,112 3,201,668 2,948,034 Distributions received from operating limited partnerships 1,408 6,337 9 Amortization 36,743 36,843 26,231 Organization costs - - (4,604) Changes in assets and liabilities Other assets (183,399) (711) (297,230) Accounts payable and accrued expenses (67,712) 67,501 (95,125) Accounts payable - affiliates 548,052 488,042 530,584 ---------------- ---------------- ---------------- Net cash provided by (used in) operating activities (99,217) 160,890 (404,515) ---------------- ---------------- ---------------- Cash flows from investing activities Acquisition costs (paid)/reimbursed (for)/from operating limited partnerships 2,640 - (96,521) Capital contributions paid to operating limited partnerships (21,600) (1,269,931) (2,008,610) Deposits for purchases of operating limited partnerships - - - (Advances)/repayments (to)/from operating limited partnerships 50,000 262,350 295,510 Purchase of investments (net of proceeds from sale of investments) 151,594 33,243 1,338,195 ---------------- ---------------- ---------------- Net cash provided by (used in) investing activities 182,634 (974,338) (471,426) ---------------- ---------------- ---------------- Cash flows from financing activities Selling commissions and registration costs paid - - (956) ---------------- ---------------- ---------------- Net cash provided by (used in) financing activities - - (956) ---------------- ---------------- ---------------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 83,417 (813,448) (876,897) Cash and cash equivalents, beginning 163,428 976,876 1,853,773 ---------------- ---------------- ---------------- Cash and cash equivalents, end $ 246,845 $ 163,428 $ 976,876 ================ ================ ================
(continued) F-25 26 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1997, 1996 and 1995 Series 15 ------------------------------------------------------ 1997 1996 1995 ---------------- ---------------- ---------------- 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 ================ ================ ================ The partnership has adjusted its investment and decreased its capital contribution obligation in operating limited partnerships for low- income tax credits not generated $ 2,469 $ 11,832 $ 41,637 ================ ================ ================ 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 in and increased its capital contribution obligation in operating limited partnerships for low- income tax credits generated $ - $ - $ - ================ ================ ================ The partnership has decreased its investments in operating limited partnerships for unpaid capital contributions due to the operating limited partnership disposed of during the year $ - $ - $ - ================ ================ ================< The partnership has applied notes receivable and advances against installments of capital contributions $ - $ - $ - ================ ================ ================ The partnership has increased its deferred acquisition costs for operating partnerships disposed of during year $ - $ - $ - ================ ================ ================ The partnership has increased (decreased) its investments available for sale for unrealized gains (losses) $ (349) $ 162 $ 187 ================ ================ ================
(continued) F-26 27 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1997, 1996 and 1995 Series 16 ------------------------------------------------------ 1997 1996 1995 ---------------- ---------------- ---------------- Cash flows from operating activities Net income (loss) $ (3,762,519) $ (4,509,607) $ (3,306,762) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Share of losses from operating limited partnerships 3,052,073 3,778,516 2,784,673 Distributions received from operating limited partnerships 2,675 7,361 1,046 Amortization 61,438 61,532 44,630 Organization costs - - - Changes in assets and liabilities Other assets 24,312 18,315 60,304 Accounts payable and accrued expenses (100) (1,043) 43 Accounts payable - affiliates 491,988 571,980 600,730 ---------------- ---------------- ---------------- Net cash provided by (used in) operating activities (130,133) (72,946) 184,664 ---------------- ---------------- ---------------- Cash flows from investing activities Acquisition costs (paid)/reimbursed (for)/from operating limited partnerships 3,700 - (369,682) Capital contributions paid to operating limited partnerships (292,588) (2,444,175) (8,563,244) Deposits for purchases of operating limited partnerships - - 949,420 (Advances)/repayments (to)/from operating limited partnerships 63,200 222,000 409,014 Purchase of investments (net of proceeds from sale of investments) 109,754 967,118 6,242,389 ---------------- ---------------- ---------------- Net cash used in investing activities (115,934) (1,255,057) (1,332,103) ---------------- ---------------- ---------------- Cash flows from financing activities Selling commissions and registration costs paid - - (5,707) ---------------- ---------------- ---------------- Net cash provided by (used in) financing activities - - (5,707) ---------------- ---------------- ---------------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (246,067) (1,328,003) (1,153,146) Cash and cash equivalents, beginning 1,429,491 2,757,494 3,910,640 ---------------- ---------------- ---------------- Cash and cash equivalents, end $ 1,183,424 $ 1,429,491 $ 2,757,494 ================ ================ ================
(continued) F-27 28 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1997, 1996 and 1995 Series 16 ------------------------------------------------------ 1997 1996 1995 ---------------- ---------------- ---------------- 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 $ - $ - $ - ================ ================ ================ 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 $ - ================ ================ ================ 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 in and increased its capital contribution obligation in operating limited partnerships for low- income tax credits generated $ - $ - $ - ================ ================ ================ The partnership has decreased its investments in operating limited partnerships for unpaid capital contributions due to the operating limited partnership disposed of during the year $ 32,504 $ - $ - ================ ================ ================ The partnership has applied notes receivable and advances against installments of capital contributions $ 420,164 $ - $ - ================ ================ ================ The partnership has increased its deferred acquisition costs for operating limited partnership disposed of during year $ 4,675 $ - $ - ================ ================ ================ The partnership has increased (decreased) its investments available for sale for unrealized gains (losses) $ (1,545) $ 68,305 $ (67,388) ================ ================ ================
(continued) F-28 29 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1997, 1996 and 1995 Series 17 ------------------------------------------------------ 1997 1996 1995 ---------------- ---------------- ---------------- Cash flows from operating activities Net income (loss) $ (4,215,768) $ (3,771,430) $ (3,041,575) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Share of losses from operating limited partnerships 3,504,918 3,144,888 2,744,283 Distributions received from operating limited partnerships 3,381 2,436 1,428 Amortization 55,279 55,408 39,729 Organization costs - - (872) Changes in assets and liabilities Other assets 44,746 47,464 (54,968) Accounts payable and accrued expenses - (417) (83) Accounts payable - affiliates 572,246 606,821 414,240 ---------------- ---------------- ---------------- Net cash provided by (used in) operating activities (35,198) 85,170 102,182 ---------------- ---------------- ---------------- Cash flows from investing activities Acquisition costs (paid)/reimbursed (for)/from operating limited partnerships 3,410 (182,571) (282,180) Capital contributions paid to operating limited partnerships (155,696) (3,724,505) (10,171,778) Deposits for purchases of operating limited partnerships - - - (Advances)/repayments (to)/from operating limited partnerships (187,234) 577,530 (1,133,153) Purchase of investments (net of proceeds from sale of investments) 628,486 1,838,871 10,845,389 ---------------- ---------------- ---------------- Net cash used in investing activities 288,966 (1,490,675) (741,722) ---------------- ---------------- ---------------- Cash flows from financing activities Selling commissions and registration costs paid - - (3,894) ---------------- ---------------- ---------------- Net cash provided by (used in) financing activities - - (3,894) ---------------- ---------------- ---------------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 253,768 (1,405,505) (643,434) ---------------- ---------------- ---------------- Cash and cash equivalents, beginning 285,417 1,690,922 2,334,356 ---------------- ---------------- ---------------- Cash and cash equivalents, end $ 539,185 $ 285,417 $ 1,690,922 ================ ================ ================
(continued) F-29 30 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1997, 1996 and 1995 Series 17 ------------------------------------------------------ 1997 1996 1995 ---------------- ---------------- ---------------- 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 $ - ================ ================ ================ The partnership has adjusted its investment and decreased its capital contribution obligation in operating limited partnerships for low- income tax credits not generated $ 5,629 $ - $ - ================ ================ ================ 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 in and increased its capital contribution obligation in operating limited partnerships for low- income tax credits generated $ - $ 117,717 $ - ================ ================ ================ The partnership has decreased its investments in operating limited partnerships for unpaid capital contributions due to the operating limited partnership disposed of during the year $ - $ - $ - ================ ================ ================ The partnership has applied notes receivable and advances against installments of capital contributions $ 307,137 $ - $ - ================ ================ ================ The partnership has increased its deferred acquisition costs for operating limited partnership disposed of during year $ 4,675 $ - $ - ================ ================ ================ The partnership has increased (decreased) its investments available for sale for unrealized gains (losses) $ (1,464) $ 1,440 $ 24 ================ ================ ================
(continued) F-30 31 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1997, 1996 and 1995 Series 18 ------------------------------------------------------ 1997 1996 1995 ---------------- ---------------- ---------------- Cash flows from operating activities Net income (loss) $ (3,035,716) $ (2,824,934) $ (1,264,227) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Share of losses from operating limited partnerships 2,594,599 2,451,672 1,201,623 Distributions received from operating limited partnerships 7,958 2,278 180 Amortization 42,167 42,298 30,673 Organization costs - - (1,462) Changes in assets and liabilities Other assets (33,512) (148) 391,635 Accounts payable and accrued expenses (1,622) (100) (2,474) Accounts payable - affiliates 306,951 241,696 192,467 ---------------- ---------------- ---------------- Net cash provided by (used in) operating activities (119,175) (87,238) 548,415 ---------------- ---------------- ---------------- Cash flows from investing activities Acquisition costs (paid)/reimbursed (for)/from operating limited partnerships 2,465 - (312,377) Capital contributions paid to operating limited partnerships (118,711) (5,518,309) (13,335,939) Deposits - - - (Advances)/repayments (to)/from operating limited partnerships - 707,822 733,925 Purchase of investments (net of proceeds from sale of investments) 472,430 3,613,472 9,572,849 ---------------- ---------------- ---------------- Net cash provided by (used in) investing activities 356,184 (1,197,015) (3,341,542) ---------------- ---------------- ---------------- Cash flows from financing activities Selling commissions and registration costs paid - - (19) ---------------- ---------------- ---------------- Net cash provided by (used in) financing activities - - (19) ---------------- ---------------- ---------------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 237,009 (1,284,253) (2,793,146) Cash and cash equivalents, beginning 529,400 1,813,653 4,606,799 ---------------- ---------------- ---------------- Cash and cash equivalents, end $ 766,409 $ 529,400 $ 1,813,653 ================ ================ ================
(continued) F-31 32 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1997, 1996 and 1995 Series 18 ------------------------------------------------------ 1997 1996 1995 ---------------- ---------------- ---------------- 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 $ - $ - $ - ================ ================ ================ 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 in and increased its capital contribution obligation in operating limited partnerships for low- income tax credits generated $ 13,283 $ - $ - ================ ================ ================ The partnership has decreased its investments in operating limited partnerships for unpaid capital contributions due to the operating limited partnership disposed of during the year $ - $ - $ - ================ ================ ================ The partnership has applied notes receivable and advances against installments of capital contributions $ - $ - $ - ================ ================ ================ The partnership has increased its deferred acquisition costs for operating limited partnership disposed of during year $ - $ - $ - ================ ================ ================ The partnership has increased (decreased) its investments available for sale for unrealized gains (losses) $ (1,881) $ 4,921 $ (3,420) ================ ================ ================
(continued) F-32 33 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1997, 1996 and 1995 Series 19 ------------------------------------------------------ 1997 1996 1995 ---------------- ---------------- ---------------- Cash flows from operating activities Net income (loss) $ (3,218,799) $ (1,969,550) $ (1,208,253) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Share of losses from operating limited partnerships 2,861,140 1,858,752 1,115,590 Distributions received from operating limited partnerships 3,389 - - Amortization 51,011 50,726 27,291 Organization costs - - (12,791) Changes in assets and liabilities Other assets 54,143 (190,079) (635,836) Accounts payable and accrued expenses (1,093) 4,501 (2,937) Accounts payable - affiliates 206,084 283,177 199,620 ---------------- ---------------- ---------------- Net cash provided by (used in) operating activities (44,125) 37,527 (517,316) ---------------- ---------------- ---------------- Cash flows from investing activities Acquisition costs (paid)/reimbursed (for)/from operating limited partnerships 2,785 - (345,012) Capital contributions paid to operating limited partnerships (3,691,719) (4,681,675) (9,449,679) Deposits - - - (Advances)/repayments (to)/from operating limited partnerships - 1,175,450 (881,330) Purchase of investments (net of proceeds from sale of investments) 2,371,778 3,077,671 7,070,629 ---------------- ---------------- ---------------- Net cash used in investing activities (1,317,156) (428,554) (3,605,392) ---------------- ---------------- ---------------- Cash flows from financing activities Selling commissions and registration costs paid - - (8,801) ---------------- ---------------- ---------------- Net cash provided by (used in) financing activities - - (8,801) ---------------- ---------------- ---------------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,361,281) (391,027) (4,131,509) Cash and cash equivalents, beginning 2,551,124 2,942,151 7,073,660 ---------------- ---------------- ---------------- Cash and cash equivalents, end $ 1,189,843 $ 2,551,124 $ 2,942,151 ================ ================ ================
(continued) F-33 34 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1997, 1996 and 1995 Series 19 ------------------------------------------------------ 1997 1996 1995 ---------------- ---------------- ---------------- 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 $ 2,504,963 $ 88,646 $ - ================ ================ ================ The partnership has adjusted its investment and decreased its capital contribution obligation in operating limited partnerships for low- income tax credits not generated $ 279,612 $ 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 in and increased its capital contribution obligation in operating limited partnerships for low- income tax credits generated $ - $ - $ - ================ ================ ================ The partnership has decreased its investments in operating limited partnerships for unpaid capital contributions due to the operating limited partnership disposed of during the year $ - $ 2,424,400 $ - ================ ================ ================ The partnership has applied notes receivable and advances against installments of capital contributions $ 2,964,446 $ - $ - ================ ================ ================ The partnership has increased its deferred acquisition costs for operating limited partnership disposed of during year $ - $ - $ - ================ ================ ================ The partnership has increased (decreased) its investments available for sale for unrealized gains (losses) $ (9,177) $ 39,793 $ (32,094) ================ ================ ================
See notes to financial statements F-34 35 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS March 31, 1997, 1996 and 1995 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 complexes, which qualify for the Low-Income Housing Tax Credit established by the Tax Reform Act of 1986. Certain of the apartment complexes may also qualify for the Historic Rehabilitation Tax Credit for their rehabilitation of a certified historic structure; accordingly, the apartment complexes are restricted as to rent charges and operating methods and are subject to the provisions of Section 42(g)(2) of the Internal Revenue Code relating to the Rehabilitation Investment Credit. The general partner of the 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, 1997 and 1996 are as follows: 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 ----------- Total 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. F-35 36 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 and for any distributions received or accrued. However, the partnership recognizes individual operating partnership's losses only to the extent that the fund s share of losses of the operating partnerships does not exceed the carrying amount of its investment. Unrecognized losses are suspended and offset against future individual operating partnership's income. A loss in value of an investment in an operating partnership other than a temporary decline would be recorded as an impairment loss. Impairment is measured by comparing the investment carrying amount to the sum of the total amount of the remaining tax credits allocated to the fund and the estimated residual value of the investment. Capital contributions to operating partnerships are adjusted by tax credit adjusters. Tax credit adjusters are defined as adjustments to operating partnership capital contributions due to reductions in actual tax credits from those originally projected. The fund records tax credit adjusters as a reduction in investment in operating partnerships and capital contributions payable. The operating partnerships maintain their financial statements based on a calendar year and the fund utilizes a March 31 year end. The fund records losses and income from the operating partnerships on a calendar year basis which is not materially different from losses and income generated if the operating partnerships utilized a March 31 year end. The fund records capital contributions payable to the operating partnerships once there is a binding obligation to fund a specified amount. The operating partnerships record capital contributions from the fund when received. The fund records acquisition cost as an increase in its investment in operating partnerships. Certain operating partnerships have not recorded the acquisition costs as a capital contribution from the fund. These differences are shown as reconciling items in Note D. F-36 37 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Investments in Operating Limited Partnerships (Continued) During the years ended March 31, 1997, 1996 and 1995, the fund acquired interests in operating limited partnerships as follows: 1997 1996 1995 ------------- ------------- ------------- Series 15 - - 9 Series 16 - 1 7 Series 17 - 1 13 Series 18 - - 17 Series 19 1 1 11 ------------- ------------- ------------- 1 3 57 ============= ============= =============
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, 1997 and 1996 is as follows: 1997 1996 ------------------ ----------------- Series 15 $ 167,077 $ 140,845 Series 16 183,280 138,648 Series 17 155,355 115,625 Series 18 100,769 70,016 Series 19 107,865 70,254 ---------------- --------------- $ 714,346 $ 535,388 ================ ===============
F-37 38 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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). Accumulated amortization as of March 31, 1997 and 1996 is as follows: 1997 1996 ----------------- ---------------- Series 15 $ 21,123 $ 10,612 Series 16 33,708 16,902 Series 17 31,228 15,679 Series 18 22,957 11,543 Series 19 26,513 13,113 ---------------- ---------------- $ 135,529 $ 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, money market accounts and certificates of deposit 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. F-38 39 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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. 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, 1997, 1996 and 1995 are as follows: 1997, 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 ================
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. F-39 40 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Adoption of Accounting Standard On April 1, 1996, the operating partnerships adopted Statement of Financial Accounting Standards (SFAS) No. 121, "Accounting for Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of." This standard requires that long-lived assets and certain identifiable intangibles held and used by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Implementation of this statement did not materially impact the partnership's financial statements. Recent Accounting Statements Not Yet Adopted In February 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards (SFAS) No. 128, "Earnings per Share" and SFAS No. 129, "Disclosure of Information about Capital Structure." SFAS No. 128 provides accounting and reporting standards for the amount of earnings per share. SFAS No. 129 requires the disclosure in summary form within the financial statements of pertinent rights and privileges of the various securities outstanding. SFAS No. 128 and SFAS No. 129 are effective for fiscal years ending after December 15, 1997 and earlier application is not permitted. The implementation of these standards is not expected to materially impact the partnership's financial statements because partnership's earnings per share would not be significantly affected and the disclosure regarding the capital structure in the financial statements would not be significantly changed. NOTE B - INVESTMENTS AVAILABLE FOR SALE At March 31, 1997, the amortized cost and fair market value of investments are as follows: Gross Gross Amortized unrealized unrealized Fair market costs gains losses value --------------- --------------- --------------- --------------- Tax exempt municipal bonds $ 1,395,795 $ 95 $ (2,581)$ 1,393,309 =============== =============== =============== ===============
F-40 41 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE B - INVESTMENTS AVAILABLE FOR SALE (Continued) The amortized cost and approximate market value of investments by maturity at March 31, 1997 is shown below. Approximate Amortized costs market value ---------------- --------------- Due in one year or less $ 302,326 $ 302,421 Due after one year through five years 1,093,469 1,090,888 ---------------- --------------- $ 1,395,795 $ 1,393,309 ================ ===============
Proceeds from sales and maturities of investments during the year ended March 31, 1997 was $2,909,257 resulting in a realized loss of $27,478 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, 1997 ranged from 4% to 6.7%. At March 31, 1996, the amortized cost and fair market value of investments are as follows: Gross Gross Amortized unrealized unrealized Fair 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 costs market 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 ================ ===============
F-41 42 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE B - INVESTMENTS AVAILABLE FOR SALE (Continued) Proceeds from sales and maturities of investments during the year ended March 31, 1996 were $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%. NOTE C - RELATED PARTY TRANSACTIONS During the years ended March 31, 1997, 1996 and 1995, the fund entered into several transactions with various affiliates of the general p a rtner, including Boston Capital Partners, Inc., Boston Capital Services, Inc., and Boston Capital Asset Management Limited Partnership (formerly Boston Capital Communications Limited Partnership) as follows: Boston Capital Asset Management 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, 1997, 1996 and 1995 by series, is as follows: 1997 1996 1995 ---------------- ---------------- ---------------- Series 15 $ 473,378 $ 499,184 $ 470,726 Series 16 572,972 646,906 658,346 Series 17 512,189 506,412 509,015 Series 18 326,168 363,632 371,536 Series 19 368,355 383,177 403,871 ---------------- ---------------- ---------------- $ 2,253,062 $ 2,399,311 $ 2,413,494 ================ ================ ================
F-42 43 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE C - RELATED PARTY TRANSACTIONS (Continued) General and administrative expenses incurred by Boston Capital Partners, Inc. and Boston Capital Asset Management Limited Partnership during the years ended March 31, 1997, 1996 and 1995 charged to each series' operations are as follows: 1997 1996 1995 ---------------- ---------------- ---------------- Series 15 $ 26,370 $ 26,729 $ 20,294 Series 16 26,211 30,324 25,281 Series 17 22,369 29,426 23,579 Series 18 19,259 23,400 20,590 Series 19 21,979 30,652 22,659 ---------------- ---------------- ---------------- $ 116,188 $ 140,531 $ 112,403 ================ ================ ================
Accounts payable - affiliates at March 31, 1997 and 1996 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 Asset Management Limited Partnership. The carrying value of the accounts payable - affiliates approximates fair value. NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS At March 31, 1997, 1996 and 1995 the fund has limited partnership interests in operating limited partnerships which own or are constructing operating apartment complexes. During September 1996, the partnership disposed of its limited partnership interest in one of the operating partnerships owned in Series 16. 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, 1997, 1996 and 1995 by series are as follows: F-43 44 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) 1997 1996 1995 ---------------- ---------------- ---------------- Series 15 68 68 68 Series 16 64 65 64 Series 17 49 49 48 Series 18 34 34 34 Series 19 26 25 25 ---------------- ---------------- ---------------- 241 241 239 ================ ================ ================
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, 1997 and 1996 by series are as follows: 1997 1996 ---------------- ---------------- Series 15 $ 178,680 $ 202,750 Series 16 155,225 900,481 Series 17 1,844,259 2,312,721 Series 18 755,887 861,315 Series 19 831,803 5,262,617 ---------------- ---------------- $ 3,765,854 $ 9,539,884 ================ ================
F-44 45 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The fund's investment in operating limited partnerships at March 31, 1997 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 $ 161,740,845 $ 28,919,172 $ 40,189,926 Acquisition costs of operating limited partnerships 19,334,149 2,988,162 4,460,782 Syndication costs from operating limited partnerships (56,632) - - Cumulative cash flows from operating limited partnerships (41,954) (9,822) (11,082) Cumulative losses from operating limited partnerships (46,589,495) (13,222,431) (10,651,782) ---------------- ---------------- ---------------- Investment per balance sheet 134,386,913 18,675,081 33,987,844 The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 1997 which have not been included in the partnership s capital account included in the operating limited partnerships financial statements as of December 31, 1996 (see note A) (3,619,564) (1,202,355) (88,655) 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, 1996 (see note A) - - - The fund has recorded acquisition costs at March 31, 1997 which have not been recorded in the net assets of the operating limited partnerships (see note A) (3,865,111) (399,087) (794,528) Cumulative losses from operating limited partnerships for the three months ended March 31, 1997 which the operating limited partnerships have not included in their capital as of December 31, 1996 due to different year ends (see note A) 2,866,341 472,214 631,571
F-45 46 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 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 (51,397) (51,397) - The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A) 1,288,398 321,656 167,916 Other 12,352 30,988 (52,504) ---------------- ---------------- ---------------- Equity per operating limited partnerships combined financial statements $ 131,017,632 $ 17,847,100 $ 33,851,644 ================ ================ ================
F-46 47 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The fund s investment in operating limited partnerships at March 31, 1997 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 $ 36,691,552 $ 26,424,755 $ 29,515,440 Acquisition costs of operating limited partnerships 4,564,870 3,587,531 3,732,804 Syndication costs from operating limited partnerships - (56,632) - Cumulative cash flows from operating limited partnerships (7,245) (10,416) (3,389) Cumulative losses from operating limited partnerships (10,444,384) (6,431,558) (5,839,340) ---------------- ---------------- ---------------- Investment per balance sheet 30,804,793 23,513,680 27,405,515 The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 1997 which have not been included in the partnership s capital account included in the operating limited partnerships financial statements as of December 31, 1996 (see note A) (1,100,123) (336,594) (891,837) 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, 1996 (see note A) - - - The fund has recorded acquisition costs at March 31, 1997 which have not been recorded in the net assets of the operating limited partnerships (see note A) (1,496,190) (387,564) (787,742) Cumulative losses from operating limited partnerships for the three months ended March 31, 1997 which the operating limited partnerships have not included in their capital as of December 31, 1996 due to different year ends (see note A) 752,440 617,653 392,463
F-47 48 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) Series 17 Series 18 Series 19 ---------------- ---------------- ---------------- Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A) - - - The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A) 186,656 127,421 484,749 Other (52,166) 73,020 13,014 ---------------- ---------------- ---------------- Equity per operating limited partnerships combined financial statements $ 29,095,410 $ 23,607,616 $ 26,616,162 ================ ================ ================
F-48 49 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The funds 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 contributions to the operating limited partnerships 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 (see note A) (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 (see note A) 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 (see note A) (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 due to different year ends (see note A) 2,866,341 472,214 631,571
F-49 50 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 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 (see note A) (1,329) (1,329) - The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A) 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-50 51 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The funds 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 contributions to the operating limited partnerships 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 (see note A) (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 (see note A) - - 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 (see note A) (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 due to different year ends (see note A) 752,440 617,653 392,463
F-51 52 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) Series 17 Series 18 Series 19 ---------------- ---------------- ---------------- Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A) - - - The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A) 177,979 78,887 208,700 Other (116,649) 67,402 102,800 ---------------- ---------------- ---------------- Equity per operating limited partnerships combined financial statements $ 30,546,109 $ 25,186,829 $ 24,517,070 ================ ================ ================
F-52 53 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized balance sheets of the operating limited partnerships as of December 31, 1996 are as follows: Total Series 15 Series 16 ---------------- ---------------- ---------------- ASSETS Buildings and improvements, net of accumulated depreciation $ 527,972,353 $ 109,296,153 $ 119,964,923 Land 28,135,110 6,130,609 5,104,842 Other assets 28,143,897 5,849,177 7,272,453 ---------------- ---------------- ---------------- $ 584,251,360 $ 121,275,939 $ 132,342,218 ================ ================ ================ LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Mortgages and construction loans payable $ 364,182,226 $ 85,329,590 $ 84,645,408 Accounts payable and accrued expenses 9,478,617 1,974,112 2,393,597 Other liabilities 36,854,227 4,208,819 6,337,941 ---------------- ---------------- ---------------- 410,515,070 91,512,521 93,376,946 ---------------- ---------------- ---------------- PARTNERS' CAPITAL Boston Capital Tax Credit Fund III, L.P. 131,017,932 17,847,100 33,851,644 Other partners 42,718,358 11,916,318 5,113,628 ---------------- ---------------- ---------------- 173,736,290 29,763,418 38,965,272 ---------------- ---------------- ---------------- $ 584,251,360 $ 121,275,939 $ 132,342,218 ================ ================ ================
F-53 54 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized balance sheets of the operating limited partnerships as of December 31, 1996 are as follows: Series 17 Series 18 Series 19 ---------------- ---------------- ---------------- ASSETS Buildings and improvements, net of accumulated depreciation $ 139,521,909 $ 72,010,193 $ 87,179,175 Land 7,700,365 3,357,967 5,841,327 Other assets 6,609,113 4,238,634 4,174,520 ---------------- ---------------- ---------------- $ 153,831,387 $ 79,606,794 $ 97,195,022 ================ ================ ================ LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Mortgages and construction loans payable $ 90,258,521 $ 47,630,892 $ 56,317,815 Accounts payable and accrued expenses 2,364,296 1,410,335 1,336,277 Other liabilities 15,675,218 3,282,191 7,350,058 ---------------- ---------------- ---------------- 108,298,035 52,323,418 65,004,150 ---------------- ---------------- ---------------- PARTNERS' CAPITAL Boston Capital Tax Credit Fund III, L.P. 29,095,410 23,607,616 26,616,162 Other partners 16,437,942 3,675,760 5,574,710 ---------------- ---------------- ---------------- 45,533,352 27,283,376 32,190,872 ---------------- ---------------- ---------------- $ 153,831,387 $ 79,606,794 $ 97,195,022 ================ ================ ================
F-54 55 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 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: 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 Mortgages 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-55 56 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 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: 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 Mortgages 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-56 57 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized statements of operations for the operating limited partnerships for the year ended December 31, 1996 are as follows: COMBINED SUMMARIZED STATEMENTS OF OPERATIONS Total Series 15 Series 16 --------------- --------------- --------------- Revenue Rental $ 54,255,081 $ 11,196,024 $ 12,318,128 Interest and other 2,867,158 340,842 1,147,648 --------------- -------------- -------------- 57,122,239 11,536,866 13,465,776 --------------- -------------- -------------- Expenses Interest 22,356,916 4,154,249 4,585,893 Depreciation and amortization 22,819,977 5,184,898 4,966,052 Taxes and insurance 7,048,605 1,545,211 1,588,084 Repairs and maintenance 7,456,432 1,637,329 1,684,912 Operating expenses 16,301,823 3,336,137 3,427,264 Other expenses 1,568,799 395,562 313,164 --------------- -------------- -------------- 77,552,552 16,253,386 16,565,369 --------------- -------------- -------------- NET LOSS $ (20,430,313) $ (4,716,520) $ (3,099,593) =============== ============== ============== Net loss allocated to Boston Capital Tax Credit Fund III L. P.* $ (15,102,671) $ (3,089,180) $ (3,052,834) =============== ============== ============== Net loss allocated to other partners $ (5,327,642) $ (1,627,340) $ (46,759) =============== ============== ==============
* Amounts include $50,068 for series 15 of loss not recognized under the equity method of accounting as described in Note A. F-57 58 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized statements of operations for the operating limited partnerships for the year ended December 31, 1996 are as follows: COMBINED SUMMARIZED STATEMENTS OF OPERATIONS Series 17 Series 18 Series 19 --------------- --------------- --------------- Revenue Rental $ 14,509,341 $ 6,588,968 $ 9,642,620 Interest and other 616,684 359,139 402,845 --------------- -------------- -------------- 15,126,025 6,948,107 10,045,465 --------------- -------------- -------------- Expenses Interest 6,562,849 2,813,996 4,239,929 Depreciation and amortization 5,838,439 3,069,441 3,761,147 Taxes and insurance 1,713,879 813,148 1,388,283 Repairs and maintenance 2,136,225 1,005,955 992,011 Operating expenses 4,527,151 1,889,127 3,122,144 Other expenses 369,531 257,371 233,171 --------------- -------------- -------------- 21,148,074 9,849,038 13,736,685 --------------- -------------- -------------- NET LOSS $ (6,022,049) $ (2,900,931) $ (3,691,220) =============== ============== ============== Net loss allocated to Boston Capital Tax Credit Fund III L. P.* $ (3,504,918) $ (2,594,599) $ (2,861,140) =============== ============== ============== Net loss allocated to other partners $ (2,517,131) $ (306,332) $ (830,080) =============== =============== ===============
* Amounts include $50,068 for Series 15 of loss not recognized under the equity method of accounting as described in Note A. F-58 59 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized statements of operations for the operating limited partnerships for the year ended December 31, 1995 are as follows: COMBINED SUMMARIZED STATEMENTS OF OPERATIONS Total Series 15 Series 16 --------------- --------------- --------------- Revenue 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-59 60 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized statements of operations for the operating limited partnerships for the year ended December 31, 1995 are as follows: COMBINED SUMMARIZED STATEMENTS OF OPERATIONS Series 17 Series 18 Series 19 --------------- --------------- --------------- Revenue 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-60 61 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE E - NOTES RECEIVABLE Notes receivable at March 31, 1997 and 1996 consist of advance installments of capital contributions to operating limited partnerships. The notes at March 31, 1997 and 1996 are comprised of noninterest bearing and interest bearing notes with rates ranging from 3.66% to prime plus 1% to 3%. Prime was 8.5% and 8.25% as of March 31, 1997 and 1996, 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, 1997 and 1996 by series are as follows: 1997 1996 ---------------- --------------- Series 15 $ 135,000 $ 185,000 Series 16 - 483,464 Series 17 1,409,982 1,658,475 Series 18 536,351 536,351 Series 19 - 2,098,870 ---------------- --------------- $ 2,081,333 $ 4,962,160 ================ ===============
NOTE F - OTHER ASSETS Other assets include cash held by an escrow agent at March 31, 1997 and 1996. The cash held for the series at March 31, 1997 and 1996 represents capital contributions to be released to the operating limited partnerships when certain criteria are met. The escrows held at March 31, 1997 and 1996 by series are as follows: 1997 1996 ---------------- --------------- Series 15 $ - $ - Series 16 - - Series 17 15,097 38,229 Series 18 - - Series 19 - - ---------------- --------------- $ 15,097 $ 38,229 ================ ===============
F-61 62 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE F - OTHER ASSETS (Continued) In addition, other assets include cash advanced to operating limited partnerships at March 31, 1997 and 1996 to be applied to capital contributions payable when certain criteria have been met. The advances at March 31, 1997 and 1996 by series are as follows: 1997 1996 ---------------- --------------- Series 15 $ 426,912 $ 242,579 Series 16 - - Series 17 1,290,838 1,167,877 Series 18 - - Series 19 221,180 778,230 ---------------- --------------- $ 1,938,930 $ 2,188,686 ================ ===============
F-62 63 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 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, 1997 are reconciled as follows: Total Series 15 Series 16 ---------------- --------------- --------------- Net loss for financial reporting purposes $ (17,706,223) $ (3,473,421) $ (3,762,519) Operating limited partnership rents received in advance 99,831 2,581 9,598 Fund management fees not deducted for tax purposes 1,988,010 488,062 572,140 Other (73,839) (250,370) (17,194) Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting (50,068) (50,068) - Excess of tax depreciation over book depreciation on operating limited partnership assets (1,794,498) (213,933) (280,017) Difference due to fiscal year for book purposes and calendar year for tax purposes (892,751) (187,130) (801,719) ---------------- --------------- --------------- Loss for tax return purposes, December 31, 1996 $ (18,429,538) $ (3,684,279) $ (4,279,711) ================ =============== ===============
F-63 64 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE G - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO TAX RETURN (Continued) 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, 1997 are reconciled as follows: Series 17 Series 18 Series 19 ---------------- --------------- --------------- Net loss for financial reporting purposes $ (4,215,768) $ (3,035,716) $ (3,218,799) Operating limited partnership rents received in advance (16,393) 13,544 90,501 Fund management fees not deducted for tax purposes 433,409 241,696 252,703 Other 143,844 (98,911) 148,792 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 (585,002) (261,901) (453,645) Difference due to fiscal year for book purposes and calendar year for tax purposes 14,284 (13,118) 94,932 ---------------- --------------- --------------- Loss for tax return purposes, December 31, 1996 $ (4,225,626) $ (3,154,406) $ (3,085,516) ================ =============== ===============
F-64 65 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE G - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO TAX RETURN (Continued) 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 note 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-65 66 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 NOTE G - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO TAX RETURN (Continued) 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 note 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-66 67 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 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, 1997, the differences are as follows: Total Series 15 Series 16 ---------------- --------------- --------------- Investments in operating limited partnership - per tax return, December 31, 1996 $ 127,267,193 $ 18,550,738 $ 31,239,994 Operating limited partnership acquired for the three months ended March 31, 1997 - - - Estimated share of loss for the three months ended March 31, 1997 (2,866,341) (472,214) (631,571) Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method 51,397 51,397 - Historic tax credits 5,333,539 1,852,569 - Other 4,601,125 (1,307,409) 3,379,421 ---------------- --------------- --------------- Investment in operating limited partnerships - as reported $ 134,386,913 $ 18,675,081 $ 33,987,844 ================ =============== ===============
F-67 68 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 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, 1997, the differences are as follows: Series 17 Series 18 Series 19 ---------------- --------------- --------------- Investments in operating limited partnership - per tax return, December 31, 1996 $ 29,964,710 $ 21,519,261 $ 25,992,490 Operating limited partnership acquired for the three months ended March 31, 1997 - - - Estimated share of loss for the three months ended March 31, 1997 (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 492,213 549,739 1,487,161 ---------------- --------------- --------------- Investment in operating limited partnerships - as reported $ 30,804,793 $ 23,513,680 $ 27,405,515 ================ =============== ===============
F-68 69 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 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: 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 ended 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 under the equity method 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-69 70 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 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 ended 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-70 71 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1997, 1996 and 1995 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, 1997, the uninsured portion of the cash balances on deposit was $14,353. NOTE I - CASH EQUIVALENTS On March 31, 1997 and 1996, Boston Capital Tax Credit Fund III L.P. purchased $3,150,000 and $4,000,000 of U.S. Government Securities under agreements to resell on April 1, 1997 and 1996, respectively. Interest is earned at rates ranging from 2.15% to 3.5% per annum. Additionally, cash equivalents of $613,459 and $721,415 as of March 31, 1997 and 1996, respectively, include certificates of deposit and money market accounts with interest rates ranging from 2.8% to 5.0% per annum. F-71 Boston Capital Tax Credit Fund III L.P. - Series 15 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 1,473,645 50,000 1,773,331 0 50,000 1,773,331 1,823,331 272,314 5/93 9/92 5-27.5 Arkansas City 831,930 15,870 1,016,757 0 15,870 1,016,757 1,032,627 94,621 12/94 9/94 5-25 Autumnwood LP 1,355,355 50,000 1,669,609 0 50,000 1,669,609 1,719,609 260,457 1/93 8/92 5-27.5 Barton Village 512,441 47,898 683,991 0 47,898 683,991 731,889 106,257 3/93 10/92 5-27.5 Beckwood Manor Eight 1,227,232 60,000 1,498,746 4,058 58,000 1,502,804 1,560,804 117,985 8/95 8/94 5-27.5 Bergen Meadows 1,024,570 42,000 1,256,858 10,500 42,000 1,267,358 1,309,358 242,407 7/92 7/92 7-27.5 Bridlewood LP 794,924 42,000 211,635 781,185 42,000 992,820 1,034,820 56,856 1/95 1/94 5-27.5 Brunswick LP 829,994 69,000 953,553 416 69,000 953,969 1,022,969 168,236 9/92 4/92 7-27.5 - F-72 - Boston Capital Tax Credit Fund III L.P. - Series 15 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - ------------------------------------------------------------------------------------------------------------------------------ Buena Vista Apts. 1,459,496 75,000 1,767,511 750 75,000 1,768,261 1,843,261 365,300 1/92 3/92 7-27.5 Calexico Sr 1,929,914 213,000 2,047,255 0 213,000 2,047,255 2,260,255 210,081 9/92 9/92 7-27.5 California Inv. VII 9,004,859 820,000 9,361,922 16,788,173 803,050 26,150,095 26,953,145 3,011,776 12/93 10/92 5-27.5 Chestnut Hill 746,277 40,000 904,814 3,545 40,000 908,359 948,359 117,811 9/92 9/92 7-27.5 Coralville Housing 2,628,498 258,000 4,683,541 34,958 258,000 4,718,499 4,976,499 920,550 10/92 3/92 7-27.5 Curwensville Housing 1,221,138 31,338 1,435,553 94,841 31,338 1,530,394 1,561,732 148,835 7/93 9/92 5-27.5 Deerfield Assoc. 1,234,613 65,400 1,495,473 0 65,400 1,495,473 1,560,873 273,872 6/92 4/92 7-27.5 East Machias 1,044,316 77,963 1,478,171 4,507 77,963 1,482,678 1,560,641 157,659 1/93 9/92 10-40 East Park Apts. I 506,285 2,000 980,413 478 2,000 980,891 982,891 108,278 1/94 6/94 5-27.5 - F-73 - Boston Capital Tax Credit Fund III L.P. - Series 15 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - ------------------------------------------------------------------------------------------------------------------------------ Edgewood Properties 790,831 36,000 967,796 0 36,000 967,796 1,003,796 162,558 8/92 6/92 7-27.5 Far View Housing 925,247 100,000 1,066,418 7,433 100,000 1,073,851 1,173,851 120,437 11/92 6/92 10-40 Graham Housing 1,340,848 85,006 2,451,794 (3,894) 85,006 2,447,900 2,532,906 122,594 6/95 10/94 5-27.5 Grantsville Assoc. 1,493,335 85,099 1,795,971 0 85,599 1,795,971 1,881,570 198,732 2/93 5/92 5-27.5 Greentree Apts. 688,129 15,000 1,143,223 0 15,000 1,143,223 1,158,223 670,523 10/75 4/94 5-27.5 Greenwood Village 678,621 20,123 893,915 0 20,123 893,915 914,038 135,662 5/93 8/92 5-27.5 Harrisonville Prop. II 610,418 15,000 744,677 4,396 15,000 749,073 764,073 184,325 11/91 3/92 7-27.5 Headlton Properties 707,444 15,000 868,469 0 15,000 868,469 883,469 56,548 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 3,015,965 468,506 11/92 04/92 7-27.5 - F-74 - Boston Capital Tax Credit Fund III L.P. - Series 15 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - ------------------------------------------------------------------------------------------------------------------------------ Heron's Landing 1,210,640 176,121 1,410,573 2,563 176,121 1,413,136 1,589,257 254,074 10/92 10/92 7-27.5 Hidden Cove 2,922,342 707,848 4,334,916 6,630 707,848 4,341,546 5,049,394 1,321,144 8/88 2/94 5-27.5 Higgensville Estates 629,932 40,000 738,056 1,622 40,000 739,678 779,678 195,000 3/91 3/92 7-27.5 Inv. Group of Payson 1,492,979 211,500 1,767,942 0 211,500 1,767,942 1,979,442 189,431 8/92 8/92 7-27.5 Kearney Estates 637,035 30,000 763,159 1,875 30,000 765,034 795,034 181,327 1/92 5/92 7-27.5 Lake View Associates 891,378 30,000 1,077,130 350 30,000 1,077,480 1,107,480 201,969 7/92 4/92 7-27.5 Laurelwood Apts. 1,072,959 58,500 1,268,491 750 58,500 1,269,241 1,327,741 240,876 2/92 3/92 7-27.5 Lebanon II LP 929,928 40,000 1,090,397 0 40,000 1,090,397 1,130,397 167,685 2/93 8/92 5-27.5 Lebanon III Prop. 634,958 26,750 766,992 6,376 26,750 773,368 800,118 177,397 2/92 3/92 7-27.5 - F-75 - Boston Capital Tax Credit Fund III L.P. - Series 15 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - ------------------------------------------------------------------------------------------------------------------------------ Lilac Properties 732,250 36,000 897,897 0 36,000 897,897 933,897 160,148 7/92 6/92 7-27.5 Livingston Plaza 680,192 32,500 868,525 0 32,500 868,525 901,025 123,118 11/93 12/92 5-27.5 Madison Partners 1,204,968 47,340 1,452,910 8,886 47,340 1,461,796 1,509,136 149,521 12/94 3/95 5-27.5 Manning Lane 1,478,336 73,600 1,771,816 0 73,600 1,771,816 1,845,416 285,766 3/93 8/92 5-27.5 Marshall Lane 556,113 20,000 672,691 0 20,000 672,691 692,691 111,475 12/92 8/92 5-27.5 Maryville Prop. 721,333 57,000 834,823 13,089 57,000 847,912 904,912 194,274 3/92 5/92 7-27.5 Monark Village 331,775 68,900 570,916 0 68,900 570,916 639,816 59,962 3/94 6/94 5-27.5 North Prairie 885,589 5,000 1,121,143 4,840 5,000 1,125,983 1,130,983 202,143 5/93 9/92 5-27.5 Oak Grove Villa 406,090 5,000 460,291 8,878 5,000 469,169 474,169 118,784 11/91 4/92 7-27.5 - F-76 - Boston Capital Tax Credit Fund III L.P. - Series 15 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - ----------------------------------------------------------------------------------------------------------------------------- Oakwood Village 1,112,767 42,000 1,341,412 0 42,000 1,341,412 1,383,412 264,098 5/92 5/92 7-27.5 Osage Housing 1,277,530 110,000 2,309,861 18,524 110,000 2,328,385 2,438,385 445,644 6/92 4/92 7-27.5 Osceola Estates 678,684 54,600 797,763 71,349 54,600 869,112 923,712 172,917 5/92 5/92 7-27.5 PDC Fifty Five LP 1,300,766 50,170 1,576,823 5,770 50,170 1,582,593 1,632,763 217,707 9/93 10/92 5-27.5 Rainier Manor 2,712,816 521,000 5,852,852 0 521,000 5,852,852 6,373,852 667,360 1/93 4/92 5-27.5 Ridgeview of Brainerd 865,020 42,800 1,027,499 1,978 42,800 1,029,477 1,072,277 199,737 1/92 3/92 7-27.5 Rio Members II 776,727 48,938 930,376 3,520 48,938 933,896 982,834 117,603 12/95 7/94 5-27.5 Rolling Brook III 830,505 35,000 1,006,667 5,318 35,000 1,011,985 1,046,985 204,080 11/92 6/92 7-27.5 School Street I 774,226 127,852 1,353,622 95,368 38,509 1,448,990 1,487,499 313,781 5/92 4/92 5-27.5 - F-77 - Boston Capital Tax Credit Fund III L.P. - Series 15 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - ----------------------------------------------------------------------------------------------------------------------------- Shenandoah Village 1,479,154 67,500 1,754,599 742 67,500 1,755,341 1,822,841 262,197 2/93 8/92 5-27.5 Showboat Manor 799,316 31,200 968,253 7,968 31,200 976,221 1,007,421 180,461 2/92 7/92 5-27.5 Sioux Falls Housing 1,371,889 146,694 2,656,753 (14,586) 146,694 2,642,167 2,788,861 504,288 9/92 5/92 7-27.5 Sunset Square 743,697 50,000 896,507 7,023 50,000 903,530 953,530 120,136 8/92 90/2 7-27.5 Taylor Mill 771,275 24,000 936,166 0 24,000 936,166 960,166 174,311 5/92 4/92 7-27.5 Timmons Village 624,810 15,000 754,172 2,927 38,500 757,099 795,599 137,335 7/92 5/92 7-27.5 University Meadows 1,896,828 62,985 3,579,473 3,445 62,985 3,582,918 3,645,903 664,644 12/92 6/92 5-28 Valatie LP 1,390,380 30,000 1,712,263 7,902 30,000 1,720,165 1,750,165 344,218 4/93 6/92 7-27.5 Virgen Del Pozo 3,345,226 120,000 4,274,133 31,351 120,000 4,305,484 4,425,484 530,366 7/93 8/92 5-27.5 - F-78 - Boston Capital Tax Credit Fund III L.P. - Series 15 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - ------------------------------------------------------------------------------------------------------------------------------ Villa Del Mar 1,470,358 50,000 1,792,888 0 50,000 1,792,888 1,842,888 325,222 8/92 8/92 7-27.5 Wauchula Ltd. 1,482,965 66,720 1,770,669 1,816 66,720 1,772,485 1,839,205 316,860 10/92 9/92 5-27.5 Weedpatch Inv. Grp. 1,982,359 272,000 2,246,927 378 272,000 2,247,305 2,519,305 136,121 9/94 1/94 5-50 Westernport Assoc. 1,495,201 18,645 1,833,384 0 18,645 1,833,384 1,852,029 272,495 2/93 7/92 5-27.5 Whitewater Village 528,920 18,542 637,048 1,453 18,542 638,501 657,043 111,572 11/92 8/92 7-27.5 Wood Park Pointe 1,173,664 117,500 1,329,664 1,348 117,500 1,331,012 1,448,512 255,022 5/92 6/92 5-27.5 ---------- --------- ----------- ---------- --------- ----------- ----------- ---------- 85,329,590 6,214,902 111,326,972 16,038,750 6,130,609 129,321,602 135,452,211 20,205,449 ========== ========= =========== ========== ========= =========== =========== ========== Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 1996. *Decrease due to a reallocation of acquisition costs. **There were no carrying costs as of December 31, 1996. The column has been omitted for presentation purposes. - F-79 -
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-80 - 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............................$135,349,798 Additions during period: Acquisitions through foreclosure.................$ 0 Other acquisitions............................... 0 Improvements, etc................................ 102,413 Other............................................ 0 ----------- $ 102,413 Deductions during period: Cost of real estate sold.........................$ 0 Other............................................ 0 ----------- $ 0 ----------- Balance at close of period - 03/31/97............................$135,452,211 =========== - F-81 - Notes to Schedule III - Continued Boston Capital Tax Credit Fund III - Series 15 Reconciliation of Accumulated Depreciation current year changes Balance at beginning of period - 04/01/92........................$ 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 Current year expense..................................$4,587,940 --------- Balance at close of period - 3/31/97..............................$20,025,449 ========== - F-82 - Boston Capital Tax Credit Fund III L.P.- Series 16 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 1,633,327 8,000 2,927,089 455,610 8,000 3,382,699 3,390,699 506,888 3/93 12/92 5-27.5 Anson 1,292,673 40,202 1,683,348 0 40,202 1,683,348 1,723,550 165,948 9/93 12/92 10-40 Aztec II 1,021,549 115,000 1,299,311 1,369 115,000 1,300,680 1,415,680 222,695 5/93 5/93 5-27.5 Bentonia Elderly 846,603 21,000 678,677 383,880 21,000 1,062,557 1,083,557 93,059 2/94 7/93 5-27.5 Bernice Villa 967,583 37,000 1,204,665 238 37,000 1,204,903 1,241,903 103,673 10/93 5/93 5-40 Blairsville Rental I 758,885 58,377 866,980 40,526 35,000 907,506 942,506 75,626 9/94 12/92 5-27.5 Blairsville Rental II 742,836 84,359 804,895 60,360 49,500 865,255 914,755 74,617 7/94 12/92 5-27.5 Blowing Rock 513,727 47,500 663,473 686 47,500 664,159 711,659 52,442 11/94 12/93 5-27.5 - F-83 - Boston Capital Tax Credit Fund III L.P. - Series 16 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 I 1,554,682 163,350 2,990,564 1,026 163,350 2,991,590 3,154,940 342,315 6/94 3/94 5-27.5 Branson Chris- tian II 1,127,842 0 2,497,066 33,401 0 2,530,467 2,530,467 267,670 8/94 7/94 5-27.5 Butler Rental 757,892 0 937,495 15,782 0 953,277 953,277 117,477 9/93 12/92 7-27.5 Canter- field 771,568 48,000 934,169 1,163 48,000 935,332 983,332 153,292 1/93 11/92 5-27.5 Cape Ann 585,086 18,000 1,833,366 51,824 18,000 1,885,190 1,903,190 228,509 12/93 1/93 7-31.5 Cass Partners 313,744 45,250 2,026,740 0 45,250 2,026,740 2,071,990 163,380 12/93 12/93 5-27.5 Cedar Trace 507,133 18,000 639,500 2,925 18,000 642,425 660,425 111,377 7/93 10/92 5-27.5 Concord Assoc. 1,139,214 61,532 1,223,133 117,640 61,532 1,340,773 1,402,305 232,281 2/93 2/93 5-27.5 - F-84 - Boston Capital Tax Credit Fund III L.P.- Series 16 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - ------------------------------------------------------------------------------------------------------------------------------ Clymer Park Assoc 1,445,104 35,800 1,831,813 0 35,800 1,831,813 1,867,613 141,841 11/94 12/92 5-27.5 Cumberland Wood 1,457,998 114,449 1,780,622 59,361 113,625 1,839,983 1,953,608 107,936 10/94 12/93 6-40 Davenport Housing 3,131,544 223,889 6,598,309 25,630 223,889 6,623,939 6,847,828 857,325 2/94 10/93 7-27.5 Deer Run 719,606 30,000 1,536,783 0 30,000 1,536,783 1,566,783 224,441 3/93 8/93 5-27.5 Eastman Elderly 1,187,160 80,000 1,428,172 23,947 36,900 1,452,119 1,489,019 178,054 10/93 12/92 5-27.5 Fairmeadow Apts. 888,116 53,296 1,184,327 39,079 53,296 1,223,406 1,276,702 104,825 7/93 1/93 5-27.5 Falcon Ridge 1,052,571 25,000 1,332,798 19,150 25,000 1,351,948 1,376,948 71,538 1/95 4/94 5-27.5 Gibson 914,089 30,290 1,138,786 350 30,290 1,139,136 1,169,426 132,418 6/93 12/92 5-27.5 - F-85 - Boston Capital Tax Credit Fund III L.P. - Series 16 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - ------------------------------------------------------------------------------------------------------------------------------ Greenfield 535,408 25,000 649,793 0 25,000 649,793 674,793 121,773 5/93 1/93 7-27.5 Greenwood 1,483,607 62,076 1,480,776 336,322 62,076 1,817,098 1,879,174 267,643 10/93 11/93 5-27.5 Harmony House 1,482,213 57,000 1,764,438 14,574 57,000 1,779,012 1,836,012 191,453 7/93 11/92 5-27.5 Haynes House 3,495,929 685,381 5,956,903 2,252,686 674,499 8,209,589 8,884,088 411,904 u/c 8/94 12-40 Holly Tree 889,327 58,900 1,069,733 5,446 58,900 1,075,179 1,134,079 175,296 2/93 11/92 5-27.5 Idabel Prop. 1,393,760 50,000 1,791,971 0 50,000 1,791,971 1,841,971 260,304 12/93 4/93 5-25.5 Isola Square 974,908 22,300 250,691 972,885 22,300 1,223,576 1,245,876 86,717 4/94 11/93 7-40 Joiner Elderly 825,160 47,719 1,026,013 0 47,719 1,026,013 1,073,732 161,735 6/93 1/93 5-40 Lawrenceville Manor 1,424,777 61,370 1,660,796 803 61,370 1,661,600 1,722,970 182,889 7/94 2/94 5-27.5 - F-86 - Boston Capital Tax Credit Fund III L.P. - Series 16 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - ------------------------------------------------------------------------------------------------------------------------------ Lawtell Manor 935,317 45,000 1,201,948 7,850 45,000 1,209,798 1,254,798 109,486 8/93 4/93 7-40 Logan Lane 1,304,434 54,000 1,602,465 2,962 54,000 1,605,427 1,659,427 253,349 3/93 9/92 5-27.5 Mariners Pointe I &II 4,003,292 170,020 7,548,131 34,596 170,020 7,582,727 7,752,747 1,149,833 8/93 12/92 7-27.5 Meadows of Southgate 2,338,538 252,000 4,575,879 0 252,000 4,575,879 4,827,879 268,116 5/94 7/93 12-40 Mendota Village 1,987,883 136,140 2,421,001 0 136,140 2,421,001 2,557,141 200,501 5/93 12/92 5-50 Midcity 3,140,774 15,058 6,611,666 4,800 15,058 6,616,466 6,631,524 591,191 6/94 9/93 5-27.5 Newport Housing 1,259,482 160,000 1,405,411 (3,274) 160,000 1,402,137 1,562,137 129,146 10/93 2/93 5-27.5 Newport Manor 963,498 31,908 1,175,109 26,161 31,908 1,201,270 1,233,178 106,918 12/93 9/93 5-40 - F-87 - Boston Capital Tax Credit Fund III L.P. - Series 16 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - ----------------------------------------------------------------------------------------------------------------------------- Palantine LP 1,439,175 37,400 1,785,282 854 37,400 1,786,136 1,823,536 216,195 5/94 5/94 5-27.5 Riviera Apts. 1,717,110 100,000 2,979,700 579,524 132,400 3,559,224 3,691,624 405,930 12/93 12/92 5-27.5 Sable Chase 5,220,944 502,774 12,248,475 9,118 502,774 12,257,593 12,760,367 1,201,638 12/94 12/93 7-27.5 St.Croix Commons 1,129,146 44,681 2,607,046 (666,994) 44,681 1,940,052 1,984,733 199,940 12/94 10/94 5-27.5 St. Joseph SQ 964,859 37,500 1,167,702 473 37,500 1,168,175 1,205,675 104,191 9/93 5/93 5-40 Simmes- port 956,744 60,000 1,171,005 772 60,000 1,171,777 1,231,777 108,976 6/93 4/93 7-40 Stony- Ground 1,440,543 127,380 1,794,961 (3,650) 129,005 1,791,311 1,920,316 271,786 6/93 12/92 5-27.5 Summers- ville 624,702 20,000 774,259 0 20,000 774,259 794,259 144,240 6/93 5/93 5-27.5 - F-88 - Boston Capital Tax Credit Fund III L.P. - Series 16 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - ----------------------------------------------------------------------------------------------------------------------------- Talbot Village 684,816 22,300 883,494 42 22,300 833,536 855,836 130,644 4/93 8/92 5-27.5 Tchula Elderly 838,860 20,000 1,071,899 1,332 20,000 1,073,231 1,093,231 104,569 12/93 7/93 5-27.5 Toulumne City 1,606,725 190,000 1,912,157 0 190,000 1,912,157 2,102,157 144,441 8/93 12/92 5-50 Turtle Creek 854,522 23,141 1,113,511 2,485 23,141 1,115,996 1,139,137 175,359 10/93 5/93 7-40 Twin Oaks Assoc. 1,478,071 45,000 1,776,674 7,868 45,000 1,784,542 1,829,542 178,224 9/93 12/92 5-27.5 Victoria Pointe 1,450,728 153,865 1,437,570 352,716 128,900 1,790,286 1,919,186 143,997 1/95 10/94 5-27.5 Viste Linda Apts. 2,513,808 143,253 2,961,671 898 143,253 2,962,569 3,105,822 373,093 12/93 1/93 5-27.5 Wakefield Housing 1,268,043 88,564 1,480,003 1,399 88,564 1,481,402 1,569,966 163,934 2/93 9/92 10-40 - F-89 - Boston Capital Tax Credit Fund III L.P. - Series 16 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - ------------------------------------------------------------------------------------------------------------------------------ West End Manor 995,844 52,300 1,188,913 (298) 52,300 1,188,615 1,240,915 183,687 5/93 5/93 5-27.5 Westchester Oak Grove 1,239,211 38,010 2,281,529 40,049 35,000 2,321,578 2,356,578 411,482 4/93 12/92 5-27.5 Westchester St. Joe 1,683,311 100,000 3,211,620 63,427 100,000 3,275,047 3,375,047 525,372 6/93 7/93 5-27.5 Westville Prop. 725,358 25,000 912,139 0 25,000 912,139 937,139 147,127 7/93 2/93 5-25 Wilcox Inv. Group 1,112,794 58,500 1,376,329 0 58,500 1,376,329 1,434,829 112,982 6/93 1/93 7-50 Woodlands Apts 931,255 30,000 668,555 532,209 30,000 1,200,764 1,230,764 90,671 2/95 9/94 5-27.5 ---------- --------- ----------- ---------- --------- ----------- ----------- ---------- 84,645,408 5,211,834 128,989,299 5,911,982 5,104,842 134,901,282 140,006,124 14,936,359 ========== ========= =========== ========== ========= =========== =========== ========== Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 1996. *Decrease due to a reallocation of acquisition costs. **There were no carrying costs as of December 31, 1996. The column has been omitted for presentation purposes. - F-90 -
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-91 - 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............................$141,420,952 Additions during period: Acquisitions through foreclosure.................$ 0 Other acquisitions............................... 0 Improvements, etc................................ 97,846 Other............................................ 0 ----------- $ 97,846 Deductions during period: Cost of real estate sold.........................$ (1,512,675) Other............................................ 0 ----------- $ (1,512,675) ----------- Balance at close of period - 03/31/97............................$140,006,124 =========== - F-92 - Notes to Schedule III - Continued Boston Capital Tax Credit Fund III L.P. - Series 16 Reconciliation of Accumulated Depreciation current year changes Balance at beginning of period - 04/01/92........................$ 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 Current year additions*...............................$4,859,372 --------- Balance at close of period - 3/31/97..............................$14,936,359 ========== *-Total includes current year expense and amounts capatalized to building basis. - F-93 - Boston Capital Tax Credit Fund III L.P. - Series 17 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - ------------------------------------------------------------------------------------------------------------------------------ Annadale Housing 4,543,744 226,000 12,180,150 0 226,000 12,180,150 12,406,150 1,396,814 - - - Artesia Prop. 1,429,409 30,730 1,865,231 1,115 30,730 1,866,346 1,897,076 197,650 9/94 9/94 5-27.5 Aspen Ridge 888,302 36,000 2,004,059 (939) 36,000 2,003,120 2,039,120 275,267 11/93 9/93 5-27.5 Bladen- boro 1,021,728 16,000 1,213,015 (27,474) 16,000 1,185,541 1,201,541 71,813 7/95 3/95 5-27.5 Brewer St. 1,210,441 0 2,296,514 14,880 0 2,311,394 2,311,394 348,595 7/93 6/93 5-27.5 Briarwood Apts. 920,368 38,500 20,850 1,203,704 38,952 1,224,554 1,263,506 71,582 7/93 6/93 5-27.5 Briarwood Village 1,135,894 42,594 1,418,259 0 42,594 1,418,259 1,460,853 159,812 5/94 10/93 5-27.5 - F-94 - Boston Capital Tax Credit Fund III L.P. - Series 17 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - ------------------------------------------------------------------------------------------------------------------------------ Briarwood Dekalb 1,605,843 96,000 2,943,443 15,207 96,000 2,958,650 3,054,650 226,990 6/94 10/93 5-40 Cairo Housing 1,076,324 17,000 1,309,062 (873) 17,000 1,308,189 1,325,189 204,758 4/93 5/93 7-27.5 California Inv VI 3,968,211 400,000 7,446,261 1,586 400,000 7,447,847 7,847,847 1,619,446 5/89 1/94 5-27.5 California Inv VII 9,004,859 803,050 25,913,966 236,129 803,050 26,150,095 26,953,145 2,178,132 12/93 12/93 5-27.5 Cambridge YMCA 2,638,126 95,200 5,135,233 2,141 95,200 5,137,374 5,232,574 713,026 12/93 4/93 5-27.5 Caneyville Prop. 481,070 36,000 601,775 (13,800) 36,000 587,975 623,975 92,910 4/93 5/93 5-27.5 Clinton Estates 742,356 47,533 891,872 0 47,533 891,872 939,405 87,981 12/94 12/94 5-27.5 Cloverport Prop. 761,938 21,500 947,659 (7,038) 21,500 940,621 962,121 140,135 7/93 4/93 5-27.5 College Green 3,791,301 225,000 6,774,847 37,748 225,000 6,812,595 7,037,595 434,810 8/95 3/95 5-27.5 - F-95 - Boston Capital Tax Credit Fund III L.P.- Series 17 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - ------------------------------------------------------------------------------------------------------------------------------ Croften Assoc. 810,301 46,511 961,097 0 46,511 961,097 1,007,608 85,972 3/93 4/93 5-27.5 Cypress Point 2,956,048 265,000 4,794,440 16,572 265,000 4,811,012 5,076,012 303,985 12/94 2/94 5-27.5 Deerwood Villlage 640,514 29,138 804,512 0 29,138 804,512 833,650 83,080 7/94 2/94 5-27.5 Doyle Village 1,176,673 100,000 1,435,520 0 100,000 1,435,520 1,535,520 160,635 4/94 9/93 5-27.5 Gallaway Assoc. 1,062,724 35,600 1,307,158 2,092 35,600 1,309,250 1,344,850 114,548 5/93 4/93 5-27.5 Glen- Ridge 2,056,548 350,000 2,208,213 0 350,000 2,208,213 2,558,213 174,774 6/94 6/94 5-27.5 Green Acres 1,232,302 173,447 1,366,874 0 173,447 1,366,874 1,540,321 151,328 1/95 11/94 5-27.5 Greenwood Place 1,065,623 44,400 299,685 1,119,901 44,400 1,419,586 1,463,986 84,649 8/94 11/93 7-40 Hackley Barclay 3,803,078 174,841 4,603,493 301,622 175,000 4,905,115 5,080,115 480,556 12/94 12/93 5-27.5 - F-96 - Boston Capital Tax Credit Fund III L.P. - Series 17 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - ------------------------------------------------------------------------------------------------------------------------------ Henson Creek 4,038,834 945,000 7,971,879 6,649 945,000 7,978,528 8,923,528 605,432 4/94 5/93 5-27.5 Hickman Assoc. 543,802 24,000 673,642 0 24,000 673,642 697,642 51,364 12/93 11/93 5-27.5 Houston Village 675,389 11,500 850,901 0 11,500 850,901 862,401 96,808 5/94 12/93 5-27.5 Ivywood 3,088,640 290,542 5,712,656 10,661 290,542 5,723,317 6,013,859 813,202 10/93 6/93 5-27.5 Jonestown Manor 872,018 0 311,764 930,552 36,900 1,242,316 1,279,216 67,839 12/94 12/93 7-40 Largo Center 3,892,268 1,012,500 7,262,001 20,000 1,012,500 7,282,001 8,294,501 494,459 6/94 3/93 5-27.5 Lee Terrace 1,495,907 93,246 4,573 1,701,982 93,246 1,706,555 1,799,802 147,526 12/94 2/94 5-27.5 Midland 999,723 60,000 2,422,788 1,565 60,000 2,424,353 2,484,353 220,537 6/94 9/93 5-27.5 Mount Vernon 2,335,842 200,000 3,141,984 (87,232) 200,000 3,054,752 3,254,752 263,602 12/88 2/89 5-27.5 - F-97 - Boston Capital Tax Credit Fund III L.P. - Series 17 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - ------------------------------------------------------------------------------------------------------------------------------ Oakwood of Bennet- sville 882,841 60,000 1,074,857 2,524 60,000 1,077,381 1,137,381 153,550 12/93 9/93 5-27.5 Opelousas Point 1,399,414 50,000 559,121 1,360,823 50,000 1,919,944 1,969,944 143,073 3/94 1/93 5-27.5 Palmetto Villas 1,621,942 60,724 2,034,151 0 60,724 2,034,151 2,094,875 203,424 4/94 5/94 5-27.5 Park Place II 1,183,754 112,000 1,408,102 1 112,000 1,408,103 1,520,103 163,265 4/94 2/94 7-27.5 Pinehurst 812,347 24,000 1,033,022 31,892 24,000 1,064,914 1,088,914 131,822 2/94 2/94 5-27.5 Quail Village 887,250 30,450 1,060,273 2,468 30,450 1,062,741 1,093,191 108,447 2/94 9/93 7-27.5 Sea Breeze 1,240,666 94,000 1,515,733 0 94,000 1,515,733 1,609,733 124,685 1/95 3/94 5-27.5 Shawnee Village 1,260,000 182,786 2,347,227 17,532 182,786 2,364,759 2,547,545 416,718 10/92 2/93 7-27.5 Sixth St. Apts 2,346,480 151,687 1,123,504 3,189,685 162,687 4,313,189 4,475,876 286,287 12/94 12/93 5-27.5 -F-98- Boston Capital Tax Credit Fund III L.P. - Series 17 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - ------------------------------------------------------------------------------------------------------------------------------ Skowhegan Housing 1,725,054 100,000 2,121,472 43,625 100,000 2,165,097 2,265,097 218,374 6/94 9/93 5-27.5 Soledad 1,969,082 340,000 2,005,222 0 340,000 2,005,222 2,345,222 134,540 1/94 10/96 5-50 Sugarwood Park 3,573,147 281,875 5,949,680 1,697 281,875 5,951,377 6,233,252 422,500 7/95 4/94 5-27.5 Voorhees- ville 1,106,702 74,600 1,254,914 4,003 74,600 1,258,917 1,333,517 185,287 5/93 7/93 7-27.5 Waynesburg Housing 1,503,621 169,200 2,113,822 49,846 18,100 2,163,668 2,181,768 75,496 12/95 7/94 5-27.5 White Castle 780,073 84,800 948,687 810 84,800 949,497 1,034,297 93,781 5/94 6/94 27.5 ---------- --------- ----------- ---------- --------- ----------- ----------- ---------- 90,258,521 7,802,954 145,645,163 10,191,656 7,700,365 155,836,819 163,537,185 16,314,910 ========== ========= =========== ========== ========= =========== =========== ========== Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 1996. *Decrease due to a reallocation of acquisition costs. **There were no carrying costs as of December 31, 1996. The column has been omitted for presentation purposes. - F-99 -
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-100 - Notes to Schedule III - continued Boston Capital Tax Credit Fund III L.P. - Series 17 Reconciliation of Land Building & Improvements current year changes Balance at close of period - 03/31/96............................$150,997,976 Additions during period: Acquisitions through foreclosure.................$ 0 Other acquisitions............................... 12,406,150 Improvements, etc................................ 133,058 Other............................................ 0 ----------- $ 12,539,208 Deductions during period: Cost of real estate sold.........................$ 0 Other............................................ 0 ----------- $ 0 ----------- Balance at close of period - 03/31/97............................$163,537,185 =========== - F-101 - Notes to Schedule III - Continued Boston Capital Tax Credit Fund III L.P. - Series 17 Reconciliation of Accumulated Depreciation current year changes Balance at beginning of period - 04/01/93.........................$ 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 Current year expense..................................$6,281,850 --------- Balance at close of period - 3/31/97..............................$16,314,910 ========== - F-102 - Boston Capital Tax Credit Fund III L.P. - Series 18 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 Devel- opment 2,771,622 107,387 6,724,849 19,132 107,387 6,743,981 6,851,368 520,657 12/94 4/94 7-27.5 Aurora LP 1,422,546 65,000 1,704,709 2,517 65,000 1,707,226 1,772,226 260,939 9/93 6,93 5-27.5 Bear Creek of Naples 4,967,259 488,011 8,884,145 1,722 491,639 8,885,867 9,377,506 865,623 4/95 3/94 5-27.5 Chatham LP 1,436,031 75,000 1,727,394 4,634 75,000 1,732,028 1,807,028 245,599 12/93 1/94 5-27.5 Chelsea Square 301,393 21,000 939,281 0 21,000 939,281 960,281 61,280 12/94 8/94 7-34 Clarke School 2,561,998 200,000 5,493,464 226,170 200,000 5,719,634 5,919,634 293,661 12/94 12/94 5-27.5 Ellijay Rental 827,488 48,000 1,000,609 0 48,000 1,000,609 1,048,609 50,030 1/95 1/94 40 Evergreen Hills 2,832,672 157,537 4,337,312 561,968 157,537 4,899,280 5,056,817 534,892 1/95 8/94 5-27.5 - F-103 - Boston Capital Tax Credit Fund III L.P. - Series 18 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - --------------------------------------------------------------------------------------------------------------------------- Glen Place 1,249,800 60,610 3,489,218 (171,258) 60,610 3,317,960 3,378,570 305,559 6/94 4/94 5-27.5 Harris Housing 1,340,429 200,000 266,624 2,513,186 160,000 2,779,810 2,939,810 78,664 11/95 6/94 5-27.5 Humboldt I 710,376 40,191 845,252 0 40,191 845,252 885,443 66,845 4/95 8/94 5-27.5 Jackson Housing 868,707 30,250 1,080,272 (10,648) 30,250 1,069,624 1,099,874 99,459 6/94 1/94 5-27.5 Lakeview Meadows II 1,642,076 88,920 2,775,712 0 88,920 2,775,712 2,864,632 182,602 5/94 8/93 5-27.5 Lanthrop Properties 746,947 34,800 931,788 1,654 34,800 933,442 968,242 112,444 5/94 4/94 5-27.5 Leesville Elderly 1,268,354 144,000 2,018,242 0 144,000 2,018,242 2,162,242 128,802 6/94 6/94 7-40 Lockport Elderly 994,779 125,000 1,524,202 0 125,000 1,524,202 1,649,202 88,084 9/94 7/94 5-27.5 Maple Leaf Apts. 1,155,850 22,860 1,355,390 7,866 22,860 1,363,256 1,386,116 78,894 12/94 8/94 5-27.5 - F-104 - Boston Capital Tax Credit Fund III L.P. - Series 18 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - --------------------------------------------------------------------------------------------------------------------------- Marengo Park 735,876 50,010 886,695 0 50,010 886,695 936,705 111,008 3/94 10/93 5-27.5 Natchitoches Elderly 969,552 50,000 1,634,279 10,000 50,000 1,644,279 1,694,279 84,155 12/94 6/94 7-40 Newton I 813,387 57,500 979,345 0 57,500 979,345 1,036,845 95,112 9/94 11/93 5-27.5 Oskaloosa I 485,330 32,000 589,423 476 32,000 589,899 621,899 56,464 9/94 11/93 5-27.5 Parvins LP 876,286 41,508 1,741,048 4,742 41,508 1,745,790 1,787,298 216,147 11/93 8/93 5-27.5 Peach Tree LP 1,492,898 157,027 1,617,470 2,306 157,027 1,619,776 1,776,803 276,286 7/93 1/94 5-27.5 Ponderosa Meadows 1,498,659 82,454 1,903,972 3,281 82,454 1,907,253 1,989,707 139,196 5/94 3/94 5-27.5 Preston Wood 1,280,350 66,000 2,515,136 0 66,000 2,515,136 2,581,136 254,222 12/94 12/93 5-27.5 Richmond Manor 1,050,188 54,944 1,285,522 265 54,944 1,285,787 1,340,731 155,756 6/94 6/94 5-27.5 Rio Grande 2,294,897 96,480 2,999,680 3,506 96,480 3,003,186 3,099,666 223,567 5/94 6/94 5-27.5 - F-105 - Boston Capital Tax Credit Fund III L.P.- Series 18 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - --------------------------------------------------------------------------------------------------------------------------- Ripley Housing 507,010 14,000 646,850 4,799 14,000 651,649 665,649 41,466 7/94 1/94 5-40 San Joaquin Entpr. III 1,841,293 55,000 2,463,181 0 55,000 2,463,181 2,518,181 112,100 12/94 3/94 5-50 Troy Est. 701,094 45,000 826,432 8,633 45,000 835,065 880,065 112,433 1/94 12/93 5-27.5 Virginia Avenue 1,372,124 121,238 3,510,339 5,299 121,238 3,515,638 3,636,876 326,179 10/94 10/94 5-27.5 Vista Loma 1,493,214 267,612 1,600,128 17,602 267,612 1,617,730 1,885,342 103,614 9/94 5/94 5-27.5 Vivian Elderly 1,007,559 45,000 1,668,938 0 45,000 1,668,938 1,713,938 95,992 9/94 7/94 7-40 Westminister Meadows 2,112,848 250,000 3,605,890 5,880 250,000 3,611,770 3,861,770 408,599 11/94 12/93 5-27.5 ---------- --------- ---------- --------- --------- ---------- ---------- --------- 47,630,892 3,394,339 75,572,791 3,223,732 3,357,967 78,796,523 82,154,490 6,786,330 ========== ========= ========== ========= ========= ========== ========== ========= Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 1996. *Decrease due to a reallocation of acquisition costs. **There were no carrying costs as of December 31, 1996. The column has been omitted for presentation purposes. - F-106 -
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-107 - Notes to Schedule III - continued Boston Capital Tax Credit Fund III L.P. - Series 18 Reconciliation of Land Building & Improvements current year changes Balance at close of period - 03/31/96............................$ 82,016,738 Additions during period: Acquisitions through foreclosure.................$ 0 Other acquisitions............................... 0 Improvements, etc................................ 137,752 Other............................................ 0 ----------- $ 137,752 Deductions during period: Cost of real estate sold.........................$ 0 Other............................................ 0 ----------- $ 0 ----------- Balance at close of period - 03/31/97............................$ 82,154,490 =========== - F-108 - 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 Current year expense..................................$3,000,815 --------- Balance at close of period - 3/31/97..............................$ 6,786,330 ========== - F-109 - Boston Capital Tax Credit Fund III L.P. - Series 19 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 4,144,384 217,500 8,144,577 67,090 217,500 8,211,667 8,429,167 439,174 3/95 8/94 10-40 Carrollton Villa 1,315,865 60,015 2,682,843 (36,705) 60,015 2,646,138 2,706,153 234,981 3/95 6/94 5-27.5 Clarke School 2,561,998 200,000 5,493,464 226,170 200,000 5,719,634 5,919,634 293,661 12/94 12/94 12-40 Forest Associates 666,962 13,900 396,391 459,318 13,900 855,709 869,609 325,830 3/78 4/95 5-27.5 Garden Gate, Ft. Worth 5,882,264 678,867 2,532,572 6,342,121 678,867 8,874,693 9,553,560 606,819 5/95 5/95 5-27.5 Garden Gate, Plano 7,379,150 689,318 844,673 8,463,933 689,318 9,308,606 9,997,924 630,002 3/95 2/94 5-27.5 Hebbronville Apts. 522,191 50,711 650,002 0 50,711 650,002 700,713 44,525 4/94 12/93 7-40 Hollister Inv. Group 1,747,061 400,000 1,906,641 (62,130) 400,000 1,844,511 2,244,511 62,241 5/95 3/95 5-50 - F-110 - Boston Capital Tax Credit Fund III L.P. - Series 19 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 1,320,544 110,373 524,966 2,033,800 110,373 2,558,766 2,669,139 232,489 12/94 6/94 5-27.5 Independence Properties 860,855 38,500 503,166 517,210 38,500 1,020,376 1,058,876 73,502 12/94 6/94 5-40 Jefferson Square 2,568,896 385,000 4,548,650 953 385,000 4,549,603 4,934,603 219,175 8/95 5/94 5-27.5 Jenny Lynn Properties 808,393 65,000 958,809 7,000 65,000 965,809 1,030,809 90,367 9/94 1/94 5-27.5 Jeremy Associates 3,682,888 522,890 6,954,516 0 522,890 6,954,516 7,477,406 113,288 12/95 6/96 5-27.5 Lone Star Senior 617,540 20,492 835,453 0 20,492 835,453 855,945 53,731 5/94 12/93 7-40 Madison L.P. 654,071 42,707 810,978 0 32,500 810,978 843,478 72,686 10/94 12/93 5-27.5 Manasura Villa 970,372 20,254 301,687 990,944 25,000 1,292,631 1,317,631 45,086 8/95 5/94 5-27.5 Martindale Apts. 687,611 40,270 861,032 0 40,270 861,032 901,302 63,766 1/94 12/93 7-40 - F-111 - Boston Capital Tax Credit Fund III L.P. - Series 19 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - --------------------------------------------------------------------------------------------------------------------------- Munford Village 766,822 24,800 980,102 229 24,800 980,331 1,005,131 71,726 4/94 10/93 5-40 Northpointe LP 4,788,505 371,000 9,834,451 1377 371,000 9,835,828 10,206,828 396,701 6/95 7/94 5-27.5 Sahale Heights 863,752 72,000 1,062,350 110 72,000 1,062,460 1,134,460 109,462 6/94 1/94 5-27.5 Sherwood Knoll 783,096 45,000 963,996 3097 45,000 967,093 1,012,093 71,921 4/94 10/93 5-40 Sugarwood Park 3,573,147 281,875 5,949,680 1697 281,875 5,951,377 6,233,252 422,500 7/95 4/94 5-27.5 Summerset Housing 942,924 68,665 1,160,825 (25,664) 68,665 1,135,161 1,203,826 44,970 11/95 1/94 7-27.5 Vista's Associates 4,616,561 831,600 7,055,338 5,229 831,600 7,060,567 7,892,167 420,763 1/95 12/93 5-27.5 Wedgewood Lane 1,004,645 85,000 1,106,604 5,050 85,000 1,111,654 1,196,654 77,339 9/94 6/94 5-40 - F-112 - Boston Capital Tax Credit Fund III L.P. - Series 19 Schedule III - Real Estate and Accumulated Depreciation March 31, 1997 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 - --------------------------------------------------------------------------------------------------------------------------- Willowood Park 4,282,021 511,051 6,867,791 134,990 511,051 7,002,781 7,513,832 671,497 12/94 11/93 5-27.5 ---------- --------- ---------- ---------- --------- ---------- ---------- --------- 58,012,518 5,519,041 73,931,557 19,135,820 5,841,327 93,067,377 98,908,704 5,888,202 ========== ========= ========== ========== ========= ========== ========== ========= Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 1996. *Decrease due to a reallocation of acquisition costs. There were no carrying costs as of December 31, 1996. The column has been omitted for presentation purposes. - F-113 - /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-114 - Notes to Schedule III - continued Boston Capital Tax Credit Fund III L.P. - Series 19 Reconciliation of Land Building & Improvements current year changes Balance at close of period - 03/31/96............................$ 99,861,701 Additions during period: Acquisitions through foreclosure.................$ 0 Other acquisitions............................... 7,477,406 Improvements, etc................................ 594,800 Other............................................ 0 ----------- $ 8,072,206 Deductions during period: Cost of real estate sold.........................$ (8,720,704) Other............................................ (124,499) ----------- $ (8,845,203) ----------- Balance at close of period - 03/31/97............................$ 98,908,704 =========== - F-115 - 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 Current year expense..................................$2,591,856 --------- Balance at close of period - 3/31/97..............................$ 5,888,202 ========== - F-116 - EX-27 2
CT 0000879555 BOSTON CAPITAL TAX CREDIT FUND III L.P. 12-MOS MAR-31-1997 APR-01-1996 MAR-31-1997 145,845,635 0 0 0 0 145,845,635 555,991 0 (18,262,214) 0 0 0 (17,706,223) 0 0
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