-----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, ECrG5mI9+3ypbmTjb/bdcfpDEWU1EUEUCv5rai1BOpQVgB8vOp0SOHqzg/CADeiM dfNTjaU63Yvbook4qY+TEw== 0000879555-99-000004.txt : 19990701 0000879555-99-000004.hdr.sgml : 19990701 ACCESSION NUMBER: 0000879555-99-000004 CONFORMED SUBMISSION TYPE: 10-K405 PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990331 FILED AS OF DATE: 19990630 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: SEC FILE NUMBER: 000-21718 FILM NUMBER: 99656992 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, 1999 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, 1999 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, 1998, 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, 1999 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, 1999 Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/98 Date Comp. 3/31/99 3/31/99 - ----------------------------------------------------------------- - ---------- April Gardens Las Piedras, Apts. III PR 32 $1,467,152 9/92 5/93 100% $ 279,823 Autumwood Keysville, Heights VA 40 1,341,943 8/92 1/93 100% 256,700 Barton Village Arlington, Apartments GA 18 509,968 10/92 3/93 100% 101,154 Bergen Bergen, Meadows NY 24 1,017,955 7/92 7/92 100% 199,420 Bridlewood Horse Cave, Terrace KY 24 790,185 1/94 1/95 100% 167,679 Brunswick Lawrenceville, Commons VA 24 823,058 3/92 9/92 100% 152,282 Buena Vista Apartments, Union, Phase II SC 44 1,452,882 3/92 1/92 100% 281,000 Calexico Calexico, Senior Apts. CA 38 1,921,645 9/92 9/92 100% 366,220 Chestnut Altoona, Hills Estates AL 24 739,837 9/92 9/92 100% 146,500 Columbia Camden, Heights Apts. AR 32 1,292,975 10/92 9/93 100% 247,599 Coral Ridge Coralville, Apartments IA 102 2,580,674 3/92 11/92 100% 2,257,827 Country Meadows Sioux Falls, II, III, IV SD 55 1,322,676 5/92 9/92 100% 1,220,825 Curwensville Curwensville, House Apts. PA 28 1,214,336 9/92 7/93 100% 262,000 Deerfield Crewe, Commons VA 39 1,229,163 4/92 6/92 100% 242,430 4 Boston Capital Tax Credit Fund III L.P. - Series 15 PROPERTY PROFILES AS OF March 31, 1999 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/98 Date Comp. 3/31/99 3/31/99 - ----------------------------------------------------------------- - ---------- East Park Dilworth, Apts. I MN 24 $ 545,000 6/94 1/94 100% $ 406,100 Edgewood Apts. Munfordville, KY 24 786,931 6/92 8/92 100% 156,763 Golden Age Oak Grove, Apts. MO 17 404,057 4/92 11/91 100% 84,410 Graham Graham, Village Apts. NC 50 1,323,496 10/94 6/95 100% 919,461 Greentree Utica, Apts. OH 24 691,498 4/94 10/75 100% 64,069 Greenwood Fort Gaines, Village GA 24 674,803 8/92 5/93 100% 131,268 Hadley's Lake East Machias Apts. ME 18 1,039,243 9/92 1/93 100% 291,400 Hammond Westernport, Heights Apts. MD 35 1,487,937 7/92 2/93 100% 327,944 Harrisonville Harrisonville, Properties II MO 24 608,037 3/92 11/91 100% 144,004 Harvest Point Madison, Apts. SD 30 1,199,192 3/95 12/94 100% 268,760 Hearthside II Portage, MI 60 1,955,378 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, 1999 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/98 Date Comp. 3/31/99 3/31/99 - ----------------------------------------------------------------- - ---------- Heron's Lake Placid, Landing I FL 37 $1,204,600 10/92 10/92 100% $ 255,339 Hidden W. Pittsburg, Cove CA 88 2,889,795 2/94 8/88 100% 200,000 Higginsville Higginsville, Estates MO 24 627,343 3/92 3/91 100% 146,111 Kearney Kearney, Estates MO 24 634,038 5/92 1/92 100% 138,103 Lakeside Lake Village Apts. AR 32 1,219,161 8/94 8/95 100% 282,004 Lake View Lake View, Green Apts. SC 24 887,477 3/92 7/92 100% 183,603 Laurelwood Apartments, Winnsboro, Phase II SC 32 1,068,170 3/92 2/92 100% 229,986 Lebanon Properties Lebanon, III MO 24 631,971 3/92 2/92 100% 152,171 Lebanon Spring Grove, Village II VA 24 923,976 8/92 2/93 100% 169,000 Lilac Apts. Leitchfield, KY 24 727,279 6/92 7/92 100% 148,015 Livingston Livingston, Plaza TX 24 675,441 12/92 11/93 100% 176,534 6 Boston Capital Tax Credit Fund III L.P. - Series 15 PROPERTY PROFILES AS OF March 31, 1999 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/98 Date Comp. 3/31/99 3/31/99 - ----------------------------------------------------------------- - ---------- Manning Manning, Lane Apts. SC 42 $1,471,153 8/92 3/93 100% $ 296,436 Marshall Marshallville, Lane Apts. GA 18 553,375 8/92 12/92 100% 114,200 Maryville Maryville, Properties MO 24 718,010 5/92 3/92 100% 156,636 Meadow Grantsville, View Apts. MD 36 1,486,127 5/92 2/93 100% 291,322 Millbrook Sanford, Commons ME 16 920,661 6/92 11/92 100% 227,100 Monark Van Buren & Barling, Homes AR 10 321,367 6/94 3/94 100% 239,800 North Prairie Plainwell, Manor Apts. MI 28 880,638 9/92 5/93 100% 206,820 North Trail Arkansas City, Apts. KS 24 825,097 9/94 12/94 100% 194,118 Oakwood Century, Village FL 39 1,107,899 5/92 5/92 100% 249,374 Osceola Osceola, Estates Apts.IA 24 648,846 5/92 5/92 100% 161,325 Payson Senior Payson, Center Apts. AZ 39 1,486,538 8/92 8/92 100% 365,755 Rainier Mt. Rainier, Manor Apts. MD 104 2,665,216 4/92 1/93 100% 1,095,382 Ridgeview Brainerd, Apartments MN 24 861,693 3/92 1/92 100% 165,434 7 Boston Capital Tax Credit Fund III L.P. - Series 15 PROPERTY PROFILES AS OF March 31, 1999 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/98 Date Comp. 3/31/99 3/31/99 - - - ----------------------------------------------------------------- - --------- Rio Mimbres Deming, II Apartments NM 24 $ 773,150 4/92 4/92 100% $ 149,811 River Chase Wauchula, Apts. FL 47 1,476,656 8/92 10/92 100% 322,944 Rolling Brook Algonac, III Apts. MI 26 826,416 6/92 11/92 100% 185,632 School St. Marshall, Apts.Phase I WI 24 756,893 4/92 5/92 100% 666,025 Shenandoah Shenandoah, Village PA 34 1,472,020 8/92 2/93 100% 317,136 Showboat Chesaning, Manor Apts. MI 26 795,458 7/92 2/93 100% 178,084 Spring Creek Derby, II Apts. KS 50 1,215,379 4/92 6/92 100% 1,060,282 Summit Ridge Palmdale, Apartments CA 304 8,863,346 10/92 12/93 100% 5,639,000 Sunset Sq. Scottsboro, Apts. AL 24 740,054 9/92 8/92 100% 143,900 Taylor Mill Hodgenville, Apartments KY 24 767,877 4/92 5/92 100% 173,606 Timmons Lynchburg, Village Apts. SC 18 643,336 5/92 7/92 100% 122,450 University Detroit, Meadows MI 53 1,987,105 6/92 12/92 100% 1,676,750 Valatie Valatie, Woods NY 32 1,370,716 6/92 4/92 100% 277,600 8 Boston Capital Tax Credit Fund III L.P. - Series 15 PROPERTY PROFILES AS OF March 31, 1999 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/98 Date Comp. 3/31/99 3/31/99 - ----------------------------------------------------------------- - ---------- Village Healdton, Woods OK 24 $ 701,472 8/94 12/94 100% $ 173,616 Urb. Corales Villas de Hatillo, Del Mar PR 32 1,464,361 8/92 8/92 100% 307,200 Virgen del Pozo Garden Sabana Grande, Apts. PR 70 3,333,018 8/92 7/93 100% 772,550 Weedpatch Weedpatch, Country Apts. CA 36 1,972,202 1/94 9/94 100% 461,197 Whitewater Ideal, Village Apts. GA 18 526,243 8/92 11/92 100% 108,000 Wood Park Arcadia, Pointe FL 36 1,168,443 6/92 5/92 100% 243,672 9 Boston Capital Tax Credit Fund III L.P. - Series 16 PROPERTY PROFILES AS OF March 31, 1999 Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/98 Date Comp. 3/31/99 3/31/99 - ----------------------------------------------------------------- - ---------- 1413 Leavenworth Omaha, Apts. NE 60 $1,610,000 12/92 3/93 100% $1,287,526 Abbey Nixa, Orchards Apts. MO 48 1,505,525 3/94 6/94 100% 1,163,875 Abbey Orchards Nixa, Apts.II MO 56 1,084,180 8/94 7/94 100% 1,137,750 Bernice Bernice, Villa Apts. LA 32 954,749 5/93 10/93 100% 200,476 Branch River Wakefield, Commons Apts. NH 24 1,258,427 9/92 2/93 100% 246,105 Brunswick Lawrenceville, Manor Apts. VA 40 1,417,258 2/94 7/94 100% 278,519 Canterfield Denmark, Manor SC 20 767,770 11/92 1/93 100% 175,959 Cape Ann YMCA Gloucester, Community Ctr. MA 23 542,480 1/93 12/93 100% 693,132 Carriage Westville, Park Village OK 24 717,913 2/93 7/93 100% 144,714 Cedar Brown City, Trace Apts. MI 16 505,108 10/92 7/93 100% 102,500 Cielo Azul Aztec, Apts. NM 30 1,016,430 5/93 5/93 100% 389,749 Clymer Clymer, Park Apts. PA 32 1,443,250 12/92 11/94 100% 317,428 10 Boston Capital Tax Credit Fund III L.P. - Series 16 PROPERTY PROFILES AS OF March 31, 1999 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/98 Date Comp. 3/31/99 3/31/99 - ----------------------------------------------------------------- - ---------- Crystal Davenport, Ridge Apts. IA 126 $3,073,433 10/93 2/94 100% $ 3,032,972 Cumberland Middlesboro, Woods Apts. KY 40 1,450,569 12/93 10/94 100% 412,700 Deer Run Warrenton, Apts. NC 31 701,592 8/93 3/93 100% 572,200 Derry Round Borough of Derry, House Court PA 26 1,129,829 2/93 2/93 100% 248,019 Fairmeadow Latta, Apts. SC 24 883,005 1/93 7/93 100% 195,400 Falcon Beattyville, Ridge Apts. KY 32 1,045,567 4/94 1/95 100% 247,200 Forest Butler, Pointe Apts. GA 25 753,040 12/92 9/93 100% 162,397 Gibson Gibson, Manor Apts. NC 24 906,136 12/92 6/93 100% 161,412 Greenfield Greenfield, Properties MO 20 532,158 1/93 5/93 100% 126,046 Greenwood Mt. Pleasant, Apts. PA 36 1,473,362 11/93 10/93 97% 352,000 Harmony Galax, House Apts. VA 40 1,471,785 11/92 7/93 100% 285,588 Haynes House Roxbury, Apartments MA 131 3,348,220 8/94 9/95 81% 1,955,670 Holly Tree Holly Hill, Manor SC 24 884,838 11/92 2/93 100% 201,490 Isola Square Isola, Apartments MS 32 967,182 11/93 4/94 100% 246,722 11 Boston Capital Tax Credit Fund III L.P. - Series 16 PROPERTY PROFILES AS OF March 31, 1999 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/98 Date Comp. 3/31/99 3/31/99 - ----------------------------------------------------------------- - ---------- Joiner Joiner, Manor AR 25 $ 815,739 1/93 6/93 100% $149,670 Landview Bentonia, Manor MS 28 842,072 7/93 2/94 100% 190,109 Laurel Idabel, Ridge Apts. OK 52 1,384,026 4/93 12/93 100% 282,606 Lawtell Lawtell, Manor Apts. LA 32 925,656 4/93 8/93 100% 202,603 Logan Ridgeland, Lane Apts SC 36 1,298,139 9/92 3/93 100% 274,750 Mariner's Milwaukee, Pointe Apts WI 64 1,980,376 12/92 8/93 100% 1,684,121 Mariner's Pointe Milwaukee, Apts. II WI 52 1,942,870 12/92 8/93 100% 1,676,219 Meadows of Southgate, Southgate MI 83 2,306,010 7/93 5/94 100% 1,716,000 Mendota Mendota, Village Apts.CA 44 1,976,560 12/92 5/93 100% 438,300 Mid City Jersey City, Apts. NJ 58 3,059,100 9/93 6/94 100% 3,097,210 Newport Elderly Newport, Apts. VT 24 1,237,530 2/93 10/93 100% 221,626 Newport Newport, Manor Apts. TN 30 956,549 9/93 12/93 100% 204,863 Oak Forest Eastman, Apts. GA 41 1,179,282 12/92 10/93 100% 251,269 12 Boston Capital Tax Credit Fund III L.P. - Series 16 PROPERTY PROFILES AS OF March 31, 1999 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/98 Date Comp. 3/31/99 3/31/99 - ----------------------------------------------------------------- - ---------- Parkwoods Anson, Apts. ME 24 $1,281,630 12/92 9/93 100% $ 320,206 Plantation Tchula, Manor MS 28 833,262 7/93 12/93 100% 195,030 Ransom St. Blowing Rock, Apartments NC 13 511,555 12/93 11/94 100% 90,249 Riviera Miami Beach, Apts. FL 56 1,704,479 12/92 12/93 100% 1,442,978 Sable Chase McDonough, of McDonough GA 222 5,065,455 12/93 12/94 100% 5,618,968 Simmesport Simmesport, Square Apts. LA 32 940,812 4/93 6/93 100% 198,500 St. Croix Woodville, Commons Apts. WI 40 1,096,731 10/94 12/94 100% 534,847 St. Joseph St. Joseph, Square Apts. LA 32 954,727 5/93 9/93 100% 206,086 Summersville Summersville, Estates MO 24 621,187 5/93 6/93 100% 157,976 Stony Ground St. Croix, Villas VI 22 1,432,565 12/92 6/93 100% 358,414 Talbot Talbotton, Village II GA 24 680,939 8/92 4/93 100% 129,683 Tan Yard Branch Blairsville, Apts. I GA 24 755,904 12/92 9/94 100% 151,154 Tan Yard Branch Blairsville, Apts. II GA 25 739,877 12/92 7/94 100% 144,304 13 Boston Capital Tax Credit Fund III L.P. - Series 16 PROPERTY PROFILES AS OF March 31, 1999 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/98 Date Comp. 3/31/99 3/31/99 - ----------------------------------------------------------------- - ---------- The Fitzgerald Plattsmouth, Building NE 20 $ 677,569 12/93 12/93 100% $ 924,780 The Woodlands Tupper Lake, NY 18 927,744 9/94 2/95 100% 214,045 Tuolumne City Tuolumne, Senior Apts. CA 30 1,597,103 12/92 8/93 100% 376,535 Turtle Monticello, Creek Apts. AR 27 849,982 5/93 10/93 100% 185,392 Valley View Palatine Bridge, Apartments NY 32 1,427,831 5/94 5/94 100% 326,870 Victoria North Port, Pointe Apts. FL 42 1,443,801 10/94 1/95 100% 338,058 Vista Linda Sabana Grande, Apartments PR 50 2,504,599 1/93 12/93 100% 435,530 West End Union, Manor SC 28 990,207 5/93 5/93 100% 231,741 Westchester Village Oak Grove, of Oak Grove MO 33 1,192,033 12/92 4/93 100% 889,700 Westchester Village of St. Joseph, St. Joseph MO 60 1,519,607 7/93 6/93 100% 1,316,500 Willcox Willcox, Senior Apts. AZ 30 1,106,533 1/93 6/93 100% 268,747 Woods Damascus, Landing Apts.VA 40 1,467,822 12/92 9/93 100% 286,171 14 Boston Capital Tax Credit Fund III L.P. - Series 17 PROPERTY PROFILES AS OF March 31, 1999 Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/98 Date Comp. 3/31/99 3/31/99 - ----------------------------------------------------------------- - ---------- Annadale Fresno, Apartments CA 222 $9,391,845 1/96 6/90 100% $ - -0- Artesia Artesia, Properties NM 40 1,417,729 9/94 9/94 100% 399,464 Aspen Ridge Omaha, Apts. NE 42 861,912 9/93 11/93 100% 809,750 Briarwood Clio, Apartments SC 24 914,266 12/93 8/94 100% 211,133 Briarwood Apartments DeKalb, of DeKalb IL 48 1,505,871 10/93 6/94 100% 1,041,834 Briarwood Buena Vista, Village GA 38 1,130,449 10/93 5/94 100% 252,700 Brookwood Blue Springs, Village MO 72 2,291,865 12/93 12/94 100% 1,629,100 Cairo Senior Cairo, Housing NY 24 1,071,129 5/93 4/93 100% 201,711 Caney Creek Caneyville, Apts. KY 16 478,062 5/93 4/93 100% 118,800 Central Cambridge, House MA 128 2,480,442 4/93 12/93 100% 2,498,109 Clinton Clinton, Estates MO 24 738,622 12/94 12/94 100% 162,717 Cloverport Cloverport, Apts. KY 24 755,744 4/93 7/93 100% 174,575 College Greene Chili, Senior Apts. NY 110 3,755,429 3/95 8/95 100% 232,545 15 Boston Capital Tax Credit Fund III L.P. - Series 17 PROPERTY PROFILES AS OF March 31, 1999 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/98 Date Comp. 3/31/99 3/31/99 - ----------------------------------------------------------------- - ---------- Crofton Crofton, Manor Apts. KY 24 $ 804,548 4/93 3/93 100% $ 168,420 Deerwood Adrian, Village Apts.GA 20 637,213 2/94 7/94 100% 160,900 Doyle Darien, Village GA 38 1,170,531 9/93 4/94 100% 235,509 Fuera Bush Senior Fuera Bush, Housing NY 24 1,100,515 7/93 5/93 100% 189,364 Gallaway Gallaway, Manor Apts. TN 36 1,056,782 4/93 5/93 100% 221,432 Glenridge Bullhead City, Apartments AZ 52 2,046,689 6/94 6/94 100% 520,500 Green Acres West Bath, Estates ME 48 1,199,237 1/95 11/94 100% 135,849 Green Court Mt. Vernon, Apartments NY 76 2,272,544 11/94 11/94 86% 964,813 Henson Fort Washington, Creek Manor MD 105 3,975,585 5/93 4/94 100% 2,980,421 Hickman Manor Hickman, Apts. II KY 16 539,272 11/93 12/93 100% 134,094 Hill Bladenboro, Estates, II NC 24 1,015,392 3/95 7/95 100% 132,300 Houston Alamo, Village GA 24 679,933 12/93 5/94 100% 169,418 Isola Greenwood, Square Apts. MS 36 1,061,404 11/93 8/94 100% 304,556 16 Boston Capital Tax Credit Fund III L.P. - Series 17 PROPERTY PROFILES AS OF March 31, 1999 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/98 Date Comp. 3/31/99 3/31/99 - ----------------------------------------------------------------- - ---------- Ivywood Smyrna, Park Apts. GA 106 $3,009,749 6/93 10/93 100% $2,093,847 Jonestown Jonestown, Manor Apts. MS 28 867,634 12/93 12/94 100% 243,605 Largo Ctr. Largo, Apartments MD 100 3,830,733 3/93 6/94 100% 2,753,475 Laurel Naples, Ridge Apts. FL 78 2,966,734 2/94 12/94 100% 1,788,844 Lee Terrace Pennington Gap, Apartments VA 40 1,488,407 2/94 12/94 100% 288,268 Maplewood Union City, Park Apts. GA 110 3,524,115 4/94 7/95 100% 1,416,091 Oakwood Manor of Bennettsville, Bennettsville SC 24 877,790 9/93 12/93 100% 189,200 Opelousas Opelousas, Point Apts. LA 44 1,389,914 11/93 3/94 100% 439,277 Orchard Beaumont, Park CA 144 3,868,597 1/94 5/89 100% 250,000 Palmetto Palmetto, Villas FL 49 1,607,456 5/94 4/94 100% 421,795 Park Lehigh Acres, Place FL 36 1,176,074 2/94 5/94 100% 283,687 Pinehurst Farwell, Senior Apts. MI 24 808,323 2/94 2/94 100% 183,176 Quail Reedsville, Village GA 31 881,227 9/93 2/94 100% 171,855 Royale Glen Muskegon, Townhomes MI 79 3,568,512 12/93 12/94 100% 909,231 17 Boston Capital Tax Credit Fund III L.P. - Series 17 PROPERTY PROFILES AS OF March 31, 1999 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/98 Date Comp. 3/31/99 3/31/99 - ----------------------------------------------------------------- - ---------- Seabreeze Inglis, Manor FL 37 $1,234,504 3/94 1/95 100% $ 294,387 Soledad Soledad, Senior Apts. CA 40 1,955,485 10/93 1/94 100% 407,894 Stratford Midland, Place MI 53 943,268 9/93 6/94 100% 892,915 Summit Palmdale, Ridge Apt. CA 304 8,863,346 12/93 12/93 100% 5,191,039 Villa West Topeka, V Apartments KS 52 1,217,870 2/93 10/92 100% 902,700 Waynesburg Waynesburg, House Apts. PA 34 1,495,810 7/94 12/95 100% 501,140 West Front Skowhegan, Residence ME 30 1,691,226 9/94 8/94 100% 487,390 West Oaks Raleigh, Apartments NC 50 1,190,886 6/93 7/93 100% 811,994 White White Castle, Castle Manor LA 24 776,357 6/94 5/94 100% 198,684 18 Boston Capital Tax Credit Fund III L.P. - Series 18 PROPERTY PROFILES AS OF March 31, 1999 Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/98 Date Comp. 3/31/99 3/31/99 - ----------------------------------------------------------------- - ---------- Arch Boston, Apartments MA 75 $2,598,533 4/94 12/94 100% $3,017,845 Bear Creek Naples, Apartments FL 118 4,989,532 3/94 4/95 100% 3,586,687 Briarwood Humbolt, Apartments IA 20 707,716 8/94 4/95 100% 162,536 California San Joaquin, Apartments CA 42 1,829,413 3/94 12/94 100% 519,100 Chatham Chatham, Manor NY 32 1,420,312 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 2,543,432 12/94 12/94 100% 1,804,536 Cox Creek Ellijay, Apartments GA 25 825,086 1/94 1/95 100% 214,824 Evergreen Macedon, Hills Apts. NY 72 2,805,560 8/94 1/95 100% 1,627,293 Glen Place Duluth, Apartments MN 35 1,220,523 4/94 6/94 100% 1,328,621 Harris Music West Palm Beach, Building FL 38 1,318,812 6/94 11/95 100% 1,286,304 Kristine Bakersfield, Apartments CA 60 1,722,113 10/94 10/94 100% 1,636,293 Lakeview Battle Creek, Meadows II MI 60 1,631,012 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, 1999 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/98 Date Comp. 3/31/99 3/31/99 - ----------------------------------------------------------------- - ---------- Lathrop Lathrop, Properties MO 24 $ 741,870 4/94 5/94 100% $ 171,579 Leesville Leesville, Elderly Apts.LA 54 1,244,429 6/94 6/94 100% 776,500 Lockport Lockport, Seniors Apts.LA 40 972,378 7/94 9/94 100% 595,439 Maple Leaf Franklinville, Apartments NY 24 1,103,252 8/94 12/94 100% 296,587 Maple Aurora, Terrace NY 32 1,410,489 9/93 9/93 100% 279,988 Marengo Marengo, Park Apts. IA 24 730,801 10/93 3/94 100% 133,552 Meadowbrook Oskaloosa, Apartments IA 16 482,890 11/93 9/94 100% 96,908 Meadows Show Low, Apartments AZ 40 1,490,845 3/94 5/94 100% 420,302 Natchitoches Senior Natchitoches, Apartments LA 40 953,873 6/94 12/94 100% 644,175 Newton Newton, Plaza Apts. IA 24 809,271 11/93 9/94 100% 166,441 Oakhaven Ripley, Apartments MS 24 502,503 1/94 7/94 100% 116,860 Parvin's Branch Vineland, Townhouses NJ 24 827,018 8/93 11/93 100% 761,856 20 Boston Capital Tax Credit Fund III L.P. - Series 18 PROPERTY PROFILES AS OF March 31, 1998 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/98 Date Comp. 3/31/99 3/31/99 - ----------------------------------------------------------------- - ---------- Peach Tree Felton, Apartments DE 32 $1,484,604 1/94 7/93 100% $ 206,100 Pepperton Jackson, Villas GA 29 864,375 1/94 6/94 100% 222,762 Prestonwood Bentonville, Apartments AR 62 1,193,170 12/93 12/94 100% 1,067,200 Richmond Richmond, Manor MO 36 1,031,642 6/94 6/94 100% 231,593 Rio Grande Eagle Pass, Apartments TX 100 2,259,215 6/94 5/94 100% 666,840 Troy Troy, Estates MO 24 695,251 12/93 1/94 100% 159,007 Vista Loma Bullhead City, Apartments AZ 41 1,612,428 5/94 9/94 100% 465,650 Vivian Vivian, Seniors Apts. LA 40 197,692 7/94 9/94 100% 625,691 Westminster Meadow Grand Rapids, Apartments MI 64 2,085,894 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, 1999 Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/98 Date Comp. 3/31/99 3/31/99 - ----------------------------------------------------------------- - ---------- Callaway Holt's Summit, Villa MO 48 $1,266,265 6/94 12/94 100% $ 1,181,010 Carrollton Carrollton, Villa MO 48 1,261,496 6/94 3/95 100% 1,121,758 Clarke Newport, School RI 56 2,543,432 12/94 12/94 100% 1,153,719 Coopers Irving, Crossing TX 93 3,765,832 6/96 12/95 100% 2,145,000 Delaware Crossing Ankeny, Apartments IA 152 3,650,267 8/94 3/95 100% 3,337,884 Garden Gate Forth Worth, Apartments TX 240 5,797,600 2/94 4/95 100% 3,576,605 Garden Gate Plano, Apartments TX 240 7,272,941 2/94 5/95 100% 3,166,064 Hebbronville Hebbronville, Senior TX 20 519,666 12/93 4/94 100% 82,592 Jefferson Denver, Square CO 64 2,524,900 5/94 8/95 100% 1,705,351 Jenny Lynn Morgantown, Apts. KY 24 803,798 1/94 9/94 100% 182,800 Lone Star Lone Star, Senior TX 24 613,507 12/93 5/94 100% 138,740 Mansura Villa II Mansura, Apartments LA 32 964,422 5/94 8/95 100% 227,910 Maplewood Union City, Park Apts. GA 110 3,524,115 4/94 7/95 100% 1,416,091 Martindale Martindale, Apts. TX 24 681,869 12/93 1/94 100% 154,790 22 Boston Capital Tax Credit Fund III L.P. - Series 19 PROPERTY PROFILES AS OF March 31, 1999 Continued - --------- Mortgage Cap Con Balance Qualified paid Property As of Acq. Const Occupancy thru Name Location Units 12/31/98 Date Comp. 3/31/99 3/31/99 - ----------------------------------------------------------------- - ---------- Munford Munford, Village AL 24 $ 761,746 10/93 4/94 100% $ 165,800 Northpoint Kansas City, Commons MO 158 4,712,184 7/94 6/95 100% 2,124,024 Poplar Madison, Ridge Apts. VA 16 650,761 12/93 10/94 100% 124,704 Prospect Villa III Hollister, Apartments CA 30 1,739,256 3/95 5/95 100% 499,104 Sahale Heights Elizabethtown, Apts. KY 24 856,000 1/94 6/94 100% 238,600 Seville Forest Village, Apartments OH 24 663,391 3/94 3/78 95% 47,780 Sherwood Rainsville, Knoll AL 24 779,008 10/93 4/94 100% 162,500 Summerset Swainsboro, Apartments GA 30 938,496 1/94 11/95 100% 223,029 Tanglewood Lawrenceville, Apartments GA 130 4,217,699 11/93 12/94 100% 3,020,840 Village Independence, North I KS 24 854,851 6/94 12/94 100% 190,471 Vistas at Largo, Lake Largo MD 110 3,253,120 12/93 1/95 100% 2,833,420 Wedgewood Lane Cedar City, Apartments UT 24 999,498 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, 1999, the Fund has 14,048 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 3,678 investors holding 5,429,402 BACs, Series 17 consists of 3,098 investors holding 5,000,000 BACs, Series 18 consists of 2,132 investors holding 3,616,200 BACs, and Series 19 consists of 2,530 investors holding 4,080,000 BACs at March 31, 1999. (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, 1999. 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, 1995 through March 31, 1999. 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, 1999 1998 1997 1996 1995 -------- -------- -------- -------- - -------- Interest & Other Income $ 358,856 $ 341,565 $ 555,991 $ 1,034,800 $2,200,432 Share of Loss of Operating Partnership(12,121,431) (13,145,436) (15,051,842) (14,435,496) (10,794,203) Operating Exp (3,192,943) (2,938,230) (3,210,372) (3,313,615) (3,739,460) ---------- ----------- ---------- ----------- - ---------- Net Loss $(14,955,518) $(15,742,101)$(17,706,223)$(16,714,311)$(12,333,231) =========== =========== ========== =========== ========== Net Loss per BAC $ (.67) $ (.71) $ (.80)$ (.75)$ (.56) =========== =========== ========== =========== ========== As of As of As of As of As of March 31, March 31, March 31, March 31, March 31, 1999 1998 1997 1996 1995 -------- -------- -------- -------- - -------- Balance Sheet - ------------- Total Assets $117,785,304 $131,189,787 $145,845,635 $167,285,510 $202,894,304 =========== =========== =========== =========== =========== Total Liab. $ 12,985,063 $ 11,434,028 $ 10,350,261 $ 14,069,497 $ 33,078,601 Partners' =========== =========== =========== =========== =========== Capital $104,800,241 $119,755,759 $135,495,374 $153,216,013 $169,815,703 =========== =========== =========== =========== =========== Other Data - ---------- Tax Credits per BAC for the Investors Tax Year, the Twelve Months Ended December 31, 1998, 1997, 1996, 1995 and 1994* $ 1.39 $ 1.39 $ 1.37 $ 1.26 $ .42 ========== =========== =========== =========== ========== * 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, 1999 were $2,598,969, and total fund management fees accrued as of March 31, 1999 were $10,627,300. During the year ended March 31, 1999 the fund paid $475,000 which was applied to prior year accruals. 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, 1997, 1998 and 1999 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. The Fund 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, 1999, the Fund used none of Series 15 net offering proceeds to pay additional installments of its capital contributions. As of March 31, 1999 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 65 of the 68 Operating Partnerships. Series 15 has $32,922 in capital contributions that remain to be paid to the 3 Operating Partnerships. (Series 16). The Fund commenced offering BACs in Series 16 on July 10, 1992. The Fund 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, 1999, the Fund used $1,500 of Series 16 net offering proceeds to pay additional installments of its capital contributions to 1 Operating Partnership. As of March 31, 1999 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 58 of the 64 Operating Partnerships. Series 16 has $142,506 in capital contributions that remain to be paid to the 6 Operating Partnerships. (Series 17). The Fund commenced offering BACs in Series 17 on January 24, 1993. The Fund 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, 1999, the Fund used none of Series 17 net offering proceeds to pay additional installments of its capital contributions. As of March 31, 1999 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 41 of the 49 Operating Partnerships. Series 17 has $1,367,195 in capital contributions that remain to be paid to the other 8 Operating Partnerships. (Series 18). The Fund commenced offering BACs in Series 18 on June 17, 1993. The Fund 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, 1999, the Fund used $154,714 of Series 18 net offering proceeds to pay additional installments of its capital contributions to 1 Operating Partnership. As of March 31, 1999 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 32 of the 34 Operating Partnerships. Series 18 has $18,554 in capital contributions that remain to be paid to the other 2 Operating Partnerships. (Series 19). The Fund commenced offering BACs in Series 19 on October 8, 1993. The Fund 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, 1999, the Fund used $429,000 of Series 19 net offering proceeds to pay initial installments of its capital contributions to 1 Operating Partnerships. As of March 31, 1999 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 24 of the 26 Operating Partnerships. Series 19 has $34,000 in capital contributions that remain to be paid to the other 2 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, 1999 and 1998 was $2,207,890 and $2,092,597, 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, 1999 and 1997, the average Qualified Occupancy for the series was 100%. The series had a total of 68 properties at March 31, 1999, all of which were at 100% qualified occupancy. 29 For the tax years ended December 31, 1998 and 1997, the series, in total, generated $3,195,744 and $3,152,374, respectively, in passive income tax losses that were passed through to the investors and also provided $1.47 per year for 1998 and 1997 in tax credits per BAC to the investors. As of March 31, 1999 and 1998 the Investments in Operating Partnerships for Series 15 was $14,142,163, and $16,246,406 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, 1998 and 1997 the Operating Partnerships reflected a net income of $525,145 and $732,970, respectively, when adjusted for depreciation which is a non-cash item. Hidden Cove Apartments (Hidden Cove) continues to incur operating deficits due to high operating expenses. While the new management company has been successful in reducing the deficits by reducing expenses, the property remains unable to operate above break-even. The Operating General Partner has been funding the capital improvement plan established by the new management company. Average occupancy at the property has risen to 98%. To date, the Operating General Partner has been unsuccessful in securing refinancing through local lenders. The Operating General Partner and the management company of School Street I Limited Partnership (School Street Apts. I) were removed and replaced during 1997. In the transition, occupancies suffered and as a result, a leasing agent and new management company were hired by the new Operating General Partner to rent the vacant units. Due to the unresponsiveness of the management company, a third management company was hired in October 1998. As anticipated occupancy reached 100% as of March 31, 1999. The debt was modified in January, 1999 reducing the interest rate to 7.25% and the loan was written down. In addition, capital needs were addressed as part of the refinancing package. (Series 16). As of March 31, 1999 and 1998, the average Qualified Occupancy for the series was 99.7% and 99.9%, respectively. The series had a total of 64 properties at March 31, 1999. Out of the total, 62 were at 100% qualified occupancy. For the tax years ended December 31, 1998 and 1997, the series, in total, generated $3,815,287 and $3,554,840, respectively, in passive income tax losses that were passed through to the investors and also provided $1.40 in tax credits per BAC to the investors. 30 As of March 31, 1999 and 1998 the Investments in Operating Partnerships for Series 16 was $27,165,227 and $30,777,843, 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, 1998 and 1997 the Operating Partnerships reflected a net income of $1,346,767 and $1,510,441, respectively, when adjusted for depreciation which is a non-cash item. The Operating General Partner of Mariner's Pointe Limited Partnership I and Mariner's Pointe Limited Partnership II (Mariner's Pointe Apartment and Mariners's Pointe Apartments II) pledged his general partner interest to an unaffiliated lending institution in violation of the Operating Partnership Agreement. As this was a violation of the terms of the agreement, the Operating General Partner and the management company were removed and the management company was replaced during 1997. The property operated with deficits during 1997 due to vacancies, uncollected rents and high operating expenses. The new management company continues to focus on reducing the property's operating expenses and reducing vacancies. The Operating General Partner was replaced by the new management company on March 1, 1999. To further reduce costs the Operating General Partner completed a loan restructure reducing the interest rate on the mortgage to 8%. During the third quarter a second mortgage at a 5.5% interest rate is expected to close. This mortgage has been approved by the Investment Limited Partner and will be used to fund capital needs. Occupancy is 92% as of March 31, 1999. (Series 17). As of March 31, 1999 and 1998, the average Qualified Occupancy for the Series was 99.7%. The series had a total of 49 properties at March 31, 1999. Out of the total 48 were at 100% qualified occupancy. For the tax years ended December 31, 1998 and 1997, the series, in total, generated $3,287,312 and $4,130,583, respectively, in passive income tax losses that were passed through to the investors and also provided $1.40 for each year in tax credits per BAC to the investors. As of March 31, 1999 and 1998 the Investments in Operating Partnerships for Series 17 was $24,774,196 and $27,762,778, 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, 1998 and 1997 the Operating Partnerships reflected a net income\(loss) of $299,393 and $(1,392,098), respectively, when adjusted for depreciation which is a non-cash item. The prior year loss resulted from the operations of an Operating Partnership in which Series 17 only holds a 5.9% interest. Series 17's allocation of the total loss adjusted for its portion of depreciation results in positive operations for 1997. 31 Annadale Housing Partners (Kingsview Manor & Estates) has reported net losses due to operational issues associated with the property. Decreasing occupancy during the quarter and economic factors relevant to the marketplace prevent the necessary rental income from being generated to cover the operational expenses. In order to address these issues, the Operating General Partner has hired a consultant to assist management in aggressively marketing the property. In addition, the management agent has hired a new on-site manager and leasing agent. The rental rates at the property were increased during the last quarter of 1998. In a step to cut costs even further the Operating General Partner has initiated loan restructure discussions with the first lender for more favorable terms. The Investment General Partner continues to monitor this situation closely. Occupancy is 88% as of March 31, 1999. The property owned by California Investors VI L.P. (Orchard Park) has increased its physical occupancy from 88% as of December 31, 1998 to 91% as of March 31, 1999. The management company continues to be aggressive with marketing the property and conducting active outreach. The Operating General Partner, with the assistance of a consultant, has developed a new marketing campaign, which was implemented during the last quarter of 1998. In addition, the management company replaced the site manager and leasing agent. A large recreation facility is expected to be built adjacent to the property at the end of 1999. Once this park is opened, it is expected to enhance the appeal of Orchard Park Apartments to families. (Series 18). As of March 31, 1999 and 1998, the average Qualified Occupancy for the series was 100%. The series had a total of 34 properties at March 31, 1999 all of which were at 100% qualified occupancy. For the tax years ended December 31, 1998 and 1997, the series, in total, generated $2,633,026 and $2,880,821, respectively, in passive income tax losses that were passed through to the investors and also provided $1.33 per year for 1998 and 1997 in tax credits per BAC to the investors. As of March 31, 1999 and 1998, the Investments in Operating Partnerships for Series 18 was $18,832,106 and $20,921,603, 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, 1998 and 1997 the Operating Partnerships reflected a net income of $363,848 and $86,263, respectively, when adjusted for depreciation which is a non-cash item. In August 1996 the Investment General Partner was notified that Virginia Avenue Affordable Limited Partnership (Kristine Apartments) was named as defendant in a land encroachment complaint. Initial efforts to settle the complaint were unsuccessful, but a judgement was issued by which the Operating Partnership would receive an appropriate quit claim deed and other title 32 related documents confirming the Operating Partnership's interest in the disputed property. The appropriate title information has been received and is in the process of execution. The delivery of these documents will remove any uncertainty as to the Operating Partnership's possession of the land. Additionally, occupancy started to drop in the fourth quarter of 1998, with a year-end physical occupancy of 78%. At this time, occupancy has improved, but the Investment General Partner is working with the Operating General Partner to select a new management company. (Series 19). As of March 31, 1999 and 1998, the average Qualified Occupancy for the series was 99.8% and 100%, respectively. The series had a total of 26 properties at March 31, 1999, 25 of which were at 100% qualified occupancy. For the tax year ended December 31, 1998 and 1997, the series, in total, generated $2,284,300 and $2,288,770, respectively, in passive income tax losses that were passed through to the investors and also provided $1.33 in tax credits per BAC to the investors. As of March 31, 1999 and 1998 the Investments in Operating Partnerships for Series 19 was $23,504,786 and $25,323,640, 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, 1998 and 1997 the Operating Partnerships reflected a net income of $986,256 and $574,999, 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 1998. Recent Accounting Statements Not Yet Adopted - -------------------------------------------- On March 31, 1997, the Partnership adopted Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings per Share" and SFAS No. 129, "Disclosure of Information about Capital Structure." SFAS No. 128 provides accounting and reporting standards for the amount of earnings per share. SFAS No. 129 requires the disclosure in summary form within the financial statements of pertinent fights and privileges of the various securities outstanding. On March 31, 1998, the Partnership adopted SFAS No. 130, "Reporting Comprehensive Income," and SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information." SFAS No. 132, "Employees' Disclosures about Pensions and Other Post-retirement Benefits." SFAS No. 130 establishes standards for reporting and display of comprehensive income and its components, SFAS No. 131 establishes standards for how public business enterprises report information about operating segments and SFAS No. 132 revises employers' disclosures about pension and other post-retirement benefit plans. The implementation of these standards has not materially affected the partnership's financial statements. 33 In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities." In October 1998, the FASB issued SFAS No. 134, "Accounting for Mortgage-backed Securities Retained after the Securitization of Mortgage Loans Held for Sale by a Mortgage Banking Enterprise." In February 1999, the FASB issued SFAS No. 135, "Rescission of FASB Statement 75 and Technical Corrections." SFAS No. 133 is effective for all the fiscal quarters of years beginning after June 15, 1999; SFAS No. 134 is effective for the first fiscal quarter beginning after December 31, 1998; and SFAS No. 135 is effective for years ending after February 15, 1999. Early adoption is encouraged for SFAS No. 133, 134 and 135. The fund does not have any derivative or hedging activities and does not have any mortgage-backed securities. FASB Statement 75, "Deferral of the Effective Date of Certain Accounting Requirements for Pension Plans of State and Local Governmental Units," does not apply to the fund. Consequently, these pronouncements are expected to have no effect on the fund's financial statements. Year 2000 Compliance - -------------------- Boston Capital and its management have reviewed the potential computer problems that may arise from the century date change known as the "Year 2000"or "Y2K" problem. We are currently in the process of taking the necessary precautions to minimize any disruptions. The majority of Boston Capital's systems are "Y2K" compliant. For all remaining systems we have contacted the vendors to provide us with the necessary upgrades and replacements. Boston Capital is committed to ensuring that the "Y2K" issue will have no impact on our investors. Item 7a. Quantitative and Qualitative Disclosure About Market Risk- Not Applicable 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 Registrant (a), (b), (c), (d) and (e) The Partnership has no directors or executives officers of its own. The following biographical information is presented for the partners of the General Partners and affiliates of those partners (including Boston Capital Partners, Inc. ("Boston Capital")) with principal responsibility for the Partnership's affairs. Herbert F. Collins, age 68, is co-founder and Chairman of the Board of Boston Capital Corporation. Nominated by President Clinton and confirmed by the United States Senate, Mr. Collins served as the Republican private sector member of the Thrift Depositor Protection Oversight Board. During 1990 and 1991 he served as Chairman of the Board of Directors for the Federal Home Loan Bank of Boston, a 314-member, $12 billion central bank in New England. Mr. Collins is the co-founder and past President of the Coalition for Rural Housing and Development. In the 1980s he served as Chairman of the Massachusetts Housing Policy Commission to evaluate current programs and recommend future housing policy. Additionally, he served as a member of the Board of Directors of the Metropolitan Boston Housing Partnership and on the Mitchell- Danforth Task Force, which helped structure the 1990 federal Tax Credit legislation. Mr. Collins also is a past Member of the Board of Directors of the National Leased Housing Association and has served as a member of the U. S. Conference of Mayors Task Force on "HUD and the cities: 1995 and Beyond." Mr. Collins also was a member of the Fannie Mae Housing Impact Advisory Council and the Republican Housing Opportunity Caucus. He is Chairman of the Business Advisory Council and a member of the National Council of State Housing Agencies Tax Credit Commission. Mr. Collins graduated from Harvard College. President Bush appointed him to the President's Advisory Committee on the Arts at the John F. Kennedy Center for the Performing Arts. He is a leader in the civic community, serving on the Boards of Youthbuild Boston, the Pine Inn and I Have a Dream Foundation. John P. Manning, age 51, is co-founder, President and Chief Executive Officer of Boston Capital Corporation where he is responsible for strategic planning and business development. In addition to his responsibilities at Boston Capital, Mr. Manning is a proactive leader in the industry. He served in 1990 as a member of the Mitchell-Danforth Task Force, to review and reform the Low Income Housing Tax Credit. He was the founding President of the Affordable Housing Tax Credit Coalition, is a member of the board of the National Leased Housing Association and sits on the Advisory Board of the publication Housing and Development Reporter. During the 1980s he served as a member of the Massachusetts Housing Policy Committee, as an appointee of the Governor of Massachusetts. In addition, Mr. Manning has testified before the U.S. House Ways and Means Committee and the U.S. Senate Finance Committee, on the critical role of the private sector in the success of the Low Income Housing Tax Credit Program. In 1996, President Clinton appointed him to the President's Advisory Committee on the Arts at the John F. Kennedy Center for the Performing Arts. In 1998, President Clinton also appointed Mr. Manning to the President's Export Council, which is the premier committee comprised of major corporate CEOs to advise the President in matters 35 of foreign trade. Mr. Manning is also a member of the Board of Directors of the John F. Kennedy Presidential Library in Boston. In the civic community, Mr. Manning is a leader, serving on the Board of Youthbuild Boston. Mr. Manning is a graduate of Boston College. Richard J. DeAgazio, age 54, 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 formerly 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 presently serves as a member of the National Adjudicatory Council on NASD. He is a founder and past President of the National Real Estate Investment Association, past President of the Real Estate Securities and Syndication Institute (Massachusetts Chapter) and the Real Estate Investment Association. Prior to joining Boston Capital in 1981, Mr. DeAgazio was the Senior Vice President and Director of the Brokerage Division of Dresdner Securities (USA), Inc., an international investment banking firm owned by four major European banks, and was a Vice President of Burgess & Leith/Advest. He has been a member of the Boston Stock Exchange since 1967. He is a leader in the community and serves on the Business Leaders Council of the Boston Symphony, Board of Directors for Junior Achievement of Massachusetts, the Board of Advisors for the Ron Burton Training Village and is on the Board of Corporators of Northeastern University. He graduated from Northeastern University. Christopher W. Collins, age 43, is an Executive Vice President and 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 38, is Chief Financial Officer of Boston Capital Partners, Inc., and serves as Chairman of the firm's Operating Committee. He has fifteen years of experience in the accounting and finance field and has supervised the financial aspects of Boston Capital's project development and property management affiliates. Prior to joining Boston Capital in 1987, he was Assistant Director of Accounting and Financial Reporting for the Yankee Companies, Inc., and was an Audit Supervisor for Wolf & Company of Massachusetts, P.C., a regional certified public accounting firm based in Boston. He graduated with honors from Norwich University. 36 (f) Involvement in certain legal proceedings. None. (g) Promoters and control persons. None. 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 1999 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. The annual fund management fee charged to operations during the year ended March 31, 1999 was $2,207,890. 2. The Fund has reimbursed an affiliate of the General Partner a total of $92,765 for amounts charged to operations during the year ended March 31, 1999. 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, 1999, 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 April 1, 1995 through March 31, 1999. (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, 1999 and 1998 Statements of Operations for the years ended March 31, 1999, 1998 and 1997. Statements of Changes in Partners' Capital for the years ended March 31, 1999, 1998, and 1997. Statements of Cash Flows for the years ended March 31, 1999, 1998 and 1997. Notes to Financial Statements March 31, 1999, 1998 and 1997 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: June 30, 1999 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 June 30, 1999 /s/ John P. Manning Principal Executive ------------------- Officer, Principal John P. Manning Financial Officer and Principal Accounting Officer of Boston Capital Associates General Partner and /s/ Herbert F. Collins Principal Executive ---------------------- Officer, Principal Herbert F. Collins Financial Officer and Principal Accounting Officer of Boston Capital Associates 44 FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT BOSTON CAPITAL TAX CREDIT FUND III L.P. - SERIES 15 THROUGH SERIES 19 MARCH 31, 1999 AND 1998 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 III - REAL ESTATE AND ACCUMULATED DEPRECIATION F-76 NOTES TO SCHEDULE III Schedules not listed are omitted because of the absence of the conditions under which they are required or the information is included in the financial statements or the notes thereto. Reznick Fedder & Silverman Certified Public Accountants * 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, 1999 and 1998 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, 1999. These financial 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 of the assets as of March 31, 1999 and 1998, and the limited partnership loss for each of the three years ended March 31, 1999: Total, 33% and 31% of the assets as of March 31, 1999 and 1998 and 29%, 26% and 26% of the operating limited partnership loss for years ended March 31, 1999, 1998 and 1997, respectively; of the assets for Series 15 as of March 31, 1999 and 1998, 17% and 21%, respectively, of the operating limited partnership loss for Series 15 for the years ended March 31, 1999, 1998 and 1997, 30%, 32% and 28%, respectively; of the assets for Series 16 as of March 31, 1999 and 1998, 27% and 20%, respectively, of the limited partnership loss for Series 16 for the years ended March 31, 1999, 1998 and 1997, 23%, 15% and 27%, respectively; of the assets for Series 17 as of March 31, 1999 and 1998, 37% and 36%, of the limited partnership loss for Series 17 for the years ended March 31, 1999, 1998 and 1997, 32%, 29% and 22%, respectively; of the assets for Series 18 as of March 31, 1999 and 1998, 38% and 31% and of the operating limited partnership loss for Series 18 for the years ended March 31, 1999, 1998 and 1997, 33%, 21% and 22%, respectively; and of the assets for Series 19 as of March 31, 1999, 1998 and 1997, 43% and 42% and of the operating limited partnership loss for Series 19 for the years ended March 31, 1999, 1998 and 1997, 33%, 37% and 30%, respectively. The financial statements of these partnerships were audited by other auditors, whose reports have been furnished to us, and our opinion, insofar as it relates to information relating to these partnerships, is based solely on the reports of the other auditors. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits and the reports of the other auditors provide a reasonable basis for our opinion. F-3 In our opinion, based on our audits and the reports of the other auditors, the financial statements referred to above present fairly, in all material respects, the financial position of Boston Capital Tax Credit Fund III L.P. Series 15 through Series 19, in total and for each series, as of March 31, 1999 and 1998 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, 1999, in conformity with generally accepted accounting principles. We and other auditors have also audited the information included in the related financial statement schedule listed in Form 10-K, Item 14(a) of Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 as of March 31, 1999. In our opinion, the schedule present fairly, in all material respects, the information required to be set forth therein, in conformity with generally accepted accounting principles. Bethesda, Maryland June 29, 1999 Torres Llompart, Tanchez Ruiz & Co. Certified Public Accountants, and Business Consultants (A member of Kreston International) Partners: Luis I Torres Llompart, CPA* Frank Sfinchez Ruiz, CPA, CMA, CIA. CGFM License No. 169 Also admited in State of Florida Partners April Gardens Apartments III Limited Partnership San Juan, Puerto Rico INDEPENDENT AUDITOR REPORT ON FINANCIAL STATEMENTS We have audited the accompanying balance sheets of April Gardens Apartments III Limited Partnership as of December 31, 1998 and 1997, 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, and the US Department of Agriculture, Farmers Home Administration Audit Program Handbook, issued in December 1989. Those standards and the audit program require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of April Gardens 111 Limited Partnership as of December 31, 1998 and 1997, 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 28, 1999 on our consideration of the Partnership's internal control structure and a report dated January 28, 1999 on its compliance with laws, regulations, contracts, loan covenants and agreements. Partners April Gardens Apartments III Limited Partnership San Juan, Puerto Rico INDEPENDENT AUDITORS'REPORT ON FINANCIAL STATEMENTS (CONTINUED) Our audits were made for the purpose of forming an opinion on the basic financial statements for the years ended December 31, 1998 and 1997, 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 years ended December 31, 1998 and 1997, and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements for the years ended December 31, 1998 and 1997, taken as a whole. January 28, 1999 License No. 169 San Juan, Puerto Rico 2 Certified Public Accountants, and Business Consultants Randall Patterson, CPA, P.C. 12913 Alton Square, #101 Herndon, Virginia 20170 Fax: (703) 834-1908 Phone: (703) 834-3804 INDEPENDENT AUDITOR'S REPORT To the Partners Autumnwood Limited Partnership I have audited the accompanying balance sheets of Autumnwood Limited Partnership as of December 31, 1998 and 1997 and the related statements of income, partners capital, and cash flows for the years then ended. These financial statements are the responsibility of management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements 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 Autumnwood Limited Partnership, as of December 31, 1998 and 1997 and the results of its operations and its cash flow for the years then ended in conformity with generally accepted accounting principles. In accordance with government auditing standards, I have also issued reports dated March 4, 1999 on my consideration of Autumnwood Limited Partnership's internal control and on its compliance with laws and regulations. My 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 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. Randall Patterson, CPA, P.C. March 4, 1999 LITTLE, SHANEYFELT, MARSHAU & CO. MARION W. LITTLE , CPA TELEPHONE 50"68-2879 JEFF SHANEYFELT, CPA FAX No. 601-666-6260 CHARLES A MARSHALL, JR., CPA CERTATIED PUBLIC A CCOUNTAA7S WWW.LSMCPAS.COM LARRY A CAMPBELL, CPA PROSPECT BUILDING BENTON, ARKANSAS STEPHANIE A ROMIM CPA 1501 N. UNIVERSITY, SUITE 300 2 10 W. SEVIER STREET PEGGY L WILSON LITTLE ROCK, ARKANSAS 72207-5232 BENTON, AWANSAS 72015 KRISSIE G. WILLIAMS TELEPHONE 501-378-7748 STEVEN D. LITTLE 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, RD Project No. 03-009-0710677267 (the Partnership), as of December 31, 1998 and 1997, and the related statements of profit (loss), changes in partners, equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Beckwood Manor Eight Limited Partnership as of December 31, 1998 and 1997, and its results of operations, changes in partners' equity (deficit), and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated February 24, 1999 on our consideration of the Partnership's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Little, Shaneyfelt, Marshall & Co. February 24, 1999 DuRANT, SCHRAMMAN & LINDSAY Certified Public Accountants INDEPENDENT ACCOUNTANTS' REPORT To the Partners Buena Vista Apartments, Phase H, A Limited Partnership Columbia, South Carolina We have audited the accompanying balance sheets of Buena Vista Apartments, Phase H, A Limited Partnership (A South Carolina Limited Partnership), as of December 31, 1998 and 1997 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 H, A Limited Partnership, as of December 3 1, 1998 and 1997, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. February 2, 1999 4408 Forest Drive, Third Floor * Columbia, South Carolina 29206 a Telephone 803-790-0020 0 Fax 803-790-0011 Schoonover Boyer Gettman & Associates Certified Public Accountants Financial Consultants INDEPRNDENT AUDITORS' REPORT The Partners The Hearthside 11 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, 1998 and 1997, 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 referred to above present fairly, in all material respects, the financial position of The Hearthside II Limited Dividend Housing Association Limited Partnership as of December 31, 1998 and 1997, 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 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 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. Columbus, Ohio January 22, 1999 110 Northwoods Boulevard 0 Suitc 200 0 Worthington, Ohio 43235 0 614/888-8000 0 Fax 614/888-8634 THOMAS, JUDY& TUCKER,P.A. Certified Public Accountants Clifton W. Thomas 16 East Rowan Street, Suite 100 Chris P. Judy Raleigh, NC 27609 David W. Tucker (919) 571-7055 David A. Johnson FAX (919) 571-7089 INDEPENDENT AUDITORS' REPORT To the Partners Graham Housing Associates Limited Partnership Raleigh, North Carolina We have audited the accompanying balance sheets of Graham Housing Associates Limited Partnership, as of December 31, 1998 and 1997 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, 1998 and 1997, 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, 1999 on our consideration of Graham Housing Associates Limited Partnership's internal control structure, compliance with specific requirements applicable to Major HOME Programs and compliance with specific requirements applicable to Affirmative Fair Housing and Non-Discrimination. 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, 1999 DURANT, SCHRAIBMAN & LINDSAY Certified Public Accountants INDEPENDENT ACCOUNTANTS' REPORT To the Partners Laurelwood Apartments, Phase 11, 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, 1998 and 1997 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 3 1, 1998 and 1997, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. February l5, 1999 4408 Forest Drive, Third Floor e Columbia, South Carolina 29206 * Telephone 803-790-0020 * Fax 803-790-0011 Hawkins, Ash, Baptie & Company, LLP Certified Public Accountants Management Consultants INDEPENDENT AUDITORS' REPORT To the Partners Madison Partners Limited Partnership We have audited the accompanying balance sheets of Madison Partners Limited Partnership, as of December 31, 1998 and 1997, 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 Madison Partners Limited Partnership as of December 31, 1998 and 1997, 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 11 and 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 2, 1999 - -2- MARION W. LITTLE, CPA LITLE, SHANEYFELT, MARSHALL & Co. TELEPHONE 601-668-2879 JEFF SHANEYFELT, CPA CERTIFIED PUBLIC ACCOUNTANTS FAX NO. 601-SW626D CHARLES A MARSHALL, JR., CPA WWW.LSMCPAS.COM PROSPECT BUILDING LARRY A CAMPBELL, CPA 1501 N. UNIVERSITY, SUITE 300 BENTON, ARKANSAS OFFICE STEPHANIE A ROMINE, CPA 210 W. SEVIER STREET PEGGY L VIILSON LITTLE ROCK, ARKANSAS 72207-5232 BENTON, ARKANSAS 72015 KRISSIE G. VOLLIAMS TELEPHONE 601-378-7746 STEVEN D. LITTLE 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, RD Project No. 03-052-710665737 (the Partnership), as of December 31, 1998 and 1997, 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, 1998 and 1997, and its results of operations, changes in partners, equity (deficit), and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated February 25, 1999 on our consideration of the Partnership's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. February 25, 1999 McGEE & ASSOCIATES, P.C. CERTIFIED PUBLIC ACCOUNTANTS Independent Auditors' Report To the Partners Rio Mimbres 11, Ltd. and Rural Development We have audited the accompanying balance sheets of Rio Mimbres 11, Ltd. (a limited partnership) as of December 31, 1998 and 1997, 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 have conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing 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, 1998 and 1997, and the results of its operations and the changes in partners' equity and cash f lows 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, 1999, on or consideration of Rio Mimbres II, Ltd.'s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Our audits were conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental information included in the report is presented for purposes of additional analysis and is not a required part of the financial statements of Rio Mimbres II, Ltd. Such information has been subjected tot he auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation the financial statements taken as a whole. January 15, 1999 Farmington, New Mexico Wegner LLP Certified Public Accountants Computer & Information INDEPENDENT AUDITOR'S REPORT Systems Consultants To the Partners School Street Limited Partnership I Madison, Wisconsin We have audited the accompanying statement of assets, liabilities and partners' equity income tax basis of School Street Limited Partnership 1, WHEDA Project No. 011/001217, as of December 31, 1998 and the related income tax basis statement of revenues and expenses, change in 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 provide a reasonable basis for our opinion. As described in Note 1, these financial statements were prepared on the accounting basis of accounting School Street Limited Partnership I uses for income tax purposes, which is a comprehensive basis of accounting other than generally accepted accounting principles. In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities, and partners' equity of School Street Limited Partnership 1, as of December 31, 1998, and the results of its revenue and expenses, change in partners' equity, and its cash flows for the year then ended on the basis of accounting described in Note 1. Wegner LLP Lead Auditor Information January 29, 1999 Rick Welsch, Partner, CPA, CFP Wegner LLP 2110 Luanne Lane Madison, WI 53713 Federal ID #39-0974031 (608) 274-4020 FLOYD & COMPANY Certified Public Accountants 411 Stephenson Avenue Savannah, Georgia 31406 Phone: (912) 355-9969 Fax: (912) 355-1992 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, 1998 and the related statements of operations, partners, equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Timmons Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1998 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, 1999 Ortiz & Lopez LLP INDEPENDENT AUDITORS'REPORT ON COMPLIANCE BASED ON THE AUDIT OF THE BASIC FINANCIAL STATEMENTS To the Partners of Virgen del Pozo Limited Partnership We have audited the financial statements of Virgen del Pozo Limited Partnership, RRH - 615 Project No. 63-016-660477486 (the Partnership), as of and for the period January 1, 1998 through December 31, 1998 and 1997, and have issued our report thereon dated February 1, 1999. 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 regulations issued by the Rural Development. Those standards and regulations require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to the Partnership is the responsibility of the Partnership's management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the Partnership's compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our audits of the financial statements - -was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported herein under the provisions referred to above. This report is intended for the information of management and the Rural Development. However, this report is a matter of public record and its distribution is not limited. Certified Public Accountants February 1, 1999 Mayagiiez, Puerto Rico CPA stamp # 1547703 affixed to original 183 S. Post St., Suites 201-202 - PO Box 3944, MayagOez PR 00681-3944 Tels. (787) 833-8236 / 8250 Fax (787) 833-8285 E-mail cpaolc@coqui.net Torres Llompart, Tanchez Ruiz & Co. Certified Public Accountants, and Business Consultants (A member of Kreston International) Partners: Luis I Torres Llompart, CPA* Frank Sanchez Ruiz, CPA, CMA, CIA. CGFM Accountants PuertoRico Society of Certified Public Accountants Partners Villa del Mar Limited Partnership San Juan, Puerto Rico INDEPENDENT AUDITORS' REPORT ON FINANCIAL STATEMENTS We have audited the accompanying balance sheets of Villa del Mar Limited Partnership as of December 31, 1998 and 1997, and the related statements of operations, partners' equity (deficiency) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States, and the US Department of Agriculture, Farmers Home Administration Audit Program Handbook, issued in December 1989. Those standards and the audit program require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Villa del Mar Limited Partnership as of December 31, 1998 and 1997, and the results of its operations, changes in partners' equity (deficiency) 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 28, 1999, on our consideration of the Partnership's internal control structure and a report dated January 28, 1999, on its compliance with laws, regulations, contracts, loan covenants and agreements. P.O. Box 193488, San Juan, Puerto Rico 00919-3488 Tel. (787) 758-4620 * Fax (787) 767-4709 Partners Villa del Mar Limited Partnership San Juan, Puerto Rico INDEPENDENT AUDITORS' REPORT ON FINANCIAL STATEMENTS (CONTINUED) Our audits were made for the purpose of forming an opinion on the basic financial statements for the years ended December 31, 1998 and 1997, 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 years ended December 31, 1998 and 1997, and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements for the years ended December 31, 1998 and 1997, taken as a whole. 1514727 January 28, 1999 License No. 169 San Juan, Puerto Rico 2 Certified Public Accountants 1111 Michigan Avenue Management Consultants P.O. Box 2500 517-332-6200 PLANTE&MORAN, LLP East Lansing, MI FAX 517-332-8502 Independent Auditor's Report To the Partners University Meadows Limited Dividend Housing Association Limited Partnership We have audited the balance sheet of University Meadows Limited Dividend Housing Association Limited Partnership (a Michigan limited partnership) MSHDA Development No. 889, as of December 31, 1998 and 1997, 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 these 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, is all material respects, the financial position of University Meadows Limited Dividend Housing Association Limited Partnership as of December 31, 1998 and 1997, and its profit and loss, partners' equity, and its cash flows for the years then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 15, 1999, on our consideration of the Partnership's internal controls and on its compliance with laws and regulations. February 15, 1999 FLOYD & COMPANY Certified Public Accountants 411 Stephenson Avenue Post Office Box 14251 Savannah, Georgia 31406 Savannah, Georgia 31416 Phone: (912) 355-9969 Fax: (912) 355-1992 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, 1998 and the related statements of operations, partners' equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Whitewater Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1998 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, 1999 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 Certified Public Accountants Puerto Rico Society of Certified Public Accountants *Also admitted in State of Florida Partners April Gardens Apartments III Limited Partnership San Juan, Puerto Rico INDEPENDENT AUDITORS'REPORT ON FINANCIAL STATEMENTS We have audited the accompanying balance sheets of April Gardens Apartments III Limited Partnership as of December 31, 1997 and 1996, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States, and the US Department of Agriculture, Farmers Home Administration Audit Program Handbook, issued in December 1989. Those standards and the audit program require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of April Gardens III Limited Partnership as of December 31, 1997 and 1996, and the results of its operations, changes in partners' equity and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 13, 1998 on our consideration of the Partnership's internal control structure and a report dated February 13, 1998 on its compliance with laws, regulations, contracts, loan covenants and agreements. P.O. Box 193488, San Juan, Puerto Rico 00919-3488 Tel. ( 787) 758-4620 Fax (787) 767-4709 Partners April Gardens Apartments III Limited Partnership San Juan, Puerto Rico INDEPENDENT AUDITORS'REPORT ON FINANCIAL STATEMENTS (CONTINUED) Our audits were made for the purpose of forming an opinion on the basic financial statements for the years ended December 31, 1997 and 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 years ended December 31, 1997 and 1996, and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements for the years ended December 31, 1997 and 1996, taken as a whole. February 13, 1998 License No. 169 San Juan. Puerto Rico Stamp number 1462245 was affixed to the original of this report. Torres Llompard, Sanchez Ruiz & Co. Certified Pubic Accountants, and Business Consultants. Witt, Mares & Company, PLC Certified Public Accountants and Consultants INDEPENDENT AUDITOR'S REPORT The Partners Autunmwood Limited Partnership We have audited the accompanying balance sheets of Autunmwood Limited Partnership (a Virginia Limited Partnership), as of December 31, 1997 and 1996, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. The financial statements as of December 31, 1996, were audited by Graham Carter & Jennings, PLC, who merged with Witt, Mares & Company, PLC as of December 1, 1997, whose report dated February 3, 1997 expressed an unqualified opinion on those statements. We conducted our audits in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Autunmwood Limited Partnership as of December 31, 1997 and 1996, and the results of its operations, changes in partner's equity and cash flows for the years then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated February 12, 1998 on our consideration of Autunmwood Limited Partnership's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 17 and 18 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements take as a whole. Newport News, Virginia February 12, 1998 LITTLE, SHANEYFELT, MARSHALL & CO. CERTIFIED PUBLIC ACCOUNTANTS PROSPECT BUILDING 1501 N. UNIVERSITY, SUITE 300 LITTLE ROCK, ARKANSAS 72207-5232 MARION W. LITTLE, CPAJEFF SHANEYFELT, CPACHARLES A MARSHALL, JR., CPALARRY A. CAMPBELL, CPA STEPHANIE A. ROMINE, CPA PEGGY L. WILSON JESSIE G. WILLIAMS STEVEN D. LITTLE INDEPENDENT AUDITOR'S REPORTTo the Partners Beckwood Manor Eight Limited PartnershipWe have audited the accompanying balance sheets of Beckwood Manor Eight Limited Partnership, RD Project No. 03-009-0710677267 (the Partnership), as of December 11, 1997 and 1996, and the related statements of profit (loss), changes in partners, equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Beckwood Manor Eight Limited Partnership as of December 31, 1997 and 1996, and its results of operations, changes in partners' equity (deficit), and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated March 17, 1998 on our consideration of the Partnership's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Little, Shaneyfelt, Marshall & Co. March 17, 1998 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 11, A Limited Partnership (A South Carolina Limited Partnership), as of December 31, 1997 and 1996 and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our 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, 1997 and 1996, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. January 26, 1998 4408 Forest Drive, Third Floor - Columbia, South Carolina 29206 - Telephone 803-790-002,0 - Fax 803-790-0011 DANIEL G. DRANE CERTIFEED PUBLIC ACCOUNTANT 209 East Third Street - P. 0. Box 577 Hardinsburg, Kentucky 40143 Telephone (502)756-5704 FAX (502)756-5927 e-mail dgdcpa@bbtel.com INDEPENDENT AUDITORS REPORT To the Partners Edgewood Properties, Limited Leitchfield, Kentucky I have audited the accompanying balance sheets of Edgewood Properties, Limited (a Kentucky limited partnership), RHS Project No.: 20-050- 0611179040, as of December 31, 1997 and 1996, and the related statements of operations, partners' capital, and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits, as of and for the years ended December 3 1, 1997 and 1996, in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Edgewood Properties, Limited, as of December 3 1, 1997 and 1996, and the results of its operations, the changes in its partners' capital and its cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 13 and 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Daniel G. Drane Certified Public Accountant March 10, 1998 THOMAS, JUDY & TUCKER, P.A. Certified Public Accountants Clifton W, Thomas, 16 East Rowan Street, Suite, 100 Chris P. Judy Raleigh, NC 27609 David W. Tucker, (919) 57 1-7055 David A. Johnson FAX (919) 571-7089 INDEPENDENT AUDITORS'REPORT To the Partners Graham Housing Associates Limited Partnership Raleigh, North Carolina We have audited the accompanying balance sheets of Graham Housing Associates Limited Partnership, as of December 31, 1997 and 1996 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, 1997 and 1996, and the results of its operations and the changes in partners' equity and cash flows for the years then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued reports dated February 9, 1998 on our consideration of Graham Housing Limited Partnership's internal control structure, compliance with specific requirements applicable to Major HOME Programs and compliance with specific requirements applicable to Affirmative Fair Housing and Non-Discrimination. 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 9, 1998 DURANT, SCHRAIBMAN & LINDSAY Certified Public Accountants INDEPENDENT ACCOUNTANTS'REPORT To the Partners Laurelwood Apartments, Phase 11, A Limited Partnership Columbia, South Carolina We have audited the accompanying balance sheets of Laurelwood Apartments, Phase 11, A Limited Partnership (A South Carolina Limited Partnership), as of December 31, 1997 and 1996 and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing issued 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 11, A Limited Partnership, as of December 3 1, 1997 and 1996, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. January 29, 1998 4408 Forest Drive, Third Floor - Columbia, South Carolina 29206 - Telephone 803-790-0020 - Fax 803-790-0011 DANIEL G. DRANE CERTIFIED PUBLIC ACCOUNTANT 209 East Third Street - P.0. Box 577 Hardinsburg, Kentucky 40143 Telephone (502)756-5704 FAX (502)756-5927 e-mail dgdcpa@bbtel.com INDEPENDENT AUDITORS REPORT To the Partners Lilac Properties, Limited Leitchfield, Kentucky I have audited the accompanying balance sheets of Lilac Properties, Limited (a Kentucky limited partnership), RHS Project No.: 20-043-611158011, as of December 31, 1997 and 1996, and the related statements of operations, partners' capital, and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits, as of and for the years ended December 3 1, 1997 and 1996, in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lilac Properties, Limited, as of December 31, 1997 and 1996, and the results of its operations, the changes in its partners' capital and its cash flows for the years then ended, in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 13 and 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Daniel G. Drane Certified Public Accountant March 10, 1998 Hawkins, Ash, Baptie & Company, LLP Certified Public Accountants * Management Consultants INDEPENDENT AUDITORS'REPORT To the Partners Madison Partners Limited Partnership We have audited the accompanying balance sheet of Madison Partners Limited Partnership, as of December 31, 1997 and 1996, and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Madison Partners Limited Partnership as of December 31, 1997 and 1996, and the results of its operations, changes in partners' equity, and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on 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 2, 1998 - - 2 - LITTLLE, SHANEYFELT, MARSHALLL & Co. CERTIFIED PUBLIC ACCOUNTANTS PROSPECT BUILDING 1501 N. UNIVERSITY, SUITE 300 LITTLE ROCK, ARKANSAS 72207-5232 INDEPENDENT AUDITOR'S REPORT To the Partners P.D.C. Fifty Five Limited Partnership BENTON, ARKANSAS OFFICE 210 W.SEVIER STREET BENTON, ARKANSAS 72015, TELEPHONE 501-378-7746 We have audited the accompanying balance sheets of P.D.C. Fifty Five Limited Partnership, RD Project No. 03-052-710665737 (the Partnership), as of December 31, 1997 and 1996, and the related statements of profit (loss), changes in partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of P.D.C. Fifty Five Limited Partnership as of December 31, 1997 and 1996, and its results of operations, changes in partners' equity (deficit), and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated March 18, 1998 on our consideration of the Partnership's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Little, Shaneyfelt, Marshall & Co. March 18, 1998 McGee & Associates, P.C. CERTIFIED PUBLIC ACCOUNTANTS Independent Auditors' Report To the Partners Rio Mimbres II, Ltd. and Rural Development We have audited the accompanying balance sheets of Rio Mimbres II, Ltd. (a limited partnership) as of December 31, 1997 and 1996, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Rio Mimbres II, Ltd. as of December 31, 1997 and 1996, and the results of its operations and the changes in partners' equity and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 14, 1998, on our consideration of Rio Mimbres II, Ltd.'s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Our audits were conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental information included in the report is presented for purposes of additional analysis and is not a required part of the financial statements of 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 14, 1998 Farmington, New Mexico Coopers &Lybrand 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. 01 1/001 217 of School Street Limited Partnership I as of December 31, 1997 and 1996, and the related statements of loss, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the 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 School Street Limited Partnership I as of December 31, 1997 and 1996, and the results of its operations, changes in partners' equity and its cash flows for the years then ended in conformity with generally accepted accounting principles. January 22, 1998 - - 1 - 1221 John Q. Hammons Dr. - P.O.Box. 44966 - Madison, WI 53744-4966 - (608) 831-8181 - FAX (608) 831-4243 MADISON - MILWAUKEE - ROCKFORD DANIEL G. DRANE CERTIFEED PUBLIC ACCOUNTANT 209 East Third Street - P. 0. Box 577 Hardinsburg, Kentucky 40143 Telephone (502)756-5704 FAX (502)756-5927 e-mail dgdcpa@bbtel.com INDEPENDENT AUDITORS REPORT To the Partners Taylor Mill Properties, Limited Leitchfield, Kentucky I have audited the accompanying balance sheets of Taylor NOI Properties, Limited (a Kentucky limited partnership), RHS Project No.: 20-062- 0611174245, as of December 31, 1997 and 1996, and the related statements of operations, partners' capital, and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits, as of and for the years ended December 31, 1997 and 1996, in accordance with generally accepted auditing standards and 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 MU Properties, Limited, as of December 3 1, 1997 and 1996, and the results of its operations, the changes in its partners' capital and its cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 13 and 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Daniel G. Drane Certified Public Accountant March 10, 1998 Schoonover Bover 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, 1997 and 1996, and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on 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 referred to above present fairly, in all material respects, the financial position of The Hearthside R Limited Dividend Housing Association Limited Partnership as of December 31, 1997 and 1996, and the results of its operations, changes in partners' equity, and cash flows for the years then ended, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 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 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. Columbus, Ohio January 23, 1998 FLOYD & COMPANY Certified Public Accountant 132 Stephenson Avenuee, Suite 202 Post Office Box 14251 Savannah, Georgia 31406 Phone: (912) 355-9969 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, 1997 and the related statements of operations, partners, equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Timmons Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1998 PLANTE & Moran,LLP Certified Public Accountant 1111 Michigan Avenue P.O. Box 2500 East Lansing, Michigan- 48826-2500 FAX 517-332-8502 517-332-620 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, 1997 and 1996, and the related statements of profit and loss, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of University Meadows Limited Dividend Housing Association Limited Partnership as of December 31, 1997 and 1996, and its profit and loss, partners' equity, and its cash flows for the years then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 16, 1998, on our consideration of the Partnership's internal controls and a report dated February 16, 1998, on its compliance with laws and regulations. February 16, 1998 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 Certified Public Accountants Puerto Rico Society of Certified Public Accountants *Also admitted in State of Florida Partners Villa del Mar Limited Partnership San Juan, Puerto Rico INDEPENDENT AUDITORS'REPORT ON FINANCIAL STATEMENTS We have audited the accompanying balance sheets of Villa del Mar Limited Partnership as of December 31, 1997 and 1996, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States, and the US Department of Agriculture, Farmers Home Administration Audit Program Handbook, issued in December 1989. Those standards and the audit program require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Villa del Mar Limited Partnership as of December 31, 1997 and 1996, and the results of its operations, changes in partners, equity and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 16, 1998, on our consideration of the Partnership's internal control structure and a report dated February 16, 1998, on its compliance with laws, regulations, contracts, loan covenants and agreements. P.O. Box 193488, San Juan, Puerto Rico 00919-3488 Tel. (787) 758-4620 - Fax (787) 767-4709 Partners Villa del Mar Limited Partnership San Juan, Puerto Rico INDEPENDENT AUDITORS'REPORT ON FINANCIAL STATEMENTS (CONTINUED) Our audits were made for the purpose of forming an opinion on the basic financial statements for the years ended December 31, 1997 and 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 years ended December 31, 1997 and 1996, and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements for the years ended December 31, 1997 and 1996, taken as a whole. February, 16, 1998 License No.169 San Juan, Puerto Rico Stamp number 1462234 was affixed to the original of this report. Ortiz Lopez & Co. CPA Eulalio Ortiz Rodriguez, MSA CPA Heriberto Lopez Recio Calle Post 183 Sur Altos P.O. Bo. 3944 Marina Station Msyaguez, P. R. 00681 Telephones (787) 833-8236 833-8250 Fax: 833-8285 INDEPENDENT AUDITORS' REPORT To the Partners Virgen del Pozo Limited Partnership We have audited the accompanying statements of financial position of Virgen del Pozo Limited Partnership, (RRH - 515 Project No. 63-016-660477485) as of December 31, 1997 and 1996, and the related statements of operations, partners' deficit, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express and 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 Virgen del Pozo Limited Partnership as of December 31, 1997 and 1996, and the results of its operations, changes in partners' 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, as referred to in the table of contents, is presented for the purpose 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, the additional information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. Certified Public Accountants Mayaguez, Puerto Rico February 1, 1998 FLOYD & COMPANY Certified Public Accountant 132 Stephenson Avenuee, Suite 202 Post Office Box 14251 Savannah, Georgia 31406 Phone: (912) 355-9969 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, 1997 and the related statements of operations, partners' equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Whitewater Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1997 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Floyd & Company, CPA February 28, 1998 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: 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 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 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 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, 1998 and 1997 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, 1998 and 1997, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. February 19, 1999 4408 Forest Drive, Third Floor * Columbia, South Carolina 29206 0 Telephone 803-790-0020 0 Fax 803-790-0011 MONTEITH, LACY, SHARKEY & ASSOCIATES, LLC Certified Public Accountants (888) 558-2596 6846 Pacific Street, Suite 100 Office (402) 558-2721 Omaha, Nebraska 68106 Fax (402) 558-2914 INDEPENDENT AUDITORS' REPORT To the Partners Cass Partners Limited Partnership We have audited the accompanying balance sheet of Cass Partners Limited Partnership as of December 31, 1998, 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 the Cass Partners Limited Partnership as of December 31, 1997 were audited by other auditors whose report dated March 23, 1998, expressed an unqualified opinion on the financial 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 Cass Partners Limited Partnership as of December 3 1, 1998, and the results of its operations, and changes in partners' equity (deficit) and cash flows for the year then ended in conformity with generally accepted accounting principles. 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 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. March 12,1999 Dauby O'Connor & Zaleski A Limited Liability Company Certified Public Accountants Independent Auditors' Report To the Parnters of Clymer Park Associated Limited Partnership (A Pennsylvania Limited Partnership) We have audited the accompanying balance sheet of Clymer Park Associates (a Pennsylvania Limited Partnership) as of December 31, 1998, and the related statements of operations, 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. The 1997 financial statements were audited by other auditors whose report dated January 17, 1998, 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 Bethel Park Associates as of December 31, 1998, 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 March 5, 1999, on our consideration of the Partnership's internal controls and a report dated March 5, 1999, on its compliance with laws and regulations. 698 Pro Med Lane Carmel, Indiana 46032 317-848-5700 Fax: 317-815-6140 Clymer Park Associates Limited Partnership Page Two The accompanying supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. March 5, 1999 Dauby O'Connor & Zaleski, LLC Carmel, Indiana Certified Public Accountants 2 Bernard Robinson &Company, L.L.P Certified Public Accountants since 1947 MAILING ADDRESS OFFICES P.O. BOX 19608109 MUIRS CHAPEL ROAD GREENSBORO, NC 27419-9608 GREENSBORO, NC 274 10 FAX 336-547-0840 TELEPHONE 336-294-4494 Independent Auditor's Report To the Partners Cumberland Wood Associates of Middlesboro, Ky, Ltd. Charlotte, North Carolina We have audited the accompanying balance sheet of Cumberland Wood Associates of Middlesboro, Ky, Ltd. (a Kentucky limited partnership) as of December 31, 1998, 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 Cumberland Wood Associates of Middlesboro, Ky, Ltd. as of December 31, 1997, were audited by other auditors whose report dated February 6, 1998, expressed an unqualified opinion on those statements. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cumberland Wood Associates of Middlesboro, Ky, Ltd. as of December 31, 1998, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated February 5, 1999, on our consideration of the Partnership's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements 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. CERTIFIED PUBLIC ACCOUNTANTS Greensboro, North Carolina February 5, 1999 PHILLIPS, DORSEY, THOMAS, WATERS & BRAFFORD, P.A. CERTIFIED PUBLIC ACCOUNTANTS H. Timothy Thomas, CPA Susan R. Waters, CPA Michael H. Brafford, CPA Carleen R Evans, CPA Franklin L. Irvin, Jr., CPA W. Haywood Phlillps, CPA Ronald S. Dorsey, 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, 1998 and 1997, 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 a 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, 1998 and 1997, 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 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 22, 1999 Crisp Hughes Evans LLP Certified Public Accountants & Consultants Affiliated worldwide through AGN International 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, 1998 and 1997, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards, and with Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits 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, 1998 and 1997, 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, 1999, on our consideration of Fairmeadow Apartments, Limited Partnership's internal control over financial reporting and our consideration of its compliance with certain provisions of laws, regulations, contracts, and grants. January 25, 1999 1 Creekview Court 8642885544 PO Box 25849 Fax 864 458 85 19 Greenville, SC 29616 www.che-ilp.com 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 sheets of Holly Tree Manor of Holly Hill, A Limited Partnership (A South Carolina Limited Partnership), as of December 31, 1998 and 1997, 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, 1998 and 1997, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. February 12, 1999 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 (540) 669-5531 INDEPENDENT AUDITOR'S REPORT To the Partners Lawrenceville Manor Limited Partnership I have audited the Supplemental balance sheets of Lawrenceville Manor Limited Partnership as of December 31, 1998 and 1997, 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 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 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, 1998 and 1997, and the results of its operations, changes in partners, equity, and its cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The Supplemental information on pages 15 to 17 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. In accordance with Government Auditing Standards, I have also issued a report dated February 19, 1999 on my consideration of Lawrenceville Manor Limited Partnership's internal control and a report dated February 19, 1999 on its compliance with laws and regulations applicable to the financial statements. THOMAS C. CUNNINGHAM, CPA P.C. February 19, 1999 Virchow, Krause & Company, LLP Certified Public Accountants & Consultants INDEPENDENT AUDITORS'REPORT To the Partners Mariner's Pointe Limited Partnership I and Mariner's Pointe Limited Partnership 11 Madison, Wisconsin We have audited the combined balance sheet of Mariner's Pointe Limited Partnership I and Mariner's Pointe Limited Partnership 11 WHEDA Project No. 011/001214 as of December 31, 1998, and the related combined 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 combined financial statements of Mariner's Pointe Limited Partnership I and Mariner's Pointe Limited Partnership 11 as of December 31, 1997 were audited by other auditors whose report dated January 14, 1998 indicated that they were unable to obtain written representations from the general partner of the partnership concerning certain matters relating to compliance and contingencies and except for the effects of such adjustments, the financial statements for 1997 were in conformity with generally accepted accounting principles. 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 from 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 combined financial positions of Mariner's Pointe Limited Partnership I and Mariner's Pointe Limited Partnership II as of December 31, 1998, and the combined results of their operations, changed in partners' equity and cash flows for the year ended in conformity with generally accepted accounting principles. VIRCHOW, KRAUSE & COMPANY, LLP Madison, Wisconsin January 22, 1999 Certified Public Accountants 1111 Michigan Avenue P.O. Box 2500 East Lansing, Michigan 48826-2500 517-332-6200 FAX 517-332-8502 PLANTE & MORAN, LLP 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, 1998 and 1997, 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, 1998 and 1997, and the results of its operations, partners' equity, and cash flows for the years then ended, in conformity with generally accepted accounting principles. February 15, 1999 A member of Moores Rowland international BLOOM, GETTIS, HABIB, SILVER & TERRONE, P.A. CERTIFIED PUBLIC ACCOUNTANTS SUITE 14SO 2601 SOUTH BAYSHORE DRIVE MIAMI, FLORIDA 33133-9893 TELEPHONE (305) 858-6211 FACSIMILE: (305) 858-9696 BURT R. BLOOM, C.P.A., C.V.A. LAWRENCE W. GETTIS, C.P.A. STEVEN M. HABIB, C.P.A. MICHAEL A. SILVER, C.P.A. ROGER J. TERRONE, C.P.A. CURT A. ROSNER, C.P.A. MEMBERS: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS To the 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, 1998 and 1997, 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, 1998 and 1997, 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. January 18, 1999 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, 1998 and 1997, 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, 1998 and 1997, 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 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Certified Public Accountants January 25, 1999 ARMANDO A. SUAREZ CPA HAM FEY TOWER SUITE 150Q 268 MUKM RVERA AVENLIE. HAM MY. PR 0091 8 (787) 763-3195 FAX 75143448 INDEPENDENT AUDITOR'S REPORT To the Partners Vista Linda Apartments Limited Partnership I have audited the accompanying balance sheets of Vista Linda Apartments Limited Partnership, Rural Development Project No.: 63-016-0660472028, as of December 31, 1998 and 1997, and the related statements of income, changes in partners' capital (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits 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 Vista Linda Apartments Limited Partnership, as of December 31, 1998 and 1997, and the results of its operations, changes in partners' capital (deficit) and cash flows for the years then ended 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 accompanying supplementary information on pages 21 thru 36 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 my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Armando A. Suarez, CPA February 1, 1999 San Juan, Puerto Rico The stamp #1478512 of the CPA's College of PR was affixed to the original of this report. 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, 1998 and 1997, 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, 1998 and 1997, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. February 19, 1999 4408 Forest Drive, Third Floor e Columbia, South Carolina 29206 e Telephone 803-790-0020 0 Fax 803-790-0011 DURANT, SCHRAIBMAN & LINDSAY Certified Public Accountants INDEPENDENT ACCOUNTANTS'REPORT To the Partners Canterfield Manor of Denmark, A Limited Partnership Columbia, South Carolina We have audited the accompanying balance sheets of Canterfield Manor of Denmark, A Limited Partnership (A South Carolina Limited Partnership), as of December 31, 1997 and 1996 and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our 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, 1997 and 1996, and the results of its operations and its cash flows for the years their ended, in conformity with generally accepted accounting principles. January 23, 1998 4408 Forest Drive, Third Floor - Columbia, South Carolina 29206 - Telephone 803-790-0020 - Fax 803-790-0011 DAVID P. PHILLIPS, P.C. CERTIFIED PUBLIC ACCOUNTANT 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, 1997 and 1996, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. 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, 1997 and 1996, 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 23, 1998 1-3 OSCAR N. HARRIS & ASSOCIATES, P.A. Certified Public Accountants OSCAR N. HARRIS, C.P.A. S@IERRY S. JOHNSON, C.P.A. KENNETfi E. MILTON, C.P.A. CONNIE P. STANCIL, C.P.A. MEMBERS: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS NORTII CAROLINA ASSOCIATION OF CERTIFIED PUBLIC ACCOUN-FANTS 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. as of December 31, 1997 and 1996, and the related statements of partners, capital, income, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cumberland Woods Associates of Middlesboro, KY, Ltd. as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 6, 1998 on our consideration of Cumberland Woods Associates of Middlesboro, KY, Ltd.'s internal control structure and a report dated February 6, 1998 on its compliance with laws and regulations. 100 EAST CUMBERLAND STFEET, PO, BOX 578, DUNN, N.C. 28335 (910) 892-1021 FAX (910) 892-6084 Cumberland Woods Associates of Middlesboro, KY, Ltd. Page Two Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. Schedules 1, 2, 3, and 4 on pages 14, 15, 16, and 17 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the 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 6, 1998 PHILLIPS, DORSEY, THOMAS, WATERS & BRAFFORD, P.A. CERTIFIED PUBLIC ACCOUNTANTS Drawer 1359 - 349 Ruin Creek Rd. - Henderson, NC 27536 919/438-8154 - Wals 800/356-7674 - Fax 919/492-5066 Ronald S. Dorsey, CPA H. Timothy Thomas, CPA Susan R. Waters, CPA Michael H. Brafford, CPA Carleen P. Evans, CPA Franklin L. Irvin, Jr, CPA W. Haywood Philips, 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, 1997 and 1996, and the related statements of operations, partners' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our 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 a 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, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 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. January 20, 1998 CERTIFIED PUBLIC ACCOUNTANTS 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) Maureen P. Collins, CPA Gerald H. Henderson, CPA Krystal P. Hiers, CPA J. Wendell Godbee, CPA Marguerite J. Joyner, CPA M. Paul Nichols, Jr., CPA Shirley S. Miller, CPA Susan S. Swader, CPA James W. Godbee, Jr., CPA Mark S. Rogers, CPA Kenny L. Carter, CPA INDEPENDENT AUDITORS' REPORT To the Partners Eastman Elderly Housing, L.P. Valdosta, Georgia We have audited the accompanying balance sheets of Eastman Elderly Housing, L.P. (a limited partnership), Federal ID No.: 58-1965562, as of December 31, 1997 and 1996, and the related statements of income, partners, equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. 3488 North Valdosta Road / P. 0. Box 2241 / Valdosta, Georgia 31604-2241 / Phone: (912) 245-6040 / FAX: (1912) 245-1669 In accordance with Government Auditing Standards, we have also issued a report dated January 21, 1998 on our consideration of Eastman Elderly Housing, L.P.'s internal control structure and a report dated January 21, 1998 on its compliance with laws and regulations. Henderson, Godbee &-Nichols, P.C. Certified Public Accountants January 21, 1998 Crisp Hughes Evans, LLP Certified Public Accountants & Consultants Affiliated worldwide through AGN International 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, 1997 and 1996, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards, and with Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits 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, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 28, 1998 on our consideration of Fairmeadow Apartments, Limited Partnership's internal control over financial reporting and our consideration of its compliance with certain provisions of laws, regulations, contracts, and grants. January 28, 1998 1 Creekview Court 864-288-5544 PO Box 25849 Fax 864-458-8519 Greenville, SC 29616 www.che-llp.com 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 sheets of Holly Tree Manor of Holly Hill, A Limited Partnership (A South Carolina Limited Partnership), as of December 31, 1997 and 1996, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our 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 3 1, 1997 and 1996, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. January 29, 1998 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 (540) 669-5531 INDEPENDENT AUDITOR'S REPORT To the Partners Lawrenceville Manor, Limited Partnership, I have audited the accompanying ba1ance sheet of Lawrenceville Manor, Limited Partnership as of December, 31, 1997 and 1996, and the related statements of operations, partner's, equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and discloses in the financial statements. 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 aspects, the financial position of Lawrenville Manor Limited Partnership as of December, 31, 1997 and 1996, and the results of its' operations, changes in partner's equity, and its cash flows for, the yea,. the ended in conformity with generally accepted accounting principle. My audits were made for the purpose of forming an opinion the basic financial statements taken as a whole. The accompanying information on pages 15 to 17 is presented for purposes of additional analysis and is not a required part of the basic, financial statements. Such information has been subjected to the audit procedure applied in the audits of the basic financial statements and, in my opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole. In accordance with Government Auditing Standards, I have also issued a report dated February 18, 1998 on my consideration of Lawrenceville Manor Limited Partnership's internal control and a report dated February 18, 1998 on its compliance with laws and regulations applicable to the financial statements. THOMAS C. CUNNINGHAM, CPA P.C. February 18, 1998 Blackman & Associates, 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, 1997 and 1996 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, 1997 and 1996 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, 1998 11924 Arbor St., Ste. 200 - Omaha, Nebraska 68144 - Phone (402) 330-1040 - Fax (402) 333-9189 PLANTE & Moran,LLP Certified Public Accountant 1111 Michigan Avenue P.O. Box 2500 East Lansing, Michigan- 48826-2500 FAX 517-332-8502 517-332-620 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, 1997 and 1996, and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the 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, 1997 and 1996, and the results of its operations, partners' equity, and cash flows for the years then ended, in conformity with generally accepted accounting principles. February 16, 1998 Moores Rowland BLOOM, GETTIS, HABIB, SILVER & TERRONE, P.A. CERTIFIED PUBLIC ACCOUNTANTS SUITE 1450 2601 SOUTH BAYSHORE DRIVE MIAMI, FLORIDA 33133-9893 TELEPHONE (305) 858-6211 FACSIMILE (305) 858-9696 Burt R. Bloom, C.P.A., C.V.A. Lawrence W. Gettis, C.P.A. Steven M. Habib, C.P.A. Roger J. Terrone, C.P.A. Curt A. Rosner, C.P.A. To the PartnersRiviera Apts., Ltd.Boston, MassachusettsINDEPENDENT AUDITORS' REPORTWe have audited the accompanying Balance Sheets of Riviera Apts. , Ltd. (a Florida Limited Partnership) , as of December 31 , 1997 and 1996, and the related Statements of Operations, Partners' Equity and Cash Flows for the years then ended. These financial statements are the responsibility of the 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 , 1997 and 1996, and the results of its operations, the changes in partners' equity and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. January 23, 1998 STIENESSEN - SCHLEGEL & CO. LIMITIED 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, 1997 and 1996, and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of St. Croix Commons Limited Partnership, as of December 31, 1997 and 1996, and the results of its operations, the changes in partners' equity, and cash flows for the years then ended in conformity with generally accepted accounting principles. Our 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 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 Januarv 23, 1998 2411 N. HILLCREST PARKWAY, P.O. BOX 8 1 0, EAU CLAIRE, WI 54702-0810 - PHONE (715) 832-3425 - FAX (715) 832-1665 - -1- ARMANDO A. SUAREZ - CPA HATO FIEY MMR. SUITE 1500,268 MUNOZ RIVERA AVENUF- HATO REY, PR 00918 - (787) 763-3195 FAX- 751-8448 INDEPENDENT AUDITOR'S REPORT To the Partners Vista Linda Apartments Limited Partnership I have audited the accompanying balance sheets of Vista Linda Apartments Limited Partnership, Rural Development Project No.: 63-016-0660472028, as of December 31, 1997 and 1996, and the related statements of operations, partners' equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. My responsibility is to express an opinion on these financial statements based on my audit. I have conducted my audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Vista Linda Apartments Limited Partnership, as of December 31, 1997 Hand 1996, and the results of its operations, changes in partners I equity (deficit) and cash flows for the years then ended in conformity with generally accepted accounting principles. My audit was made for tire purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 21 thru 36 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Armando A. Suarez, CPA February 27, 1998 San Juan, Puerto Rico 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, 1997 and 1996, and the I 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 3 1, 1997 and 1996, and the results of its operations and its cash flows for the years then ended, ill conformity with generally accepted accounting principles. January 21, 1998 4408 Forest Drive, Third Floor - Columbia, South Carolina 29206 - Telephone 803-790-0020 - Fax 803-790-0011 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. 01 1/001 214 of Mariner's Pointe Limited Partnership I and Mariner's Pointe Limited Partnership II 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 II 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. 01 1/001 214 of Mariner's Pointe Limited Partnership I and Mariner's Pointe Limited Partnership II 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. Bo. 44966 - Madison, WI 53744-4966 - (608) 831-8181 - FAX (608) 831-4243 MADISON - MILWAUKEE - ROCKFORD 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 sheets of Aspen Ridge Apartments Limited Partnership (a Nebraska limited partnership) as of December 31, 1998 and 1997 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 Aspen Ridge Apartments Limited Partnership at December 31, 1998 and 1997 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 supplemental 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 fairy stated in all material respects in relation to the basic financial statements taken as a whole. Omaha, Nebraska January 21, 1999 11924 Arbor St., Ste. 200 * Omaha, Nebraska 68144 * Phone (402) 330-1040 a Fax (402) 333-9189 Crisp Hughes Evans Certified Public Accountants & Consultants LLP Affiliated worldwide through AGN international Independent Auditors' Report To The Partners Briarwood Apartments, A Limited Partnership We have audited the accompanying balance sheets of Briarwood Apartments, A Limited Partnership as of December 31, 1998 and 1997, and the related statements of operations, partners' capital and cash flows for the years ended December 31, 1998 and 1997. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards, and with Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Briarwood Apartments, A Limited Partnership as of December 31, 1998 and 1997, 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, 1999 on our consideration of Briarwood Apartments, A Limited Partnership's internal control over financial reporting and our consideration of its compliance with certain provisions of laws, regulations, contracts, and grants. January 25, 1999 I Creekview Court 8642885544 PO Box 25849 Fax 864 458 8519 Greenville, SC 29616 Comer, McKee & Gunderson, PC. Certified Public Accountants Management Consultants Certified Business Valuation Analysts INDEPENDENT AUDITOR'S REPORT To the Partners Briarwood Of Dekalb, L.P (A Limited Partnership) We have audited the accompanying balance sheet of Briarwood of Dekalb, L.P. (a limited Partnership) as of December 31, 1998, and the related statement of operations, partners' equity and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of Briarwood of Dekalb, L.P. as of December 31, 1997, were audited by other auditors whose report dated March 31, 1998, 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 and the Illinois Housing Development Authority's Financial Reorting and Audit Guidelines for Mortgagors of Multifamily Housing Developments. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Of Dekalb, L.P. as of December 31, 1998, 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 and the Illinois Housing Development Authority's financial Reporting and Audit Guidelines for Mortgagors of Multifamily Housing, we have also issued a reports dated January 17, 1999, on our consideration of the Partnership's internal control structure, on its compliance with specific requirements applicable to Affirmative Fair Housing, and on its compliance with laws and regulations. Comer, McKee & Gunderson, P.C. January 27, 1999 8606 Allisonville Road * Suite 120 * Indianapolis, IN 46250 + TEL (317) 841-3393 * FAX (317) 841-3989 MCGLADREY&PULLEN, LLP RSM Certified Public Accountants and Consultants international 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, 1998 and 1997, and the related statements of income, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Brewer Street Apartments Limited Partnership as of December 31, 1998 and 1997, 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, 1999 I DiMarcow, Abiusi & Pascarella Philip Abiusi L. Richard Pascarella Nalkho Sung Leo N. Bonfardeci Carl T. Greco Michael A. Marnmolito David R. Snyder Charles R. Petty Scott J. Martin 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, 1998 and 1997, and the related statements of income, partners' capital and cash f lows 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, 1998 and 1997, 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 16, 1999 1 4 Clinton Square - Suite 104 Syracuse, NY 13202-1074 Phone (315) 475-6954Fax (315) 475-2937 15 Thomwood Drive - Suite 3 Ithaca, NY 14850 Phone (607) 266-0182 Fax (607) 266-0195 Visit us on the Web at www.dimarcocpa.com or email us at cpa0dimarcocpa.com 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 sheets of Cambridge Family YMCA Affordable Housing Limited Partnership (A Massachusetts limited partnership) as of December 31, 1998 and 1997, 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. 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 the general 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 Cambridge Family YMCA Affordable Housing Limited Partnership as of December 31, 1998 and 1997, 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. Creelman & Smith, P.C. Certified Public Accountants Boston, Massachusetts January 21, 1999 3 30 CONGRESS STREET BOSTDN, MASSACHLISETTS 022 10 Tel(617)542-4114 * creelman@creelman.coni * Fax(617)695-0761 SALMIM, CELONA, WEHRLE & FLAHERTY, LLP CERTIFITED PUBLIC ACCOUNTANTS 1170 CHILI AVENUE ROCHESTER, NY 14694-3033 716 / 279-0120 FAX 716 / 279-0166 To The Partners College Green Rental Associates Rochester, Now York Independent Auditor's Report We have audited the accompanying balance sheet of College Greene Rental Associates, L.P. (a Limited Partnership as of December 31, 1998 and the related statements of operations, changes in partners' capital (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partners management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of College Greene Rental Associates, L.P. as of December 31, 1997, were audited by other auditors whose report dated February 9, 1998, 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 1998 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, 1998, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Salmin, Celona, Wehrle & Flaherty, LLP January 25, 1999 CRAIN & COMPANY S. Lawson Crain, CPA R. Thomas Crenshaw, CPA Trenton D. Watrous, CPA, CVA Jason T. Shanes, CPA Mark M. Layne, CPA Katherine G. Watts, CPA John E. Hudson, CPA Madison Square 24 Corporate Blvd. Jackson, Tennessee 38305-2395 Telephone (901) 668-7070 n Fax (901) 668-1218 Tony R. Jones, CPA Karen C. Miller, CPA Melinda Y. Chapman, CPA Dale Cavaness, CPA William H. Pitt~ 111, CPA Tamara H. Stanfill, CPA C. Mickey Hannon, CPA Amy K. Santaniello, CPA Anita C. Hamilton, CPA Karen L. Taylor, CPA INDEPENDENT AUDITORS' REPORT To the Partners Crofton Associates 1, Limited Partnership We have audited the accompanying balance sheets of Crofton Associates L Limited Partnerships, FmHA Project No.: 20-024-0621467587 as of December 31, 1998 and 1997, 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 misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing 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 I, Limited Partnership, FmHA Project No.: 20-024-0621467587 as of December 31, 1998 and 1997, 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 January 13, 1999 on our consideration of the limited partnership's internal control over financial reporting and on its compliance with laws and regulations. CRAIN & COMPANY, PLC Certified Public Accountants Jackson, Tennessee January 13, 1999 - -3- Member of Tennessee Society of Certified Public Accountants, American institute of Certified Public Accountants and Private Companies Practice Section Matthews, Hearon, Cutrer & Lindsay, P.A. Brett C. Matthews, CPA CERTIFIED PUBLIC ACCOUNTANTS Member American Institute of J. Raleigh Cutrer, &A Charles R. Undsay, CPA J. Erik Hearon, CPA Tammy L. Burney, CPA Matthew E. Freeland, CPA Elizabeth Hulen Barr, CPA INDEPENDENT AUDITOR'S REPORT To the Partners Cypress Point, LP Naples, Florida We have audited the accompanying balance sheets of Cypress Point, LP (a Florida limited partnership), as of December 31, 1998 and 1997 and the related statements of operations, partners' capital (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. 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 opinions. 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 years then ended in conformity with generally accepted accounting principles. Jackson, Mississippi February 2, 1999 633 North State Street * Suite 607 a Jackson, Mississippi 39202-3306 Telephone (601) 355-9266 9 Facsimile (601) 352-6826 CRAIN & COMPANY S. Lawson Crain, CPA R. Thomas Crenshaw, CPA Trenton D. Watrous, CPA, CVA Jason T. Shanes, CPA Mark M. Layne, CPA Katherine G. Watts, CPA John E. Hudson, CPA Madison Square 24 Corporate Blvd. Jackson, Tennessee 38305-2395 Telephone (901) 668-7070 n Fax (901) 668-1218 Tony R. Jones, CPA Karen C. Miller, CPA Melinda Y. Chapman, CPA Dale Cavaness, CPA William H. Pitt~ 111, CPA Tamara H. Stanfill, CPA C. Mickey Hannon, CPA Amy K. Santaniello, CPA Anita C. Hamilton, CPA Karen L. Taylor, CPA INDEPENDENT AUDITORS' REPORT To the Partners Gallaway Associates 1, 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, 1998 and 1997, 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.: 48-024-621474763 as I of December 31, 1998 and 1997, 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 January 19, 1999 on our consideration of the limited partnership's internal control over financial reporting and on its compliance with laws and regulations. CRAIN & COMPANY, PLC Certified Public Accountants Jackson, Tennessee January 19, 1999 - -3- BERRY, DUNN, McNEIL & PARKER CERTIFIED PUBLIC ACCOUNTANTS MANAGEMENT CONSULTANTS INDEPENDENT AUDITORS' REPORT The Partners Green Acres Limited. Partnership We have audited the balance sheets of Green Acres Limited Partnership as of December 31, 1998 and 1997, 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, 1998 and 1997, 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 I 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 7, 1999 - -2- Offices in: Bangor, Maine Portland, Maine Lebanon, New Hampshire Manchester, New Hampshire Schoonover Boyer Gettman & Associates Certified Public Accountants e Financial Consultants INDEPENDENT AUDITORS' REPORT To the Partners Hackley-Barclay Limited Dividend Housing Association Limited Partnership We have audited the accompanying balance sheets of Hackley-Barclay Limited Dividend Housing Association Limited Partnership (a Michigan Limited Partnership), as of December 31, 1998 and 1997, 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 Hackley-Barclay Limited Dividend Housing Association Limited Partnership, as of December 31, 1998 and 1997, 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 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. Columbus, Ohio January 22, 1999 110 Northwoods Boulevard 0 Suitc-200 o Worthington. Ohio 4~3235 0 614/888-8000 Fax 614/888-8634 CRAIN & COMPANY S. Lawson Crain, CPA R. Thomas Crenshaw, CPA Trenton D. Watrous, CPA, CVA Jason T. Shanes, CPA Mark M. Layne, CPA Katherine G. Watts, CPA John E. Hudson, CPA Madison Square 24 Corporate Blvd. Jackson, Tennessee 38305-2395 Telephone (901) 668-7070 n Fax (901) 668-1218 Tony R. Jones, CPA Karen C. Miller, CPA Melinda Y. Chapman, CPA Dale Cavaness, CPA William H. Pitt~ 111, CPA Tamara H. Stanfill, CPA C. Mickey Hannon, CPA Amy K. Santaniello, CPA Anita C. Hamilton, CPA Karen L. Taylor, CPA INDEPENDENT AUDITORS' REPORT To the Partners Hickman Associates H, 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, 1998 and 1997, 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 statements position. 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 financial position of Hickman Associates H, Limited Partnership, FmHA Project No.: 20-038-621451228 as of December 31, 1998 and 1997, 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 Accountants Jackson, Tennessee January 18, 1999 - -3- Thomas C. Cunningham, CPA PC 23 MOORE STREET BRISTOL, VIRGINIA 24201 (540) 669-5531 INDEPENDENT AUDITOR'S REPORT To the Partners Lee Terrace Limited Partnership I have audited the accompanying balance sheets of Lee Terrace Limited Partnership as of December 31, 1998 and 1997, 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, 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 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, 1998 and 1997, and the results of its operations, changes in partners' equity, and its cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying information on pages 14 to 16 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. In accordance with Government Auditing Standards, I have also issued a report dated February 18, 1999 on my consideration of Lee Terrace Limited Partnership's internal control and a report dated February 18, 1999 on its compliance with laws and regulations applicable to the financial statements. THOMAS C. CUNNINGHAM, CPA P.C. February 18, 1999 - -3- PAGE OLSON & COMPANY P C INDEPENDENT AUDITORS' REPORT February 17, 1999 To the Partners Midland Housing Limited Partnership We have audited the accompanying balance sheets of Midland Housing Limited Partnership as of December 31, 1998 and 1997, 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, 1998 and 1997, 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 15 is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. 1 2865 SOUTH LINCOLN ROAD - PO BOX 368 - IVIT PLEASANT, MI 48804 0368 . 517 773 5494 - FAX 517 773 5816 PRICEWATERHOUSECOOPERS PricewaterhouseCoopers LLP 1100 Bausch & Lomb Place Rochester NY 14604-2705 Telephone (716) 232 4000 Report of Independent Accountants February 1, 1999 To the Partners Mt. Vernon Associates, L.P. In our opinion, the accompanying statements of financial position and the related statements of operations and partners' capital, changes in partners' capital and cash flows present fairly, in all material respects, the financial position of Mt. Vernon Associates, L.P. at December 31, 1998 and 1997, and the results of their operations and their cash flows for the years then ended in conformity with generally accepted accounting principles. These financial statements are the responsibility of the Company's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above. 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, 1998 and 1997, 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 3 1, 1998 and 1997, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. February 4, 1999 4408 Forest Drive, Third Floor 0 Columbia, South Carolina 29206 * Telephone 803-790-0020 * Fax 803-790-0011 Duggan, Joiner, Birkenmeyer, Stafford & Furman, P.A. INDEPENDENT AUDITORS' REPORT January 22, 1999 To the Partners Palmetto Properties,. Ltd. We have audited the accompanying basic financial statements of Palmetto Properties, Ltd., as of and for the years ended December 31, 1998 and 1997 as listed in the table of contents. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of Palmetto Properties, Ltd. as of December 31, 1998 and 1997, 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 additional information as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. 334 N.W. Third Avenue Ocala, FL 34475 (352)732-0171 Fax (352)867-1370 INDEPENDENT AUDITORS' REPORT MAYER H0FFMAN McCANN L.C. 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, 1998 and 1997 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, 1998 and 1997 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 page 1-14 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, 1999 1-3 Philip Abiusi L. Richard Pascarella Nakho Sung DiMarco, Abiusi & Pascarella Carl T. Greco Certified Public Accountants, P.C. David R. Snyder Charles R. Petty Scott J. Martin Leo N. Bonfardeci Michael A. Mammolito 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, 1998 and 1997, and the related statements of income, partners I capital and cash f lows f or 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 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, 1998 and 1997, 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 16, 1999 1 Dauby O'Connor & Zaleski A Limited Liability Company Certified Public Accountants Independent Auditors' Report To the Partners of Waynesburg House Associates (A Pennsylvania Limited Partnership) We have audited the accompanying balance sheet of Waynesburg House Associates (a Pennsylvania Limited Partnership) as of December 31, 1998, and the related statements of operations, 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. The 1997 financial statements were audited by other auditors whose report dated January 26, 1998, 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 allmaterial respects, the financial position of Waynesburg House Associates as of December 31, 1998, 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 March 5, 1999, on our consideration of the Partnership's internal controls and a report dated March 5, 1999, on its compliance with laws and regulations. Waynesburg House Associates Page Two The accompanying supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. March 5, 1999 Dauby O'Connor & Zaleski, LLC Carmel, Indiana Certified Public Accountants RAYMOND & BROUSSARD A PROFESSIONAL CORPORATION CERTEFIED PUBLIC ACCOUNTANTS 2616 Toulon Drive Baton Rouge, Louisiana 70816 Telephone: Cn5) 292-9211 Fax: C225) 292-0727 Paul C. Raymond, Sr, C.P.A., Retired Kathryn Raymond Broumard, CP-~L INDEPENDENT AUDITORS' REPORT To The Partners White Castle Citizens Partnership, Ltd. We have audited the accompanying balance sheet of White Castle Senior Citizens Partnership Ltd., RHS Project No.: 22-024-721149468, as of December 31, 1998 and December 31, 1997, 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 Governmental 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 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 White Castle Senior Partnership, Ltd. as of December 31, 1998 and 1997, and the results of its operation 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 purposes of additional analysis and is not a required part if the basic financial statements. The supplementary information presented in the Year End Report and Analysis (Form RHS 1930-8) Parts I through III and the Multiple Family Housing Project Budget (Form RHS 1930-7) Parts I through V for the year ended December 31, 1998, is presented for purposes of complying with the requirements of Rural Housing Services, and is also not a required part of the basic financial statements. Reports on compliance with laws and regulations and internal control are presented as additional supplemental information on pages 22-28. 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 March 15, 1999 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 sheets of Aspen Ridge Apartments Limited Partnership (a Nebraska Limited Partnership) as of December 31, 1997 and 1996 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 Aspen Ridge Apartments Limited Partnership at December 31, 1997 and 1996 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 21, 1998 11924 Arbor St., Ste. 200 - Omaha, Nebraska 68144 - Phone (402) 330-1040 - Fax (402) 333-9189 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, 1997 and 1996, and the related statements of income, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing 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, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in generally accepted accounting principles. Greensboro, North Carolina January 20, 1998 Crisp, Hughes, Evans, LLP Certified Public Accountants & Consultants Affiliated worldwide through AGN International Independent Auditors' ReportTo The PartnersBriarwood Apartments, A Limited Partnership We have audited the accompanying balance sheets of Briarwood Apartments, A Limited Partnership as of December 31, 1997 and 1996, and the related statements of operations, partners' capital and cash flows for the years ended December 31, 1997 and 1996. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards, and with Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Briarwood Apartments, A Limited Partnership as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 28, 1998 on our consideration of Briarwood Apartments, A Limited Partnership's internal control over financial reporting and our consideration of its compliance with certain provisions of laws, regulations, contracts, and grants. January 28, 1998 1 Creekview Court 864 288 5544 PO Box 25849 Fax 864 458 8519 Greensville, SC 29616 www.che-llp.com KB Parrish & Co. LLp 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) We have audited the balance sheets of Briarwood of Dekalb, L.P. (a limited partnership) as of December 31, 1997 and 1996, and the related statements of operations, changes in partnership capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States and the Illinois Housing Development Authority's Financial Reporting and Audit Guidelines for Mortgagors of Multifamily Housing Developments. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing 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 of Dekalb, L.P. at December 31, 1997 and 1996, and the results of its operations, changes in partnership capital, and cash flows for the years then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards and the Illinois Housing Development Authority's Financial Reporting and Audit Guidelines for Mortgagors of Multifamily Housing, we have also issued a report dated March 31, 1998 on our consideration of the partnership's internal control structure, a report dated March 31, 1998 on its compliance with specific requirements applicable to Affirmative Fair Housing, and a report dated March 31, 1998 on its compliance with laws and regulations. Respectfully submitted, K - B. Parrish & Co. LLP Certified Public Accountants Indianapolis, Indiana March 31, 1998 DIMARCO, ABIUSI & PASCARELLA CERTIFIED PUBLIC ACCOUNTANTS, P.C Philip Abiusi L. Richard Pascarella Nakho Sung Leo N. Bonfardeci Carl T. Greco Phone (315) 475-6954 - Fax (315) 475-2937 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, 1997 and 1996, and the related statements of income, partners, capital and cash flows for the years then ended. These financial statements are the responsibility of the 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 statement are free of material misstatement. An audit includes examining, on a test basis, 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, 1997 and 1996, 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 5, 1998 Report of Independent Accountants To the Partners College Greene Rental Associates, L.P. We have audited the accompanying balance sheets of College Greene Rental Associates, L.P. (A Limited Partnership), as of December 31, 1997 and 1996, and the related statements of operations and partners' capital, changes in partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of College Greene Rental Associates, L.P., as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Rochester, New York February 9, 1998 CRAIN & COMPANY, PLC CERTIFIED PUBLIC ACCOUNTANTS Madison Square, 24 Corporate Blvd. Jackson, Tennessee 38305-2395 Telephone (901) 668-7070 - Fax. (901) 668-12 18 INDEPENDENT AUDITORS' REPORT To the Partners Crofton Associates 1, Limited Partnership We have audited the accompanying balance sheets of Crofton Associates 1, Limited Partnership, FmHA Project No.: 20-024- 0621467587 as of December 31, 1997 and 1996, and the related statements of operations, changes in partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our 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 I, Limited Partnership, FmHA Project No.: 20-0240621467587 as of December 31, 1997 and 1996, and the results of its operations, changes in partners' capital and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were 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 January 22, 1998 on our consideration of the limited partnership's internal control over financial reporting and on its compliance with laws and regulations. CRAIN & COMPANY, PLC Certified Public Accountants Jackson, Tennessee January 22, 1998 INDEPENDENT AUDITOR'S REPORT To the Partners Cypress Point, LP Naples, Florida We have audited the accompanying balance sheets of Cypress Point, LP (a Florida limited partnership), as of December 31, 1997 and 1996 and the related statements of operations, partners' capital (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. 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 opinions. 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 operations and its flows for the years then ended in conformity with generally accepted accounting principles. Jackson, Mississippi February 3, 1998 CRAIN & COMPANY, PLC CERTIFIED PUBLIC ACCOUNTANTS Madison Square, 24 Corporate Blvd. Jackson, Tennessee 38305-2395 Telephone (901) 668-7070 - Fax. (901) 668-12 18 INDEPENDENT AUDITORS' REPORT To the Partners Gallaway Associates 1, Limited Partnership We have audited the accompanying balance sheets of Gallaway Associates 1, Limited Partnership, FMHA Project No.: 48-024- 621474763 as of December 31, 1997 and 1996, and the related statements of operations, changes in partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our 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 1, Limited Partnership, FmHA Project No.: 48-024621474763 as of December 31, 1997 and 1996, and the results of its operations, changes in partners' capital and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were 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 January 26, 1998 on our consideration of the limited partnership's internal control over financial reporting and on its compliance with laws and regulations. CRAIN & COMPANY, PLC Certified Public Accountants Jackson, Tennessee January 26, 1998 Blurne 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, 1997 and 1996, 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, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report, dated January 22, 1998, on our consideration of the Partnership's internal control structure and a report, dated January 22, 1998, on its compliance with laws and regulations. Page 1 INDEPENDENT AUDITOR'S REPORT ON FINANCIAL STATEMENTS - (CONTINUED) Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The additional information shown on pages 14 to 17 is presented for the purpose of complying with the requirements of the U.S. Department of Agriculture, Rural Housing Service, for the year ended December 31, 1997, 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 RD 1930-7) and on page 17, has been subjected to the auditing procedures applied in the audit of the financial statements for that year, 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 audits 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. January 22, 1998 Page 1A CRAIN & COMPANY, PLC CERTIFIED PUBLIC ACCOUNTANTS Madison Square, 24 Corporate Blvd. Jackson, Tennessee 38305-2395 Telephone (901) 668-7070 - Fax. (901) 668-12 18 INDEPENDENT AUDITORS' REPORT To the Partners Hickman Associates 11, 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, 1997 and 1996, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the 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, 1997 and 1996, and the results of its operations, changes in partners' equity and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information 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 January 24, 1998 CRAIN & COMPANY, PLC Certified Public Accountants Thomas C. Cunningham, CPA PC 23 MOORE STREET BRISTOL, VIRGINIA 24201 (540) 669-5531 INDEPENDENT AUDITOR'S REPORT To the Partners Lee Terrace, Limited Partnership, I have audited the accompanying ba1ance sheet of Lee Terrace, Limited Partnership as of December, 31, 1997 and 1996, and the related statements of operations, partner's, equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and discloses in the financial statements. 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 aspects, the financial position of Lee Terrace Limited Partnership as of December, 31, 1997 and 1996, and the results of its' operations, changes in partner's equity, and its cash flows for, the yea,. the ended in conformity with generally accepted accounting principle. My audits were made for the purpose of forming an opinion the basic financial statements taken as a whole. The accompanying information on pages 15 to 17 is presented for purposes of additional analysis and is not a required part of the basic, financial statements. Such information has been subjected to the audit procedure applied in the audits of the basic financial statements and, in my opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole. In accordance with Government Auditing Standards, I have also issued a report dated February 18, 1998 on my consideration of Lee Terrace Limited Partnership's internal control and a report dated February 18, 1998 on its compliance with laws and regulations applicable to the financial statements. THOMAS C. CUNNINGHAM, CPA P.C. February 18, 1998 Page Olson & Company PC INDEPENDENT AUDITORS' REPORT February 20. 1998 To the Partners Midland Housing Limited Partnership We have audited the accompanying balance sheets of Midland Housing Limited Partnership as of December 31, 1997 and 1996, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit 'includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion the financial statements referred to above present fairly, in all material respects, the financial position of Midland Housing Limited Partnership as of December 3 1, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 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, Mount Pleasant, MI 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, 1997 and 1996, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our 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 3 1, 1997 and 1996, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. January 24, 1998 4408 Forest Drive, Third Floor - Columbia, South Carolina 29206 - Telephone 803-790-0020 - Fax 803-790-0011 DUGGAN, JOINER, BIRKENMEYER, STAFFORD & FURMAN, RA. CERTIFIED PUBLIC ACCOUNTANTS Members: American Institute of Certified Public Accountants Florida Institute of Certified Public Accountants 334 N.W. Third Avenue, OCALA, Florida 34475 Phone: (352) 732-0171 Fax: (352) 867-1370 INDEPENDENT AUDITORS' REPORT January 15, 1998 To the Partners Palmetto Properties, Ltd. We have audited the accompanying basic financial statements of Palmetto Properties, Ltd., as of and for the years ended December 31, 1997 and 1996 as listed in the table of contents. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of Palmetto Properties, Ltd.as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as A whole. Mayer, Hoffman, McCann L.C. Certified Public Accountants 420 Nichols Road, K.C., MO 64112 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, 1997 and 1996 and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sixth Street Partners Limited Partnership as of December 31, 1997 and 1996 and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 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. Kansas City, Missouri January 20, 1998 1-3 DIMARCO, ABIUSI & PASCARELLA CERTIFIED PUBLIC ACCOUNTANTS, P.C. The Clinton Exchange, 4 Clinton Square, Suite 104, Syracuse, New York 13202-1074 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, 1997 and 1996, and the related statements of income, partners' capital and cash flow 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 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 audits provide a reasonable basis for our pinion. 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, 1997 and 1996, 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 11, 1998 RAYMOND & BROUSSARD A PROFESSIONAL CORPORATION CERTIFIED PUBLIC ACCOUNTANTS 2616 Toulon Drive Baton Rouge. Louisiana 70816 Telephone: (504) 292-9211 Fax: (504) 292-0727 Paul C. Raymond, Sr., C.P.A., Retired Kathryn Raymond Broussard, C.P.A. INDEPENDENT AUDITORS' REPORT To The Partners White Castle Senior Citizens Partnership, Ltd. We have audited the accompanying balance sheets of White Castle Senior Citizens Partnership, Ltd., RHS Project No.: 22-024721149468, as of December 31, 1997 and 1996 and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. our responsibility is to express an opinion on these financial statements based on our 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 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, 1997 and 1996, 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 RHS 1930-8) Parts I through III and in the Multiple Family Housing Project Budget (Form RHS 1930-7) Parts I through V for the year ended December 31,1997, is presented for purposes of complying with the requirements of the Rural Housing Services and is not a required part of the basic financial statements. Reports on compliance with laws and regulations and internal control are presented as additional supplemental information on pages 23- 27. 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 March 14, 1998 RAJEEV RAJ C.P.A 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, 1998, 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, 1998, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. March 7, 1999 1600 Providence highway, # 285, Walpole, Ma-02081. Phone (508) 660-2592 Fax (508) 660-1569 raj-cpa.com e-mail-rajeev@raj-cpa.com PRICEWATERHOUSECOOPER5 PricewaterhouseCoopers LLP I 100 Bausch & Lomb Place Rochester NY 14604-2705 Telephone (716) 232 4000 Page 1 Report of Independent Accountants January 25, 1999 To the Partners Evergreen Hills Associates, L.P. In our opinion, the accompanying statements of financial position, and the related statements of operations and partners' capital, changes in partners' capital and cash flows present fairly, in all material respects, the financial position of Evergreen Hills Associates, L.P. at December 31, 1998 and 1997, and the results of their operations and their cash flows for the years then ended in conformity with generally accepted accounting principles. These financial statements are the responsibility of the Company's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above. 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, 1998 and 1997, 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 Glen Place Apartments Limited Partnership, as of December 31, 1998 and 1997, 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 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. January 22, 1999 2411 N. HILLCREST PARKWAY, P.O. BOX 810, EAU CLAIRE, WI 54702-0810 9 PHONE(715) 832-3425 FAX(715) 832-1665 Habit, Arogeti & Wynne, P. C. INDEPENDENT AUDITORS' REPORT To the Partners Jackson Rental Housing, L.P. We have audited the accompanying balance sheet of JACKSON RENTAL HOUSING, L.P. [a limited partnership], Federal ID No. 10-018-582031912, as of December 31, 1998, and the related statements of operations, 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. The financial statements of JACKSON RENTAL HOUSING, L.P. as of December 31, 1997 were audited by other auditors whose report dated January 21, 1998 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, and the U.S. Department of Agriculture, Farmers Home Administration's Audit Program. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit 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 JACKSON RENTAL HOUSING, L.P. as of December 31, 1998, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 8, 1999 on our consideration of JACKSON RENTAL HOUSING, L.P.'s internal control and a report dated February 8, 1999 on its compliance with laws and regulations. Our audits were made for the purposes of forming an opinion on the basic financial statements taken as a whole. The supplementary 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 basis financial statements taken as a whole. February 8, 1999 MEMBERS GEORGIA SOCIETY OF AMERICAN INSTITUTE OF AICPA DIVISION FOR CPA FIRMS CERTIFIED PUBLIC ACCOUNTANTS CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION SEC PRACTICE SECTION PAILET, MEUNIER and LeBLANC, L.L.P. Certified Public Accountants Management Consultants INDEPENDENT AUDITOR'S REPORT To the Partners LEESVILLE ELDERLY APARTMENTS A LOUISIANA PARTNERSHIP IN COMMENDAM We have audited the accompanying balance sheets of LEESVILLE ELDERLY APARTMENTS, A LOUISIANA PARTNERSHIP IN COMMENDAM as of December 31,1998 and 1997 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 LEESVILLE ELDERLY APARTMENTS, A LOUISIANA PARTNERSHIP IN COMMENDAM as of December 31, 1998 and 1997 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 primarily for the purpose of forming an opinion on the basic financial statements for the years ended December 31, 1998 and 1997 taken as a whole. The supplemental information on pages 17 and 18 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures performed on 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. Metairie, Louisiana February 18, 1999 PLANTE & MORAN, LLP To the Partners Lakeview Meadows 11 Limited Dividend Housing Association Limited Partnership We have audited the financial statements of Lakeview Meadows 11 Limited Dividend Housing Association Limited Partnership (a Michigan limited partnership) MSHDA Development No. 905, as of and for the year ended December 31, 1998, and have issued our report thereon dated February 15, 1999. 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. Compliance Compliance with laws, regulations, contracts, and grants applicable to the project is the responsibility of Partnership management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the Partnership's compliance with certain provisions of laws, regulations, contracts, and grants, including compliance with specific provisions of the MSHDA Regulatory Agreement, MSHDA Directives, and HUD regulations and procedures included in the HUD subsidy contract, and MSHDA Multifamily Audit Guidelines. However, our objective was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that we have reported herein under Government Auditing Standards required to be reported herein under the provisions referred to in the preceding paragraph. We have compared the December 31, 1998 Monthly Income and Expense Report submitted to MSHDA with balances in the financial statements for the year ended December 31, 1998 audited by us and covered by our report dated February 15, 1999. The account balances set forth therein are in material agreement (defined by MSHDA as differences not exceeding 10 percent and $1,000), except as noted below. To the Partners Lakeview Meadows 11 Limited Dividend Housing Association Limited Partnership Trade Accounts Payable/Accrued Liabilities Reconciliation Accounts payable on the MSHDA report includes accrued management fee which has been included in accrued liabilities in the audited financial statements of Lakeview Meadows 11 Limited Dividend Housing Association Limited Partnership. In addition, we have reviewed the trade accounts payable balance listed on Schedule B of the March 1998 Monthly Income and Expense Report submitted to MSHDA: Account balances were in material agreement. Internal Control over Financial Reporting In planning and performing our audit, we considered Lakeview Meadows 11 Limited Dividend Housing Association Limited Partnership's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose-all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one of more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. Additionally, no management letter was issued in relation to our audit as of and for the year ended December 31, 1998. 22 PLANTE & MORAN, LL To the Partners Lakeview Meadows 11 Limited Dividend Housing Association Limited Partnership This report is intended for the information of the Partners, management, and the Michigan State Housing Development Authority. However, this report is a matter of public record, and its distribution is not limited. February 15, 1999 PLANTE &MORAN, LLP PAILET, MEUNIER and LeBLANC, L.L.P. Certified Public Accountants Management Consultants INDEPENDENT AUDITOR'S REPORT To the Partners LOCKPORT ELDERLY HOUSING APARTMENTS A LOUISIANA PARTNERSHIP IN COMMENDAM We have audited the accompanying balance sheets of LOCKPORT ELDERLY HOUSING APARTMENTS, A LOUISIANA PARTNERSHIP IN COMMENDAM as of December 31, 1998 and 1997 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 LOCKPORT ELDERLY HOUSING APARTMENTS, A LOUISIANA PARTNERSHIP IN COMMENDAM as of December 31, 1998 and 1997 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 primarily for the purpose of forming an opinion on the basic financial statements for the years ended December 31, 1998 and 1997 taken as a whole. The supplemental information on pages 18 and 19 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures performed on 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. Metairie, Louisiana February 19, 1999 Stringari and Cimer CERTIFIED PUBLIC ACCOUNTANTS 1051 Magnolia Road Vineland, New Jersey 08360-6480 (609) 691-3673 Fax (609) 692-1454 Brian J. Stringari, CPA Steven A. Cimer, CPA To the Partners Parvins Limited Partnership INDEPENDENT AUDITOR'S REPORT We have audited the accompanying balance sheet of Parvins Limited Partnership as of December 31, 1998 and December 21, 1997, and the related "Statement of Operations", "Statement of partners' Equity" and "Statement of Cash Flows" for the years then ended. These 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 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 Parvins Limited Partnership as of December 31, 1998 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 9 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in a relations to the basic financial statements taken as a whole. Stringari and Cimer Certified Public Accountants February 1, 1999 JEROME P. Lewis, CPA REGARDIE, BROOKS & LEVWS JESSE A. KAISER, CPA CHARTERED NATHAN J. ROSEN, CPA PAUL J. GNATT, CPA CONSULTANTS & CERTIFIED PUBLIC ACCOUNTANTS CELSO T MATAAC, JR., CPA PHILIP R. BAKER, CFA DOUGLAS A. DOWUNG, CPA 7101 WISCONSIN AVENUE, SUITE 1012 9 BETHESDA, MARYLAND 20814 TEL (301) 654-9000 e-mail: rblcpa0rbIcpa.com FAX (301) 656-3056 DAVID A. BROOKS, CPA CONSULTANT BRIAN J. GIGAM CPA BENJAMIN F REGARDIE(1897-1973) INDEPENDENT AUDITOR'S REPORT February 22, 1999 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, 1998 and 1997, and the related statements of income, 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, and the U.S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating tl~e 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, 1998 and 1997, and the results of its operations, changes in partners' capital and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our reports dated February 22, 1999 on our consideration of Peach Tree Limited Partnership's internal control and on its compliance with laws and regulations. Certified Public Accountants - - I - Kenneth C. Boothe & Company, P.C. Certified Public Accountant 1001 East Farm Road 700 9 Big Spring, Texas 79720 * (915) 263-1324 * FAX (915) 263-2124 INDEPENDENT AUDITORS' REPORT To the Partners Ponderosa Meadows Limited Partnership We have audited the accompanying balance sheets of Ponderosa Meadows Limited Partnership as of December 31, 1998 and 1997, 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 Limited Partnership as of December 31, 1998 and 1997, 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 February 6, 1999, on our consideration of Ponderosa Meadows Limited Partnership's internal control structure and a report dated February 6, 1999, 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 20 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 state all material respects in relation to the basic financial statements taken as a whole. KENNETH C. BOOTHE AND COMPANY, P.C. February 6, 1999 Big Spring, Texas GWEN WARD, P.C. CERTIFIED PUBL IC ACCOUNTANT 609 UNIVERSITY DRIVE FORT WORTH. TEXAS 76107 (817) 336-5880 MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 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, 1998 and 1997 the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Rio Grande Apartments, Ltd. as of December 31, 1998 and 1997 and the results of its operations, changes in partners' capital and cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made f or the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 1-16 and 1-17 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the b financial statements taken as a whole. Fort Worth, Texas March 12, 1999 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, 1998 and 1997, 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 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, 1998 and 1997, 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 March 18, 1999 - -3- Certified Public Accountant Kenneth C. Boothe & Company, P.C. Certified Public Accountant 1001 East Farm Road 700 9 Big Spring, Texas 79720 - (915) 263-1324 * FAX (915) 263-2124 INDEPENDENT AUDITORS' REPORT To the Partners Vista Loma Limited Partnership We have audited the accompanying balance sheets of Vista Loma Limited Partnership as of December 31, 1998 and 1997, 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 Limited Partnership as of December 31, 1998 and 1997, 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 February 6, 1999, on our consideration of Vista Loma Limited Partnership's internal control structure and a report dated February 6, 1999, 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 20 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 in material respects in relation to the basic financial statements taken as a whole. KENNETH C. BOOTHE AND COMPANY, P.C. February 6, 1999 Big Spring, Texas RAJEEV RAJ C.P.A Certified Public Accountants INDEPENDENT AUDITOR'S REPORTTo the Partners ofChelsea Square Development Limited PartnershipI have audited the accompanying balance sheet of Chelsea Square Development Limited Partnership (A Development Stage and a Massachusetts limited partnership) as of December 31, 1997, 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, 1997, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. February 26, 1998 Rajeev Raj Certified Public Accountant 1600 Providence Highway, #227 Walpole, MA 02081 Coopers&LybrandReport of Independent Accountants To the Partners Evergreen Hills Associates, L.P. We have audited the accompanying statements of financial position of Evergreen Hills Associates, L.P. (A Limited Partnership), as of December 31, 1997 and 1996, and the related statements of operations and partners' capital, changes in partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Evergreen Hills Associates, L.P., as of December 31, 1997 and 1996, and the results of its operations,. changes in partners' capital and its cash flows for the years then ended in conformity with generally accepted accounting principles. Rochester, New York January 21, 1998 STIENESSEN - SCHLEGEL & CO.LIMITED LIABILITY COMPANY CERTIFIED PUBLIC ACCOUNTANTSIndependent Auditor's ReportTo the PartnersGlen Place Apartments Limited PartnershipWe have audited the accompanying balance sheets of Glen Place Apartments Limited Partnership, as of December 31, 1997 and 1996, and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Glen Place Apartments Limited Partnership, as of December 31, 1997 and 1996, and the results of its operations, changes in partners' equity, and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. January 12, 1998 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) Maureen P. Collins, CPA Gerald H. Henderson. CPA Krystal P. Hiers, CPA J. Wendell Godbee CPA Marguerite J. Joyner CPA M. Paul Nichols Jr CPA Shirley S. Miller CPA Susan S. Swader CPA James W. Godbee Jr, CPA Mark S. Rogers, CPA Kenny L. Carter, CPA INDEPENDENT AUDITORS' REPORT To the Partners Jackson Housing, L.P. Valdosta, Georgia We have audited the accompanying balance sheets of Jackson Housing, L.P. (a limited partnership), Federal ID No.: 58-2031912, as of December 31, 1997 and 1996, and the related statements of income, partners I equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. our responsibility is to express an opinion on these financial statements based on our 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 Jackson Housing, L.P. as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. 3488 North Valdosta Road / P. 0. Bo. 2241 / Valdosta, Georgia 31604-2241 / Phone: (912) 245-6040 / FAX: (912) 245-1669 In accordance with Government Auditing Standards, we have also issued a report dated January 21, 1998 on our consideration of Jackson Housing, L.P.Is internal control structure and a report dated January 21, 1998 on its compliance with laws and regulations. Henderson, Godbee & Nichols, P.C. Certified Public Accountants January 21, 1998 PLANTE & MORAN, LLP 1111 Michigan Avenue P.O. Box 2500 East Lansing, Michigan 48826-2500 Certified Public Accountants Management Consultants 517-332-6200 FAX 517-332-8502 Independent Auditor's Report To the 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, as of December 31, 1997 and 1996, and the related statements of profit and loss, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lakeview Meadows 11 Limited Dividend Housing Association Limited Partnership as of December 31, 1997 and 1996, and its profit and loss, partners' equity, and its cash flows for the years then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 16, 1998, on our consideration of the Partnership's internal controls and a report dated February 16, 1998, on its compliance with laws and regulations. February 16, 1998 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 JEROME P. LEWIS, CPA JESSE A 'KAISER, CPA PAUL J. GNATT, CPA NATHAN J. ROSEN, CPA CELSO T MATAAC, JR,, CPA PHILIP R. BAKER, CPA DOUGLAS A. DOWUNG, CPA DAVID A. BROOKS, CPA 7101 WISCONSIN AVENUE - BETHESDA, MARYLAND 20814 TEL (301) 654-9000 FAX (301) 656-3056 INDEPENDENT AUDITOR'S REPORT February 21, 1998 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, 1997 and 1996, and the related statements of income, partners' capital, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States, and the U. S. Department of Agriculture, Farmers Home Administration Audit Program. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits 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, 1997 and 1996, and the results of its operations, changes in partners' capital and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing standards, we have also issued our reports dated February 21, 1998 on our consideration of Peach Tree Limited Partnership's internal controls and on its compliance with laws and regulations. Kenneth C. Boothe & Company, P.C. Certified Public Accountant 1001 East Farm Road 700 - Big Spring, Texas 79720 - (915) 263-1324 - FAX (915) 263-2124 INDEPENDENT AUDITORS'REPORT To the Partners Ponderosa Meadows Limited Partnership We have audited the accompanying balance sheets of Ponderosa Meadows Limited Partnership as of December 31 1997 and 1996, and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our ability is to express an opinion responsibility 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 Limited Partnership as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards issued by the Comptroller General of the United States, NN-e have also issued a report dated January 20, 1998, on our consideration of Ponderosa Meadows Limited Partnership's internal control structure and a report dated January 20, 1998, 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 supplements, information shown on Pages 19 through 20 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. January 20, 1999 Big Spring, Texas KENNETH C. BOOTHE AND COMPANY, P.C. Gwen Ward P.C., Certified Public Accountant 609 University Drive, Fort Worth, Texas 76107, (817) 336-5680 Member American Institute of Certified Public Accountants Member Texas Society Certified Public Accountants 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, 1997 and 1996 the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Rio Grande Apartments, Ltd. as of December 31, 1997 and 1996 and the results of its operations, changes in partners, capital and cash flows for the years then ended in conformity with generally accepted accounting principles. My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages I-16 and I-17 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. Fort Worth, Texas March 12, 1998 I-3 Martin A. Starr, C.P.A.INDEPENDENT AUDITOR'S REPORT To the PartnersVirginia Avenue Affordable Housing Limited Partnership I have audited the accompanying balance sheets of Virginia Avenue Affordable Housing Limited Partnership as of December 31, 1997 and 1996, and the related statements of operations, partners' equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. 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, 1997 and 1996, and the results of its operations, the changes in partners' equity and cash flows for the years then ended in conformity with generally accepted accounting principles. 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 11, 1998 Certified Public Accountant 4260 Truxtun Avenue, Ste. 140, Bakersfield, CA 93309 805-635-3185 FAX 805-635-3190 Kenneth C. Boothe & Company, P.C. Certified Public Accountant 1001 East Farm Road 700 - Big Spring, Texas 79720 - (915) 263-1324 - FAX (915) 263-2124 INDEPENDENT AUDITORS'REPORT To the Partners Vista Loma Limited Partnership We have audited the accompanying balance sheets of Vista Loma Limited Partnership as of December 31, 1997 and 1996, and the related statements of operations, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our 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 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 all material respects, the financial position of Vista Loma Limited Partnership as of December 31, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards issued by the Comptroller General of the United States, we have also issued a report dated January 20, 1998, on our consideration of Vista Loma Limited Partnership's internal control structure and a report dated January 20, 1998, on its compliance with laws and relations. 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 20 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. KENNETH C. BOOTHE AND COMPANY, P.C. January 20, 1998 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. Tel: (508) 660-2592 1600 Providence Highway Fax: (508) 660-1569 Walpole, MA O2081 Accountants and Management Consultants Grant Thornton The US Member Firm of GRANT THORNTON LLP Grant Thornton International Report of Independent Certified Public Accountants To the Partners of Community Dynamics - Plano, Ltd. We have audited the balance sheets of Community Dynamics - Plano, Ltd. (a Texas limited partnership) as of December 31, 1998 and 1997, and the related statements of operations, partners' capital, and cash flows for the years then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the 1998 and 1997 financial statements referred to above present fairly, in all material respects, the financial position of Community Dynamics - Plano, Ltd. as of December 31, 1998 and 1997, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Dallas, Texas January 28, 1999 Suite 500 1717 Main Street Dallas, TX 75201 Tel: 214 561-2300 Fax: 214 561-2370 ARTHURANDERSEN 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, 1998 and 1997, 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, 1998 and 1997, 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, 1999. REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Partners of Jeremy Associates Limited Partnership: We have audited the accompanying balance sheets of JEREMY ASSOCIATES LIMITED PARTNERSHIP (a Colorado limited partnership) as of December 31,1998 and 1997, 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 Jeremy Associates Limited Partnership as of December 31, 1998 and 1997, 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, 1999. PAILET, MEUIER and ALAN, L.L.P. Certified Public Accountants Management Consultants INDEPENDENT AUDITOR'S REPORT To the Partners LONE STAR SENIORS APARTMENTS, LTD. We have audited the accompanying balance sheets of LONE STAR SENIORS APARTMENTS, LTD., RHS PROJECT NO. 50-072-721219924 as of December 31, 1998 and 1997 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 the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of LONE STAR SENIORS APARTMENTS, LTD. as of December 31, 1998 and 1997 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 presented on pages 16 through 24, 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. in accordance with Government Auditing Standards, we have also issued a report dated February 25, 1999 on our consideration of LONE STAR SENIORS APARTMENTS, LTD's internal control and a report dated February 25, 1999 on its compliance with laws and regulations applicable to the financial statements. Metairie, Louisiana February 25, 1999 4 Scarbrough & Associates Certified Public Accountants Member Missouri Society of Financial Planning. Retirement INDEPENDENT AUDITORS'REPORT To the Partners Northpointe, L.P. We have audited the accompanying balance sheets of Northpointe, L.P. as of December 31, 1998 and 1997, 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, 1998 and 1997, 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 13 mid 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. Scarbrough & Associates, L.L.C. February 23, 199 5500 NORTH OAK, SUITE 203 KANSAS CITY, MO, 64118 FAX: (816) 455-5 100 (816) 452-4272 Henderson & Godbee, P. C. Certifled Public Accountants Members of American Institute of Certified Public Accountants Georgia Society of Certified Public Accountants Robert A. Goddard, Jr., CPA (1943-1989) Maureen P. Collins, CPA Gerald H. Henderson, CPA Krystal P. Hiers, CPA J. Wendell Godbee, CPA Shirley S. Miller, CPA Mark S. Rogers, CPA James W. Godbee, Jr., CPA Susan S. Swader, CPA Kenny L. Carter, CPA INDEPENDENT AUDITORS' REPORT To the Partners Summerset Housing Limited, L.P. Valdosta, Georgia We have audited the accompanying balance sheets of Summerset Housing, Limited, L.P. (a limited partnership), Federal ID No.: 58-1982979, as of December 31, 1998 and 1997, 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 Summerset Housing Limited, L.P. as of December 31, 1998 and 1997, 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 15, 1999 on our consideration of Summerset Housing Limited, L.P.'s internal control structure and a report dated January 15, 1999 on its compliance with laws and regulations. Henderson. & Godbee, P.C. Certified Public Accountants January 15, 1999 3488 North Valdosta Road / P. 0. Box 2241 / Valdosta, Georgia 31604-2241 / Phone: (912) 245-6040 / FAX: (912) 245-1669 BL 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, 1998 and 1997, 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, 1998 and 1997, 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 16, 1999, on our consideration of the Partnership's compliance with laws and regulations and on internal control over financial reporting. 11100 NE 8th Street, Suite 410, Bellevue, WA 98004-4441 PHONE (425) 453-2088 FAX (425) 646-3368 INDEPENDENT AUDITOR'S REPORT ON FINANCIAL STATEMENTS (CONTINUED) Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The additional information shown on pages 11 to 13j-s presented for the purpose of complying with the requirements of the U.S. Department of Agriculture, Rural Housing Service, for the year ended December 31, 1998, 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 RD 1930-7), has been subjected to the auditing procedures applied in the audit of the financial statements for that year, 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 audits 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. The additional information presented on page 14 is presented for the purpose of complying with the requirements of a limited partner and is not a required part of the financial statements. The additional information presented on page 14 has been subjected to the auditing procedures applied in the audits of the financial statements for the years ended December 31, 1998 and 1997, and in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. January 16, 1999 Blume Loveridge & Co., PLLC Bellevue, Washington Grant Thornton Suite 3600, 1445 Ross Avenue, Dallas, TX 75202-2774 214 855-7300 FAX 214 855-7370 Accountants and Management Consultants The U.S. Member Firm of Grant Thornton International Report of Independent Certified Public Accountants To the Partners of Community Dynamics - Fort Worth, Ltd. We have audited the balance sheet of Community Dynamics - Fort Worth, Ltd. (a Texas limited partnership) as of December 31, 1997, and the related statements of operations, partners' capital, and cash flows for the year then ended. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of Community Dynamics - Fort Worth, Ltd., as of and for the year ended December 31, 1996, were audited by other auditors whose report dated February 11, 1997, 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 1997 financial statements referred to above present fairly, in all material respects, the financial position of Community Dynamics - Fort Worth, Ltd. as of December 31, 1997, and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles. Dallas, Texas Februarv 20, 1998 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, 1997 and 1996, and the related statements of operations, partners' capital accounts, and cash flows for the years then ended. These financial statements are the responsible, 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, 1997 and 1996, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted I accounting principles. Denver, Colorado, February 13, 1998. 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) Maureen P. Collins, CPA Gerald H. Henderson. CPA Krystal P. Hiers, CPA J. Wendell Godbee CPA Marguerite J. Joyner CPA M. Paul Nichols Jr CPA Shirley S. Miller CPA Susan S. Swader CPA James W. Godbee Jr, CPA Mark S. Rogers, CPA Kenny L. Carter, CPA INDEPENDENT AUDITORS' REPORT To the Partners Summerset Housing Limited, L.P. Valdosta, Georgia We have audited the accompanying balance sheets of Summerset Housing, Limited, L.P. (a limited partnership), Federal ID No.: 58-1982979, as of December 31, 1997 and 1996, and the related statements of income, partners' equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. 3488 North Valdosta Road / P. 0. B.@ 2241 / Valdosta., Georgia 31604-2241 / Phone: (912) 245-6040 / FAX: (912) 245-1669 In accordance with Government Auditing Standards, we have also issued a report dated January 21, 1998 on our consideration of Summerset Housing Limited, L.P.Is internal control structure and a report dated January 21, 1998 on its compliance with laws and regulations. Henderson, Godbee & Nichols, P.C Certified Public Accountants January 21, 1998 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, 1997 and 1996, 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, 1997 and 1996, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report, dated January 30, 1998, on our consideration of the Partnership's internal control structure and a report, dated January 30, 1998, on its compliance with laws and regulations. Page I INDEPENDENT AUDITOR'S REPORT ON FINANCIAL STATEMENTS - (CONTINUED) Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The additional information shown on pages 14 to 17 is presented for the purpose of complying with the requirements of the U.S. Department of Agriculture, Rural Housing Service, for the year ended December 31, 1997, 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 RD 1930-7) and on page 17, has been subjected to the auditing procedures applied in the audit of the financial statements for that year, 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 audits 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. January 30, 1998 Page 1A 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 WALLACE SANDERS& COMPANY Crosspoint Atrium 8131 LBJ Freeway, Suite 875 Dallas, Texas 75251 Tel. 972/690-6301 Fax 972/669-3462 Independent Auditors' Report To the Partners of Community Dynamics - Fort Worth, Ltd. We have audited the accompanying balance sheets of Community Dynamics - Fort Worth, Ltd., as of December 31, 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 WALLACE SANDERS& COMPANY Crosspoint Atrium 8131 LBJ Freeway, Suite 875 Dallas, Texas 75251 Tel. 972/690-6301 Fax 972/669-3462 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 F-4 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 BALANCE SHEETS March 31, 1999 and 1998 Total ---------------------------------------- - -------- 1999 1998 ---------------------- -------------- - -------- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and D) $ 108,418,478 $ 121,032,270 OTHER ASSETS Cash and cash equivalents (notes A and H) 1,693,799 1,653,522 Investments (notes A and B) 2,237,166 2,970,867 Notes receivable (note E) 1,364,322 2,056,333 Deferred acquisition costs, net of accumulated amortization (notes A and C) 1,612,244 1,681,137 Organization costs, net of accumulated amortization (note A) 170 67,358 Other assets (note F) 2,459,125 1,728,300 ---------------------- -------------- - -------- $ 117,785,304 $ 131,189,787 ====================== ====================== LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Accounts payable and accrued expenses $ 4,553 $ 4,553 Accounts payable - affiliates (note C) 11,385,333 8,703,412 Capital contributions payable (note D) 1,595,177 2,726,063 ---------------------- -------------- - -------- 12,985,063 11,434,028 ---------------------- -------------- - -------- 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, 1999 and 1998 - - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 21,996,102 issued and outstanding at March 31, 1999 and 1998 105,641,899 120,447,861 General partner (841,658) (692,102) ---------------------- -------------- - -------- 104,800,241 119,755,759 ---------------------- -------------- - -------- $ 117,785,304 $ 131,189,787 ====================== ======================
(continued) F-5 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 BALANCE SHEETS - CONTINUED March 31, 1999 and 1998 Series 15 ---------------------------------------- - -------- 1999 1998 ---------------------- -------------- - -------- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and D) $ 14,142,163 $ 16,246,406 OTHER ASSETS Cash and cash equivalents (notes A and H) 306,884 156,717 Investments (notes A and B) 128,028 125,000 Notes receivable (note E) 32,170 110,000 Deferred acquisition costs, net of accumulated amortization (notes A and C) 247,024 257,535 Organization costs, net of accumulated amortization (note A) - - - Other assets (note F) 807,527 473,086 ---------------------- -------------- - -------- $ 15,663,796 $ 17,368,744 ====================== ====================== LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Accounts payable and accrued expenses $ 1,145 $ 1,145 Accounts payable - affiliates (note C) 3,155,784 2,360,745 Capital contributions payable (note D) 32,922 32,922 ---------------------- -------------- - -------- 3,189,851 2,394,812 ---------------------- -------------- - -------- 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, 1999 and 1998 - - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,870,500 issued and outstanding at March 31, 1999 and 1998 12,681,877 15,156,864 General partner (207,932) (182,932) ---------------------- -------------- - -------- 12,473,945 14,973,932 ---------------------- -------------- - -------- $ 12,473,945 $ 14,973,932 ====================== ======================
(continued) F-6 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 BALANCE SHEETS - CONTINUED March 31, 1999 and 1998 Series 16 ------------------------------------- - --------- 1999 1998 --------------------- ------------ - --------- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and D) $ 27,165,227 $ 30,777,843 OTHER ASSETS Cash and cash equivalents (notes A and H) 213,451 199,558 Investments (notes A and B) 884,449 1,000,758 Notes receivable (note E) - - - Deferred acquisition costs, net of accumulated amortization (notes A and C) 396,021 412,871 Organization costs, net of accumulated amortization (note A) - - - Other assets (note F) 133,695 72,210 --------------------- ------------ - --------- $ 28,792,843 $ 32,463,240 ===================== ===================== LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Accounts payable and accrued expenses $ - $ - - Accounts payable - affiliates (note C) 2,727,066 2,235,091 Capital contributions payable (note D) 142,506 145,311 --------------------- ------------ - --------- 2,869,572 2,380,402 --------------------- ------------ - --------- 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, 1999 and 1998 - - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,429,402 issued and outstanding at March 31, 1999 and 1998 26,130,647 30,248,618 General partner (207,376) (165,780) --------------------- ------------ - --------- 25,923,271 30,082,838 --------------------- ------------ - --------- $ 28,792,843 $ 32,463,240 ===================== =====================
(continued) F-7 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 BALANCE SHEETS - CONTINUED March 31, 1999 and 1998 Series 17 ------------------------------------- - --------- 1999 1998 --------------------- ------------ - --------- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and D) $ 24,774,196 $ 27,762,778 OTHER ASSETS Cash and cash equivalents (notes A and H) 349,189 388,024 Investments (notes A and B) 100,000 - - Notes receivable (note E) 1,332,152 1,409,982 Deferred acquisition costs, net of accumulated amortization (notes A and C) 357,648 373,197 Organization costs, net of accumulated amortization (note A) - 10,804 Other assets (note F) 1,425,347 1,121,814 --------------------- ------------ - --------- $ 28,338,532 $ 31,066,599 ===================== ===================== LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Accounts payable and accrued expenses $ - $ - - Accounts payable - affiliates (note C) 3,035,918 2,159,306 Capital contributions payable (note D) 1,367,195 1,367,195 --------------------- ------------ - --------- 4,403,113 3,526,501 --------------------- ------------ - --------- 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, 1999 and 1998 - - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,000,000 issued and outstanding at March 31, 1999 and 1998 24,125,744 27,694,376 General partner (190,325) (154,278) --------------------- ------------ - --------- 23,935,419 27,540,098 --------------------- ------------ - --------- $ 28,338,532 $ 31,066,599 ===================== =====================
(continued) F-8 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 BALANCE SHEETS - CONTINUED March 31, 1999 and 1998 Series 18 ------------------------------------- - --------- 1999 1998 --------------------- ------------ - --------- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and D) $ 18,832,106 $ 20,921,603 OTHER ASSETS Cash and cash equivalents (notes A and H) 306,065 301,444 Investments (notes A and B) 230,531 474,000 Notes receivable (note E) - 536,351 Deferred acquisition costs, net of accumulated amortization (notes A and C) 269,156 280,569 Organization costs, net of accumulated amortization (note A) - 18,772 Other assets (note F) 56,099 44,622 --------------------- ------------ - --------- $ 19,693,957 $ 22,577,361 ===================== ===================== LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Accounts payable and accrued expenses $ - $ - - Accounts payable - affiliates (note C) 1,354,989 1,048,041 Capital contributions payable (note D) 18,554 717,635 --------------------- ------------ - --------- 1,373,543 1,765,676 --------------------- ------------ - --------- 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, 1999 and 1998 - - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,616,200 issued and outstanding at March 31, 1999 and 1998 18,447,437 20,913,795 General partner (127,023) (102,110) --------------------- ------------ - --------- 18,320,414 20,811,685 --------------------- ------------ - --------- $ 19,693,957 $ 22,577,361 ===================== =====================
(continued) F-9 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 BALANCE SHEETS - CONTINUED March 31, 1999 and 1998 Series 19 ------------------------------------- - --------- 1999 1998 --------------------- ------------ - --------- ASSETS INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and D) $ 23,504,786 $ 25,323,640 OTHER ASSETS Cash and cash equivalents (notes A and H) 518,210 607,779 Investments (notes A and B) 894,158 1,371,109 Notes receivable (note E) - - - Deferred acquisition costs, net of accumulated amortization (notes A and C) 342,395 356,965 Organization costs, net of accumulated amortization (note A) 170 37,782 Other assets (note F) 36,457 16,568 --------------------- ------------ - --------- $ 25,296,176 $ 27,713,843 ===================== ===================== LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Accounts payable and accrued expenses $ 3,408 $ 3,408 Accounts payable - affiliates (note C) 1,111,576 900,229 Capital contributions payable (note D) 34,000 463,000 --------------------- ------------ - --------- 1,148,984 1,366,637 --------------------- ------------ - --------- 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, 1999 and 1998 - - - Assignees Units of beneficial interest of the limited partnership interest of the assignor limited partner, 4,080,000 issued and outstanding at March 31, 1999 and 1998 24,256,194 26,434,208 General partner (109,002) (87,002) --------------------- ------------ - --------- 24,147,192 26,347,206 --------------------- ------------ - --------- $ 25,296,176 $ 27,713,843 ===================== =====================
See notes to financial statements F-10 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF OPERATIONS Years ended March 31, 1999, 1998 and 1997 Total ---------------------------------------------- - ------- 1999 1998 1997 --------------- --------------- ---------- - ----- Income Interest income $ 330,414 $ 341,565 $ 555,991 Other income 28,442 - - - --------------- --------------- ---------- - ----- 358,856 341,565 555,991 --------------- --------------- ---------- - ----- Share of losses from operating limited partnerships (note A) (12,121,431) (13,145,436) (15,051,842)* --------------- --------------- ---------- - ----- Expenses Professional fees 204,715 212,668 290,823 Partnership management fee (note C) 2,207,890 2,092,597 2,253,062 Amortization (note A) 136,082 229,396 246,638 Impairment loss (note A) 345,986 - - - General and administrative expenses (note C) 298,270 403,569 419,849 --------------- --------------- ---------- - ----- 3,192,943 2,938,230 3,210,372 --------------- --------------- ---------- - ----- NET LOSS (note A) $ (14,955,518) $ (15,742,101) $ (17,706,223) =============== =============== =============== Net loss allocated to general partner $ (149,556) $ (157,421) $ (177,062) =============== =============== =============== Net loss allocated to assignees $ (14,805,962) $ (15,584,680) $ (17,529,161) =============== =============== =============== Net loss per BAC $ (0.67) $ (0.71) $ (0.80) =============== =============== ===============
* Net of gain on disposal of operating limited partnership (Series 16) of $761 during 1997. (continued) F-11 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF OPERATIONS - CONTINUED Years ended March 31, 1999, 1998 and 1997 Series 15 --------------------------------------------- - ---------- 1999 1998 1997 ---------------- ---------------- ------- - --------- Income Interest income $ 179,987 $ 172,690 $ 173,892 Other income 1,142 - - - ---------------- ---------------- ------- - --------- 181,129 172,690 173,892 ---------------- ---------------- ------- - --------- Share of losses from operating limited partnerships (note A) (2,095,754) (2,428,483) (3,039,112) ---------------- ---------------- ------- - --------- Expenses Professional fees 59,735 51,181 60,084 Partnership management fee (note C) 483,995 468,703 473,378 Amortization (note A) 10,512 10,512 36,743 Impairment loss (note A) - - - - General and administrative expenses (note C) 31,120 47,898 37,996 ---------------- ---------------- ------- - --------- 585,362 578,294 608,201 ---------------- ---------------- ------- - --------- NET LOSS (note A) $ (2,499,987) $ (2,834,087) $ (3,473,421) ================ ================ ================ Net loss allocated to general partner $ (25,000) $ (28,341) $ (34,734) ================ ================ ================ Net loss allocated to assignees $ (2,474,987) $ (2,805,746) $ (3,438,687) ================ ================ ================ Net loss per BAC $ (0.64) $ (0.72) $ (0.89) ================ ================ ================
(continued) F-12 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF OPERATIONS - CONTINUED Years ended March 31, 1999, 1998 and 1997 Series 16 ---------------------------------------------- - ------- 1999 1998 1997 --------------- --------------- ---------- - ----- Income Interest income $ 64,568 $ 60,331 $ 71,599 Other income 16,950 - - - --------------- --------------- ---------- - ----- 81,518 60,331 71,599 --------------- --------------- ---------- - ----- Share of losses from operating limited partnerships (note A) (3,168,369) (3,196,773) (3,052,073)* --------------- --------------- ---------- - ----- Expenses Professional fees 48,502 58,798 53,174 Partnership management fee (note C) 586,316 599,941 572,972 Amortization (note A) 16,850 61,480 61,438 Impairment loss (note A) 345,986 - - - General and administrative expenses (note C) 75,062 100,744 94,461 --------------- --------------- ---------- - ----- 1,072,716 820,963 782,045 --------------- --------------- ---------- - ----- NET LOSS (note A) $ (4,159,567) $ (3,957,405) $ (3,762,519) =============== =============== =============== Net loss allocated to general partner $ (41,596) $ (39,574) $ (37,625) =============== =============== =============== Net loss allocated to assignees $ (4,117,971) $ (3,917,831) $ (3,724,894) =============== =============== =============== Net loss per BAC $ (0.76) $ (0.72) $ (0.69) =============== =============== ===============
* Net of gain on disposal of operating limited partnership (Series 16) of $761. (continued) F-13 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF OPERATIONS - CONTINUED Years ended March 31, 1999, 1998 and 1997 Series 17 --------------------------------------------- - ---------- 1999 1998 1997 ---------------- ---------------- ------- - --------- Income Interest income $ 10,025 $ 17,342 $ 43,090 ---------------- ---------------- ------- - --------- Share of losses from operating limited partnerships (note A) (2,964,858) (2,857,430) (3,504,918) ---------------- ---------------- ------- - --------- Expenses Professional fees 43,970 39,610 78,784 Partnership management fee (note C) 486,792 498,103 512,189 Amortization (note A) 26,353 63,054 55,279 Impairment loss (note A) - - - - General and administrative expenses (note C) 92,731 111,555 107,688 ---------------- ---------------- ------- - --------- 649,846 712,322 753,940 ---------------- ---------------- ------- - --------- NET LOSS (note A) $ (3,604,679) $ (3,552,410) $ (4,215,768) ================ ================ ================ Net loss allocated to general partner $ (36,047) $ (35,524) $ (42,158) ================ ================ ================ Net loss allocated to assignees $ (3,568,632) $ (3,516,886) $ (4,173,610) ---------------- ---------------- ------- - --------- Net loss per BAC $ (0.71) $ (0.70) $ (0.83) ================ ================ ================
(continued) F-14 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF OPERATIONS - CONTINUED Years ended March 31, 1999, 1998 and 1997 Series 18 ---------------------------------------------- - --------- 1999 1998 1997 ---------------- ---------------- ------- - --------- Income Interest income $ 25,749 $ 34,155 $ 46,186 Other income 10,350 - - - ---------------- ---------------- ------- - --------- 36,099 34,155 46,186 ---------------- ---------------- ------- - --------- Share of losses from operating limited partnerships (note A) (2,073,909) (2,589,608) (2,594,599) ---------------- ---------------- ------- - --------- Expenses Professional fees 27,649 31,410 35,490 Partnership management fee (note C) 326,762 347,356 326,168 Amortization (note A) 30,185 42,168 42,167 Impairment loss (note A) - - - - General and administrative expenses (note C) 68,865 88,310 83,478 ---------------- ---------------- ------- - --------- 453,461 509,244 487,303 ---------------- ---------------- ------- - --------- NET LOSS (note A) $ (2,491,271) $ (3,064,697) $ (3,035,716) ================ ================ ================ Net loss allocated to general partner $ (24,913) $ (30,647) $ (30,357) ================ ================ ================ Net loss allocated to assignees $ (2,466,358) $ (3,034,050) $ (3,005,359) ================ ================ ================ Net loss per BAC $ (0.68) $ (0.84) $ (0.83) ================ ================ ================
(continued) F-15 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF OPERATIONS - CONTINUED Years ended March 31, 1999, 1998 and 1997 Series 19 ---------------------------------------------- - --------- 1999 1998 1997 ---------------- ---------------- ------- - --------- Income Interest income $ 50,085 $ 57,047 $ 221,224 ---------------- ---------------- ------- - --------- Share of losses from operating limited partnerships (note A) (1,818,541) (2,073,142) (2,861,140) ---------------- ---------------- ------- - --------- Expenses Professional fees 24,859 31,669 63,291 Partnership management fee (note C) 324,025 178,494 368,355 Amortization (note A) 52,182 52,182 51,011 Impairment loss (note A) - - - - General and administrative expenses (note C) 30,492 55,062 96,226 ---------------- ---------------- ------- - --------- 431,558 317,407 578,883 ---------------- ---------------- ------- - --------- NET LOSS (note A) $ (2,200,014) $ (2,333,502) $ (3,218,799) ================ ================ ================ Net loss allocated to general partner $ (22,000) $ (23,335) $ (32,188) ================ ================ ================ Net loss allocated to assignees $ (2,178,014) $ (2,310,167) $ (3,186,611) ================ ================ ================ Net loss per BAC $ (0.53) $ (0.57) $ (0.78) ================ ================ ================
See notes to financial statements F-16 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CHANGES IN PARTNERS' CAPITAL Years ended March 31, 1999, 1998 and 1997 Unrealized gain (loss) in securities available for Assignees General partner sale, net Total - --------------------- ---------------- ---------------- ---------------- - ---------------- 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 Net change in unrealized gain (loss) on securities available for sale - - 2,486 2,486 Net loss (15,584,680) (157,421) - (15,742,101) ---------------- ---------------- ---------------- - ---------------- Partners' capital (deficit), March 31, 1998 120,447,861 (692,102) - 119,755,759 Net loss (14,805,962) (149,556) - (14,955,518) ---------------- ---------------- ---------------- - ---------------- Partners' capital (deficit), March 31, 1999 $ 105,641,899 $ (841,658) $ - $ 104,800,241 ---------------- ---------------- ---------------- - ----------------
(continued) F-17 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - CONTINUED Years ended March 31, 1999, 1998 and 1997 Unrealized gain (loss) in securities available for Series 15 Assignees General partner sale, net Total - --------------------- ---------------- ---------------- ---------------- - ---------------- 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 Net change in unrealized gain (loss) on securities available for sale - - - - - Net loss (2,805,746) (28,341) - (2,834,087) ---------------- ---------------- ---------------- - ---------------- Partners' capital (deficit), March 31, 1998 15,156,864 (182,932) - 14,973,932 Net loss (2,474,987) (25,000) - (2,499,987) ---------------- ---------------- ---------------- - ---------------- Partners' capital (deficit), March 31, 1999 $ 12,681,877 $ (207,932) $ - $ 12,473,945 ================ ================ ================ ================
(continued) F-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, 1999, 1998 and 1997 Unrealized gain (loss) in securities available for Series 16 Assignees General partner sale, net Total - --------------------- ---------------- ---------------- ---------------- - ---------------- 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 Net change in unrealized gain (loss) on securities available for sale - - 628 628 Net loss (3,917,831) (39,574) - (3,957,405) ---------------- ---------------- ---------------- - ---------------- Partners' capital (deficit), March 31, 1998 30,248,618 (165,780) - 30,082,838 Net loss (4,117,971) (41,596) - (4,159,567) ---------------- ---------------- ---------------- - ---------------- Partners' capital (deficit), March 31, 1999 $ 26,130,647 $ (207,376) $ - $ 25,923,271 ================ ================ ================ ================
(continued) F-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, 1999, 1998 and 1997 Unrealized gain (loss) in securities available for Series 17 Assignees General partner sale, net Total - --------------------- ---------------- ---------------- ---------------- - ---------------- 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 Net change in unrealized gain (loss) on securities available for sale - - - - - Net loss (3,516,886) (35,524) - (3,552,410) ---------------- ---------------- ---------------- - ---------------- Partners' capital (deficit), March 31, 1998 27,694,376 (154,278) - 27,540,098 Net loss (3,568,632) (36,047) - (3,604,679) ---------------- ---------------- ---------------- - ---------------- Partners' capital (deficit), March 31, 1999 $ 24,125,744 $ (190,325) $ - $ 23,935,419 ================ ================ ================ ================
(continued) F-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, 1999, 1998 and 1997 Unrealized gain (loss) in securities available for Series 18 Assignees General partner sale, net Total - --------------------- ---------------- ---------------- ---------------- - ---------------- 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 Net change in unrealized gain (loss) on securities available for sale - - 380 380 Net loss (3,034,050) (30,647) - (3,064,697) ---------------- ---------------- ---------------- - ---------------- Partners' capital (deficit), March 31, 1998 20,913,795 (102,110) - 20,811,685 Net loss (2,466,358) (24,913) - (2,491,271) ---------------- ---------------- ---------------- - ---------------- Partners' capital (deficit), March 31, 1999 $ 18,447,437 $ (127,023) $ - $ 18,320,414 ================ ================ ================ ================
(continued) F-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, 1999, 1998 and 1997 Unrealized gain (loss) in securities available for Series 19 Assignees General partner sale, net Total - --------------------- ---------------- ---------------- ---------------- - ---------------- 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 Net change in unrealized gain (loss) on securities available for sale - - 1,478 1,478 Net loss (2,310,167) (23,335) - (2,333,502) ---------------- ---------------- ---------------- - ---------------- Partners' capital (deficit), March 31, 1998 26,434,208 (87,002) - 26,347,206 Net loss (2,178,014) (22,000) - (2,200,014) ---------------- ---------------- ---------------- - ---------------- Partners' capital (deficit), March 31, 1999 $ 24,256,194 $ (109,002) $ - $ 24,147,192 ================ ================ ================ ================
See notes to financial statements F-22 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS Years ended March 31, 1999, 1998 and 1997 Total ---------------------------------------------- - --------- 1999 1998 1997 ---------------- ---------------- ------- - --------- Cash flows from operating activities Net loss $ (14,955,518) $ (15,742,101) $ (17,706,223) Adjustments to reconcile net loss to net cash provided by (used in) operating activities Share of losses from operating limited partnerships 12,121,431 13,145,436 15,051,842 Distributions received from operating limited partnerships 129,444 38,883 18,811 Impairment loss 345,986 - - - Amortization 136,082 229,396 246,638 Changes in assets and liabilities Other assets (34,180) (21,176) (93,710) Accounts payable and accrued expenses - (128) (70,527) Accounts payable - affiliates 2,681,921 2,123,686 2,125,321 ---------------- ---------------- ------- - --------- Net cash provided by (used in) operating activities 425,166 (226,004) (427,848) ---------------- ---------------- ------- - --------- Cash flows from investing activities Acquisition costs (paid)/reimbursed (for)/from operating limited partnerships - - 15,000 Capital contributions paid to operating limited partnerships (585,214) (434,860) (4,280,314) (Advances)/repayments (to)/from operating limited partnerships (533,376) (31,000) (74,034) Purchase of investments (net of proceeds from sale of investments) 733,701 (1,580,320) 3,734,042 ---------------- ---------------- ------- - --------- Net cash used in investing activities (384,889) (2,046,180) (605,306) ---------------- ---------------- ------- - --------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 40,277 (2,272,184) (1,033,154) Cash and cash equivalents, beginning 1,653,522 3,925,706 4,958,860 ---------------- ---------------- ------- - --------- Cash and cash equivalents, end $ 1,693,799 $ 1,653,522 $ 3,925,706 ================ ================ ================
(continued) F-23 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1999, 1998 and 1997 Total ---------------------------------------------- - --------- 1999 1998 1997 ---------------- ---------------- ------- - --------- Supplemental schedule of noncash investing and financing activities The fund has increased its investments in operating limited partnerships for unpaid capital contributions due to the operating limited partnerships $ - $ - $ 2,504,963 ================ ================ ================ The fund has adjusted its investment and decreased its capital contribution obligation in operating limited partnerships for low- income tax credits not generated $ 16,934 $ 164,471 $ 287,710 ================ ================ ================ The fund has recorded capital contributions (syndication proceeds) being held and subsequently released by the escrow agent $ - $ - $ - - ================ ================ ================ The fund has adjusted its investment in and increased its capital contribution obligation in operating limited partnerships for low- income tax credits generated $ - $ - $ 13,283 ================ ================ ================ The fund 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 fund has applied notes receivable and advances against installments of capital contributions $ 536,351 $ 442,360 $ 3,691,747 ================ ================ ================ The fund has increased its deferred acquisition costs for operating limited partnership disposed of during year $ - $ - $ 4,675 ================ ================ ================ The fund has increased (decreased) its investments available for sale for unrealized gains (losses) $ - $ (2,486) $ (14,416) ================ ================ ================
(continued) F-24 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1999, 1998 and 1997 Series 15 ---------------------------------------------- - --------- 1999 1998 1997 ---------------- ---------------- ------- - --------- Cash flows from operating activities Net loss $ (2,499,987) $ (2,834,087) $ (3,473,421) Adjustments to reconcile net loss to net cash provided by (used in) operating activities Share of losses from operating limited partnerships 2,095,754 2,428,483 3,039,112 Distributions received from operating limited partnerships 876 3,026 1,408 Impairment loss - - - - Amortization 10,512 10,512 36,743 Changes in assets and liabilities Other assets (5,292) (1,047) (183,399) Accounts payable and accrued expenses - 1 (67,712) Accounts payable - affiliates 795,039 548,052 548,052 ---------------- ---------------- ------- - --------- Net cash provided by (used in) operating activities 396,902 154,940 (99,217) ---------------- ---------------- ------- - --------- Cash flows from investing activities Acquisition costs reimbursed from operating limited partnerships - - 2,640 Capital contributions paid to operating limited partnerships - (145,068) (21,600) (Advances) repayments (to) from operating limited partnerships (243,707) 25,000 50,000 Purchase of investments (net of proceeds from sale of investments) (3,028) (125,000) 151,594 ---------------- ---------------- ------- - --------- Net cash provided by (used in) investing activities (246,735) (245,068) 182,634 ---------------- ---------------- ------- - --------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 150,167 (90,128) 83,417 Cash and cash equivalents, beginning 156,717 246,845 163,428 ---------------- ---------------- ------- - --------- Cash and cash equivalents, end $ 306,884 $ 156,717 $ 246,845 ================ ================ ================
(continued) F-25 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1999, 1998 and 1997 Series 15 ---------------------------------------------- - --------- 1999 1998 1997 ---------------- ---------------- ------- - --------- Supplemental schedule of noncash investing and financing activities The fund has increased its investments in operating limited partnerships for unpaid capital contributions due to the operating limited partnerships $ - $ - $ - - ================ ================ ================ The fund has adjusted its investment and decreased its capital contribution obligation in operating limited partnerships for low- income tax credits not generated $ 7,613 $ 2,522 $ 2,469 ================ ================ ================ The fund has recorded capital contributions (syndication proceeds) being held and subsequently released by the escrow agent $ - $ - $ - - ================ ================ ================ The fund has adjusted its investment in and increased its capital contribution obligation in operating limited partnerships for low- income tax credits generated $ - $ - $ - - ================ ================ ================ The fund has decreased its investments in operating limited partnerships for unpaid capital contributions due to the operating limited partnership disposed of during the year $ - $ - $ - - ================ ================ ================ The fund has applied notes receivable and advances against installments of capital contributions $ - $ - $ - - ================ ================ ================ The fund has increased its deferred acquisition costs for operating limited partnership disposed of during year $ - $ - $ - - ================ ================ ================ The fund has increased (decreased) its investments available for sale for unrealized gains (losses) $ - $ (628) $ (349) ================ ================ ================
(continued) F-26 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1999, 1998 and 1997 Series 16 ---------------------------------------------- - --------- 1999 1998 1997 ---------------- ---------------- ------- - --------- Cash flows from operating activities Net loss $ (4,159,567) $ (3,957,405) $ (3,762,519) Adjustments to reconcile net loss to net cash used in operating activities Share of losses from operating limited partnerships 3,168,369 3,196,773 3,052,073 Distributions received from operating limited partnerships 96,961 13,312 2,675 Impairment loss 345,986 - - - Amortization 16,850 61,480 61,438 Changes in assets and liabilities Other assets (6,629) (2,256) 24,312 Accounts payable and accrued expenses - - (100) Accounts payable - affiliates 491,975 491,985 491,988 ---------------- ---------------- ------- - --------- Net cash used in operating activities (46,055) (196,111) (130,133) ---------------- ---------------- ------- - --------- Cash flows from investing activities Acquisition costs reimbursed from operating limited partnerships - - 3,700 Capital contributions paid to operating limited partnerships (1,500) (9,914) (292,588) (Advances)/repayments (to)/from operating limited partnerships (54,861) (56,000) 63,200 Purchase of investments (net of proceeds from sale of investments) 116,309 (721,841) 109,754 ---------------- ---------------- ------- - --------- Net cash provided by (used in) investing activities 59,948 (787,755) (115,934) ---------------- ---------------- ------- - --------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 13,893 (983,866) (246,067) Cash and cash equivalents, beginning 199,558 1,183,424 1,429,491 ---------------- ---------------- ------- - --------- Cash and cash equivalents, end $ 213,451 $ 199,558 $ 1,183,424 ================ ================ ================
(continued) F-27 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1999, 1998 and 1997 Series 16 ---------------------------------------------- - --------- 1999 1998 1997 ---------------- ---------------- ------- - --------- Supplemental schedule of noncash investing and financing activities The fund has increased its investments in operating limited partnerships for unpaid capital contributions due to the operating limited partnerships $ - $ - $ - - ================ ================ ================ The fund has adjusted its investment and decreased its capital contribution obligation in operating limited partnerships for low- income tax credits not generated $ 1,305 $ - $ - - ================ ================ ================ The fund has recorded capital contributions (syndication proceeds) being held and subsequently released by the escrow agent $ - $ - $ - - ================ ================ ================ The fund has adjusted its investment in and increased its capital contribution obligation in operating limited partnerships for low- income tax credits generated $ - $ - $ - - ================ ================ ================ The fund 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 fund has applied notes receivable and advances against installments of capital contributions $ - $ - $ 420,164 ================ ================ ================ The fund has increased its deferred acquisition costs for operating limited partnership disposed of during year $ - $ - $ 4,675 ================ ================ ================ The fund has increased (decreased) its investments available for sale for unrealized gains (losses) $ - $ - $ (1,545) ================ ================ ================
(continued) F-28 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1999, 1998 and 1997 Series 17 ---------------------------------------------- - --------- 1999 1998 1997 ---------------- ---------------- ------- - --------- Cash flows from operating activities Net loss $ (3,604,679) $ (3,552,410) $ (4,215,768) Adjustments to reconcile net loss to net cash provided by (used in) operating activities Share of losses from operating limited partnerships 2,964,858 2,857,430 3,504,918 Distributions received from operating limited partnerships 23,724 11,343 3,381 Impairment loss - - - - Amortization 26,353 63,054 55,279 Changes in assets and liabilities Other assets 9,105 (2,017) 44,746 Accounts payable and accrued expenses - - - - Accounts payable - affiliates 876,612 565,374 572,246 ---------------- ---------------- ------- - --------- Net cash provided by (used in) operating activities 295,973 (57,226) (35,198) ---------------- ---------------- ------- - --------- Cash flows from investing activities Acquisition costs (paid)/reimbursed (for)/from operating limited partnerships - - 3,410 Capital contributions paid to operating limited partnerships - (93,935) (155,696) (Advances)/repayments (to)/from operating limited partnerships (234,808) - (187,234) Purchase of investments (net of proceeds from sale of investments) (100,000) - 628,486 ---------------- ---------------- ------- - --------- Net cash provided by (used in) investing activities (334,808) (93,935) 288,966 ---------------- ---------------- ------- - --------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (38,835) (151,161) 253,768 Cash and cash equivalents, beginning 388,024 539,185 285,417 ---------------- ---------------- ------- - --------- Cash and cash equivalents, end $ 349,189 $ 388,024 $ 539,185 ================ ================ ================
(continued) F-29 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1999, 1998 and 1997 Series 17 ---------------------------------------------- - --------- 1999 1998 1997 ---------------- ---------------- ------- - --------- Supplemental schedule of noncash investing and financing activities The fund has increased its investments in operating limited partnerships for unpaid capital contributions due to the operating limited partnerships $ - $ - $ - - ================ ================ ================ The fund has adjusted its investment and decreased its capital contribution obligation in operating limited partnerships for low- income tax credits not generated $ - $ 161,949 $ 5,629 ================ ================ ================ The fund has recorded capital contributions (syndication proceeds) being held and subsequently released by the escrow agent $ - $ - $ - - ================ ================ ================ The fund has adjusted its investment in and increased its capital contribution obligation in operating limited partnerships for low- income tax credits generated $ - $ - $ - - ================ ================ ================ The fund has decreased its investments in operating limited partnerships for unpaid capital contributions due to the operating limited partnership disposed of during the year $ - $ - $ - - ================ ================ ================ The fund has applied notes receivable and advances against installments of capital contributions $ - $ 221,180 $ 307,137 ================ ================ ================ The fund has increased its deferred acquisition costs for operating limited partnership disposed of during year $ - $ - $ 4,675 ================ ================ ================ The fund has increased (decreased) its investments available for sale for unrealized gains (losses) $ - $ - $ (1,464) ================ ================ ================
(continued) F-30 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1999, 1998 and 1997 Series 18 ---------------------------------------------- - --------- 1999 1998 1997 ----------------- ----------------- -------- - --------- Cash flows from operating activities Net loss $ (2,491,271) $ (3,064,697) $ (3,035,716) Adjustments to reconcile net loss to net cash used in operating activities Share of losses from operating limited partnerships 2,073,909 2,589,608 2,594,599 Distributions received from operating limited partnerships 7,570 2,469 7,958 Impairment loss - - - - Amortization 30,185 42,168 42,167 Changes in assets and liabilities Other assets (11,475) (2,990) (33,512) Accounts payable and accrued expenses - (129) (1,622) Accounts payable - affiliates 306,948 306,927 306,951 ----------------- ----------------- -------- - --------- Net cash used in operating activities (84,134) (126,644) (119,175) ----------------- ----------------- -------- - --------- Cash flows from investing activities Acquisition costs reimbursed from operating limited partnerships - - 2,465 Capital contributions paid to operating limited partnerships (154,714) (38,320) (118,711) Repayments from operating limited partnerships - - - - Purchase of investments (net of proceeds from sale of investments) 243,469 (300,001) 472,430 ----------------- ----------------- -------- - --------- Net cash provided by (used in) investing activities 88,755 (338,321) 356,184 ----------------- ----------------- -------- - --------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 4,621 (464,965) 237,009 Cash and cash equivalents, beginning 301,444 766,409 529,400 ----------------- ----------------- -------- - --------- Cash and cash equivalents, end $ 306,065 $ 301,444 $ 766,409 ================= ================= =================
(continued) F-31 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1999, 1998 and 1997 Series 18 ---------------------------------------------- - --------- 1999 1998 1997 ---------------- ---------------- ------- - --------- Supplemental schedule of noncash investing and financing activities The fund has increased its investments in operating limited partnerships for unpaid capital contributions due to the operating limited partnerships $ - $ - $ - - ================ ================ ================ The fund has adjusted its investment and decreased its capital contribution obligation in operating limited partnerships for low- income tax credits not generated $ 8,016 $ - $ - - ================ ================ ================ The fund has recorded capital contributions (syndication proceeds) being held and subsequently released by the escrow agent $ - $ - $ - - ================ ================ ================ The fund has adjusted its investment in and increased its capital contribution obligation in operating limited partnerships for low- income tax credits generated $ - $ - $ 13,283 ================ ================ ================ The fund has decreased its investments in operating limited partnerships for unpaid capital contributions due to the operating limited partnership disposed of during the year $ - $ - $ - - ================ ================ ================ The fund has applied notes receivable and advances against installments of capital contributions $ 536,351 $ - $ 420,264 ================ ================ ================ The fund has increased its deferred acquisition costs for operating limited partnership disposed of during year $ - $ - $ 4,675 ================ ================ ================ The fund has increased (decreased) its investments available for sale for unrealized gains (losses) $ - $ (380) $ (1,881) ================ ================ ================
(continued) F-32 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1999, 1998 and 1997 Series 19 ---------------------------------------------- - --------- 1999 1998 1997 ---------------- ---------------- ------- - --------- Cash flows from operating activities Net loss $ (2,200,014) $ (2,333,502) $ (3,218,799) Adjustments to reconcile net loss to net cash used in operating activities Share of losses from operating limited partnerships 1,818,541 2,073,142 2,861,140 Distributions received from operating limited partnerships 313 8,733 3,389 Impairment loss - - - - Amortization 52,182 52,182 51,011 Changes in assets and liabilities Other assets (19,889) (12,866) 54,143 Accounts payable and accrued expenses - - (1,093) Accounts payable - affiliates 211,347 211,348 206,084 ---------------- ---------------- ------- - --------- Net cash used in operating activities (137,520) (963) (44,125) ---------------- ---------------- ------- - --------- Cash flows from investing activities Acquisition costs reimbursed from operating limited partnerships - - 2,785 Capital contributions paid to operating limited partnerships (429,000) (147,623) (3,691,719) Repayments from operating limited partnerships - - - - Purchase of investments (net of proceeds from sale of investments) 476,951 (433,478) 2,371,778 ---------------- ---------------- ------- - --------- Net cash provided by (used in) investing activities 47,951 (581,101) (1,317,156) ---------------- ---------------- ------- - --------- NET DECREASE IN CASH AND CASH EQUIVALENTS (89,569) (582,064) (1,361,281) Cash and cash equivalents, beginning 607,779 1,189,843 2,551,124 ---------------- ---------------- ------- - --------- Cash and cash equivalents, end $ 518,210 $ 607,779 $ 1,189,843 ================ ================ ================
(continued) F-33 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 STATEMENTS OF CASH FLOWS - CONTINUED Years ended March 31, 1999, 1998 and 1997 Series 19 ---------------------------------------------- - --------- 1999 1998 1997 ---------------- ---------------- ------- - --------- Supplemental schedule of noncash investing and financing activities The fund has increased its investments in operating limited partnerships for unpaid capital contributions due to the operating limited partnerships $ - $ - $ 2,504,963 ================ ================ ================ The fund has adjusted its investment and decreased its capital contribution obligation in operating limited partnerships for low- income tax credits not generated $ - $ - $ 279,612 ================ ================ ================ The fund has recorded capital contributions (syndication proceeds) being held and subsequently released by the escrow agent $ - $ - $ - - ================ ================ ================ The fund has adjusted its investment in and increased its capital contribution obligation in operating limited partnerships for low- income tax credits generated $ - $ - $ - - ================ ================ ================ The fund has decreased its investments in operating limited partnerships for unpaid capital contributions due to the operating limited partnership disposed of during the year $ - $ - $ - - ================ ================ ================ The fund has applied notes receivable and advances against installments of capital contributions $ - $ 221,180 $ 2,964,446 ================ ================ ================ The fund has increased its deferred acquisition costs for operating limited partnership disposed of during year $ - $ - $ 4,675 ================ ================ ================ The fund has increased (decreased) its investments available for sale for unrealized gains (losses) $ - $ (1,478) $ (9,177) ================ ================ ================
See notes to financial statements F-34 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS March 31, 1999, 1998 and 1997 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 l i mited partnerships which were to acquire, develop, rehabilitate, operate and own newly constructed, existing or rehabilitated apartment complexes which qualified for the Low-Income Housing Tax Credit established by the Tax Reform Act of 1986. Certain of the apartment complexes also qualified 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 b e neficial assignee certificates ("BACs") representing assignments of units of the beneficial interest of the l i mited 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, 1999 and 1998 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 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 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 fund recognizes individual operating limited partnership's losses only to the extent that the fund's share of losses of the operating limited partnerships does not exceed the carrying amount of its investment. Unrecognized losses are suspended and offset against future individual operating limited partnership's income. A loss in value of an investment in an operating limited 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. Accordingly, the partnership recorded an impairment loss of $345,986 during the year ended March 31, 1999. Capital contributions to operating limited partnerships are adjusted by tax credit adjusters. Tax credit adjusters are defined as adjustments to operating limited 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 limited partnerships and capital contributions payable. The operating limited 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 limited partnerships on a calendar year basis which is not materially different from losses and income generated if the operating limited partnerships utilized a March 31 year-end. The fund records capital contributions payable to the operating limited partnerships once there is a binding obligation to fund a specified amount. The operating limited partnerships record capital contributions from the fund when received. The fund records acquisition costs as an increase in its investment in operating limited partnerships. Certain operating limited 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 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Investments in Operating Limited Partnerships (Continued) --------------------------------------------- During the years ended March 31, 1999, 1998 and 1997, the fund acquired interests in operating limited partnerships as follows: 1999 1998 1997 ---- ---- ---- Series 15 - - - Series 16 - - - Series 17 - - - Series 18 - - - Series 19 - - 1 ---- ---- ---- - - 1 ==== ==== ====
Organization Costs ------------------ Initial organization and offering expenses, common to all series, were allocated on a percentage of equity raised to each series. Organization costs are being amortized on the straight-line method over 60 months. Accumulated amortization as of March 31, 1999 and 1998 is as follows: 1999 1998 ---------------- ---------------- Series 15 $ 167,077 $ 167,077 Series 16 227,910 227,910 Series 17 205,888 195,084 Series 18 150,296 131,524 Series 19 183,088 145,476 ---------------- ---------------- $ 934,259 $ 867,071 ================ ================
F-37 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 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 fund 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, 1999 and 1998 is as follows: 1999 1998 ---------------- ---------------- Series 15 $ 42,146 $ 31,635 Series 16 67,408 50,558 Series 17 70,102 54,553 Series 18 45,783 34,370 Series 19 55,654 41,084 ---------------- ---------------- $ 281,093 $ 212,200 ================ ================
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. F-38 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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. 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 number of units outstanding during the year. The number of units in each series at March 31, 1999, 1998 and 1997 are as follows: 1999, 1998 and 1997 ---------------- 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. All remaining available for sale securities were sold during the year ended March 31, 1998. F-39 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Use of Estimates ---------------- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Recent Accounting Pronouncements -------------------------------- On March 31, 1997, the partnership adopted Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings per Share" and SFAS No. 129, "Disclosure of Information about Capital Structure." SFAS No. 128 provides accounting and reporting standards for the amount of earnings per share. SFAS No. 129 requires the disclosure in summary form within the financial statements of pertinent rights and privileges of the various securities outstanding. On March 31, 1998, the partnership adopted SFAS No. 130, "Reporting Comprehensive Income," SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information," and SFAS No. 132, "Employers' Disclosures about Pensions and Other Postretirement Benefits." SFAS No. 130 establishes standards for reporting and display of comprehensive income and its components, SFAS No. 131 establishes standards for how public business enterprises report information about operating segments and SFAS No. 132 revises employers' disclosures about pension and other postretirement benefit plans. The implementation of these standards has not materially affected the partnership's financial statements. In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities." In October 1998, the FASB issued SFAS No. 134, "Accounting for Mortgage-backed Securities Retained after the Securitization of Mortgage Loans Held for Sale by a Mortgage Banking Enterprise." In February 1999, the FASB issued SFAS No. 135, "Rescission of FASB Statement 75 and Technical Corrections." SFAS No. 133 is effective for all fiscal quarters of years beginning after June 15, 1999; SFAS No. 134 is effective for the first fiscal quarter beginning after December 31, 1998; and SFAS No. 135 is effective for years ending after February 15, 1999. Early adoption is encouraged for SFAS No. 133, 134 and 135. F-40 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Recent Accounting Pronouncements (Continued) -------------------------------- The fund does not have any derivative or hedging activities and does not have any mortgage-backed securities. FASB Statement 75, "Deferral of the Effective Date of Certain Accounting Requirements for Pension Plans of State and Local Governmental Units," does not apply to the fund. Consequently, these pronouncements are expected to have no effect on the fund's financial statements. NOTE B - INVESTMENTS HELD TO MATURITY At March 31, 1999, the amortized cost and fair market value of investments are as follows: Fair market Amortized cost value ---------------- ---------------- Certificates of deposit $ 2,237,166 $ 2,237,166 ================ ================
The amortized cost and fair market value of investments by maturity at March 31, 1999 are shown below. Fair market Amortized cost value ---------------- ---------------- Due in one year or less $ 2,237,166 $ 2,237,166 ================ ================
At March 31, 1998, the amortized cost and fair market value of investments are as follows: Fair market Amortized cost value ---------------- ---------------- Certificates of deposit $ 2,970,867 $ 2,970,867 ================ ================
The amortized cost and fair market value of investments by maturity at March 31, 1998 is shown below. Fair market Amortized cost value ---------------- ---------------- Due in one year or less $ 2,970,867 $ 2,970,867 ================ ================
F-41 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 NOTE B - INVESTMENTS HELD TO MATURITY (Continued) Proceeds from sales and maturities of investments during the year ended March 31, 1998 was $1,384,695, resulting in a realized gain of $154 and a realized loss of $9,069, 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 rates for the investments held during the years ended March 31, 1999 and 1998 ranged from 5% to 5.65%. NOTE C - RELATED PARTY TRANSACTIONS During the years ended March 31, 1999, 1998 and 1997, the fund entered into several transactions with various affiliates of the general partner, including Boston Capital Partners, Inc., Boston Capital Services, Inc., Boston Capital Holdings Limited Partnership and Boston Capital Asset Management Limited Partnership, as follows: Boston Capital Asset Management Limited Partnership is entitled to an annual fund management fee based on .5% 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 management fee charged to operations, net of reporting fees, during the years ended March 31, 1999, 1998 and 1997 by series, is as follows: F-42 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 NOTE C - RELATED PARTY TRANSACTIONS (Continued) 1999 1998 1997 ---------------- ---------------- -- - -------------- Series 15 $ 483,995 $ 468,703 $ 473,378 Series 16 586,316 599,941 572,972 Series 17 486,792 498,103 512,189 Series 18 326,762 347,356 326,168 Series 19 324,025 178,494 368,355 ---------------- ---------------- -- - -------------- $ 2,207,890 $ 2,092,597 $ 2,253,062 ================ ================ ================
General and administrative expenses incurred by Boston Capital Partners, Inc., Boston Capital Holdings Limited Partnership and Boston Capital Asset Management Limited Partnership during the years ended March 31, 1999, 1998 and 1997 charged to each series' operations are as follows: 1999 1998 1997 ---------------- ---------------- -- - -------------- Series 15 $ 24,872 $ 28,999 $ 26,370 Series 16 22,980 37,410 26,211 Series 17 18,499 32,015 22,369 Series 18 12,344 24,038 19,259 Series 19 14,070 24,534 21,979 ---------------- ---------------- -- - -------------- $ 92,765 $ 146,996 $ 116,188 ================ ================ ================
Accounts payable - affiliates at March 31, 1999 and 1998 represents fund management fees and an operating limited partnership advance which are payable to Boston Capital Asset Management Limited Partnership. The carrying value of the accounts payable - affiliates approximates fair value. F-43 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS At March 31, 1999, 1998 and 1997 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 limited 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, 1999, 1998 and 1997 by series are as follows: 1999 1998 1997 ---------------- ---------------- -- - -------------- Series 15 68 68 68 Series 16 64 64 64 Series 17 49 49 49 Series 18 34 34 34 Series 19 26 26 26 ---------------- ---------------- -- - -------------- 241 241 241 ================ ================ ================
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, 1999 and 1998 by series are as follows: 1999 1998 ---------------- ---------------- Series 15 $ 32,922 $ 32,922 Series 16 142,506 145,311 Series 17 1,367,195 1,367,195 Series 18 18,554 717,635 Series 19 34,000 463,000 ---------------- ---------------- $ 1,595,177 $ 2,726,063 ================ ================
F-44 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The fund's investment in operating limited partnerships at March 31, 1999 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 $ 161,553,503 $ 28,914,393 $ 40,188,710 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 (210,194) (13,724) (121,355) Impairment loss in investment in operating limited partnerships (345,986) - (345,986) Cumulative losses from operating limited partnerships (71,856,362) (17,746,668) (17,016,924) ---------------- ---------------- -- - -------------- Investment in operating limited partnerships per balance sheet 108,418,478 14,142,163 27,165,227 The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 1999 which have not been included in the partnership's capital account included in the operating limited partnerships' financial statements as of December 31, 1998 (see note A) (2,558,353) (1,055,903) (88,549) The fund has recorded acquisition costs at March 31, 1999 which have not been recorded in the net assets of the operating limited partnerships (see note A) (3,711,929) (399,087) (794,528) Cumulative losses from operating limited partnerships for the three months ended March 31, 1999 which the operating limited partnerships have not included in their capital as of December 31, 1998 due to different year ends (see note A) 2,827,311 472,214 631,571
F-45 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) Total Series 15 Series 16 ---------------- ---------------- -- - -------------- Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (1,191,728) (810,192) (230,216) The fund has recorded low- income housing tax credit adjusters not recorded by operating limited partnerships (see note A) 1,040,450 296,296 169,028 Impairment loss in investment in operating limited partnerships 345,986 - 345,986 Other 31,852 11,704 44,516 ---------------- ---------------- -- - -------------- Equity per operating limited partnerships' combined financial statements $ 226,560 $ 12,184,981 $ 26,611,464 ================ ================ ================
F-46 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The fund's investment in operating limited partnerships at March 31, 1999 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 $ 36,518,310 $ 26,416,737 $ 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 (42,312) (20,455) (12,435) Impairment loss in investment in operating limited partnerships - - - - Cumulative losses from operating limited partnerships (16,266,672) (11,095,075) (9,731,023) ---------------- ---------------- -- - -------------- Investment in operating limited partnerships per balance sheet 24,774,196 18,832,106 23,504,786 The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 1999 which have not been included in the partnership's capital account included in the operating limited partnerships' financial statements as of December 31, 1998 (see note A) (1,006,152) (86,777) (320,972) The fund has recorded acquisition costs at March 31, 1999 which have not been recorded in the net assets of the operating limited partnerships (see note A) (1,496,190) (387,564) (634,560) Cumulative losses from operating limited partnerships for the three months ended March 31, 1999 which the operating limited partnerships have not included in their capital as of December 31, 1998 due to different year ends (see note A) 752,440 617,653 353,433
F-47 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 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) (18,438) (132,882) - - The fund has recorded low- income housing tax credit adjusters not recorded by operating limited partnerships (see note A) 372,983 127,421 74,722 Impairment loss in investment in operating limited partnerships - - - - Other (38,764) 70,536 (56,140) ---------------- ---------------- -- - -------------- Equity per operating limited partnerships' combined financial statements $ 22,587,635 $ 18,422,840 $ 22,567,836 ================ ================ ================
F-48 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The fund's investment in operating limited partnerships at March 31, 1998 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 $ 161,570,521 $ 28,922,006 $ 40,190,010 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 (80,837) (12,848) (24,394) Cumulative losses from operating limited partnerships (59,734,931) (15,650,914) (13,848,555) ---------------- ---------------- -- - -------------- Investment in operating limited partnerships per balance sheet 121,032,270 16,246,406 30,777,843 The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 1998 which have not been included in the partnership's capital account included in the operating limited partnerships' financial statements as of December 31, 1997 (see note A) (3,267,609) (1,055,903) (88,655) The fund has recorded acquisition costs at March 31, 1998 which have not been recorded in the net assets of the operating limited partnerships (see note A) (3,865,111) (399,087) (794,528) Cumulative losses from operating limited partnerships for the three months ended March 31, 1998 which the operating limited partnerships have not included in their capital as of December 31, 1997 due to different year ends (see note A) 2,866,341 472,214 631,571
F-49 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 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 (313,153) (233,686) (36,097) The fund has recorded low- income housing tax credit adjusters not recorded by operating limited partnerships (see note A) 1,439,375 288,683 167,916 Other (82,899) 25,035 (27,123) ---------------- ---------------- -- - -------------- Equity per operating limited partnerships' combined financial statements $ 117,809,214 $ 15,343,662 $ 30,630,927 ================ ================ ================
F-50 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The fund's investment in operating limited partnerships at March 31, 1998 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 $ 36,518,310 $ 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 (18,588) (12,885) (12,122) Cumulative losses from operating limited partnerships (13,301,814) (9,021,166) (7,912,482) ---------------- ---------------- -- - -------------- Investment in operating limited partnerships per balance sheet 27,762,778 20,921,603 25,323,640 The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 1998 which have not been included in the partnership's capital account included in the operating limited partnerships' financial statements as of December 31, 1997 (see note A) (1,096,087) (298,342) (728,622) The fund has recorded acquisition costs at March 31, 1998 which have not been recorded in the net assets of the operating limited partnerships (see note A) (1,496,190) (387,564) (787,742) Cumulative losses from operating limited partnerships for the three months ended March 31, 1998 which the operating limited partnerships have not included in their capital as of December 31, 1997 due to different year ends (see note A) 752,440 617,653 392,463
F-51 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 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) - (43,370) - - The fund has recorded low- income housing tax credit adjusters not recorded by operating limited partnerships (see note A) 372,983 127,421 482,372 Other (51,729) 60,414 (89,496) ---------------- ---------------- -- - -------------- Equity per operating limited partnerships' combined financial statements $ 7,822,626 $ 7,794,719 $ 13,845,667 ================ ================ ================
F-52 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized balance sheets of the operating limited partnerships as of December 31, 1998 are as follows: Total Series 15 Series 16 ---------------- ---------------- ------ - ---------- ASSETS Buildings and improvements, net of accumulated depreciation $ 488,263,422 $ 100,808,021 $ 110,927,685 Land 28,123,731 6,103,309 5,120,755 Other assets 30,555,676 6,775,532 8,101,258 ---------------- ---------------- ------ - ---------- $ 546,942,829 $ 113,686,862 $ 124,149,698 ================ ================ ================ LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Mortgages and construction loans payable $ 364,192,180 $ 84,710,037 $ 83,671,669 Accounts payable and accrued expenses 13,865,790 2,380,183 4,537,613 Other liabilities 30,476,021 4,510,286 4,255,645 ---------------- ---------------- ------ - ---------- 408,533,991 91,600,506 92,464,927 ---------------- ---------------- ------ - ---------- PARTNERS' CAPITAL Boston Capital Tax Credit Fund III, L.P. 105,202,067 12,657,195 27,243,035 Other partners 33,206,771 9,429,161 4,441,736 ---------------- ---------------- ------ - ---------- 138,408,838 22,086,356 31,684,771 ---------------- ---------------- ------ - ---------- $ 546,942,829 $ 113,686,862 $ 124,149,698 ================ ================ ================
F-53 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized balance sheets of the operating limited partnerships as of December 31, 1998 are as follows: Series 17 Series 18 Series 19 ---------------- ---------------- ------ - ---------- ASSETS Buildings and improvements, net of accumulated depreciation $ 128,387,036 $ 66,692,115 $ 81,448,565 Land 7,700,365 3,357,967 5,841,335 Other assets 6,914,439 4,312,321 4,452,126 ---------------- ---------------- ------ - ---------- $ 143,001,840 $ 74,362,403 $ 91,742,026 ================ ================ ================ LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Mortgages and construction loans payable $ 93,587,027 $ 46,607,327 $ 55,616,120 Accounts payable and 3,852,115 accrued expenses 1,762,867 1,333,012 Other liabilities 11,147,323 3,581,747 6,981,020 ---------------- ---------------- ------ - ---------- 108,586,465 51,951,941 63,930,152 ---------------- ---------------- ------ - ---------- PARTNERS' CAPITAL Boston Capital Tax Credit 23,340,075 Fund III, L.P. 19,040,493 22,921,269 Other partners 11,075,300 3,369,969 4,890,605 ---------------- ---------------- ------ - ---------- 34,415,375 22,410,462 27,811,874 ---------------- ---------------- ------ - ---------- $ 143,001,840 $ 74,362,403 $ 91,742,026 ================ ================ ================
F-54 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized balance sheets of the operating limited partnerships as of December 31, 1997 are as follows: Total Series 15 Series 16 ---------------- ---------------- ------ - ---------- ASSETS Buildings and improvements, net of accumulated depreciation $ 507,178,819 $ 104,948,710 $ 115,402,953 Land 28,207,851 6,187,437 5,120,755 Other assets 29,598,266 6,470,560 7,963,887 ---------------- ---------------- ------ - ---------- $ 564,984,936 $ 117,606,707 $ 128,487,595 ================ ================ ================ LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Mortgages and construction loans payable $ 362,249,828 $ 84,924,724 $ 84,500,343 Accounts payable and accrued expenses 11,622,031 2,236,615 2,997,412 Other liabilities 36,013,362 4,324,910 5,807,286 ---------------- ---------------- ------ - ---------- 409,885,221 91,486,249 93,305,041 ---------------- ---------------- ------ - ---------- PARTNERS' CAPITAL Boston Capital Tax Credit Fund III L.P. 117,809,214 15,343,662 30,630,927 Other partners 37,290,501 10,776,796 4,551,627 ---------------- ---------------- ------ - ---------- 155,099,715 26,120,458 35,182,554 ---------------- ---------------- ------ - ---------- $ 564,984,936 $ 117,606,707 $ 128,487,595 ================ ================ ================
F-55 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued) The combined summarized balance sheets of the operating limited partnerships as of December 31, 1997 are as follows: Series 17 Series 18 Series 19 ---------------- ---------------- ------ - ---------- ASSETS Buildings and improvements, net of accumulated depreciation $ 133,219,801 $ 69,290,502 $ 84,316,853 Land 7,700,365 3,357,967 5,841,327 Other assets 6,816,494 4,106,952 4,240,373 ---------------- ---------------- ------ - ---------- $ 147,736,660 $ 76,755,421 $ 94,398,553 ================ ================ ================ LIABILITIES AND PARTNERS' CAPITAL LIABILITIES Mortgages and construction loans payable $ 89,545,991 $ 47,198,760 $ 56,080,010 Accounts payable and accrued expenses 3,134,779 1,655,022 1,598,203 Other liabilities 15,828,946 3,358,752 6,693,468 ---------------- ---------------- ------ - ---------- 108,509,716 52,212,534 64,371,681 ---------------- ---------------- ------ - ---------- PARTNERS' CAPITAL Boston Capital Tax Credit Fund III L.P. 26,244,195 20,997,815 24,592,615 Other partners 12,982,749 3,545,072 5,434,257 ---------------- ---------------- ------ - ---------- 39,226,944 24,542,887 30,026,872 ---------------- ---------------- ------ - ---------- $ 147,736,660 $ 76,755,421 $ 94,398,553 ================ ================ ================
F-56 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 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, 1998 are as follows: COMBINED SUMMARIZED STATEMENTS OF OPERATIONS Total Series 15 Series 16 ---------------- ---------------- ------ - ---------- Revenue Rental $ 56,460,857 $ 12,261,092 $ 12,467,879 Interest and other 3,841,453 611,387 1,012,995 ---------------- ---------------- ------ - ---------- 60,302,310 12,872,479 13,480,874 ---------------- ---------------- ------ - ---------- Expenses Interest 22,318,349 4,646,024 4,424,705 Depreciation and amortization 20,581,408 4,559,945 4,764,210 Taxes and insurance 7,063,014 1,547,532 1,604,273 Repairs and maintenance 9,155,230 2,087,640 2,100,061 Operating expenses 16,589,281 3,700,210 3,644,716 Other expenses 1,655,027 365,928 360,352 ---------------- ---------------- ------ - ---------- 77,362,309 16,907,279 16,898,317 ---------------- ---------------- ------ - ---------- NET LOSS $ (17,059,999) $ (4,034,800) $ (3,417,443) ================ ================ ================ Net loss allocated to Boston Capital Tax Credit Fund III L. P.* $ (13,000,006) $ (2,672,260) $ (3,362,488) ================ ================ ================ Net loss allocated to other partners $ (4,059,993) $ (1,362,540) $ (54,955) ================ ================ ================
* Amounts include $576,506, $194,119, $18,438 and $89,512 for series 15, 16, 17 and 18, respectively, of loss not recognized under the equity method of accounting as described in note A. F-57 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 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, 1998 are as follows: COMBINED SUMMARIZED STATEMENTS OF OPERATIONS Series 17 Series 18 Series 19 ---------------- ---------------- ------ - ---------- Revenue Rental $ 14,486,904 $ 6,706,086 $ 10,538,896 Interest and other 1,040,774 745,153 431,144 ---------------- ---------------- ------ - ---------- 15,527,678 7,451,239 10,970,040 ---------------- ---------------- ------ - ---------- Expenses Interest 6,201,926 2,704,948 4,340,746 Depreciation and amortization 5,179,750 2,898,299 3,179,204 Taxes and insurance 1,646,905 837,099 1,427,205 Repairs and maintenance 2,547,323 1,258,927 1,161,279 Operating expenses 4,226,997 2,089,928 2,927,430 Other expenses 605,134 196,489 127,124 ---------------- ---------------- ------ - ---------- 20,408,035 9,985,690 13,162,988 ---------------- ---------------- ------ - ---------- NET LOSS $ (4,880,357) $ (2,534,451) $ (2,192,948) ================ ================ ================ Net loss allocated to Boston Capital Tax Credit Fund III L. P.* $ (2,983,296) $ (2,163,421) $ (1,818,541) ================ ================ ================ Net loss allocated to other partners $ (1,897,061) $ (371,030) $ (374,407) ================ ================ ================
* Amounts include $576,506, $194,119, $18,438 and $89,512 for series 15, 16, 17 and 18, respectively, of loss not recognized under the equity method of accounting as described in note A. F-58 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 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, 1997 are as follows: COMBINED SUMMARIZED STATEMENTS OF OPERATIONS Total Series 15 Series 16 ---------------- ---------------- ------ - ---------- Revenue Rental $ 54,997,314 $ 11,479,701 $ 12,397,732 Interest and other 3,230,978 716,763 972,041 ---------------- ---------------- ------ - ---------- 58,228,292 12,196,464 13,369,773 ---------------- ---------------- ------ - ---------- Expenses Interest 21,769,271 4,237,259 4,517,483 Depreciation and amortization 20,715,617 4,565,875 4,822,894 Taxes and insurance 7,235,148 1,531,645 1,575,293 Repairs and maintenance 8,474,548 1,901,550 1,952,552 Operating expenses 15,972,058 3,392,258 3,451,993 Other expenses 3,264,692 400,782 362,011 ---------------- ---------------- ------ - ---------- 77,431,334 16,029,369 16,682,226 ---------------- ---------------- ------ - ---------- NET LOSS $ (19,203,042) $ (3,832,905) $ (3,312,453) ================ ================ ================ Net loss allocated to Boston Capital Tax Credit Fund III L. P.* $ (13,407,192) $ (2,610,772) $ (3,232,870) ================ ================ ================ Net loss allocated to other partners $ (5,795,850) $ (1,222,133) $ (79,583) ================ ================ ================
* Amounts include $182,289, $36,097 and $43,370 for series 15, 16 and 18, respectively, of loss not recognized under the equity method of accounting as described in note A. F-59 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 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, 1997 are as follows: COMBINED SUMMARIZED STATEMENTS OF OPERATIONS Series 17 Series 18 Series 19 ---------------- ---------------- ------ - ---------- Revenue Rental $ 14,340,626 $ 6,640,259 $ 10,138,996 Interest and other 871,594 302,946 367,634 ---------------- ---------------- ------ - ---------- 15,212,220 6,943,205 10,506,630 ---------------- ---------------- ------ - ---------- Expenses Interest 6,044,149 2,647,759 4,322,621 Depreciation and amortization 5,199,327 2,956,863 3,170,658 Taxes and insurance 1,647,962 871,383 1,608,865 Repairs and maintenance 2,364,140 1,226,495 1,029,811 Operating expenses 4,579,215 1,706,897 2,841,695 Other expenses 1,968,852 404,408 128,639 ---------------- ---------------- ------ - ---------- 21,803,645 9,813,805 13,102,289 ---------------- ---------------- ------ - ---------- NET LOSS $ (6,591,425) $ (2,870,600) $ (2,595,659) ================ ================ ================ Net loss allocated to Boston Capital Tax Credit Fund III L. P.* $ (2,857,430) $ (2,632,978) $ (2,073,142) ================ ================ ================ Net loss allocated to other partners $ (3,733,995) $ (237,622) $ (522,517) ================ ================ ================
* Amounts include $182,289, $36,097 and $43,370 for Series 15 , 16 and 18, respectively, of loss not recognized under the equity method of accounting as described in note A. F-60 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 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-61 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 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-62 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 NOTE E - NOTES RECEIVABLE Notes receivable at March 31, 1999 and 1998 consist of advance installments of capital contributions to operating limited partnerships. The notes at March 31, 1999 and 1998 are comprised of noninterest bearing and interest bearing notes with rates ranging from 3.66% to prime plus 3%. Prime was 8.50% and 7.75% as of March 31, 1999 and 1998, respectively. The notes receivable will be converted to capital or repaid upon demand 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, 1999 and 1998 by series are as follows: 1999 1998 ---------------- ---------------- Series 15 $ 32,170 $ 110,000 Series 16 - - Series 17 1,332,152 1,409,982 Series 18 - 536,351 Series 19 - - ---------------- ---------------- $ 1,364,322 $ 2,056,333 ================ ================
NOTE F - OTHER ASSETS Other assets include cash held by an escrow agent at March 31, 1999 and 1998. The cash held for the series at March 31, 1999 and 1998 represents capital contributions to be released to the operating limited partnerships when certain criteria are met. The escrows held at March 31, 1999 and 1998 by series are as follows: 1999 1998 ---------------- ---------------- Series 15 $ - $ - Series 16 - - Series 17 15,097 15,097 Series 18 - - Series 19 - - ---------------- ---------------- $ 15,097 $ 15,097 ================ ================
F-63 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 NOTE F - OTHER ASSETS (Continued) In addition, other assets include cash advanced to operating limited partnerships at March 31, 1999 and 1998 some of which are to be applied to capital contributions payable when certain criteria have been met. The advances at March 31, 1999 and 1998 by series are as follows: 1999 1998 ---------------- ---------------- Series 15 $ 748,458 $ 426,912 Series 16 110,861 56,000 Series 17 1,382,297 1,069,358 Series 18 14,391 - Series 19 - - ---------------- ---------------- $ 2,256,007 $ 1,552,270 ================ ================
F-64 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 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, 1999 are reconciled as follows: Total Series 15 Series 16 ---------------- ---------------- ------ - ---------- Net loss for financial reporting purposes $ (14,955,518) $ (2,499,987) $ (4,159,567) Operating limited partnership rents received in advance (13,098) (2,319) (1,763) Fund management fees not deducted for tax purposes 2,123,696 548,052 491,980 Other (202,731) (182,035) (28,588) Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting (878,576) (576,506) (194,120) Impairment loss in investment in operating limited partnership not deductible for tax purposes 345,986 - 345,986 Excess of tax depreciation over book depreciation on operating limited partnership assets (1,536,529) (313,779) (268,029) Difference due to fiscal year for book purposes and calendar year for tax purposes 64,574 (5,681) (1,187) ---------------- ---------------- ------ - ---------- Loss for tax return purposes, December 31, 1998 $ (15,052,196) $ (3,032,255) $ (3,815,288) ================ ================ ================
F-65 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 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, 1999 are reconciled as follows: Series 17 Series 18 Series 19 ---------------- ---------------- ------ - ---------- Net loss for financial reporting purposes $ (3,604,679) $ (2,491,271) $ (2,200,014) Operating limited partnership rents received in advance 7,572 (7,785) (8,803) Fund management fees not deducted for tax purposes 565,368 306,948 211,348 Other 190,811 (183,994) 1,075 Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting (18,438) (89,512) - - Impairment loss in investment in operating limited partnership not deductible for tax purposes - - - - Excess of tax depreciation over book depreciation on operating limited partnership assets (465,406) (162,365) (326,950) Difference due to fiscal year for book purposes and calendar year for tax purposes 37,455 (5,047) 39,034 ---------------- ---------------- ------ - ---------- Loss for tax return purposes, December 31, 1998 $ (3,287,317) $ (2,633,026) $ (2,284,310) ================ ================ ================
F-66 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 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, 1998 are reconciled as follows: Total Series 15 Series 16 ---------------- ---------------- ------ - ---------- Net loss for financial reporting purposes $ (15,742,101) $ (2,834,087) $ (3,957,405) Operating limited partnership rents received in advance (7,368) (4,270) 692 Fund management fees not deducted for tax purposes 2,598,675 548,052 691,980 Other (582,771) (332,972) 153,818 Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting (261,756) (182,289) (36,097) Excess of tax depreciation over book depreciation on operating limited partnership assets (1,496,221) (214,667) (258,267) Difference due to fiscal year for book purposes and calendar year for tax purposes (480,368) (1,400) (185,463) ---------------- ---------------- ------ - ---------- Loss for tax return purposes, December 31, 1997 $ (15,971,910) $ (3,021,633) $ (3,590,742) ================ ================ ================
F-67 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 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, 1998 are reconciled as follows: Series 17 Series 18 Series 19 ---------------- ---------------- ------ - ---------- Net loss for financial reporting purposes $ (3,552,410) $ (3,064,697) $ (2,333,502) Operating limited partnership rents received in advance (5,707) 23,754 (21,837) Fund management fees not deducted for tax purposes 565,368 381,927 411,348 Other (779,092) 52,957 322,518 Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting - (43,370) - - Excess of tax depreciation over book depreciation on operating limited partnership assets (431,032) (221,050) (371,205) Difference due to fiscal year for book purposes and calendar year for tax purposes 30,564 (39,436) (284,633) ---------------- ---------------- ------ - ---------- Loss for tax return purposes, December 31, 1997 $ (4,172,309) $ (2,909,915) $ (2,277,311) ================ ================ ================
F-68 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 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: 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-69 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 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-70 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 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 statement 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, 1999, the differences are as follows: Total Series 15 Series 16 ---------------- ---------------- ------ - ---------- Investments in operating limited partnerships - per tax return, December 31, 1998 $ 96,931,552 $ 12,212,844 $ 24,269,069 Estimated share of loss for the three months ended March 31, 1999 (2,827,311) (472,214) (631,571) Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method 1,191,728 810,192 230,216 Impairment loss in investment in operating limited partnerships (345,986) - (345,986) Historic tax credits 5,333,539 1,852,569 - - Other 8,134,956 (261,228) 3,643,499 ---------------- ---------------- ------ - ---------- Investments in operating limited partnerships - as reported $ 108,418,478 $ 14,142,163 $ 27,165,227 ================ ================ ================
F-71 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 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 statement 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, 1999, the differences are as follows: Series 17 Series 18 Series 19 ---------------- ---------------- ------ - ---------- Investments in operating limited partnerships - per tax return, December 31, 1998 $ 22,543,720 $ 16,163,294 $ 21,742,625 Estimated share of loss for the three months ended March 31, 1999 (752,440) (617,653) (353,433) Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method 18,438 132,882 - - Impairment loss in investment in operating limited partnerships - - - - Historic tax credits 1,100,310 2,062,333 318,327 Other 1,864,168 1,091,250 1,797,267 ---------------- ---------------- ------ - ---------- Investments in operating limited partnerships - as reported $ 24,774,196 $ 18,832,106 $ 23,504,786 ================ ================ ================
F-72 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 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 statement 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, 1998, the differences are as follows: Total Series 15 Series 16 ---------------- ---------------- ------ - ---------- Investments in operating limited partnerships - per tax return, December 31, 1997 $ 111,746,588 $ 15,381,288 $ 27,898,915 Estimated share of loss for the three months ended March 31, 1998 (2,866,341) (472,214) (631,571) Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method 313,153 233,686 36,097 Historic tax credits 5,333,539 1,852,569 - - Other 6,505,331 (748,923) 3,474,402 ---------------- ---------------- ------ - ---------- Investments in operating limited partnerships - as reported $ 121,032,270 $ 16,246,406 $ 30,777,843 ================ ================ ================
F-73 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 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 statement 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, 1998, the differences are as follows: Series 17 Series 18 Series 19 ---------------- ---------------- ------ - ---------- Investments in operating limited partnerships - per tax return, December 31, 1997 $ 25,870,393 $ 18,696,412 $ 23,899,580 Estimated share of loss for the three months ended March 31, 1998 (752,440) (617,653) (392,463) Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method - 43,370 - - Historic tax credits 1,100,310 2,062,333 318,327 Other 1,544,515 737,141 1,498,196 ---------------- ---------------- ------ - ---------- Investments in operating limited partnerships - as reported $ 27,762,778 $ 20,921,603 $ 25,323,640 ================ ================ ================
F-74 Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 NOTES TO FINANCIAL STATEMENTS - CONTINUED March 31, 1999, 1998 and 1997 NOTE H - CASH EQUIVALENTS On March 31, 1999 and 1998, Boston Capital Tax Credit Fund III L.P. purchased $849,981 and $450,000 of securities under agreements to resell on April 1, 1999 and 1998, respectively. Interest is earned at rates ranging from 2.15% to 3.5% per annum. Additionally, cash equivalents of $736,460 and $1,185,807 as of M arch 31, 1999 and 1998, respectively, include certificates of deposit and money market accounts with interest rates ranging from 2.8% to 5.0% per annum. F-75 Boston Capital Tax Credit Fund III L.P. - Series 15 Schedule III - Real Estate and Accumulated Depreciation March 31, 1999 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 1,467,152 50,000 1,773,331 389 50,000 1,773,720 1,823,720 424,378 5/93 9/92 5-27.5 Arkansas City 825,097 15,870 1,016,757 0 15,870 1,016,757 1,032,627 189,241 12/94 9/94 5-25 Autumnwood LP 1,341,943 50,000 1,669,609 1 50,000 1,669,610 1,719,610 393,933 1/93 8/92 5-27.5 Barton Village 509,968 47,898 683,991 2,470 47,898 686,461 734,359 159,188 3/93 10/92 5-27.5 Beckwood Manor Eight 1,219,161 60,000 1,498,746 6,305 58,000 1,505,051 1,563,051 248,593 8/95 8/94 5-27.5 Bergen Meadows 1,017,955 42,000 1,256,858 22,770 42,000 1,279,628 1,321,628 346,440 7/92 7/92 7-27.5 Bridlewood LP 790,185 42,000 211,635 787,948 42,000 999,583 1,041,583 116,993 1/95 1/94 5-27.5 Brunswick LP 823,058 69,000 953,553 416 69,000 953,969 1,022,969 247,056 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, 1999 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. 1,452,882 75,000 1,767,511 495 75,000 1,768,006 1,843,006 501,174 1/92 3/92 7-27.5 Calexico Sr 1,921,645 213,000 2,047,255 0 213,000 2,047,255 2,260,255 295,843 9/92 9/92 7-27.5 California Inv. VII 8,863,346 820,000 9,361,922 16,792,875 803,050 26,154,797 26,957,847 4,416,742 12/93 10/92 5-27.5 Chestnut Hill 739,837 40,000 904,814 4,420 40,000 909,234 949,234 173,476 9/92 9/92 7-27.5 Coralville Housing 2,580,674 258,000 4,683,541 102,182 258,000 4,785,723 5,043,723 1,290,353 10/92 3/92 7-27.5 Curwensville Housing 1,214,336 31,338 1,435,553 97,030 31,338 1,532,583 1,563,921 236,536 7/93 9/92 5-27.5 Deerfield Assoc. 1,229,163 65,400 1,495,473 0 65,400 1,495,473 1,560,873 397,890 6/92 4/92 7-27.5 East Machias 1,039,243 77,963 1,478,171 16,811 77,963 1,494,982 1,572,945 242,977 1/93 9/92 10-40 East Park Apts. I 545,000 2,000 980,413 9,487 2,000 989,900 991,900 188,749 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, 1999 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 786,931 36,000 967,796 0 36,000 967,796 1,003,796 234,908 8/92 6/92 7-27.5 Far View Housing 920,661 100,000 1,066,418 8,331 100,000 1,074,749 1,174,749 178,816 11/92 6/92 10-40 Graham Housing 1,323,496 85,006 2,451,794 (3,894) 85,006 2,447,900 2,532,906 279,925 6/95 10/94 5-27.5 Grantsville Assoc. 1,486,127 85,099 1,795,971 2,860 85,599 1,798,831 1,884,430 287,743 2/93 5/92 5-27.5 Greentree Apts. 691,498 15,000 1,143,223 (9,253) 15,000 1,133,970 1,148,970 679,186 10/75 4/94 5-27.5 Greenwood Village 674,803 20,123 893,915 5,850 20,123 899,765 919,888 205,629 5/93 8/92 5-27.5 Harrisonville Prop. II 608,037 15,000 744,677 5,528 15,000 750,205 765,205 246,393 11/91 3/92 7-27.5 Headlton Properties 701,472 15,000 868,469 0 15,000 868,469 883,469 113,097 12/94 8/94 5-27.5 Hearthside II LDHA 1,955,378 95,000 2,967,134 (34,732) 95,000 2,932,402 3,027,402 695,918 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, 1999 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 1,204,600 176,121 1,410,573 30,521 176,121 1,441,094 1,617,215 364,383 10/92 10/92 7-27.5 Hidden Cove 2,889,795 707,848 4,334,916 7,133 707,848 4,342,049 5,049,897 1,604,525 8/88 2/94 5-27.5 Higgensville Estates 627,343 40,000 738,056 1,622 40,000 739,678 779,678 252,352 3/91 3/92 7-27.5 Inv. Group of Payson 1,486,538 211,500 1,767,942 0 211,500 1,767,942 1,979,442 263,314 8/92 8/92 7-27.5 Kearney Estates 634,038 30,000 763,159 1,875 30,000 765,034 795,034 245,142 1/92 5/92 7-27.5 Lake View Associates 887,477 30,000 1,077,130 350 30,000 1,077,480 1,107,480 284,676 7/92 4/92 7-27.5 Laurelwood Apts. 1,068,170 58,500 1,268,491 750 58,500 1,269,241 1,327,741 338,604 2/92 3/92 7-27.5 Lebanon II LP 923,976 40,000 1,090,397 0 40,000 1,090,397 1,130,397 252,210 2/93 8/92 5-27.5 Lebanon III Prop. 631,971 26,750 766,992 6,376 26,750 773,368 800,118 241,152 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, 1999 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 727,279 36,000 897,897 0 36,000 897,897 933,897 227,501 7/92 6/92 7-27.5 Livingston Plaza 675,441 32,500 868,525 0 32,500 868,525 901,025 191,533 11/93 12/92 5-27.5 Madison Partners 1,199,192 47,340 1,452,910 14,051 47,340 1,466,961 1,514,301 274,550 12/94 3/95 5-27.5 Manning Lane 1,471,153 73,600 1,771,816 1,653 73,600 1,773,469 1,847,069 423,112 3/93 8/92 5-27.5 Marshall Lane 553,375 20,000 672,691 1,186 20,000 673,877 693,877 163,865 12/92 8/92 5-27.5 Maryville Prop. 718,010 57,000 834,823 16,663 57,000 851,486 908,486 265,325 3/92 5/92 7-27.5 Monark Village 321,367 68,900 570,916 0 68,900 570,916 639,816 102,162 3/94 6/94 5-27.5 North Prairie 880,638 5,000 1,121,143 8,639 5,000 1,129,782 1,134,782 297,121 5/93 9/92 5-27.5 Oak Grove Villa 404,057 5,000 460,291 8,878 5,000 469,169 474,169 158,788 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, 1999 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 1,107,899 42,000 1,341,412 694 42,000 1,342,106 1,384,106 366,463 5/92 5/92 7-27.5 Osage Housing 1,215,379 110,000 2,309,861 61,444 110,000 2,371,305 2,481,305 633,141 6/92 4/92 7-27.5 Osceola Estates 648,846 54,600 797,763 103,197 27,300 900,960 928,260 252,336 5/92 5/92 7-27.5 PDC Fifty Five LP 1,292,975 50,170 1,576,823 5,770 50,170 1,582,593 1,632,763 336,180 9/93 10/92 5-27.5 Rainier Manor 2,665,216 521,000 5,852,852 43,945 521,000 5,896,797 6,417,797 1,014,139 1/93 4/92 5-27.5 Ridgeview of Brainerd 861,693 42,800 1,027,499 1,978 42,800 1,029,477 1,072,277 279,786 1/92 3/92 7-27.5 Rio Members II 773,150 48,938 930,376 21,579 48,938 951,955 1,000,893 171,024 12/95 7/94 5-27.5 Rolling Brook III 826,416 35,000 1,006,667 11,491 35,000 1,018,158 1,053,158 289,561 11/92 6/92 7-27.5 School Street I 756,893 127,852 1,353,622 95,368 38,509 1,448,990 1,487,499 438,788 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, 1999 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 1,472,020 67,500 1,754,599 4,638 67,500 1,759,237 1,826,737 393,683 2/93 8/92 5-27.5 Showboat Manor 795,458 31,200 968,253 16,085 31,200 984,338 1,015,538 263,823 2/92 7/92 5-27.5 Sioux Falls Housing 1,322,676 146,694 2,656,753 8,202 146,694 2,664,955 2,811,649 711,270 9/92 5/92 7-27.5 Sunset Square 740,054 50,000 896,507 8,535 50,000 905,042 955,042 176,701 8/92 90/2 7-27.5 Taylor Mill 767,877 24,000 936,166 0 24,000 936,166 960,166 244,360 5/92 4/92 7-27.5 Timmons Village 643,336 15,000 754,172 5,886 38,500 760,058 798,558 194,104 7/92 5/92 7-27.5 University Meadows 1,987,105 62,985 3,579,473 10,408 62,985 3,589,881 3,652,866 961,887 12/92 6/92 5-28 Valatie LP 1,370,716 30,000 1,712,263 20,130 30,000 1,732,393 1,762,393 468,970 4/93 6/92 7-27.5 Virgen Del Pozo 3,333,018 120,000 4,274,133 39,756 120,000 4,313,889 4,433,889 854,107 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, 1999 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 1,464,361 50,000 1,792,888 0 50,000 1,792,888 1,842,888 475,326 8/92 8/92 7-27.5 Wauchula Ltd. 1,476,656 66,720 1,770,669 2,723 66,720 1,773,392 1,840,112 452,160 10/92 9/92 5-27.5 Weedpatch Inv. Grp. 1,972,202 272,000 2,246,927 378 272,000 2,247,305 2,519,305 255,037 9/94 1/94 5-50 Westernport Assoc. 1,487,937 18,645 1,833,384 3,694 18,645 1,837,078 1,855,723 409,171 2/93 7/92 5-27.5 Whitewater Village 526,243 18,542 637,048 2,806 18,542 639,854 658,396 163,014 11/92 8/92 7-27.5 Wood Park Pointe 1,168,443 117,500 1,329,664 1,348 117,500 1,331,012 1,448,512 360,469 5/92 6/92 5-27.5 ---------- --------- ----------- ---------- --------- ----------- - ----------- ---------- 84,710,037 6,214,902 111,326,972 18,388,041 6,103,309 129,715,013 135,818,322 28,906,992 ========== ========= =========== ========== ========= =========== =========== ========== Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 1998. *Decrease due to a reallocation of acquisition costs. **There were no carrying costs as of December 31, 1998. 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 =========== Additions during period: Acquisitions through foreclosure.................$ 0 Other acquisitions............................... 0 Improvements, etc................................ 136,931 Other............................................ 0 ----------- $ 136,931 Deductions during period: Cost of real estate sold.........................$ 0 Other............................................ 0 ----------- $ 0 ----------- Balance at close of period - 03/31/98............................$ 135,589,142 =========== F-81 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 - 03/31/98............................$ 135,589,142 Additions during period: Acquisitions through foreclosure.................$ 0 Other acquisitions............................... 0 Improvements, etc................................ 229,180 Other............................................ 0 ----------- $ 229,180 Deductions during period: Cost of real estate sold.........................$ 0 Other............................................ 0 ----------- $ 0 ----------- Balance at close of period - 03/31/99............................$ 135,818,322 =========== F-82 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 ========== Current year expense..................................$ 4,427,546 --------- Balance at close of period - 3/31/98..............................$ 24,452,995 Current year expense.................................. $ 4,453,997 --------- Balance at close of period - 3/31/98..............................$ 28,906,992 ========== F-83
Boston Capital Tax Credit Fund III L.P.- Series 16 Schedule III - Real Estate and Accumulated Depreciation March 31, 1999 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 1,610,000 8,000 2,927,089 486,159 8,000 3,413,248 3,421,248 759,476 3/93 12/92 5-27.5 Anson 1,281,630 40,202 1,683,348 12,130 40,202 1,695,478 1,735,680 261,860 9/93 12/92 10-40 Aztec II 1,016,430 115,000 1,299,311 27,493 115,000 1,326,804 1,441,804 327,383 5/93 5/93 5-27.5 Bentonia Elderly 842,072 21,000 678,677 386,765 21,000 1,065,442 1,086,442 150,124 2/94 7/93 5-27.5 Bernice Villa 954,749 37,000 1,204,665 4,968 37,000 1,209,633 1,246,633 168,471 10/93 5/93 5-40 Blairsville Rental I 755,904 58,377 866,980 42,180 35,000 909,160 944,160 141,703 9/94 12/92 5-27.5 Blairsville Rental II 739,877 84,359 804,895 62,014 49,500 866,909 916,409 137,622 7/94 12/92 5-27.5 Blowing Rock 511,555 47,500 663,473 686 47,500 664,159 711,659 101,239 11/94 12/93 5-27.5 F-84 Boston Capital Tax Credit Fund III L.P. - Series 16 Schedule III - Real Estate and Accumulated Depreciation March 31, 1999 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 1,505,525 163,350 2,990,564 5,340 163,350 2,995,904 3,159,254 578,326 6/94 3/94 5-27.5 Branson Chris- tian II 1,084,180 0 2,497,066 36,146 0 2,533,212 2,533,212 471,356 8/94 7/94 5-27.5 Butler Rental 753,040 0 937,495 15,782 0 953,277 953,277 189,828 9/93 12/92 7-27.5 Canter- field 767,770 48,000 934,169 736 48,000 934,905 982,905 223,477 1/93 11/92 5-27.5 Cape Ann 542,480 18,000 1,833,366 53,773 18,000 1,887,139 1,905,139 365,094 12/93 1/93 7-31.5 Cass Partners 677,569 45,250 2,026,740 0 45,250 2,026,740 2,071,990 268,533 12/93 12/93 5-27.5 Cedar Trace 505,108 18,000 639,500 2,925 18,000 642,425 660,425 165,371 7/93 10/92 5-27.5 Concord Assoc. 1,129,829 61,532 1,223,133 121,108 61,532 1,344,241 1,405,773 340,008 2/93 2/93 5-27.5 F-85 Boston Capital Tax Credit Fund III L.P.- Series 16 Schedule III - Real Estate and Accumulated Depreciation March 31, 1999 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 1,443,250 35,800 1,831,813 10,997 35,800 1,842,810 1,878,610 233,263 11/94 12/92 5-27.5 Cumberland Wood 1,450,569 114,449 1,780,622 59,361 129,538 1,839,983 1,969,521 208,660 10/94 12/93 6-40 Davenport Housing 3,073,433 223,889 6,598,309 83,985 223,889 6,682,294 6,906,183 1,373,118 2/94 10/93 7-27.5 Deer Run 701,592 30,000 1,536,783 0 30,000 1,536,783 1,566,783 338,923 3/93 8/93 5-27.5 Eastman Elderly 1,179,282 80,000 1,428,172 25,266 36,900 1,453,438 1,490,358 290,449 10/93 12/92 5-27.5 Fairmeadow Apts. 883,005 53,296 1,184,327 43,501 53,296 1,227,828 1,281,124 166,509 7/93 1/93 5-27.5 Falcon Ridge 1,045,567 25,000 1,332,798 19,150 25,000 1,351,948 1,376,948 146,290 1/95 4/94 5-27.5 Gibson 906,136 30,290 1,138,786 350 30,290 1,139,136 1,169,426 196,346 6/93 12/92 5-27.5 F-86 Boston Capital Tax Credit Fund III L.P. - Series 16 Schedule III - Real Estate and Accumulated Depreciation March 31, 1999 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 532,158 25,000 649,793 0 25,000 649,793 674,793 175,566 5/93 1/93 7-27.5 Greenwood 1,473,362 62,076 1,480,776 336,322 62,076 1,817,098 1,879,174 417,018 10/93 11/93 5-27.5 Harmony House 1,471,785 57,000 1,764,438 14,574 57,000 1,779,012 1,836,012 305,357 7/93 11/92 5-27.5 Haynes House 3,348,220 685,381 5,956,903 2,329,019 674,499 8,285,922 8,960,421 827,670 u/c 8/94 12-40 Holly Tree 884,838 58,900 1,069,733 5,830 58,900 1,075,563 1,134,463 257,159 2/93 11/92 5-27.5 Idabel Prop. 1,384,026 50,000 1,791,971 0 50,000 1,791,971 1,841,971 427,822 12/93 4/93 5-25.5 Isola Square 967,182 22,300 250,691 974,734 22,300 1,225,425 1,247,725 151,869 4/94 11/93 7-40 Joiner Elderly 815,739 47,719 1,026,013 0 47,719 1,026,013 1,073,732 244,188 6/93 1/93 5-40 Lawrenceville Manor 1,417,258 61,370 1,660,796 3,236 61,370 1,664,032 1,725,402 316,640 7/94 2/94 5-27.5 F-87 Boston Capital Tax Credit Fund III L.P. - Series 16 Schedule III - Real Estate and Accumulated Depreciation March 31, 1999 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 925,656 45,000 1,201,948 11,736 45,000 1,213,684 1,258,684 174,831 8/93 4/93 7-40 Logan Lane 1,298,139 54,000 1,602,465 2,962 54,000 1,605,427 1,659,427 377,337 3/93 9/92 5-27.5 Mariners Pointe I &II 3,923,246 170,020 7,548,131 102,746 170,020 7,650,877 7,820,897 1,760,933 8/93 12/92 7-27.5 Meadows of Southgate 2,306,010 252,000 4,575,879 2,605 252,000 4,578,484 4,830,484 501,564 5/94 7/93 12-40 Mendota Village 1,976,560 136,140 2,421,001 0 136,140 2,421,001 2,557,141 307,524 5/93 12/92 5-50 Midcity 3,059,100 15,058 6,611,666 4,800 15,058 6,616,466 6,631,524 1,072,365 6/94 9/93 5-27.5 Newport Housing 1,237,530 160,000 1,405,411 (3,274) 160,000 1,402,137 1,562,137 210,600 10/93 2/93 5-27.5 Newport Manor 956,549 31,908 1,175,109 31,804 31,908 1,206,913 1,238,821 180,072 12/93 9/93 5-40 F-88 Boston Capital Tax Credit Fund III L.P. - Series 16 Schedule III - Real Estate and Accumulated Depreciation March 31, 1999 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 1,427,831 37,400 1,785,282 5,511 37,400 1,790,793 1,828,193 360,303 5/94 5/94 5-27.5 Riviera Apts. 1,704,479 100,000 2,979,700 579,524 132,400 3,559,224 3,691,624 667,575 12/93 12/92 5-27.5 Sable Chase 5,065,455 502,774 12,248,475 20,989 502,774 12,269,464 12,772,238 2,235,678 12/94 12/93 7-27.5 St.Croix Commons 1,096,731 44,681 2,607,046 (666,994) 44,681 1,940,052 1,984,733 365,387 12/94 10/94 5-27.5 St. Joseph SQ 954,727 37,500 1,167,702 3,921 37,500 1,171,623 1,209,123 167,016 9/93 5/93 5-40 Simmes- port 940,812 60,000 1,171,005 1,888 60,000 1,172,893 1,232,893 171,670 6/93 4/93 7-40 Stony- Ground 1,432,565 127,380 1,794,961 (800) 129,005 1,794,161 1,923,166 413,799 6/93 12/92 5-27.5 Summers- ville 621,187 20,000 774,259 1,617 20,000 775,876 795,876 209,182 6/93 5/93 5-27.5 F-89 Boston Capital Tax Credit Fund III L.P. - Series 16 Schedule III - Real Estate and Accumulated Depreciation March 31, 1999 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 680,939 22,300 833,494 7,289 22,300 840,783 863,083 196,255 4/93 8/92 5-27.5 Tchula Elderly 833,262 20,000 1,071,899 2,931 20,000 1,074,830 1,094,830 161,962 12/93 7/93 5-27.5 Toulumne City 1,597,103 190,000 1,912,157 0 190,000 1,912,157 2,102,157 229,225 8/93 12/92 5-50 Turtle Creek 849,982 23,141 1,113,511 2,485 23,141 1,115,996 1,139,137 173,496 10/93 5/93 7-40 Twin Oaks Assoc. 1,467,822 45,000 1,776,674 7,868 45,000 1,784,542 1,829,542 287,787 9/93 12/92 5-27.5 Victoria Pointe 1,443,801 153,865 1,437,570 355,557 128,900 1,793,127 1,922,027 286,612 1/95 10/94 5-27.5 Viste Linda Apts. 2,504,599 143,253 2,961,671 6,697 143,253 2,968,368 3,111,621 624,446 12/93 1/93 5-27.5 Wakefield Housing 1,258,427 88,564 1,480,003 5,238 88,564 1,485,241 1,573,805 248,377 2/93 9/92 10-40 F-90 Boston Capital Tax Credit Fund III L.P. - Series 16 Schedule III - Real Estate and Accumulated Depreciation March 31, 1999 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 990,207 52,300 1,188,913 (662) 52,300 1,188,251 1,240,551 274,083 5/93 5/93 5-27.5 Westchester Oak Grove 1,192,033 38,010 2,281,529 45,900 35,000 2,327,429 2,362,429 596,196 4/93 12/92 5-27.5 Westchester St. Joe 1,519,607 100,000 3,211,620 67,784 100,000 3,279,404 3,379,404 784,874 6/93 7/93 5-27.5 Westville Prop. 717,913 25,000 912,139 0 25,000 912,139 937,139 229,825 7/93 2/93 5-25 Wilcox Inv. Group 1,106,533 58,500 1,376,329 0 58,500 1,376,329 1,434,829 176,553 6/93 1/93 7-50 Woodlands Apts 927,744 30,000 668,555 534,575 30,000 1,203,130 1,233,130 188,596 2/95 9/94 5-27.5 ---------- --------- ----------- ---------- --------- ----------- - ----------- ---------- 83,671,669 5,211,834 128,989,299 6,299,227 5,120,755 135,288,526 140,409,281 24,360,841 ========== ========= =========== ========== ========= =========== =========== ========== Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 1998. *Decrease due to a reallocation of acquisition costs. **There were no carrying costs as of December 31, 1998. The column has been omitted for presentation purposes. F-91
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-92Notes 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............................$140,006,124 Additions during period: Acquisitions through foreclosure.................$ 0 Other acquisitions............................... 0 Improvements, etc................................ 163,080 Other............................................ 0 ----------- $ 163,080 Deductions during period: Cost of real estate sold.........................$ 0 Other............................................ 0 ----------- $ 0 ----------- Balance at close of period - 03/31/98............................$140,169,204 =========== F-93Notes 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 - 03/31/98............................$140,169,204 Additions during period: Acquisitions through foreclosure.................$ 0 Other acquisitions............................... 0 Improvements, etc................................ 240,077 Other............................................ 0 ----------- $ 240,077 Deductions during period: Cost of real estate sold.........................$ 0 Other............................................ 0 ----------- $ 0 ----------- Balance at close of period - 03/31/99............................$140,409,281 =========== F-94 Notes to Schedule III - Continued Boston Capital Tax Credit Fund III L.P. - Series 16 Reconciliation of Accumulated Depreciation current year changes Balance at beginning of period - 04/01/92........................$ 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 Current year additions*.................................$4,709,137 --------- Balance at close of period - 3/31/98..............................$19,645,496 Current year additions*.................................$4,715,345 --------- Balance at close of period - 3/31/99..............................$24,360,841 ========== *-Total includes current year expense and amounts capitalized to building basis. F-95 Boston Capital Tax Credit Fund III L.P. - Series 17 Schedule III - Real Estate and Accumulated Depreciation March 31, 1999 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 9,391,845 226,000 12,180,150 4,950 226,000 12,185,100 12,411,100 1,892,353 6/90 1/96 5-27.5 Artesia Prop. 1,417,729 30,730 1,865,231 1,115 30,730 1,866,346 1,897,076 345,862 9/94 9/94 5-27.5 Aspen Ridge 861,912 36,000 2,004,059 51,058 36,000 2,055,117 2,091,117 433,952 11/93 9/93 5-27.5 Bladen- boro 1,015,392 16,000 1,213,015 (27,474) 16,000 1,185,541 1,201,541 169,238 7/95 3/95 5-27.5 Brewer St. 1,190,886 0 2,296,514 12,776 0 2,309,290 2,309,290 524,472 7/93 6/93 5-27.5 Briarwood Apts. 914,266 38,500 20,850 1,207,049 38,952 1,227,899 1,266,851 132,988 7/93 6/93 5-27.5 Briarwood Village 1,130,449 42,594 1,418,259 2,214 42,594 1,420,473 1,463,067 272,068 5/94 10/93 5-27.5 F-96 Boston Capital Tax Credit Fund III L.P. - Series 17 Schedule III - Real Estate and Accumulated Depreciation March 31, 1999 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 1,505,871 96,000 2,943,443 15,207 96,000 2,958,650 3,054,650 409,478 6/94 10/93 5-40 Cairo Housing 1,071,129 17,000 1,309,062 15,113 17,000 1,324,175 1,341,175 312,464 4/93 5/93 7-27.5 California Inv VI 3,868,597 400,000 7,446,261 (1,596,778) 400,000 5,849,483 6,249,483 2,047,171 5/89 1/94 5-27.5 California Inv VII 8,863,346 803,050 25,913,966 240,831 803,050 26,154,797 26,957,847 4,416,745 12/93 12/93 5-27.5 Cambridge YMCA 2,480,442 95,200 5,135,233 7,504 95,200 5,142,737 5,237,937 1,095,703 12/93 4/93 5-27.5 Caneyville Prop. 478,062 36,000 601,775 (13,800) 36,000 587,975 623,975 138,209 4/93 5/93 5-27.5 Clinton Estates 738,622 47,533 891,872 0 47,533 891,872 939,405 161,290 12/94 12/94 5-27.5 Cloverport Prop. 755,744 21,500 947,659 (7,038) 21,500 940,621 962,121 212,784 7/93 4/93 5-27.5 College Green 3,755,429 225,000 6,774,847 39,768 225,000 6,814,615 7,039,615 988,319 8/95 3/95 5-27.5 - F-97 - Boston Capital Tax Credit Fund III L.P.- Series 17 Schedule III - Real Estate and Accumulated Depreciation March 31, 1999 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. 804,548 46,511 961,097 0 46,511 961,097 1,007,608 134,210 3/93 4/93 5-27.5 Cypress Point 2,966,734 265,000 4,794,440 35,853 265,000 4,830,293 5,095,293 599,539 12/94 2/94 5-27.5 Deerwood Villlage 637,213 29,138 804,512 3,183 29,138 807,695 836,833 148,253 7/94 2/94 5-27.5 Doyle Village 1,170,531 100,000 1,435,520 4,666 100,000 1,440,186 1,540,186 274,637 4/94 9/93 5-27.5 Gallaway Assoc. 1,056,782 35,600 1,307,158 14,592 35,600 1,321,750 1,357,350 184,408 5/93 4/93 5-27.5 Glen- Ridge 2,046,689 350,000 2,208,213 5,778 350,000 2,213,991 2,563,991 310,832 6/94 6/94 5-27.5 Green Acres 1,199,237 173,447 1,366,874 7,101 173,447 1,373,975 1,547,422 257,364 1/95 11/94 5-27.5 Greenwood Place 1,061,404 44,400 299,685 1,126,108 44,400 1,425,793 1,470,193 160,233 8/94 11/93 7-40 Hackley Barclay 3,568,512 174,841 4,603,493 301,622 175,000 4,905,115 5,080,115 916,111 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, 1999 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 3,975,585 945,000 7,971,879 6,649 945,000 7,978,528 8,923,528 1,075,096 4/94 5/93 5-27.5 Hickman Assoc. 539,272 24,000 673,642 1,832 24,000 675,474 699,474 85,208 12/93 11/93 5-27.5 Houston Village 679,933 11,500 850,901 1,290 11,500 852,191 863,691 164,444 5/94 12/93 5-27.5 Ivywood 3,009,749 290,542 5,712,656 14,285 290,542 5,726,941 6,017,483 1,259,626 10/93 6/93 5-27.5 Jonestown Manor 867,634 0 311,764 937,801 36,900 1,249,565 1,286,465 133,889 12/94 12/93 7-40 Largo Center 3,830,733 1,012,500 7,262,001 26,983 1,012,500 7,288,984 8,301,484 880,979 6/94 3/93 5-27.5 Lee Terrace 1,488,407 93,246 4,573 1,709,720 93,246 1,714,293 1,807,539 292,716 12/94 2/94 5-27.5 Midland 943,268 60,000 2,422,788 7,716 60,000 2,430,504 2,490,504 374,202 6/94 9/93 5-27.5 Mount Vernon 2,272,544 200,000 3,141,984 194,439 200,000 3,336,423 3,536,423 527,079 12/88 2/89 5-27.5 F-99 Boston Capital Tax Credit Fund III L.P. - Series 17 Schedule III - Real Estate and Accumulated Depreciation March 31, 1999 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 877,790 60,000 1,074,857 2,524 60,000 1,077,381 1,137,381 236,832 12/93 9/93 5-27.5 Opelousas Point 1,389,914 50,000 559,121 1,361,898 50,000 1,921,019 1,971,019 244,598 3/94 1/93 5-27.5 Palmetto Villas 1,607,456 60,724 2,034,151 1,500 60,724 2,035,651 2,096,375 348,498 4/94 5/94 5-27.5 Park Place II 1,176,074 112,000 1,408,102 11,583 112,000 1,419,685 1,531,685 275,782 4/94 2/94 7-27.5 Pinehurst 808,323 24,000 1,033,022 32,177 24,000 1,065,199 1,089,199 217,136 2/94 2/94 5-27.5 Quail Village 881,227 30,450 1,060,273 2,468 30,450 1,062,741 1,093,191 185,997 2/94 9/93 7-27.5 Sea Breeze 1,234,504 94,000 1,515,733 2,841 94,000 1,518,574 1,612,574 247,505 1/95 3/94 5-27.5 Shawnee Village 1,217,870 182,786 2,347,227 35,824 182,786 2,383,051 2,565,837 601,319 10/92 2/93 7-27.5 Sixth St. Apts 2,291,865 151,687 1,123,504 3,190,385 162,687 4,313,889 4,476,576 532,867 12/94 12/93 5-27.5 F-100 Boston Capital Tax Credit Fund III L.P. - Series 17 Schedule III - Real Estate and Accumulated Depreciation March 31, 1999 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 1,691,226 100,000 2,121,472 67,411 100,000 2,188,883 2,288,883 385,154 6/94 9/93 5-27.5 Soledad 1,955,485 340,000 2,005,222 0 340,000 2,005,222 2,345,222 224,240 1/94 10/96 5-50 Sugarwood Park 3,524,115 281,875 5,949,680 4,833 281,875 5,954,513 6,236,388 913,398 7/95 4/94 5-27.5 Voorhees- ville 1,100,515 74,600 1,254,914 5,731 74,600 1,260,645 1,335,245 284,120 5/93 7/93 7-27.5 Waynesburg Housing 1,495,810 169,200 2,113,822 53,753 18,100 2,167,575 2,185,675 195,308 12/95 7/94 5-27.5 White Castle 776,357 84,800 948,687 6,207 84,800 954,894 1,039,694 164,699 5/94 6/94 27.5 ---------- --------- ----------- ---------- --------- ----------- - ----------- ---------- 93,587,027 7,802,954 145,645,163 9,131,248 7,700,365 154,776,411 162,476,776 26,389,375 ========== ========= =========== ========== ========= =========== =========== ========== Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 1998. *Decrease due to a reallocation of acquisition costs. **There were no carrying costs as of December 31, 1998. The column has been omitted for presentation purposes. F-101
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 ---------- $ 58,662,502 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............................................. (26,680) ---------- $ (26,680) ----------- 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-102Notes 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............................$163,537,184 Additions during period: Acquisitions through foreclosure.................$ 0 Other acquisitions............................... 0 Improvements, etc................................ 337,191 Other............................................ 0 ----------- $ 337,191 Deductions during period: Cost of real estate sold.........................$ 0 Other............................................$ (1,598,364) ----------- $ (1,598,364) ----------- Balance at close of period - 03/31/98............................$ 162,276,011 =========== Additions during period: Acquisitions through foreclosure.................$ 0 Other acquisitions............................... 0 Improvements, etc................................ 200,765 Other............................................ 0 ----------- $ 200,765 Deductions during period: Cost of real estate sold.........................$ 0 Other............................................$ 0 ----------- $ 0 ----------- Balance at close of period - 03/31/99............................$ 162,476,776 =========== F-103 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 Current year expense................................ $5,040,935 --------- Balance at close of period - 3/31/98..............................$21,355,845 ========== Current year expense.................................. $5,033,530 --------- Balance at close of period - 3/31/99..............................$26,389,375 ========== F-104 Boston Capital Tax Credit Fund III L.P. - Series 18 Schedule III - Real Estate and Accumulated Depreciation March 31, 1999 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 2,598,533 107,387 6,724,849 19,132 107,387 6,743,981 6,851,368 1,020,190 12/94 4/94 7-27.5 Aurora LP 1,410,489 65,000 1,704,709 9,469 65,000 1,714,178 1,779,178 397,668 9/93 6,93 5-27.5 Bear Creek of Naples 4,989,532 488,011 8,884,145 4,572 491,639 8,888,717 9,380,356 1,755,968 4/95 3/94 5-27.5 Chatham LP 1,420,312 75,000 1,727,394 12,585 75,000 1,739,979 1,814,979 383,111 12/93 1/94 5-27.5 Chelsea Square 301,393 21,000 939,281 3,500 21,000 942,781 963,781 119,896 12/94 8/94 7-34 Clarke School 2,543,432 200,000 5,493,464 230,056 200,000 5,723,520 5,923,520 590,611 12/94 12/94 5-27.5 Ellijay Rental 825,086 48,000 1,000,609 1,358 48,000 1,001,967 1,049,967 100,119 1/95 1/94 40 Evergreen Hills 2,805,560 157,537 4,337,312 562,872 157,537 4,900,184 5,057,721 979,468 1/95 8/94 5-27.5 F-105 Boston Capital Tax Credit Fund III L.P. - Series 18 Schedule III - Real Estate and Accumulated Depreciation March 31, 1999 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 1,220,523 60,610 3,489,218 (171,258) 60,610 3,317,960 3,378,570 560,996 6/94 4/94 5-27.5 Harris Housing 1,318,812 200,000 266,624 2,568,540 160,000 2,835,164 2,995,164 227,137 11/95 6/94 5-27.5 Humboldt I 707,716 40,191 845,252 0 40,191 845,252 885,443 138,319 4/95 8/94 5-27.5 Jackson Housing 864,375 30,250 1,080,272 (8,139) 30,250 1,072,133 1,102,383 177,375 6/94 1/94 5-27.5 Lakeview Meadows II 1,631,012 88,920 2,775,712 1,609 88,920 2,777,321 2,866,241 325,534 5/94 8/93 5-27.5 Lanthrop Properties 741,870 34,800 931,788 3,940 34,800 935,728 970,528 188,182 5/94 4/94 5-27.5 Leesville Elderly 1,244,429 144,000 2,018,242 0 144,000 2,018,242 2,162,242 230,164 6/94 6/94 7-40 Lockport Elderly 972,378 125,000 1,524,202 0 125,000 1,524,202 1,649,202 164,890 9/94 7/94 5-27.5 Maple Leaf Apts. 1,103,252 22,860 1,355,390 11,301 22,860 1,366,691 1,389,551 154,674 12/94 8/94 5-27.5 F-106 Boston Capital Tax Credit Fund III L.P. - Series 18 Schedule III - Real Estate and Accumulated Depreciation March 31, 1999 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 730,801 50,010 886,695 0 50,010 886,695 936,705 182,713 3/94 10/93 5-27.5 Natchitoches Elderly 953,873 50,000 1,634,279 10,000 50,000 1,644,279 1,694,279 166,753 12/94 6/94 7-40 Newton I 809,271 57,500 979,345 0 57,500 979,345 1,036,845 172,814 9/94 11/93 5-27.5 Oskaloosa I 482,890 32,000 589,423 476 32,000 589,899 621,899 103,696 9/94 11/93 5-27.5 Parvins LP 827,018 41,508 1,741,048 4,742 41,508 1,745,790 1,787,298 345,649 11/93 8/93 5-27.5 Peach Tree LP 1,484,604 157,027 1,617,470 7,111 157,027 1,624,581 1,781,608 413,190 7/93 1/94 5-27.5 Ponderosa Meadows 1,490,845 82,454 1,903,972 22,875 82,454 1,926,847 2,009,301 250,095 5/94 3/94 5-27.5 Preston Wood 1,193,170 66,000 2,515,136 57,108 66,000 2,572,244 2,638,244 489,841 12/94 12/93 5-27.5 Richmond Manor 1,031,642 54,944 1,285,522 266 54,944 1,285,788 1,340,732 260,408 6/94 6/94 5-27.5 Rio Grande 2,259,215 96,480 2,999,680 10,065 96,480 3,009,745 3,106,225 390,286 5/94 6/94 5-27.5 F-107 Boston Capital Tax Credit Fund III L.P.- Series 18 Schedule III - Real Estate and Accumulated Depreciation March 31, 1999 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 502,503 14,000 646,850 11,504 14,000 658,354 672,354 74,327 7/94 1/94 5-40 San Joaquin Entpr. III 1,829,413 55,000 2,463,181 0 55,000 2,463,181 2,518,181 224,200 12/94 3/94 5-50 Troy Est. 695,251 45,000 826,432 11,798 45,000 838,230 883,230 181,578 1/94 12/93 5-27.5 Virginia Avenue 1,722,113 121,238 3,510,339 5,299 121,238 3,515,638 3,636,876 592,335 10/94 10/94 5-27.5 Vista Loma 1,612,428 267,612 1,600,128 189,949 267,612 1,790,077 2,057,689 196,870 9/94 5/94 5-27.5 Vivian Elderly 197,692 45,000 1,668,938 0 45,000 1,668,938 1,713,938 185,809 9/94 7/94 7-40 Westminister Meadows 2,085,894 250,000 3,605,890 8,041 250,000 3,613,931 3,863,931 724,581 11/94 12/93 5-27.5 ---------- --------- ---------- --------- --------- ---------- ---------- -- - ------- 46,607,327 3,394,339 75,572,791 3,588,771 3,357,967 79,161,562 82,519,529 12,469,447 ========== ========= ========== ========= ========= ========== ========== ========= Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 1998. *Decrease due to a reallocation of acquisition costs. **There were no carrying costs as of December 31, 1998. The column has been omitted for presentation purposes. F-108
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-109 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 =========== Additions during period: Acquisitions through foreclosure.................$ 0 Other acquisitions............................... 0 Improvements, etc................................ 164,466 Other............................................ 0 ----------- $ 164,466 Deductions during period: Cost of real estate sold.........................$ 0 Other............................................ 0 ----------- $ 0 ----------- Balance at close of period - 03/31/98...........................$ 82,318,956 =========== Additions during period: Acquisitions through foreclosure.................$ 0 Other acquisitions............................... 0 Improvements, etc................................ 200,573 Other............................................ 0 ----------- $ 200,573 Deductions during period: Cost of real estate sold.........................$ 0 Other............................................ 0 ----------- $ 0 ----------- Balance at close of period - 03/31/99........................... $ 82,519,529 =========== F-110 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 ========== Current year expense.................................. $2,884,157 --------- Balance at close of period - 3/31/98..............................$ 9,670,487 ========== Current year expense.................................. $2,798,960 --------- Balance at close of period - 3/31/99..............................$12,469,447 ========== F-111 Boston Capital Tax Credit Fund III L.P. - Series 19 Schedule III - Real Estate and Accumulated Depreciation March 31, 1999 Subsequent Initial capitalized Gross amount at which cost to company costs** carried at close of period --------------- ----------- ------ - ----------------------- Buildings Buildings Accum. Con- Acq- Depre- Encum- and im- Improve- and im- Depre- struct uired ciation Description brances Land provements ments Land provements Total ciation Date Date Life - -------------------------------------------------------------------------------- - ------------------------------------------- Ankeney Housing 3,650,267 217,500 8,144,577 81,453 217,500 8,226,030 8,443,530 879,952 3/95 8/94 10-40 Carrollton Villa 1,261,496 60,015 2,682,843 (39,651) 60,015 2,643,192 2,703,207 462,438 3/95 6/94 5-27.5 Clarke School 2,543,432 200,000 5,493,464 230,056 200,000 5,723,520 5,923,520 590,611 12/94 12/94 12-40 Forest Associates 663,391 13,900 396,391 472,998 13,908 869,389 883,297 390,124 3/78 4/95 5-27.5 Garden Gate, Ft. Worth 5,797,600 678,867 2,532,572 6,461,806 678,867 8,994,378 9,673,245 1,284,191 5/95 5/95 5-27.5 Garden Gate, Plano 7,272,941 689,318 844,673 8,567,995 689,318 9,412,668 10,101,986 1,338,097 23/95 2/94 5-27.5 Hebbronville Apts. 519,666 50,711 650,002 0 50,711 650,002 700,713 80,814 4/94 12/93 7-40 Hollister Inv. Group 1,739,256 400,000 1,906,641 (94,559) 400,000 1,812,082 2,212,082 136,164 5/95 3/95 5-50 F-112 Boston Capital Tax Credit Fund III L.P. - Series 19 Schedule III - Real Estate and Accumulated Depreciation March 31, 1999 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 1,266,265 110,373 524,966 2,028,302 110,373 2,553,268 2,663,641 451,483 12/94 6/94 5-27.5 Independence Properties 854,851 38,500 503,166 517,210 38,500 1,020,376 1,058,876 138,083 12/94 6/94 5-40 Jefferson Square 2,524,900 385,000 4,548,650 52,551 385,000 4,601,201 4,986,201 520,761 8/95 5/94 5-27.5 Jenny Lynn Properties 803,798 65,000 958,809 7,000 65,000 965,809 1,030,809 163,547 9/94 1/94 5-27.5 Jeremy Associates 3,765,832 522,890 6,954,516 157,265 522,890 7,111,781 7,634,671 573,304 12/95 6/96 5-27.5 Lone Star Senior 613,507 20,492 835,453 0 20,492 835,453 855,945 96,020 5/94 12/93 7-40 Madison L.P. 650,761 42,707 810,978 0 32,500 810,978 843,478 142,899 10/94 12/93 5-27.5 Manasura Villa 964,422 20,254 301,687 990,944 25,000 1,292,631 1,317,631 113,060 8/95 5/94 5-27.5 Martindale Apts. 681,869 40,270 861,032 0 40,270 861,032 901,302 110,536 1/94 12/93 7-40 F-113 Boston Capital Tax Credit Fund III L.P. - Series 19 Schedule III - Real Estate and Accumulated Depreciation March 31, 1999 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 761,746 24,800 980,102 815 24,800 980,917 1,005,717 125,632 4/94 10/93 5-40 Northpointe LP 4,712,184 371,000 9,834,451 1,377 371,000 9,835,828 10,206,828 888,973 6/95 7/94 5-27.5 Sahale Heights 856,000 72,000 1,062,350 110 72,000 1,062,460 1,134,460 190,136 6/94 1/94 5-27.5 Sherwood Knoll 779,008 45,000 963,996 6,220 45,000 970,216 1,015,216 127,236 4/94 10/93 5-40 Sugarwood Park 3,524,115 281,875 5,949,680 4,833 281,875 5,954,513 6,236,388 913,398 7/95 4/94 5-27.5 Summerset Housing 938,496 68,665 1,160,825 (25,664) 68,665 1,135,161 1,203,826 127,671 11/95 1/94 7-27.5 Vista's Associates 3,253,120 831,600 7,055,338 5,229 831,600 7,060,567 7,892,167 848,393 1/95 12/93 5-27.5 Wedgewood Lane 999,498 85,000 1,106,604 5,050 85,000 1,111,654 1,196,654 146,649 9/94 6/94 5-40 F-114 Boston Capital Tax Credit Fund III L.P. - Series 19 Schedule III - Real Estate and Accumulated Depreciation March 31, 1999 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 4,217,699 511,051 6,867,791 157,773 511,051 7,025,564 7,536,615 1,231,933 12/94 11/93 5-27.5 ---------- --------- ---------- ---------- --------- ---------- -- - -------- --------- 55,616,120 5,846,788 73,931,557 19,589,113 5,841,335 93,520,670 99,362,005 12,072,105 ========== ========= ========== ========== ========= ========== ========== ========== Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 1998. *Decrease due to a reallocation of acquisition costs. There were no carrying costs as of December 31, 1998. The column has been omitted for presentation purposes. F-115
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-116 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 Additions during period: Acquisitions through foreclosure.................$ 0 Other acquisitions............................... 0 Improvements, etc................................ 224,896 Other............................................ 0 ----------- $ 224,896 Deductions during period: Cost of real estate sold.........................$ 0 Other............................................ 0 ----------- $ 0 ----------- Balance at close of period - 03/31/98.............................$ 99,133,600 Additions during period: Acquisitions through foreclosure.................$ 0 Other acquisitions............................... 0 Improvements, etc................................ 228,405 Other............................................ 0 ----------- $ 228,405 Deductions during period: Cost of real estate sold.........................$ 0 Other............................................ 0 ----------- $ 0 ----------- Balance at close of period - 03/31/99.............................$ 99,362,005 =========== F-117 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..................................$2,591,856 --------- Balance at close of period - 3/31/97..............................$ 5,888,201 Current year expense....................................$3,087,218 --------- Balance at close of period - 3/31/98..............................$ 8,975,419 Current year expense....................................$3,096,686 --------- Balance at close of period - 3/31/99..............................$ 12,072,105 ========== F-118 EX-27 2
CT 0000879555 BOSTON CAPITAL TAX CREDIT FUND III LP 12-MOS MAR-31-1999 APR-01-1998 MAR-31-1999 117,785,304 0 0 0 0 117,785,304 358,856 0 (15,314,518) 0 0 0 (14,955,518) 0 0
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