10-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

ý        ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended March 31, 2003 or

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

For the transition period from                         to                      

Commission file number        0-26200

BOSTON CAPITAL TAX CREDIT FUND IV L.P.

(Exact name of registrant as specified in its charter)

Delaware	04-3208648
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
One Boston Place, Suite 2100, Boston, Massachusetts  02108
(Address of principal executive offices)  (Zip Code)

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

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange 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 ý NO o

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	January 3, 1994 Prospectus,
as supplemented
Parts II, IV	Form 8-K dated February 1, 1995
	Form 8-K dated March 9, 1995
	Form 8-K dated October 13, 1995
	Form 8-K dated February 29, 1996
	Form 8-K dated December 16, 1996
	Form 8-K dated December 16, 1996
	Form 8-K dated February 11, 1997
	Form 8-K dated February 14, 1997
	Form 8-K dated March 25, 1997
	Form 8-K dated March 25, 1997
	Form 8-K dated March 25, 1997
	Form 8-K dated March 25, 1997
	Form 8-K dated March 25, 1997
	Form 8-K dated March 26, 1997
	Form 8-K dated March 26, 1997
	Form 8-K dated March 26, 1997
	Form 8-K dated March 26, 1997
	Form 8-K dated March 26, 1997
	Form 8-K dated March 26, 1997
	Form 8-K dated March 26, 1997
	Form 8-K dated March 26, 1997
	Form 8-K dated March 26, 1997
	Form 8-K dated March 26, 1997
	Form 8-K dated March 26, 1997
	Form 8-K dated March 26, 1997
	Form 8-K dated March 26, 1997
	Form 8-K dated March 26, 1997
	Form 8-K dated March 26, 1997
	Form 8-K dated March 26, 1997
	Form 8-K dated March 26, 1997
	Form 8-K dated March 27, 1997
	Form 8-K dated March 27, 1997
	Form 8-K dated March 27, 1997
	Form 8-K dated April 7, 1997
	Form 8-K dated May 21, 1998
	Form 8-K dated July 16, 1997
	Form 8-K dated July 22, 1997
	Form 8-K dated July 22, 1997
	Form 8-K dated July 22, 1997
	Form 8-K dated July 22, 1997
	Form 8-K dated July 22, 1997
	Form 8-K dated August 5, 1997
	Form 8-K dated August 5, 1997
	Form 8-K dated August 5, 1997
	Form 8-K dated August 8, 1997

Form 10-K Parts	Document
Parts II, IV	Form 8-K dated April 23, 1998
	Form 8-K dated April 23, 1998
	Form 8-K dated April 24, 1998
	Form 8-K dated April 27, 1998
	Form 8-K dated April 29, 1998
	Form 8-K dated April 30, 1998
	Form 8-K dated April 30, 1998
	Form 8-K dated April 30, 1998
	Form 8-K dated May 1, 1998
	Form 8-K dated June 30, 1999
	Form 8-K dated June 30, 1999
	Form 8-K dated July 27, 1999
	Form 8-K dated July 27, 1999
	Form 8-K dated November 30, 1999
	Form 8-K dated December 28, 1999
	Form 8-K dated December 29, 1999
	Form 8-K dated January 26, 2000
	Form 8-K dated February 3, 2000
	Form 8-K dated February 9, 2000
	Form 8-K dated February 10, 2000
	Form 8-K dated February 16, 2000
	Form 8-K dated September 29, 2000
	Form 8-K dated September 29, 2000
	Form 8-K dated September 29, 2000
	Form 8-K dated September 29, 2000
	Form 8-K dated September, 2002
	Form 8-K dated September, 2002
	Form 8-K dated September, 2002

BOSTON CAPITAL TAX CREDIT FUND IV L.P.

Form 10-K ANNUAL REPORT FOR THE YEAR ENDED MARCH 31, 2003

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
Item 14.	Controls and Procedures
PART IV
Item 15.	Exhibits, Financial Statement Schedules, and Reports on Form 8-K
	Signatures

PART I

Item 1.Business

Organization

Boston Capital Tax Credit Fund IV L.P. (the “Fund”) is a limited partnership formed under the Delaware Revised Uniform Limited Partnership Act as of October 5, 1993.  Effective as of June 1, 2001 there was a restructuring, and as a result, the Fund’s general partner was reorganized as follows.  The General Partner of the Fund continues to be Boston Capital Associates IV L.P., a Delaware limited partnership.  The general partner of the General Partner is now BCA Associates Limited Partnership, a Massachusetts limited partnership, whose sole general partner is C&M Management, Inc., a Massachusetts corporation.  John P. Manning is the principal of Boston Capital Partners, Inc.  The limited partner of the General Partner is Capital Investment Holdings, a general partnership whose partners are certain officers and employees of Boston Capital Partners, Inc., and its affiliates.  The Assignor Limited Partner is BCTC IV Assignor Corp., a Delaware corporation which is now wholly-owned by 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”) were filed with the Securities and Exchange Commission and became effective December 16, 1993 in connection with a public offering (“Offering”) in one or more series of a minimum of 250,000 BACs and a maximum of 30,000,000 BACs at $10 per BAC.  On April 18, 1996 an amendment to Form S-11, which registered an additional 10,000,000 BACs for sale to the public in one or more series, became effective. On April 2, 1998 an amendment to Form S-11, which registered an additional 25,000,000 BACs for sale to the public in one or more series, became effective. On August 31, 1999 an amendment to Form S-11, which registered an additional 8,000,000 BACs for sale to the public became effective.  On July 26, 2000 an amendment to Form S-11, which registered an additional 7,500,000 BACs for sale to the public became effective. On July 23, 2001 an amendment to Form S-11, which registered an additional 7,000,000 BACs for sale to the public became effective.  On July 24, 2002 an amendment to Form S- 11, which registered an additional 7,000,000 BAC’s for sale to the public became effective.  As of March 31, 2003, subscriptions had been received and accepted by the General Partner in Series 20, Series 21, Series 22, Series 23, Series 24, Series 25, Series 26, Series 27, Series 28, Series 29, Series 30, Series 31, Series 32, Series 33, Series 34, Series 35, Series 36, Series 37, Series 38, Series 39, Series 40, Series 41, Series 42, Series 43 and Series 44 for 75,662,578 BAC’s representing capital contributions of $756,292,680.

The Offering, including information regarding the issuance of BACs in series, is described on pages 144 to 149 of the Prospectus, as supplemented, under the caption “The Offering”, which is incorporated herein by reference.

1

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 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 64 to 88 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, 2003 the Fund had invested in 24 Operating Partnerships on behalf of Series 20, 14 Operating Partnership on behalf of Series 21, 29 Operating Partnerships on behalf of Series 22, 22 Operating Partnerships on behalf of Series 23, 24 Operating Partnerships on behalf of Series 24, 22 Operating Partnerships on behalf of Series 25, 45 Operating Partnerships on behalf of Series 26, 16 Operating Partnerships on behalf of Series 27, 26 Operating Partnerships on behalf of Series 28, 22 Operating Partnerships on behalf of Series 29, 20 Operating Partnerships on behalf of Series 30, 27 Operating Partnerships on behalf of Series 31, 17 Operating Partnerships on behalf of Series 32, 10 Operating Partnerships on behalf of Series 33, 14 Operating Partnerships on behalf of Series 34, 11 Operating Partnerships on behalf of Series 35, 11 Operating Partnerships on behalf of Series 36, 7 Operating Partnerships on behalf of Series 37, 10 Operating Partnerships on behalf of Series 38, 9 Operating Partnerships on behalf of Series 39, 16 Operating Partnerships on behalf of Series 40, 20 Operating Partnerships on behalf of Series 41, 17 Operating Partnerships on behalf of Series 42, 16 Operating Partnerships on behalf of Series 43 and 4 Operating Partnerships on behalf of Series 44.  A description of these Operating Partnerships is set forth in Item 2 herein.

2

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)	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.
(3)	provide tax benefits in the form of passive losses which an Investor may apply to offset his passive income (if any); and
(4)	provide cash distributions (except with respect to the Fund’s investment in certain Non-Profit Operating Partnerships) from Capital Transaction proceeds.  The Operating Partnerships intend to hold the Apartment Complexes for appreciation in value.  The Operating Partnerships may sell the Apartment Complexes after a period of time if financial conditions in the future make such sales desirable and if such sales are permitted by government restrictions.

The business objectives and investment policies of the Fund are described more fully on pages 49 to 61 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 453 Operating Partnerships in 25 series, identified in the table set forth below.  The Apartment Complex owned by the Operating Partnership is eligible for the Federal Housing Tax Credit.  Initial occupancy of a unit in each Apartment Complex which initially complied with the Minimum Set-Aside Test (i.e., initial occupancy by tenants with incomes equal to no more than a certain percentage of area median income) and the Rent Restriction Test (i.e., gross rent charged tenants does not exceed 30% of the applicable income standards) is referred to hereinafter as “Qualified Occupancy.”  The Operating Partnership and the respective Apartment Complex is described more fully in the Prospectus.  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 IV L.P. - Series 20

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq Date	Const Comp	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Ashbury Apartments	Sioux Falls, SD	48	$	1,138,137	4/94	6/94	100	%	$	806,117
Bennetts Pointe Apts.	Bennetsville, SC	32	1,328,873		3/94	8/94	100	%	281,100
Bradley Manor	Bradley, AR	25	790,392		8/94	3/95	100	%	182,044
Breeze Cove Apts.	Port Washington, WI	64	2,644,416		5/94	10/94	100	%	2,601,494
Cascades Commons Apts.	Sterling, VA	320	14,241,563		6/94	10/95	100	%	7,132,820
Clarksville Estates	Clarksville, MO	32	686,066		6/94	9/94	100	%	142,639
Club Goldenrod II, Apartments	Orlando, FL	220	7,156,224		4/94	6/95	100	%	3,681,417
College Greene Senior Apts	N. Chili, NY	110	3,712,242		3/95	8/95	100	%	1,918,496
Concordia Manor I	St. Croix, VI	22	1,451,278		8/94	7/95	100	%	490,034
Coushatta Seniors II Apartments	Coushatta, LA	24	705,304		5/94	3/94	100	%	175,182
East Douglas Apartment	Bloomington, IL	51	2,083,380		7/94	12/95	100	%	1,281,690
Edison Lane Apartments	Edison, GA	24	712,943		9/94	10/95	100	%	204,561
Evergreen Hills Apts.	Macedon, NY	72	2,734,009		8/94	1/95	100	%	693,966

4

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq Date	Const Comp	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Fairoaks Lane Apts.	Rincon, GA	44	$	1,401,662	7/94	5/95	100	%	$	339,284
Floral Acres II	Waggaman, LA	32	1,022,690		5/94	8/94	100	%	228,457
Forest Glen Village	Vidalia, GA	46	1,317,667		7/94	2/95	100	%	378,777
Gardenview Apartments	Pasedena, TX	309	4,977,496		6/94	9/95	100	%	2,261,021
Harrisonburg, Seniors  Apts.	Harrison- burg, LA	24	679,874		5/94	1/94	100	%	176,621
Hillside Apartments	Cynthiana, KY	48	767,449		10/94	4/95	100	%	643,850
Kristine Apartments	Bakersfield, CA	60	1,265,475		10/94	10/94	100	%	311,675
Northfield Apts.	Jackson, MS	120	2,829,171		6/94	8/95	100	%	3,273,126
Parkside Apartments	Avondale, AZ	54	649,649		12/94	1/94	100	%	282,547
Riverview Apartments	Franklinton, LA	47	1,678,258		4/94	10/94	100	%	370,000
Shady Lane Senior Apts.	Winnfield, LA	32	932,056		5/94	10/93	100	%	197,200

5

Boston Capital Tax Credit Fund IV L.P. - Series 21

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq Date	Const Comp	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Atlantic City Apts.	Atlantic City, NJ	153	$	5,175,000	9/94	10/95	100	%	$	2,500,000
Black River Run	Black River Falls, WI	48	1,188,136		10/94	12/94	100	%	350,531
Cattaraugus Manor	Cattaraugus, NY	24	1,084,560		8/94	4/95	100	%	263,711
Creekside at Tasker’s Chance	Frederick, MD	120	4,749,380		10/94	9/95	100	%	2,686,170
Forest Glen at Sully Station	Centreville, VA	118	5,731,944		11/94	9/95	100	%	2,649,450
Fort Halifax	Winslow, ME	24	1,111,165		9/94	1/95	100	%	389,085
Havelock Manor Apts.	Havelock, NC	60	1,826,589		12/94	10/95	100	%	347,557
Holly Village	Buchanan, GA	24	704,960		8/94	6/95	100	%	205,400
Liveoak Village	Union Springs, AL	24	755,654		10/94	7/95	100	%	176,953
Lookout Ridge Apts.	Covington, KY	30	618,548		12/94	12/94	100	%	763,038
Pinedale Apartments II	Menomonie, WI	60	1,331,587		10/94	12/94	100	%	869,798
Pumphouse Crossing II Apartments	Chippewa, WI	48	1,217,042		10/94	12/94	100	%	692,840

6

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq Date	Const Comp	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
The Woods Apartments	Campton, NH	20	$	1,013,413	8/94	10/94	100	%	$	269,500
Tower View Apartments	Tower City, PA	25	1,115,293		11/94	5/95	100	%	268,863

7

Boston Capital Tax Credit Fund IV L.P. - Series 22

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Albemarle Village	Hertford, NC	36	$	1,431,305	1/95	9/94	100	%	$	321,628
Apple Village	Edmond, OK	160	3,768,496		11/94	3/96	100	%	1,572,166
Bayou Crossing	Riverview, FL	290	8,615,411		11/94	1/96	100	%	2,854,036
Bellwood Gardens	Ford City, PA	28	1,235,761		6/95	9/9 5	100	%	308,152
Black River Run Apts.	Black River Falls, WI	48	1,188,136		3/95	12/94	100	%	395,279
Clarendon Court	Summerton, SC	40	1,435,854		10/94	4/95	100	%	340,737
Club II Goldenrod	Orlando, FL	220	7,156,224		3/95	6/95	100	%	2,106,975
Cobblestone Apartments	Fuquay, NC	33	1,401,719		1/95	5/94	100	%	326,054
Concordia Manor II	St. Croix, VI	20	1,480,613		1/95	11/95	100	%	259,444
Concordia Manor III	St. Croix, VI	20	1,469,851		2/95	12/95	100	%	264,007
Drakes Branch Elderly	Drakes Branch, VA	32	1,254,181		1/95	6/95	100	%	232,722
Elks Towers Apartments	Litchfield, IL	27	795,675		10/95	12/96	100	%	750,656
Fonda Terrace	Fonda, NY	24	1,013,411		12/94	10/94	100	%	259,387
Highland House	Boston, MA	14	715,700		12/96	5/97	100	%	571,829

8

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Kimbark 1200 Apts.	Longmont, CO	48	$	1,960,989	9/95	12/95	100	%	$	321,843
Kingsway Apartments	Swedsboro, NJ	36	1,800,015		7/95	6/95	100	%	46,290
Lake City Apartments	Lake City, PA	44	1,275,486		8/98	6/98	100	%	240,900
Lake Street Apartments	Girard, PA	32	1,347,650		4/95	9/95	100	%	342,369
Lost Tree Apartments	Branson, MO	88	1,549,505		4/95	6/95	100	%	474,948
Maplewood Apartments	Sacramento, KY	12	430,597		8/95	9/95	100	%	110,881
Marksville Square	Marksville, LA	32	950,950		1/95	1/96	100	%	268,848
Neshoba County	Philadelphia, MS	25	842,112		7/95	8/95	100	%	251,411
Philadelphia Square	Philadelphia, MS	16	538,952		7/95	8/95	100	%	149,950
Quankey Hills	Halifax, NC	24	1,000,533		1/95	3/95	100	%	200,496
Richmond Square	Richmond, MO	32	840,696		12/94	2/95	100	%	818,770
Salem Wood Apartments	Salemburg, NC	24	940,085		1/95	12/94	100	%	181,355
The Birches	Old Orchard Beach, ME	88	2,800,000		1/95	3/96	100	%	1,514,512
Troy Villa Apartments	Troy, MO	64	1,842,166		12/94	6/95	100	%	1,810,416

9

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Twin City Villa	Festus, MO	40	$	1,369,910	1/95	11/95	100	%	$	679,176

10

Boston Capital Tax Credit Fund IV L.P. - Series 23

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Apple Village	Edmond, OK	160	$	3,768,496	11/94	3/96	100	%	$	1,572,166
Bayou Crossing	Riverview, FL	290	8,615,411		4/95	1/96	100	%	4,281,054
Concordia Manor II	St. Croix, VI	20	1,480,613		1/95	11/95	100	%	259,445
Concordia Manor III	St. Croix, VI	20	1,469,851		2/95	12/95	100	%	264,007
Columbia Commons	Hempstead, NY	37	1,219,072		5/95	5/95	100	%	1,501,605
Country Hill Apts. Ph II	Cedar Rapids, IA	92	2,003,329		8/95	6/96	100	%	1,981,495
Great Pines Apts.	Hurleyville, NY	26	1,154,952		7/95	12/95	100	%	340,835
Heatheridge Estates **	Barling, AR	17	765,304		7/95	11/95	100	%	748,240
Ithaca Apts. I	Ithaca, MI	28	639,712		11/95	7/95	100	%	164,008
Kimbark 1200 Apts.	Longmont, CO	48	1,960,989		9/95	12/95	100	%	965,530
La Pensione K Apts.	Sacramento, CA	129	2,451,101		9/95	12/96	100	%	2,650,580
Mathis Apartments	Mathis, TX	32	900,794		1/95	1/95	100	%	219,045
Mid City Apartments	Jersey City, NJ	58	2,841,065		9/95	6/94	100	%	113,679
Orange Grove Seniors	Orange Grove, TX	24	659,878		5/95	2/95	100	%	104,728

11

Property Name	Location	Units	Mortgage Balance as of 12/31/02			Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Philmont Terrace	Philmont, LA	32	$	1,481,857		5/95	5/95	100	%	$	370,750
Riverview Apartments	St. Louis, MO	42	1,135,578			8/95	12/95	100	%	1,160,308
South Hills Apartments	Bellevue, NE	72	1,827,280			6/95	2/96	100	%	1,686,354
St. Peters Villa	St. Peters, MO	54	1,748,012			7/95	3/96	100	%	1,495,685
The Birches	Old Orchard Beach, ME	88	2,800,000			1/95	3/96	100	%	1,399,532
Twin City Villa	Festus, MO	40	1,369,910			2/95	11/95	100	%	679,176
Village Woods Est.	Kansas City, KS	45	1,537,726			5/95	12/95	100	%	1,704,928
Vinsett Estates **	Van Buren, AR	10			**	7/95	11/95	100	%			**
Woodland Hills	Roland, OK	10	293,200			7/95	6/95	100	%	274,540

**  Two properties which make up one Operating Partnership named Barlee Properties L.P. with 27 units.  Entire mortgage balance and contributions are listed with Heatheridge Estates.

12

Boston Capital Tax Credit Fund IV L.P. - Series 24

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Autumn Ridge Apartments	Shenandoah, VA	34	$	1,525,327	7/96	1/97	100	%	$	319,466
Brooks Summit	Blue Ridge, GA	36	1,106,420		12/95	11/96	100	%	223,280
Brownsville Apartments	Brownsville, TN	36	1,190,954		9/95	9/95	100	%	267,091
Century East Apts. IV	Bismark, ND	24	611,365		8/95	8/95	100	%	399,962
Century East Apts. V	Bismark, ND	24	611,365		11/95	9/95	100	%	399,962
Centenary Towers Apts.	St. Louis, MO	100	2,435,000		5/97	12/97	100	%	679,577
Cooper’s Crossing	Irving, TX	93	3,485,836		6/96	12/95	100	%	848,708
Edenfield Apartments	Millen, GA	48	1,251,535		1/96	12/96	100	%	314,827
Elm Street Apartments	Yonkers, NY	35	1,771,308		1/96	1/96	100	%	407,601
Heritage Glen Apts.	Coolidge, AZ	28	1,121,443		4/96	4/96	100	%	373,388
Hillridge Apts	Los Lunas, NM	38	215,000		8/96	6/96	100	%	1,019,255
Lake Apts I	Fargo, ND	24	592,831		8/95	7/95	100	%	399,962
Lakeway Apts	Zwolle, LA	32	857,875		11/95	4/96	100	%	110,902
Laurelwood Park Apts.	High Point, NC	100	2,279,621		2/96	10/96	100	%	2,120,403
Madison Park IV	Boston, MA	143	7,480,131		5/96	3/97	97	%	1,218,903

13

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
New Hilltop Apartments	Laurens, SC	72	$	1,669,914	11/95	11/95	100	%	$	450,039
North Hampton Pl.	Columbia, MO	36	752,514		11/95	3/96	100	%	1,002,996
Northfield Housing, L.P.	Jackson, MS	5	183,259		12/96	9/96	100	%	217,266
Pahrump Valley Apts.	Pahrump, NV	32	1,383,399		7/96	7/96	100	%	335,225
Park Meadow Apartments	Gaylord, MI	80	1,781,058		9/95	4/97	100	%	1,753,158
Shadowcreek Apartments	Overton, NV	24	1,216,411		6/96	9/96	100	%	361,320
Stanton Village Apts.	Stanton, TN	40	1,201,329		9/95	9/95	100	%	279,730
Woodlands Apartments	Elko, NV	24	1,125,907		11/95	9/95	100	%	269,867
Wyandotte Apartments	Los Angeles, CA	73	3,245,714		4/96	2/97	100	%	1,663,747

14

Boston Capital Tax Credit Fund IV L.P. - Series 25

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Dogwood Park Apts .	Athens, GA	127	$	2,532,344	12/95	10/96	100	%	$	3,538,760
Dunlap Acres	West Point, MS	50	1,078,206		9/96	4/96	100	%	522,160
Century East II Apts.	Bismark, ND	24	522,284		8/96	6/96	100	%	371,183
Clarke Manor Apts.	Pokamoke City, MD	30	1,211,927		2/96	4/96	100	%	440,107
Hannah Heights Apts.	Ethel, MS	28	806,612		6/96	12/96	100	%	321,584
Heartland Green Cave	Horse Cave, KY	24	839,140		5/96	11/96	100	%	270,132
Hurricane Hills	Hurricane, UT	49	1,232,903		9/96	4/97	100	%	2,242,394
Laurelwood Park Apts.	High Point, NC	100	2,307,935		2/96	10/96	100	%	946,539
Lenox Ave. Apts.	Manhattan, NY	18	513,285		10/96	9/97	100	%	903,792
Madison Park IV	Boston, MA	143	7,480,131		5/96	3/97	97	%	2,116,938
Main Everett Apts.	New Rochelle, NY	11	603,112		6/96	1/97	100	%	782,852
Maple Hill	New Haven, CT	32	998,687		2/97	2/98	100	%	199,951
Mary Ryder Home	St. Louis, MO	48	72,887		1/97	6/96	100	%	1,591,573
Osborne Apts.	White Plains, NY	7	416,061		6/96	12/96	100	%	522,325

15

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Rose Square	Connellsville, PA	11	$	386,504	10/96	2/97	100	%	$	288,209
Rosewood Estates, II	Bladenboro, NC	16	673,896		9/96	12/96	100	%	124,304
Sandstone Village	Great Falls, MT	48	1,175,986		11/95	8/96	100	%	1,295,623
Shannon Rentals	Shannon, MS	48	1,252,959		4/96	1/97	100	%	324,990
Smith House	Roxbury, MA	132	1,837,630		4/96	3/97	100	%	1,031,269
Sutton Place	Indianopolis, IN	360	5,980,786		11/96	10/97	100	%	647,751
Washington Arms	Dayton, OH	93	1,837,828		2/96	2/95	100	%	203,859
Wyandotte Apts.	Los Angeles, CA	73	3,245,714		4/96	2/97	100	%	2,280,623

16

Boston Capital Tax Credit Fund IV L.P. - Series 26

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Academy Apts.	West Point, VA	32	$	1,155,756	4/97	3/98	100	%	$	263,722
Bradley Estates Phase I	Meriden, CT	74	1,778,168		2/97	12/97	100	%	671,336
Bradley Estates Phase II	Meriden, CT	42	1,060,133		2/97	12/97	100	%	486,861
Brookhaven Apts.	Shrevport, LA	35	1,027,761		2/97	1/97	100	%	573,912
Butler Estates	Leesville, LA	10	165,930		8/96	10/96	100	%	77,627
Calgory Apts. I	Bismark, ND	24	611,356		2/96	12/95	100	%	414,507
Calgory Apts. II	Bismark, ND	24	613,933		2/96	12/95	100	%	414,507
Calgory Apts. III	Bismark, ND	24	608,731		2/96	12/95	100	%	414,507
Cameron Apts.	Cameron, LA	40	748,420		8/96	10/96	100	%	475,965
Country Edge Apts.	Fargo, ND	48	1,039,512		7/97	12/97	100	%	1,128,587
Devonshire II Apts.	London, OH	28	761,022		1/97	12/96	100	%	182,070
Devonshire West Apts.	W. Jefferson, OH	19	528,913		1/97	1/97	100	%	126,983
East Park II Apts.	Dilworth, MN	24	552,350		8/96	8/96	100	%	525,631
Edgewood Park Apts.	Milledge-ville, GA	61	1,500,000		5/96	1/97	100	%	1,477,023

17

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Edgewood Estates Apts.	Edgewood, TX	22	$	606,296	6/97	11/96	100	%	$	173,436
Esche Street SRO	Trenton, NJ	104	2,297,001		4/97	5/98	100	%	3,734,928
Grandview Apartments	Fargo, ND	36	1,131,756		8/96	8/96	100	%	1,069,522
Grayson Manor	Independence, VA	32	1,046,397		3/98	11/98	100	%	656,156
Hallman Court Apts.	Rochester, NY	77	9,044,710		1/99	7/00	100	%	283,873
Hanover Apts.	Ashland, VA	40	1,270,518		11/97	4/98	100	%	295,538
Hanover Towers Apts.	Meriden, CT	100	4,586,221		2/97	11/97	100	%	1,065,649
Hazeltine Apts.	Los Angeles, CA	35	1,379,996		6/96	1/97	100	%	1,606,155
Holly Heights Apts.	Bowling Green, KY	30	1,251,476		5/97	8/97	100	%	362,738
Lake Apts. IV	Fargo, ND	24	623,821		2/96	12/95	100	%	414,507
Lake Apts. V	Fargo, ND	24	597,881		2/96	12/95	100	%	414,507
Lauderdale County Properties	Meriden, MS	48	1,111,687		12/98	5/99	100	%	444,136
Liberty Village Apts.	Liberty, NY	32	1,731,599		1/97	5/97	100	%	437,448

18

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Little Valley Est.	Little Valley, NY	24	$	1,141,423	1/97	4/97	100	%	$	284,257
Maxton Green Apts.	Maxton, NC	32	958,818		9/96	12/96	100	%	263,281
Madison Apartments	Miami Beach, FL	17	1,080,227		3/96	6/97	100	%	896,695
Mason Manor Apts.	Mason, TN	24	922,794		2/96	1/96	100	%	229,775
Mosby Forest Apts.	Littleton, NC	24	677,824		10/96	10/96	100	%	496,753
New Hope Bailey Apts.	De Ridder, LA	40	817,064		8/96	9/96	100	%	455,212
Nordhoff Apts.	North Hills, CA	38	1,962,631		9/96	7/97	100	%	1,787,961
Park Ridge Apartments	Jackson, TN	136	5,000,000		11/98	12/99	100	%	835,861
Powell Valley Village	Jonesville, VA	34	735,464		3/98	12/98	100	%	1,423,248
Southwind Apts. A LDHA	Jennings, LA	36	834,653		8/96	12/96	100	%	428,742
T.R. Bobb Apts.	New Iberia, LA	30	676,662		8/96	12/96	100	%	428,742
Timmons- Ville Green Apts.	Timmonsville, SC	32	1,062,564		10/96	2/97	100	%	292,587
Tremont Station Apartments	Tremont, PA	24	1,149,464		5/96	11/96	100	%	349,889

19

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Village Estates Apts.	Victoria, VA	32	$	1,148,517	4/97	10/98	100	%	$	270,204
Village Green Apts.	Gloucester, VA	32	1,142,469		4/97	11/97	100	%	251,779
Warrensburg Heights	Warrensburg, MO	28	1,105,339		12/96	11/96	100	%	308,825
Westside Apts.	Salem, AR	29	1,032,590		8/96	10/96	100	%	265,020
The Willows Apts.	Smithville, TX	32	798,420		5/96	5/96	100	%	209,768

20

Boston Capital Tax Credit Fund IV L.P. - Series 27

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
AHAB Rental Units Phase II	Springfield, MO	17	$	480,285	6/97	11/97	100	%	$	578,458
Angelou Court Apts.	New York, NY	23	986,635		10/97	8/99	100	%	1,791,275
Canisteo Manor	Canisteo, NY	24	889,480		4/98	4/98	100	%	621,857
The Casa Rosa	San Juan, PR	97	851,418		9/97	4/98	100	%	1,232,936
Forest Glen At Sulluy Station Phase II Atps.	Centreville, VA	119	6,462,143		8/96	6/97	100	%	1,362,808
Harrison Heights Apts.	Harrisonville, MO	48	1,252,626		1/98	12/96	100	%	245,516
Harbor Towers Apts.	Meriden, CT	202	11,400,636		2/97	11/97	100	%	2,895,280
Holly Heights Apts.	Storm Lake, IA	32	491,156		4/97	8/98	100	%	614,058
Lake Apts. II	Fargo, ND	24	593,060		1/97	12/95	100	%	396,024
Magnolia Place Apts.	Gautier, MS	40	866,894		11/97	1/98	100	%	800,027
Northrock Apts.	Topeka, KS	76	2,539,290		5/00	5/00	100	%	610,365
Park Crest Apts.	Sherwood, AR	216	9,200,000		11/99	6/99	100	%	115,311

21

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Pear Village Apts.	Leitchfile, KY	16	$	495,710	8/96	2/97	100	%	$	488,822
Randolph Village	Silver Spring, MD	130	5,695,044		9/96	8/97	100	%	2,240,075
Summer Hill Sr. Apts.	Wayne, NJ	164	9,074,569		11/96	4/98	100	%	2,337,000
Sunday Sun Apts.	Bowling Green, KY	30	866,579		10/96	12/96	100	%	714,938

22

Boston Capital Tax Credit Fund IV L.P. - Series 28

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
1374 Boston Road L.P.	New York, NY	15	$	492,293	2/97	6/97	100	%	$	522,065
Ashberry Manor Apts.	Bardstown, KY	24	636,455		2/97	3/97	100	%	561,330
Bienville III Apts.	Ringold, LA	32	955,724		2/97	2/97	100	%	349,186
Blanchard Apts.	Blanchard, LA	32	906,098		7/97	7/97	100	%	307,218
Chandler Village Apts	Chandler, OK	32	901,986		4/97	7/97	100	%	255,639
Cottonwood Apts.	Cottonwood, LA	24	731,207		7/97	7/97	100	%	248,058
Cottonwood Apts.	Holly Grove, AR	24	926,458		2/97	4/97	100	%	254,856
Evangeline Apts.	Lake Arthur, LA	32	966,118		11/97	1/98	100	%	366,284
Fairway Apts. II	Marlette, MI	48	1,031,364		12/96	3/97	100	%	255,353
Falcon Pointe Apts.	Rosenburg, TX	102	3,067,836		4/98	10/99	100	%	3,191,142
Jackson Place Apts.	Jackson, LA	40	998,492		7/97	10/97	100	%	983,615
Mapelwood Apts.	Winnfield, LA	40	903,952		3/98	8/98	100	%	922,119
Milton Village Apts.	Milton, NY	32	1,172,913		2/97	6/97	100	%	1,192,184
Neighborhood Restorations VII	West Philadelphia, PA	72	2,114,533		2/98	2/98	100	%	3,809,335

23

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Park Plaza I & II	West Memphis, AR	128	$	2,946,619	12/97	11/96	100	%	$	553,954
Park Village Apts.	Athens, TN	80	1,189,692		10/98	6/99	100	%	1,992,486
Pin Oak Village	Bowie, MD	110	8,926,368		11/97	1/96	100	%	3,804,585
Southern Villa Apts.	Russellville, KY	32	1,333,380		11/97	4/98	100	%	323,500
Randolph Village	Silver Spring, MD	130	5,695,044		12/97	8/97	100	%	909,471
Sand Lane Manor Apts.	Henderson, KY	24	665,700		8/97	4/98	100	%	556,478
Senior Suites of Chicago	Chicago, IL	84	4,073,056		12/97	12/98	100	%	3,176,031
Sumner House	Hartford, CT	79	1,110,066		1/98	7/98	100	%	2,010,966
Terraceview Townhomes Apts.	Litchfield MN	22	682,335		7/97	10/97	100	%	726,402
Tilghman Square	Dunn, NC	20	769,657		11/97	10/97	100	%	307,605
Wellston Village Apts.	Wellston, OK	14	372,809		4/97	8/97	100	%	107,258
Yale Village Apts.	Yale, OK	8	196,955		2/98	7/98	100	%	69,341

24

Boston Capital Tax Credit Fund IV L.P. - Series 29

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
The Arbor Park Apts.	Jackson, MS	160	$	5,640,000	12/96	6/98	100	%	$	2,809,826
The Arbors	Richmond, VA	85	2,871,026		7/97	11/98	100	%	2,480,576
Barrington Cove Apts.	Barrington, RI	60	2,041,191		4/97	5/97	100	%	4,264,830
Bent Tree Apts.	Jacksboro, TX	24	594,156		12/97	1/98	100	%	161,552
Colonial Apts.	Poplarville, MS	16	392,005		10/97	7/97	100	%	86,039
Dogwood Apts.	Appomattox, VA	48	1,362,344		10/98	5/99	100	%	637,151
Emerald Trace Apts.	Ruston, LA	48	1,325,314		8/98	4/99	100	%	981,089
Edgewood Apts.	Baker, LA	72	1,965,451		3/97	9/98	100	%	1,856,539
Glenbrook Apts.	Saint Jo, TX	24	501,979		12/97	3/97	100	%	145,871
Harbor Pointe Apts.	Benton Harbor, MI	84	1,537,416		1/99	10/99	100	%	3,209,292
The Lincoln Hotel	San Diego, CA	41	797,847		2/97	7/97	100	%	676,576
Lombard Heights Apts.	Springfield, MO	24	965,294		10/98	7/98	100	%	302,808

25

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Lutkin Bayou Apts.	Drew, MS	36	$	818,994	11/97	6/97	100	%	$	192,283
Nacogdoches Plaza Apts.	Nacodgoches, TX	70	1,551,817		4/97	3/98	100	%	2,793,695
Newcastle Apts.	Collins, MS	36	676,232		9/97	6/98	100	%	194,259
Park Crest Apts.	Sherwood, AZ	216	9,200,000		2/98	6/99	100	%	3,199,520
Palmetto Place Apts.	Benton, LA	40	1,094,545		10/98	4/99	100	%	1,153,878
Pecan Hill Apts.	Bryson, TX	16	378,621		8/97	1/98	100	%	110,600
Regency Apts.	Poplarville, MS	16	454,684		10/97	7/97	100	%	102,419
Rhome Apts.	Rhome, TX	24	506,027		12/97	2/97	100	%	160,551
Westfield Apts.	Welsh, LA	40	790,627		11/97	8/98	100	%	918,605
Willow Point Apts. III	Jackson, MS	120	4,525,000		12/96	2/98	100	%	2,035,596

26

Boston Capital Tax Credit Fund IV L.P. - Series 30

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Byam Village	Waterbury, CT	46	$	1,036,125	2/97	2/98	100	%	$	426,008
Country Estates Apts.	Farmville, VA	24	888,206		3/98	7/99	100	%	223,562
Emerald Trace II Apts	Ruston, LA	24	390,581		7/98	12/98	100	%	717,594
Farewell Mills Apts.	Lisbon, ME	27	775,606		8/97	3/98	100	%	662,864
Hillside Terrace Apts.	Poughkeepsie, NY	64	1,781,009		4/99	7/00	100	%	542,326
Lakewood Apts.	Clarksville, VA	52	1,542,500		3/98	10/99	100	%	394,349
Lone Oak Apts.	Graham, TX	64	1,504,641		8/97	9/98	100	%	408,634
Mesa Grande Apts.	Carlsbad, NM	72	1,958,321		2/98	12/98	100	%	2,160,782
Millwood Park Apts.	Douglasville, GA	172	8,191,837		12/98	11/99	100	%	971,164
New River Gardens	Radford, VA	48	1,461,053		10/98	5/99	100	%	637,321
Nocona Terrace Apts.	Nocona, TX	36	817,388		8/97	12/98	100	%	249,394
Northgate Apts.	Bryant, AR	20	653,773		4/99	11/99	100	%	834,557

27

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Park Trace Apts.	Jackson, TN	84	$	1,615,999	11/97	3/99	100	%	$	3,353,303
Pine Forest Apts.	Dahlgren, VA	40	1,864,956		3/98	2/99	100	%	503,181
Riverbend Apts.	Swanzey, NH	24	611,750		7/97	2/98	100	%	1,321,798
Royal Crest Apts.	Bowie, TX	48	1,101,383		8/97	10/98	100	%	337,545
Broadway Place Apts.	Hobbs, NM	32	769,445		2/98	12/98	100	%	1,837,527
Trinity Life Gardens	Pueblo, CO	44	1,276,805		4/99	12/99	100	%	1,952,175
Western Trails Apts.	Council Bluffs, IA	30	919,789		7/98	6/99	100	%	912,827
Whistle Stop Apts.	Gentry, AR	27	699,934		9/97	5/98	100	%	726,507

28

Boston Capital Tax Credit Fund IV L.P. - Series 31

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Bent Tree Apts.	San Angelou, TX	112	$	2,645,902	12/97	7/99	100	%	$	3,521,950
Brittney Square Apts.	Bowling Green, KY	20	615,951		7/98	7/98	100	%	629,917
Canton Manor Apts.	Canton, MS	32	809,397		11/97	7/98	100	%	271,306
Canton Village Apts.	Canton, MS	42	1,128,638		11/97	7/98	100	%	363,557
Double Springs Manor II Apts.	Bowling Green, KY	25	384,455		9/98	3/99	100	%	985,432
Eagles Ridge Terrace	Decatur, TX	89	1,807,880		12/97	5/98	100	%	467,063
Elmwood Apts.	Ellisville, MS	32	655,941		12/97	6/98	100	%	243,483
Giles Apts.	Amelia, VA	16	716,501		3/98	2/99	100	%	183,711
Henderson Terrace Apts.	Bridgeport, TX	24	518,106		11/97	9/98	100	%	120,846
Hurricane Hills	Hurricane, UT	28	770,408		9/97	8/98	100	%	2,020,271
Madison Height Apts.	Canton, MS	80	2,231,124		11/97	7/98	100	%	786,614

29

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Lakeview Court	City of Little Elm, TX	24	$	442,121	11/97	1/99	100	%	$	83,390
Mesquite Trails	Jacksboro, TX	35	678,710		11/97	11/98	100	%	193,766
Munjoy South Townhouse  Apts.	Portland, ME	140	3,662,717		9/97	10/98	100	%	706,503
Nottoway Manor	Blackstone, VA	28	858,810		3/98	4/99	100	%	214,977
Parktowne Apts.	Cleveland, TN	84	1,566,428		11/97	6/98	100	%	3,363,097
Park Ridge Apts.	McKee, KY	22	885,130		10/97	5/98	100	%	338,464
Pilot Point Apts.	Pilot Point, VA	40	762,219		11/97	2/99	100	%	142,680
Plantation Ridge	Sugar Hill, GA	218	12,790,000		5/98	5/99	100	%	1,974,354
Riverbend Apts.	Bedford, ME	28	778,501		10/97	7/98	100	%	1,578,561
Roth Village	Mechanicsburg, PA	61	2,121,747		10/97	9/98	100	%	2,664,992
Royal Estates Apts.	Canton, MS	32	836,757		11/97	7/98	100	%	282,525
Silver Creek Apts.	Flat Rock, MI	112	3,326,722		3/98	8/99	100	%	4,525,381
Springs Manor Apts.	Rawls Spring, MS	32	824,549		12/97	6/98	100	%	328,693

30

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Summerdale Commons Phase II	Atlanta, GA	108	$	3,733,111	12/98	4/99	100	%	$	2,496,904
Windsor Hills Apts.	Ferris, TX	16	$	450,241	5/00	9/00	100	%	77,706
Windsor Park Apts.	Jackson, MS	279	7,500,000		11/97	3/99	100	%	2,346,847

31

Boston Capital Tax Credit Fund IV L.P. - Series 32

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02			Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Carriage Pointe Apts.	Old Bridge, NJ	18	$	7,439,635		1/98	1/97	100	%	$	3,051,011
Chardonnay Apts.	Oklahoma City, OK	14	73,891			1/98	1/97	100	%	393,700
Cogic Village Apts.	Benton Harbor, MI	136	2,380,023			4/98	7/99	100	%	6,669,762
Courtside Apts.	Cottonwood, AZ	44	894,138			6/98	7/98	100	%	1,667,188
Clear Creek Apts.	N. Manchester, IN	64	1,643,345			7/98	9/99	100	%	1,884,358
Columbia Luxar	Dallas, TX	125	3,589,850			8/98	12/99	100	%	3,947,106
Colony Park Apts.	Pearl, MS	192	8,000,000			6/98	12/99	100	%	2,911,900
Gilette Manor	Sayreville, NJ	100			**	1/98	1992	100	%			**
Hallman Court Apts.	Rochester, NY	77	9,044,710			1/99	7/00	100	%	232,259
Martinsville Apts.	Shelbyville, KY	125	236,938			8/99	2/00	100	%	345,791
Parkside Plaza Apts	New York, NY	39	1,283,045			7/99	5/01	100	%	2,611,014
Park Ridge Apts.	Jackson, TN	136	5,000,000			11/98	12/99	100	%	1,637,102
Park Village Apts.	Athens, TN	80	1,189,692			10/98	6/99	100	%	1,503,103
Pearlwood Apts.	Pearl, MS	40	947,268			2/98	5/98	100	%	745,648
Rose Villa Apts.	Ganado, TX	8	216,466			5/01	11/01	100	%	43,692

32

Property Name	Location	Units	Mortgage Balance as of 12/31/02			Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Pecan Manor Apts.	Natchitoches, LA	40	$	777,437		7/98	10/98	100	%	$	1,501,914
Pineridge Apts.	Franklinton, LA	40	796,591			7/98	1/99	100	%	1,497,889
Sterling Creek Apts.	Independence, MO	48	912,529			5/98	5/00	100	%	1,973,594
Woodhaven Apts.	S. Brunswick, NJ	80			**	1/98	1995	100	%			**

**3 properties which make up one Operating Partnership named FFLM Associates LP with 194 units.  Entire mortgage balance and capital contributions paid reported with Carriage Pointe Apartments LP.

33

Boston Capital Tax Credit Fund IV L.P. - Series 33

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02			Acq Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Bradford Park Apts.	Southhaven, MS	208	$	9,790,000		10/98	12/99	100	%	$	302,884
Bradford Square North Apts.	Jefferson City, TN	50	1,049,494			10/98	9/99	100	%	1,456,415
Carriage Pointe Apts.	Old Bridge, NJ	18	7,439,635			3/98	1/97	100	%	3,051,011
Columbia Luxar	Dallas, TX	125	3,589,850			8/98	12/99	100	%	3,947,106
Foxridge Apts.	Durham, NC	92	3,060,514			3/98	7/99	100	%	3,652,119
Gilette Manor	Sayreville, NJ	100			**	1/98	1992	100	%			**
Harbor Pointe	Benton Harbor, MI	84	1,537,416			1/99	10/99	100	%	1,157,091
Merchant Court	Dallas, GA	192	5,980,841			10/98	12/99	100	%	2,422,226
Northrock Apts.	Topeka, KS	76	2,539,290			5/99	5/00	100	%	1,133,534
Stearns-Assisted	Millinocket, ME	20	435,500			12/99	3/01	100	%	675,984
Stonewall Retirement Village	Stonewall, LA	40	879,266			7/98	1/99	100	%	1,495,966
Woodhaven Apts.	S. Brunswick, NJ	80			**	1/98	1995	100	%			**

**3 properties which make up one Operating Partnership named FFLM Associates LP with 194 units.  Entire mortgage balance and capital contributions paid reported with Carriage Pointe Apartments LP.

34

Boston Capital Tax Credit Fund IV L.P. - Series 34

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq Date	Const Comp	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Abby Ridge Apts.	Elizabethtown, KY	24	$	472,651	2/00	1/00	100	%	$	1,577,723
Allsion Apts.	Mt. Washington, KY	24	871,667		11/98	1/99	100	%	850,013
Belmont Affordable Housing Two Apts.	Philadelphia, PA	20	505,044		1/99	12/99	100	%	1,820,797
Boerne Creekside Apts.	Boerne, TX	71	2,020,713		11/98	6/00	100	%	2,303,497
Bradford Park Apts.	Southaven, MS	208	9,790,000		3/99	12/99	100	%	2,868,684
Hillside Club Apts.	Bear Creek Township, MI	56	1,670,656		10/98	12/99	100	%	2,087,333
Howard Park Apts	Florida City, FL	16	379,144		4/99	12/99	100	%	630,834
Kerrville Meadows Apts.	Kerrville, TX	72	1,577,114		11/98	4/00	100	%	2,329,758
Merchant Court Apts.	Dallas, GA	192	5,980,841		10/98	12/99	100	%	4,718,773
Millwood Park Apts.	Douglasville, GA	172	8,191,837		12/98	11/99	100	%	1,870,576
Northwood Homes	Leitchfield, KY	24	783,030		4/99	6/99	100	%	1,185,712
Romeo Village Apts.	Montour Falls, NY	24	1,020,464		10/98	4/99	100	%	753,362

35

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Summer Park Apts.	Jackson, MS	216	$	10,550,000	10/99	6/00	100	%	$	1,106,814
Washington Courtyards	Houston, TX	74	2,839,869		8/99	8/00	100	%	1,448,573

36

Boston Capital Tax Credit Fund IV L.P. - Series 35

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Ashton Cove Apts.	Kingsland, GA	72	$	1,953,875	1/00	4/00	100	%	$	2,557,680
Autumn Park	Dickson, TN	104	5,000,000		4/99	12/99	100	%	1,463,162
Brazoswood Apts.	Clute, TX	72	1,985,833		7/99	7/00	100	%	3,074,829
Columbia Woods Townhomes	Newman, GA	120	5,516,794		10/00	6/02	100	%	1,310,103
Country Walk Apts.	Mulvane, KS	68	1,979,350		12/98	11/99	100	%	1,923,697
Cypress Pointe Retirement Apts.	Casa Grande, AZ	104	1,595,206		4/99	3/00	100	%	2,680,499
Garden Gates Apts. II	New Caney, TX	32	850,681		3/99	3/00	100	%	1,067,950
Hillside Terrace Apts.	Poughkeepsie, NY	64	1,781,009		4/99	7/00	100	%	3,977,051
Riverwalk Apt. Homes Phase II	Sheboygan, WI	20	413,880		12/98	7/99	100	%	1,354,092
Washington Courtyards	Houston, TX	74	2,839,869		8/99	8/00	100	%	606,140
Wedgewood Park Apts.	Evans, GA	180	5,421,280		12/99	8/00	100	%	3,229,037

37

Boston Capital Tax Credit Fund IV L.P. - Series 36

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Annadale Apts.	Fresno, CA	222	$	11,144,863	1/00	6/90	100	%	$	548,563
Ashton Ridge	Jackson, MI	144	2,646,471		2/00	12/00	100	%	1,430,296
Farmington Meadows	Aloha, OR	69	3,396,420		8/99	11/99	100	%	530,154
Nowata Village	Nowata, OK	28	1,256,757		8/99	2/00	100	%	330,497
Paris Place	Paris, KY	32	1,256,104		6/00	9/00	100	%	930,412
Riverview Bend Apts.	Cystal City, MO	94	3,312,500		11/99	3/00	100	%	1,210,500
Senior Suites Of Chicago Washington Heights	Chicago, IL	85	3,413,006		12/99	11/00	100	%	2,220,659
Valleyview Estates Apts.	Branson West, MO	32	463,819		11/99	5/00	100	%	1,306,789
Wedgewood Park Apts.	Evans, GA	180	5,421,280		12/99	8/00	100	%	3,229,037
Willowbrook Apts.	Lafayette, LA	40	1,053,826		6/99	9/99	100	%	1,200,789
Wingfield Apts.	Kinder, LA	40	684,516		6/99	7/99	100	%	1,645,817

38

Boston Capital Tax Credit Fund IV L.P. - Series 37

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Ashton Ridge Apts.	Jackson, MS	144	$	2,646,471	02/00	12/00	100	%	$	6,003,938
Baldwin Villas	Pontiac, MI	65	7,648,775		10/99	7/01	100	%	-0-
Columbia Woods Townhomes	Newnan, GA	120	5,516,794		10/00	6/02	100	%	3,285,137
Senior Suites of Washington Heights	Chicago, IL	85	3,413,006		12/99	11/00	100	%	2,220,659
Silver Pond Apts.	Wallingford, CT	160	4,503,931		6/00	12/01	100	%	1,484,663
Stearns Assisted Apts.	Millinocket, ME	20	435,500		12/99	3/01	100	%	1,407,173
Summer Park	Jackson, MS	216	10,550,000		10/99	6/00	100	%	2,379,767

39

Boston Capital Tax Credit Fund IV L.P. - Series 38

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Andover Crossing Apts.	Andover, KS	80	$	2,635,662	5/00	12/00	100	%	$	1,772,874
Arbors at Eagle Crest Apts.	Mount Pleasant, MI	120	1,778,353		12/00	10/01	100	%	3,512,499
Bristow Place Apts.	Bristow, OK	28	1,238,788		6/01	12/00	100	%	487,648
Columbia Creek Apts.	Woodstock, GA	172	5,600,000		8/01	11/01	100	%	2,795,601
Cushing Place Apts.	Cushing, OK	24	1,104,910		3/00	10/00	100	%	428,559
Hammond Place Apts.	Hammond, LA	40	494,484		3/00	4/00	100	%	1,706,341
Shoreham Apts.	Houston, TX	120	2,124,578		4/00	7/01	100	%	6,020,750
Vanderbilt Apts.	Edna, TX	12	327,979		5/01	10/01	100	%	96,530
Whitley Park Apts.	Whitley City, KY	21	910,854		6/00	6/00	100	%	302,339
Willowbrook II Apts.	Lafayette, LA	40	972,135		3/00	5/00	100	%	1,247,680

40

Boston Capital Tax Credit Fund IV L.P. - Series 39

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Capital Contributions Paid Through 3/31/03
Arbors at Eagle Crest Apts.	Mount Pleasant, MI	120	$	1,778,353	12/00	10/01	100	%	$	3,512,499
Arbors at Ironwood Apts.	Mishawaka, IN	88	1,815,392		7/00	9/01	100	%	3,772,295
Austin Acres Atps.	Hopkinsville, KY	32	874,755		11/00	9/01	100	%	1,268,756
Columbia Creek Apts.	Woodstock, GA	172	5,600,000		8/01	11/01	100	%	2,909,708
Daystar Village Apts.	Bowling Green, KY	32	807,075		2/01	1/01	100	%	1,113,443
Hillview Apts.	Leitchfield, KY	34	919,540		5/01	12/01	100	%	325,587
Pine Grove Community	Gouverneur, NY	48	1,125,000		12/00	10/01	100	%	2,923,942
Tally-Ho Apts.	Campti, CA	26	580,993		6/01	12/01	100	%	485,057
Timber Trails Apts.	Pineville, LA	32	821,164		6/01	7/01	100	%	499,829

41

Boston Capital Tax Credit Fund IV L.P. - Series 40

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02	Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Arbors @ Ironwood Apts. II	Mishawaka, IN	40	903,000	2/01	11/01	100	%	1,771,758
Baldwin Villas Apts.	Pontiac, MI	65	7,648,775	8,01	7/01	100	%	-0-
Carlyle Apts.	Aberdeen, SD	44	906,643	2/01	6/01	100	%	1,359,155
Center Place Apts.	Center, TX	32	786,740	08/01	10/01	100	%	428,835
Eagle Lake Gardens Apts.	Azle, TX	60	1,245,222	10/01	5/02	100	%	666,179
Londontown Homes Apts.	London, KY	24	598,355	2/01	6/01	100	%	1,836,027
Mason’s Point Apts.	Hopkinsville, KY	41	1,208,315	06/01	7/02	100	%	1,824,270
Meadowside Apts.	Milo, NY	40	1,576,004	05/01	12/01	100	%	855,372
Northrock Apts. II	Topeka, KS	60	2,385,435	07/01	5/02	100	%	1,838,666
Oakland Apts.	Oakdale, LA	46	1,249,560	2/01	7/01	100	%	767,451
Parkview Apts.	Springfield, MA	25	1,526,654	2/01	2/02	100	%	1,099,359
Sedgewick Sundance Apts.	Sedgewick, KS	24	915,000	09/01	10/01	100	%	1,365,004
Southbrook Humes Apts.	Kily, KY	24	545,460	04/01	11/01	100	%	1,866,896
Shalom Plaza Apts.	Kansas City, MO	126	3,857,866	08/01	11/01	100	%	1,273,119
Springfield Crossing	Springfield, VA	347	26,052,055	6/02	10/01	100	%	574,922
Western Gardens Apts.	Dequincey, LA	48	1,297,391	2/01	7/01	100	%	782,188

42

Boston Capital Tax Credit Fund IV L.P. - Series 41

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02		Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Bienville Apts.	Ringhold, LA	32	$	815,086	12/01	11/01	100	%	$	488,488
Breezewood Villas I	Frederiksted, VI	12	1,000,454		10/01	6/02	100	%	493,536
Brookstone Place II Apts.	Port Huron, MI	72	2,481,872		8/01	8/02	100	%	2,838,577
Cedar Grove Apartments Phase I	Shepherdsville, KY	36	1,066,439		5/02	7/01	100	%	424,955
Cranberry Cove Apartments	Beckley, WV	28	1,001,136		5/02	1/02	100	%	514,844
Dawson Square	Thornton, CO	36	1,716,000		7/02	U/C	N/A		-0		-
Franklin Green	Franklin Grove, IL	12	393,878		5/02	9/01	100	%	268,476
Harbor Point II Apts.	Benton Township, MI	72	1,672,163		8/01	10/02	100	%	2,043,005
Hollywood Palms Apts.	San Diego, CA	94	10,004,500		3/02	11/02	100	%	1,895,913
Marina Woods Apts.	Halfmoon, NY	32	1,348,733		7/01	4/02	100	%	1,396,645
Marwood Senior Apts.	Upper Marlboro, MD	155	12,377,110		7/01	8/02	57	%*	969,716
Meadowside Apts.	Milo, NY	40	1,576,004		5/01	12/01	100	%	855,372
Mill Creek Village	Mt. Carroll, IL	12	417,278		5/02	9/01	100	%	237,980
Northline Terrace	Mentoda, IL	24	739,001		5/02	6/01	100	%	478,869
Palisades Park	Fulton, IL	16	558,001		5/02	9/01	100	%	346,361

43

Property Name	Location	Units	Mortgage Balance as of 12/31/02	Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Red Hill Apts. I	Farmerville, LA	32	839,469	11/01	6/01	100	%	502,692
Sandalwood Apartments	Toppenish, WA	20	998,413	5/02	7/01	100	%	293,983
Southpark Apts. II	Newton, KS	60	1,586,355	9/01	5/02	100	%	2,117,956
Springfield Crossing	Springfield, VA	347	26,052,055	6/02	10/01	100	%	702,682
Sunshine Village Apts.	Elizabethtown, KY	32	892,495	3/02	8/02	100	%	1,158,254

U/C=Property was under construction as of March 31, 2003.

*Property was in lease-up phase as of March 31,2003.

44

Boston Capital Tax Credit Fund IV L.P. - Series 42

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02	Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Bellamy Mills Apartments	Dover, NH	30	1,678,496	4/02	12/02	73	%*	$	1,910,000
Breezed Villas II	Frederiksted, VI	12	756,490	4/02	3/03	0	%*	373,791
Canon Club	Canon City, CO	46	1,190,000	7/02	U/C	N/A		-0-
Clifton Family Housing	Clifton, CO	51	3,019,000	7/02	U/C	N/A		-0-
Dorchester Apartments	Port Huron, MI	131	1,521,613	4/02	U/C	N/A		724,167
Harbor Pointe Apartments II	Benton Township, MI	72	1,672,163	4/02	10/02	100	%	1,541,290
Helios Station	Lafayette, CO	30	1,735,000	7/02	U/C	N/A		-0-
Hollywood Palm Apartments	San Diego, CA	94	10,004,500	8/02	11/02	100	%	1,283,388
Lynelle Landing Apts.	Charleston, WV	56	1,613,096	3/02	9/02	100	%	1,609,227
Natchez Place Apartments	Natchez, MS	32	843,071	8/02	11/01	100	%	554,881
Park Plaza IV	West Memphis, AR	24	1,053,936	6/02	10/02	100	%	1,162,702
Park West Seniors	Denver, CO	41	1,546,000	7/02	U/C	N/A		-0-
Parkhurst Place	Amherst, NH	42	3,563,000	1/02	9/02	50	%*	406,409
Strawberry Lane Apts.	Clayton, NY	71	1,987,305	3/02	8/02	100	%	605,330

45

Property Name	Location	Units	Mortgage Balance as of 12/31/02	Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Sunrise Manor Seniors.	Buena Vista, CO	40	2,014,000	7/02	U/C	N/A		-0-
Tiffany Square	Lakewood, CO	52	1,671,000	7/02	U/C	N/A		-0-
Wingfield Apartments II	Kinder, LA	42	612,434	8/02	11/01	100	%	1,066,780

U/C=Property was under construction as of March 31, 2003.

* Property was in lease-up phase as of March 31, 2003.

46

Boston Capital Tax Credit Fund IV L.P. - Series 43

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02	Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Alexander Mill Apartments	Lawrenceville, GA	224	13,800,000	12/02	1/03	34	%*	$	1,317,468
Aspen Meadows	Aurora, CO	100	5,169,000	9/02	U/C	N/A		-0-
Ashbury Park	Aurora, CO	44	2,492,000	9/02	U/C	N/A		-0-
Carpenter School	Natchez, MS	38	-0-	1/03	U/C	N/A		-0-
Charlevoix Apartments	Charlevoix, MI	40	1,277,701	9/02	11/02	100	%	220,530
Cloverlane Apartments	Lakeview, MI	24	500,916	9/02	10/02	100	%	352,666
Dorchester Apartments	Port Huron, MI	131	1,521,613	9/02	U/C	64	%*	524,415
Hollywood Palm Apartments	San Diego, CA	94	10,004,500	12/02	11/02	100	%	2,654,279
Kearney Plaza	Commerce City, CO	51	1,533,000	9/02	U/C	N/A		-0-
Lakewood Apartments	Saranac, MI	24	846,675	9/02	10/02	100	%	380,485
Parkside Apartments	Coleman, MI	40	1,002,017	9/02	12/02	90	%*	711,492
Riverview Apartments	Blissfield, MI	32	756,287	9/02	02/02	94	%*	359,064
Seven Points Apartments	Seven Points, TX	36	743,643	9/02	U/C	64	%*	524,415

47

Property Name	Location	Units	Mortgage Balance as of 12/31/02	Acq. Date	Const Comp.	Qualified Occupancy 3/31/03	Cap Con paid thru 3/31/03
Sheridan Gardens	Englewood, CO	48	2,167,000	9/02	U/C	N/A	-0-
Stottville  Court Apartments	Stockport, NY	28	625,823	9/02	U/C	N/A	703,290
Village Gardens	Aurora, CO	55	2,026,000	9/02	U/C	N/A	-0-

48

Boston Capital Tax Credit Fund IV L.P. - Series 44

PROPERTY PROFILE AS OF MARCH 31, 2003

Property Name	Location	Units	Mortgage Balance as of 12/31/02	Acq. Date	Const Comp.	Qualified Occupancy 3/31/03		Cap Con paid thru 3/31/03
Alexander Mills Apts	Lawrenceville, GA	224	N/A	2/03	1/03	34	%	$	1,610,241
Aurora Village Sr.	Aurora, CO	100	N/A	2/03	U/C	N/A		-0-
Green’s Landing	Whitley, KY	24	N/A	2/03	U/C	N/A		-0-
Oxford Manor	New Oxford, PA	32	N/A	3/03	U/C	N/A		-0-

49

Item 3.	Legal Proceedings
	None.
Item 4.	Submission of Matters to a Vote of Security Holders
	None.

50

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, 2003, the Fund has 40,176 BAC holders for an aggregate of 75,662,578 BACs, at a subscription price of $10 per BAC, received and accepted.
		The BACs were issued in series.  Series 20 consists of 2,355 investors holding 3,866,700 BACs, Series 21 consists of 1,180 investors holding 1,892,700 BACs, Series 22 consists of 1,662 investors holding 2,564,400 BACs, Series 23 consists of 2,104 investors holding 3,336,727 BACs, Series 24 consists of 1,304 investors holding 2,169,878 BACs, Series 25 consists of 1,808 investors holding 3,026,109 BACs, Series 26 consists of 2,334 investors holding 3,995,900 BACs, Series 27 consists of 1,363 investors holding 2,460,700 BACs, Series 28 consists of 2,092 investors holding 4,000,738 BACs, Series 29 consists of 2,341 investors holding 3,991,800 BACs, Series 30 consists of 1,413 investors holding 2,651,000 BACs, Series 31 consists of 2,176 investors holding 4,417,857 BACs, Series 32 consists of 2,418 investors holding 4,754,198 BACs, Series 33 consists of 1,301 investors holding 2,636,533 BACs, Series 34 consists of 1,785 investors holding 3,529,319 BACs, Series 35 consists of 1,718 investors holding 3,300,463 BACs, Series 36 consists of 1,038 investors holding 2,106,837 BACs, Series 37 consists of 1,166 investors holding 2,512,500 BACs, Series 38 consists of 1,248 investors holding 2,543,100 BACs, Series 39 consists of 1,020 investors holding 2,292,152 BACs, Series 40 consists of 1,124 investors holding 2,630,256 BACs, Series 41 consists of 1,418 investors holding 2,891,626 BACs, Series 42 consists of 1,266 investors holding 2,744,262 BACs, Series 43 consists of 1,686 investors holding 3,637,987 BACs and Series 44 consists of 833 investors holding 1,708,836 BACs at March 31, 2003
	(c)	Dividend history and restriction
		The Fund has made no distributions of Net Cash Flow to its BAC Holders from its inception, October 5, 1993 through March 31, 2003.
		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.

51

Fund allocations and distributions are described on pages 99 to 101 of the Prospectus, as supplemented, under the caption “Sharing Arrangements:  Profits, Credits, Losses, Net Cash Flow and Residuals”, which is incorporated herein by reference.

During the year ended March 31, 1999, the Fund made a return of equity distribution to the Series 27 Limited Partners in the amount of $275,000.  During the year ended March 31, 2000 the Fund made a return of equity distribution to the Series 29 Limited Partners in the amount of $238,040.  The distributions were the result of certain Operating Partnerships not achieving their projected tax credits.

52

Item 6.Selected Financial Data

The information set forth below presents selected financial data of the Fund. This financial information represents a weighted average over the entire Fund and does not represent the actual results for any particular series. Additional detailed financial information is set forth in the audited financial statements listed in Item 15 hereof.  Selected financial data for year and Periods ended March 31,

Operations	2003			2002			2001			2000			1999
Interest & Other Income	$	1,111,234		$	926,439		$	2,478,585		$	3,089,965		$	4,604,150
Share of Loss of Operating Partnerships	(26,840,274		)	(30,093,432		)	(27,258,366		)	(22,255,032		)	(16,178,884		)
Operating Expenses	(8,633,964		)	(7,077,762		)	(6,872,178		)	(7,491,481		)	(5,902,620		)
Net Income  (Loss)	$	(34,363,004	)	$	(36,244,755	)	$	(31,651,959	)	$	(26,656,548	)	$	(17,477,354	)
Net Income (Loss) per BAC	$	(.49	)	$	(.54	)	$	(.52	)	$	(.47	)	$	(.36	)

Balance Sheet	2003		2002		2001		2000		1999
Total Assets	$	515,493,920	$	493,374,022	$	477,547,823	$	478,148,369	$	456,501,585
Total Liabilities	$	51,517,741	$	57,058,109	$	53,445,738	$	62,060,171	$	79,434,074
Partners’ Capital	$	463,976,179	$	436,315,913	$	424,102,085	$	416,088,198	$	377,067,511
Other Data
Tax Credits per BAC for the Investors Tax Year, the Twelve Months Ended December 31, 2002, 2001, 2000, 1999, and 1998	$	.95	$	.97	$	.96	$	.78	$	.71

53

Item 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements such as our intentions, hopes, beliefs, expectations, strategies and predictions of our future activities, or other future events or conditions. Such statements are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1993, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including, without limitation, the factors identified in Part I, Item 1 of this Report. Although we believe that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and, therefore, there can be no assurance that the forward-looking statements included in this Report will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved.

Liquidity

The Fund’s primary source of funds 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 (ii) cash distributions from operations of the Operating Partnerships in which the Fund has and will invest and (iii) a line of credit.  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 has entered into a line of credit financing agreement with Fleet National Bank whereby the Fund can borrow up to $40 million for up to 90 days to meet short-term cash needs required for the investment in certain Operating Partnerships.  Under the terms of the agreement, the Fund pledges their interest in a particular Operating Partnership in order to draw funds from the line.  The repayment of any draws is anticipated to be made once the Fund has received sufficient investor proceeds.  Repayments on the line are tied to specific Operating Partnerships, which are then released as collateral by the bank.  The obligations under the line of credit are non-recourse to the Fund, its partners and assets, other than the interest in the particular Operating Partnerships pledged.

The Fund invests in short-term tax-exempt municipal bonds to decrease the amount of taxable interest income that flows through to it’s investors.  The Fund anticipates that the investments it purchases will be held to maturity, but periodically the Fund must sell investments to meet certain obligations.  Many of the investments sold during the years ended March 31, 2002 and 2003 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, thereby maximizing safety of principal.

54

Capital Resources

The Fund is offering BACs in a Public Offering originally declared effective by the Securities and Exchange Commission on December 16, 1993.  The Fund received and accepted subscriptions for $756,292,860 representing 75,662,578 BACs from investors admitted as BAC Holders in Series 20 through 44 of the Fund.  As of March 31, 2003 the Fund was continuing to offer BACs in Series 44.

(Series 20).  The Fund commenced offering BACs in Series 20 on January 21, 1994.  The Fund received and accepted subscriptions for $38,667,000 representing 3,866,700 BACs from investors admitted as BAC Holders in Series 20.  Offers and sales of BACs in Series 20 were completed and the last of the BACs in Series 20 were issued by the Fund on June 24, 1994.

During the fiscal year ended March 31, 2003, none of Series 20 net offering proceeds were used to pay installments of its capital contributions to the Operating Partnerships.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 20 had been used to invest in 24 Operating Partnerships in an aggregate amount of $28,614,472 and the Fund had completed payment of all installments of its capital contributions to 23 of the Operating Partnerships. Series 20 has outstanding contributions payable to one operating partnership in the amount of $388,026 as of March 31, 2003. Of the amount outstanding, $252,771 has been advanced to the Operating Partnership.  The advance will be converted to capital and the remaining contributions of $135,255 will be released when the Operating Partnership has achieved the conditions set forth in its partnership agreement.

(Series 21).  The Fund commenced offering BACs in Series 21 on July 5, 1994.  The Fund received and accepted subscriptions for $18,927,000 representing 1,892,700 BACs from investors admitted as BAC Holders in Series 21.  Offers and sales of BACs in Series 21 were completed and the last of the BACs in Series 21 were issued by the Fund on September 30, 1994.

During the fiscal year ended March 31, 2003, none of Series 21 net offering proceeds were used to pay installments of its capital contributions to the Operating Partnerships.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 21 had been used to invest in 14 Operating Partnerships in an aggregate amount of $13,872,728 and the Fund had completed payment of all installments of its capital contributions to 12 of the Operating Partnerships. Series 21 has outstanding contributions payable to 2 operating partnerships in the amount of $457,642 as of March 31, 2003, all of which has been loaned to the Operating Partnerships.  The loans will be converted to capital when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

(Series 22).  The Fund commenced offering BACs in Series 22 on October 12, 1994.  The Fund received and accepted subscriptions for $25,644,000 representing 2,564,400 BACs from investors admitted as BAC Holders in Series 22.  Offers and sales of BACs in Series 22 were completed and the last of the BACs in Series 22 were issued by the Fund on December 28, 1994.

During the fiscal year ended March 31, 2003, $1,500 of Series 22 net offering proceeds were used to pay installments of its capital contributions to 1 of the Operating Partnerships.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 22 had been used to invest in 29 Operating Partnerships

55

in an aggregate amount of $18,758,748 and the Fund had completed payment of all installments of its capital contributions to 26 of the Operating Partnerships. Series 22 has outstanding contributions payable to 3 operating partnerships in the amount of $480,996 as of March 31, 2003, all of which has been loaned to the Operating Partnerships.  The loans will be converted to capital when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

(Series 23).  The Fund commenced offering BACs in Series 23 on January 10, 1995.  The Fund received and accepted subscriptions for $33,366,000 representing 3,336,727 BACs from investors admitted as BAC Holders in Series 23.  Offers and Sales of BACs in Series 23 were completed and the last of the BACs in Series 23 were issued by the Fund on June 23, 1995.

During the fiscal year ended March 31, 2003, none of Series 23 net offering proceeds were used to pay installments of its capital contributions to the Operating Partnerships.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 23 had been used to invest in 22 Operating Partnerships in an aggregate amount of $24,352,278 and the Fund had completed payment of all installments of its capital contributions to 19 of the Operating Partnerships. Series 23 has outstanding contributions payable of $117,796 as of March 31, 2003 to 3 operating partnerships, all of which has been advanced or loaned to the Operating Partnerships.  The advances and loans will be converted to capital when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

(Series 24).  The Fund commenced offering BACs in Series 24 on June 9, 1995.  The Fund received and accepted subscriptions for $21,697,000 representing 2,169,878 BACs from investors admitted as BAC Holders in Series 24.  Offers and Sales of BACs in Series 24 were completed and the last of the BACs in Series 24 were issued by the Fund on September 22, 1995.

During the fiscal year ended March 31, 2003, the Fund used $88,621 of Series 24 net offering proceeds to pay installments of its capital contributions to 2 Operating Partnerships.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 24 had been used to invest in 24 Operating Partnerships in an aggregate amount of $15,749,684 and the Fund had completed payment of all installments of its capital contributions to 20 of the Operating Partnerships. Series 24 has outstanding contributions payable to 4 operating partnerships in the amount of  $368,239 as of March 31, 2003.  Of the amount outstanding, $358,239 has been advanced or loaned to the Operating Partnerships.  The advances and loans will be converted to capital and the remaining contributions of $10,000 will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

(Series 25).  The Fund commenced offering BACs in Series 25 on September 30, 1995.  The Fund received and accepted subscriptions for $30,248,000 representing 3,026,109 BACs from investors admitted as BAC Holders in Series 25.  Offers and Sales of BACs in Series 25 were completed and the last of the BACs in Series 25 were issued by the Fund on December 29, 1995.

During the fiscal year ended March 31, 2003, the Fund used $134,613 of Series 25 net offering proceeds to pay installments of its capital contributions to 2 Operating Partnerships.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 25 had been used to invest in 22 Operating Partnerships in an aggregate amount of $22,461,222 and the Fund had completed payment of all

56

installments of its capital contributions to 17 of the Operating Partnerships. Series 25 has outstanding contributions payable to 5 Operating Partnerships in the amount of $943,704 as of March 31, 2003. Of the amount outstanding, $706,465 has been advanced to some of the Operating Partnerships. The advances will be converted to capital and the remaining contributions of $237,239 will be released when Operating Partnerships have achieved the conditions set forth in their partnership agreements.

(Series 26).  The Fund commenced offering BACs in Series 26 on January 18, 1996.  The Fund received and accepted $39,959,000 representing 3,995,900 BACs from investors admitted as BAC Holders in Series 26. Offers and sales of BACs in Series 26 were completed and the last of the BACS in Series 26 were issued by the Fund on June 14, 1996.

During the fiscal year ended March 31, 2003, the Fund used $50,978 of Series 26 net offering proceeds to pay installments of its capital contributions to the Operating Partnerships.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 26 had been used to invest in 45 Operating Partnerships in an aggregate amount of $29,390,860 and the Fund had completed payment of all installments of its capital contributions to 34 of the Operating Partnerships. Series 26 has outstanding contributions payable to 11 Operating Partnerships in the amount of $1,475,380, as of March 31, 2003.  Of the amount outstanding, $1,400,060 has been advanced or loaned to some of the Operating Partnerships. In addition, $15,000 has been funded into escrow accounts on behalf of other Operating Partnerships.  The advances and loans will be converted to capital and the remaining contributions of $60,320, as well as the escrowed funds, will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

(Series 27).  The Fund commenced offering BACs in Series 27 on June 17, 1996. The Fund received and accepted $24,607,000 representing 2,460,700 BACs from investors admitted as BAC Holders in Series 27. Offers and sales of BACs in Series 27 were completed and the last of the BACS in Series 27 were issued by the Fund on September 27, 1996.

During the fiscal year ended March 31, 2003, the Fund used $107,464 of Series 27 net offering proceeds to pay installments of its capital contributions to 2 Operating Partnerships.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 27 had been used to invest in 16 Operating Partnerships in an aggregate amount of $17,881,544 and the Fund had completed payment of all installments of its capital contributions to 13 of the Operating Partnerships. Series 27 has outstanding contributions payable to 3 operating partnerships in the amount of $39,749 as of March 31, 2003.  Of the amount outstanding, $6,500 has been advanced to one of the Operating Partnerships.  The advance will be converted to capital and the remaining contributions of $33,249 will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

(Series 28).  The Fund commenced offering BACs in Series 28 on September 30, 1996.  The Fund received and accepted $39,999,000 representing 4,000,738 BACs from investors admitted as BAC Holders in Series 28. Offers and sales of BACs in Series 28 were completed and the last of the BACS in Series 28 were issued by the Fund on January 31, 1997.

During the fiscal year ended March 31, 2003, none of Series 28 net offering proceeds were used to pay installments of its capital contributions to the

57

Operating Partnerships.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 28 had been used to invest in 26 Operating Partnerships in an aggregate amount of $29,211,996 and the Fund had completed payment of all installments of its capital contributions to 22 of the Operating Partnerships. Series 28 has outstanding contributions payable to 4 operating partnerships in the amount of $148,783 as of March 31, 2003.  The remaining contributions will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

(Series 29).  The Fund commenced offering BACs in Series 29 on February 10, 1997.  The Fund received and accepted $39,918,000 representing 3,991,800 BACs from investors admitted as BAC Holders in Series 29.  Offer and sales of BACs in Series 29 were completed on June 20, 1997.

During the fiscal year ended March 31, 2003, none of Series 29 net offering proceeds were used to pay installments of its capital contributions to the Operating Partnerships.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 29 had been used to invest in 22 Operating Partnerships in an aggregate amount of $29,137,877 and the Fund had completed payment of all installments of its capital contributions to 17 of the Operating Partnerships. Series 29 has outstanding contributions payable to 5 operating partnerships in the amount of $304,770 as of March 31, 2003. Of the amount outstanding, $20,935 has been loaned to one of the Operating Partnerships.  The loan will be converted to capital and the remaining contributions of $283,835 will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

(Series 30).  The Fund commenced offering BACs in Series 30 on June 23, 1997. The Fund received and accepted $26,490,750 representing 2,651,000 BACs from investors admitted as BAC Holders in Series 30.  Offer and sales of BACs in Series 30 were completed on September 10, 1997.

During the fiscal year ended March 31, 2003, the Fund used $54,232 of Series 30 net offering proceeds to pay installments of its capital contributions to 1 Operating Partnership.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 30 had been used to invest in 20 Operating Partnerships in an aggregate amount of $19,497,872, and the Fund had completed payment of all installments of its capital contributions to 14 of the Operating Partnerships. Series 30 has outstanding contributions payable to 6 operating partnerships in the amount of $134,311 as of March 31, 2003.  The remaining contributions of will be released when Operating Partnerships have achieved the conditions set forth in their partnership agreements.

(Series 31).  The Fund commenced offering BACs in Series 31 on September 11, 1997.  The Fund had received and accepted $44,057,750 representing 4,417,857 BACs from investors admitted as BAC Holders in Series 31.  Offer and sales of BACs in Series 31 were completed on January 18, 1998.

During the fiscal year ended March 31, 2003, the Fund used $324,248 of Series 31 net offering proceeds to pay installments of its capital contributions to 4 Operating Partnerships.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 31 had been used to invest in 27 Operating Partnerships in an aggregate amount of $32,188,856 and the Fund had completed payment of all installments of its capital contributions to 20 of the Operating Partnerships. Series 31 has outstanding contributions payable to 7 Operating Partnerships in the amount of $705,771 as of March 31, 2003.  Of the amount outstanding, $615,674 has been advanced or loaned to some of the Operating Partnerships.

58

In addition, $25,000 has been funded into an escrow account on behalf another Operating Partnerships.  The advances and loans will be converted to capital and the remaining contributions of $65,097, as well as the escrowed funds, will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

(Series 32).  The Fund commenced offering BACs in Series 32 on January 19, 1998.  The Fund had received and accepted $47,431,000 representing 4,754,198 BACs from investors admitted as BAC Holders in Series 32.  Offer and sales of BACs in Series 32 were completed on June 23, 1998.

During the fiscal year ended March 31, 2003, the Fund used $99,104 of Series 32 net offering proceeds to pay installments of its capital contributions to 2 Operating Partnerships.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 32 had been used to invest in 17 Operating Partnerships in an aggregate amount of $33,947,052 and the Fund had completed payment of all installments of its capital contributions to 9 of the Operating Partnerships. Series 32 has outstanding contributions payable to 9 Operating Partnerships in the amount of $936,164 as of March 31, 2003.  Of the amount outstanding, $488,244 has been advanced or loaned to some of the Operating Partnerships.  In addition, $125,000 has been funded into escrow accounts on behalf of another other Operating Partnership.  The loans will be converted to capital and the remaining contributions of $322,920, as well as the escrowed funds, will be released when Operating Partnerships have achieved the conditions set forth in their partnership agreements.

During the fiscal year ended March 31, 1999, the Fund had purchased assignments in Bradley Phase I of Massachusetts LLC, Bradley Phase II of Massachusetts LLC, Byam Village of Massachusetts LLC, Hanover Towers of Massachusetts LLC, Harbor Towers of Massachusetts LLC and Maple Hill of Massachusetts LLC.  Under the terms of the Assignments of Membership Interests dated December 1, 1998 the series is entitled to certain profits, losses, tax credits, cash flow, proceeds from capital transactions and capital account as defined in the individual Operating Agreements.  The Fund utilized $1,092,847 of Series 32 net offering proceeds to invest in Operating Partnerships for this investment.  These investments are reported in the Investment in Operating Limited Partnerships line item on the balance sheet.

(Series 33).  The Fund commenced offering BACs in Series 33 on June 22, 1998. The Fund received and accepted $26,362,000 representing 2,636,533 BACs from investors admitted as BAC Holders in Series 33.  Offer and sales of BACs in Series 33 were completed on September 21, 1998.

During the fiscal year ended March 31, 2003, the Fund used $549,801 of Series 33 net offering proceeds to pay installments of its capital contributions to 1 Operating Partnership.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 33 had been used to invest in 10 Operating Partnerships in an aggregate amount of $19,594,099 and the Fund had completed payment of all installments of its capital contributions to 7 of the Operating Partnerships. Series 33 has outstanding contributions payable to 3 Operating Partnerships in the amount of $202,285 as of March 31, 2003.  Of the amount outstanding, $74,635 has been loaned to one of the Operating Partnerships.  In addition, $125,000 has been funded into an escrow account on behalf of another Operating Partnership.  The loans will be converted to capital and the remaining contributions of $2,650, as well as the escrowed funds, will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

59

(Series 34).  The Fund commenced offering BACs in Series 34 on September 22, 1998.  The Fund had received and accepted $35,273,000 representing 3,529,319 BACs from investors admitted as BAC Holders in Series 34.  Offer and sales of BACs in Series 34 were completed on February 11, 1999.

During the fiscal year ended March 31, 2003, the Fund used $56,333 of Series 34 net offering proceeds to pay installments of its capital contributions to 2 Operating Partnerships.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 34 had been used to invest in 14 Operating Partnerships in an aggregate amount of $25,738,977 and the Fund had completed payment of all installments of its capital contributions to 9 of the Operating Partnerships. Series 34 has outstanding contributions payable 5 Operating Partnerships in the amount of $95,968 as of March 31, 2003.  The remaining contributions will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

(Series 35).  The Fund commenced offering BACs in Series 35 on February 22, 1999.  The Fund received and accepted $33,002,000 representing 3,300,463 BACs from investors admitted as BAC Holders in Series 35. Offer and sales of BACs in Series 35 were completed on June 28, 1999.

During the fiscal year ended March 31, 2003, the Fund used $746,922 of Series 35 net offering proceeds to pay installments of its capital contributions to 1 Operating Partnership.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 35 had been used to invest in 11 Operating Partnerships in an aggregate amount of $24,002,390 and the Fund had completed payment of all installments of its capital contributions 8 of the Operating Partnerships.  Series 35 has outstanding contributions payable to 3 Operating Partnerships in the amount of $603,740 as of March 31, 2003.  Of the amount outstanding, $422,173 has been loaned or advanced to some of the Operating Partnerships.  In addition, $10,855 has been funded into an escrow account on behalf of another Operating Partnership.  The loans and advances will be converted to capital and the remaining contributions of $170,172, as well as the escrowed funds, will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

(Series 36).  The Fund commenced offering BACs in Series 36 on June 22, 1999. The Fund received and accepted $21,068,375 representing 2,106,837 BACs from investors admitted as BAC Holders in Series 36. Offer and sales of BACs in Series 36 were completed on September 28, 1999.

During the fiscal year ended March 31, 2003, none of Series 36 net offering proceeds were used to pay installments of its capital contributions to the Operating Partnerships.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 36 had been used to invest in 11 Operating Partnerships in an aggregate amount of $15,277,044, and the Fund had completed payment of all installments of its capital contributions to 8 of the Operating Partnerships. Series 36 has outstanding contributions payable to 3 Operating Partnerships in the amount of $680,429 as of March 31, 2003.  Of the amount outstanding, $657,998 has been loaned or advanced to some of the Operating Partnerships. The loans and advances will be converted to capital and the remaining contributions of $22,431, will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

(Series 37).  The Fund commenced offering BACs in Series 37 on October 29, 1999.  The Fund received and accepted $25,125,000 representing 2,512,500 BACs

60

from investors admitted as BAC Holders in Series 37. Offer and sales of BACs in Series 37 were completed on January 28, 2000.

During the fiscal year ended March 31, 2003, the Fund used $162,434 of Series 37 net offering proceeds to pay installments of its capital contributions to 3 Operating Partnerships.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 37 had been used to invest in 7 Operating Partnerships in an aggregate amount of $18,725,648 and the Fund had completed payment of all installments of its capital contributions to 4 of the Operating Partnerships. Series 37 has outstanding contributions payable to 3 Operating Partnerships in the amount of $1,944,309 as of March 31, 2003. Of the amount outstanding, $1,733,152 has been loaned or advanced to some of the Operating Partnerships. The loan and advances will be converted to capital and the remaining contributions of $211,157 will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

(Series 38).  The Fund commenced offering BACs in Series 38 on February 1, 2000.  The Fund received and accepted $25,431,000 representing 2,543,100 BACs from investors admitted as BAC Holders in Series 38.  Offer and sales of BACs in Series 38 were completed on July 31, 2000.

During the fiscal year ended March 31, 2003, the Fund used $1,099,731 of Series 38 net offering proceeds to pay installments of its capital contributions to 5 Operating Partnerships.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 38 had been used to invest in 10 Operating Partnerships in an aggregate amount of $18,612,287 and the Fund had completed payment of all installments of its capital contributions to 8 of the Operating Partnerships.  Series 38 has outstanding contributions payable to 2 Operating Partnerships in the amount of $135,173 as of March 31, 2003.  The remaining contributions will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

During the fiscal year ended March 31, 2002, the Fund used $420,296 of Series 38 net offering proceeds to acquire a limited partnership equity interest in a limited liability company, which is the general partner of other operating limited partnerships, which own or are constructing, rehabilitating or opearting apartment complexes.  The series is entitled to a percentage of the profits, losses and tax credits of the limited liability company.  The investment is reported in the Investment in Operating Limited Partnerships line item on the balance sheet.

(Series 39).  The Fund commenced offering BACs in Series 39 on August 1, 2000. The Fund received and accepted $22,921,000 representing 2,292,152 BACs from investors admitted as BAC Holders in Series 39. Offer and sales of BACs in Series 39 were completed on January 31, 2001.

During the fiscal year ended March 31, 2003, the Fund used $1,036,128 of Series 39 net offering proceeds to pay installments of its capital contributions to 5 Operating Partnerships.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 39 had been used to invest in 9 Operating Partnerships in an aggregate amount of $17,115,495 and the Fund had completed payment of all installments of its capital contributions to 6 of the Operating Partnerships.  Series 39 has outstanding contributions payable to 3 Operating Partnerships in the amount of $161,805 as of March 31, 2003.  The remaining contributions will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

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During the fiscal year ended March 31, 2002, the Fund used $192,987 of Series 39 net offering proceeds to acquire a limited partnership equity interest in a limited liability company, which is the general partner of other operating limited partnerships, which own or are constructing, rehabilitating or operating apartment complexes.  The series is entitled to a percentage of the profits, losses and tax credits of the limited liability company.  The investment is reported in the Investment in Operating Limited Partnerships line item on the balance sheet.

(Series 40).  The Fund commenced offering BACs in Series 40 on February 1, 2001.  The Fund received and accepted $26,269,250 representing 2,630,256 BACs from investors admitted as BAC Holders in Series 40.  Offer and sales of BACs in Series 40 were completed on July 31, 2001.

During the fiscal year ended March 31, 2003, the Fund used $3,577,924 of Series 40 net offering proceeds to pay installments of its capital contributions to 13 Operating Partnerships.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 40 had been used to invest in 16 Operating Partnerships in an aggregate amount of $19,043,470, and the Fund had completed payment of all installments of its capital contributions to 12 of the Operating Partnerships.  Series 40 has outstanding contributions payable to 4 Operating Partnerships in the amount of $651,411 as of March 31, 2003.  Of the amount outstanding, $143,730 has been advanced to one of the Operating Partnerships.  The advances will be converted to capital and the remaining contributions of $507,681 will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

During the fiscal year ended March 31, 2002, the Fund used $578,755 of Series 40 net offering proceeds to acquire 5 limited partnership equity interests in limited liability companies, which are the general partners of other operating limited partnerships, which own or are constructing, rehabilitating or operating apartment complexes.  The series is entitled to a percentage of the profits, losses and tax credits of the limited liability companies.  The investment is reported in the Investment in Operating Limited Partnerships line item on the balance sheet.

(Series 41).  The Fund commenced offering BACs in Series 41 on August 1, 2001. The Fund received and accepted $28,916,260 representing 2,891,626 BACs from investors admitted as BAC Holders in Series 41. Offer and sales of BACs in Series 41 were completed on January 31, 2002.

During the fiscal year ended March 31, 2003, the Fund used $8,775,315 of Series 41 net offering proceeds pay installments of its capital contributions to 19 Operating Partnerships.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 41 had been used to invest in 20 Operating Partnerships in an aggregate amount of $20,356,184 and the Fund had completed payment of all installments of its capital contributions to 9 Operating Partnerships.  Series 41 has outstanding contributions payable to 11 Operating Partnerships in the amount of $2,284,064 as of March 31, 2003.  Of the amount outstanding, $548,553 has been advanced or loaned to the Operating Partnerships. The loan and advances will be converted to capital and the remaining contributions of $1,735,511 will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

During the fiscal year ended March 31, 2002, the Fund used $195,248 of Series 41 net offering proceeds to acquire a limited partnership equity interest in a

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limited liability company, which is the general partner of other operating limited partnerships, which own or are constructing, rehabilitating or operating apartment complexes.  The series is entitled to a percentage of the profits, losses and tax credits of the limited liability company.  The investment is reported in the Investment in Operating Limited Partnerships line item on the balance sheet.

(Series 42).  The Fund commenced offering BACs in Series 42 on February 1, 2002.  The Fund received and accepted $27,442,620 representing 2,744,262 BACs from investors admitted as BAC Holders in Series 42. Offer and sales of BACs in Series 42 were completed on July 31, 2002.

During the fiscal year ended March 31, 2003, the Fund used $8,391,189 of Series 42 net offering proceeds to pay installments of its capital contributions to 10 Operating Partnerships.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 42 had been used to invest in 17 Operating Partnerships in an aggregate amount of $20,033,501, and the Fund had completed payment of all installments of its capital contributions to 1 Operating Partnership.  Series 42 has outstanding contributions payable to 16 Operating Partnerships in the amount of $8,777,237 as of March 31, 2003. Of the amount outstanding, $3,017,584 has been advanced or loaned to the Operating Partnerships. The loan and advances will be converted to capital and the remaining contributions of $5,579,653 will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

(Series 43).  The Fund commenced offering BACs in Series 43 on August 1, 2002. The Fund received and accepted $36,379,870 representing 3,637,987 BACs from investors admitted as BAC Holders in Series 43. Offer and sales of BACs in Series 43 were completed on December 31, 2002.

During the fiscal year ended March 31, 2003, the Fund used $8,823,760 of Series 43 net offering proceeds to pay initial installments of its capital contributions to 10 Operating Partnerships.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 43 had been used to invest in 16 Operating Partnerships in an aggregate amount of $17,828,570, and the Fund had not completed payment of all installments of its capital contributions to any of the Operating Partnerships.  Series 43 has outstanding contributions payable to the Operating Partnerships in the amount of $9,830,712 as of March 31, 2003. Of the amount outstanding, $3,460,572 has been advanced or loaned to the Operating Partnerships. The loans and advances will be converted to capital and the remaining contributions of $6,370,140 will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

During the fiscal year ended March 31, 2003, the Fund used $805,160 of Series 43 net offering proceeds to acquire 7 limited partnership equity interests in limited liability companies, which are the general partner of other operating limited partnerships, which own or are constructing, rehabilitating or operating apartment complexes.  The series is entitled to a percentage of the profits, losses and tax credits of the limited liability companies.  The investment is reported in the Investment in Operating Limited Partnerships line item on the balance sheet.

(Series 44).  The Fund commenced offering BACs in Series 44 on January 14, 2003. The Fund received and accepted $17,088,360 representing 1,708,836 BACs

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from investors admitted as BAC Holders in Series 44 as of March 31, 2003. Offer and sales of BACs in Series 44 were completed on April 30, 2003 and, in total, the Fund received and accepted $27,019,730 representing 2,701,973 BACs in Series 44.

During the fiscal year ended March 31, 2003, the Fund used $1,620,951 of Series 44 net offering proceeds to pay initial installments of its capital contributions to 4 Operating Partnership.  As of March 31, 2003 proceeds from the offer and sale of BACs in Series 44 had been used to invest in 4 Operating Partnerships in an aggregate amount of $4,640,966, and the Fund had not completed payment of all installments of its capital contributions to any of the Operating Partnerships.  Series 44 has outstanding contributions payable to the Operating Partnerships in the amount of $3,030,725 as of March 31, 2003. Of the amount outstanding, $1,363,915 has been loaned to some of the Operating Partnerships. The loans will be converted to capital and the remaining contributions of $1,666,810 will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Results of Operations

The Fund incurs a 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 by the Operating Partnerships. The annual fund management fee incurred, net of fees received, for the fiscal years ended March 31, 2003 and 2002 was $5,283,658 and $4,762,222, respectively. The amount is anticipated to increase in subsequent fiscal years as additional Operating Partnerships are acquired.

The Fund’s investment objectives do not include receipt of significant cash flow 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.

As funds are utilized by the individual series for payment of fund management fees, operating expenses and capital contributions to the Operating Partnerships, it is anticipated that the combination of the “cash and cash equivalents” and “investments available for sale” amounts for each series will decrease.  As a result of the reduction, it is expected that interest income reported by each series will begin to decrease after the first full year of operations.  Occasionally the Fund will make interest-bearing loans to certain Operating Partnerships against contributions due for release at a later date.

(Series 20).  As of March 31, 2003 and 2002, the average Qualified Occupancy for the series was 100%.  The series had a total of 24 Operating Partnerships at March 31, 2003, all of which were at 100% qualified occupancy.

For the tax years ended December 31, 2002 and 2001, the series, in total, generated $2,194,841 and $1,918,054, respectively in passive income tax losses that were passed through to the investors and also provided $1.33 for both years in tax credits per BAC to the investors.

As of March 31, 2003 and 2002, Investments in Operating Partnerships for Series 20 was $12,675,770 and $14,695,373, respectively.  The decrease is a result of the way the Fund accounts for such investments, the equity method.

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By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the years ended March 31, 2003 and 2002, the net loss of the series was $2,384,789 and $2,387,830, respectively.  The major components of these amounts are the Fund’s share of losses from Operating Partnerships and the fund management fee. It is anticipated that the net loss for Series 20 will remain relatively consistent in future years since the series has finished acquiring Operating Partnerships and they are all fully operational.

Series 20 has invested in 4 Operating Partnerships (the “Calhoun Partnerships”) in which the Operating General Partner is Riemer Calhoun, Jr. or an entity which is affiliated with and controlled by Riemer Calhoun (the “Riemer Calhoun Group”).  The Operating Partnerships are Coushatta Seniors II Apartments, Floral Acres Apartments II, Harrisonburg Seniors Apartments and Shady Lane Apartments.  The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 112 apartment units in total.  The low income housing tax credit available annually to Series 20 from the Calhoun Partnerships is approximately $143,240, which is approximately 3% of the total annual tax credit available to investors in Series 20.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 20 is not an investor. The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor which built the apartment properties (an affiliate of Mr. Calhoun’s) overbilled the respective Partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming.   Sentencing is scheduled for late July, 2003 and is likely to involve fines and incarceration.  (Certain other business associates of Riemer Calhoun earlier pleaded guilty to various related charges.)

The Investment General Partner cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

The Internal Revenue Service has commenced an audit of the Calhoun Partnerships which will finally determine the amount of overstated tax credits.  At the Investment General Partner and its affiliate’s insistence, Riemer Calhoun has personally funded an escrow in the amount of $1,282,202 which will be available to compensate investors for any tax credits which are ultimately disallowed by the IRS.  It is hoped, but not certain, that the escrow fund will be sufficient to fully protect investors. (We are also

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pursuing a resolution with the IRS whereby escrow funds would be used to make a settlement payment directly to the IRS instead of requiring affected Partnerships and investors to restate tax returns to reflect less credit and then pay additional taxes.)

With respect to each of the Calhoun Partnerships where Riemer Calhoun has been the Operating General Partner or in control of an entity which has been the Operating General Partner, the Investment General Partner and its affiliates, are in the process of replacing them with another entity which is controlled by Murray Calhoun, the son of Riemer Calhoun.  Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships.  Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

The Investment General Partner and its affiliates have has also undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom.  RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

Breeze Cove Limited Partnership (Breeze Cove Apartments) operated significantly below breakeven due to high debt, high operating expenses, low occupancy, and poor tenant rental collections.  The Investment General Partner and the Operating General Partner, an affiliate of the Investment General Partner, successfully negotiated a debt restructure with US Bank which closed in the fourth quarter of 2002. The agreement called for a pay down of the mortgage balance from $2,650,000 to $1,850,000; the establishment of a $100,000 operating reserve; a recasting of the debt over a thirty year payment schedule with a maturity of January 2, 2010; and a reduction of the interest rate from a fixed 9% to a floating rate of prime plus 2.5% through December 8, 2003, then prime plus 3%.  In order to fund the debt paydown and operating escrow, Series 20 sold 33.33% of its interest in 6 Operating Partnerships to Series 41 on April 1, 2003.  Since the debt restructure needed to be funded prior to the April 1, 2003 transfer date, Series 41 loaned the sales proceeds to the Operating Partnership at the time of the debt restructure.  The only alternative to the debt restructure would have been bankruptcy and a costly Chapter 11 filing.  The outcome to such a filing was likely to be negative and would have included a recapture of credits previously taken by the Series 20 investors.  The Investment General Partner believed it was in the best interest of the Series 20 investors to avoid recapture by selling a portion of their future credits and using the proceeds to complete the debt restructure. Future tax credit benefits estimated to be $.2925 per BAC will not be realized by the investors in Series 20, however, the consequences of recapture and penalties to the investors, estimated to be approximately $.6825 per BAC, were avoided.

Effective January 25, 2003, East Douglas Apartments Limited Partnership (East Douglas Apartments) retained SanMar Properties for property management.  Occupancy through March 2003 has averaged 95%.  In the fourth quarter of 2001

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the Operating Partnership petitioned HUD and Illinois Housing Development Authority (IDHA) to increase rents.   IHDA denied the request to increase rents at that time citing the HOME Loan rent restrictions.  The Partnership is working on another request for a rent increase.   The Partnership is also working with the city to secure historical preservation funding to assist with the cost of restoring original windows and needed tuck-pointing of the brick exterior walls.   The mortgage company has been reluctant to utilize replacement reserve funds for this purpose.   East Douglas Apartments passed the 2002 compliance inspection by IHDA at which time there was some indication that IHDA may be more receptive to increasing rents in 2003.   The transition in management and potential repairs being made to the windows and exterior brick may assist in obtaining a rent increase.   The mortgage, property taxes, insurance and accounts payable are current as of April 30, 2003.

On November 29, 2002, there was a fire at Cynthiana Properties Limited (Hillside Apartments) in Cynthiana Kentucky.  The fire damaged three units and a central stairway.  As of March 31, 2003, all of the fire damage repair was complete and the 3 damaged units were back on line and leased.  The insurance covered all of the repairs (replacement value) and the loss of rent from the 3 units that were vacated after the fire.

(Series 21).  As of March 31, 2003 and 2002, the average Qualified Occupancy for the series was 100%.  The series had a total of 14 properties at March 31, 2003, all of which were at 100% qualified occupancy.

For the tax years ended December 31, 2002 and 2001, the series, in total, generated $1,000,796 and $1,626,653, respectively, in passive income tax losses that were passed through to the investors and also provided $1.21 for both years in tax credits per BAC to the investors.

As of March 31, 2003 and 2002, Investments in Operating Partnerships for Series 21 was $2,393,876 and $2,929,817, respectively.  The decrease is a result of the way the Fund accounts for such investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the years ended March 31, 2003 and 2002, the net loss of the series was $658,405 and $2,967,656, respectively.  The major components of these amounts are the Fund’s share of losses from Operating Partnerships and the fund management fee. The difference in net loss is primarily due to an impairment loss reported by Atlantic City Housing Urban Renewal Associates L.P in the prior year.  Additional detail on the operations of this Operating Partnership is provided below. It is anticipated that future net losses will be more consistent with the amount reported in the fiscal year 2003.

Atlantic City Housing Urban Renewal Associates L.P. (Atlantic City Apartments) continued to operate below breakeven for the first quarter of 2003. The Operating Partnership filed for protection under Chapter 11 of the Bankruptcy Code in June of 2001. During the quarter, two bondholder entities, PCM and Green Leaf Construction, filed objections to the Operating Partnership’s proposed reorganization plan and announced that competing plans would be proposed. The Investment General Partner is negotiating with Green Leaf to join with it and a not-for-profit community development corporation, Vision 2000,

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to submit a revised plan and the withdrawal of Green Leaf’s objection to the current plan. Throughout the quarter, court hearings, legal filings and numerous drafts were developed. It is anticipated that a revised Plan will be submitted during the third quarter that will reflect $1,500,000 in payment to the bondholders. The bankruptcy court has continued to authorize cash collateral for payment of the property operating expenses.  Occupancy for the first quarter of 2003 decreased to 75%. The City of Atlantic City Housing Authority will not approve any further rental of the vacant units until all code violations are addressed. Funds for these repairs are provided for in the Plan. The Operating General Partner is diligently working toward resolving these issues, but has limited capital with which to complete the required repairs. One component of the Reorganization Plan is the funding of $500,000 from the Investment General Partner. Partial sale of remaining credits and advances from the series will be the source of this contribution. The timeline for bondholder voting and Plan confirmation by the Bankruptcy Court is expected to be during the third quarter 2003.

Centrum Fairfax LP (Forest Glen at Sully Station)is a 119-unit senior complex located in Fairfax, VA. This property continues to experience low occupancy.  The occupancy declined to 70% in the first quarter 2003 from a 2002 average occupancy of 79%.  In 2003 the management company will continue working to attract prospective tenants and improve occupancy by increasing the advertisements and promotions, organizing monthly events at the property and creating resident referral programs.  The property is in excellent physical condition. The Operating General Partners continue to fund operating deficits in accordance with the Partnership Agreement; however, the guarantee is due to expire in the third quarter 2003. The mortgage, taxes, insurance and payables are current.

Pumphouse Crossing II, LP (Pumphouse Crossing II Apartments) is a 48-unit, family property located in Chippewa, Wisconsin.  The property operated with an average occupancy of 79% for the year 2002.  The first quarter 2003 occupancy

increased to an average of 87% from 81% in the fourth quarter 2002. The operating expenses are below the state average. As a result of the high vacancy rate and the low rental rates in the area, the property did not achieve breakeven operations in the first quarter of 2003. The management company continues to market the available units by working closely with the housing authority and continuing various marketing efforts to attract qualified residents. The Operating General Partner continues to financially support the partnership. The mortgage, taxes, insurance and payables are current.

Black River Run, LP (River Run Apartments) is a 48-unit, family property located in Black River Falls, Wisconsin. The property operated with an average occupancy of 86% for the year 2002. The first quarter 2003 occupancy increased to an average of 91%, which is consistent with the fourth quarter of 2002. The operating expenses are below the state average. Although the occupancy increased slightly, the low rental rates in the area prevented the property from achieving breakeven operations in the first quarter of 2003. The management agent continues to market the available units by working closely with the housing authority and continuing various marketing efforts to attract qualified residents. The Operating General Partner continues to financially support the partnership. The mortgage, taxes, insurance and payables are current.

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Lookout Ridge LP (Lookout Ridge Apts.) is a 30 unit development located in Covington, KY. Average occupancy of the property is high at 99%, but it is unable to support its operations due to high operating expenses and low rental rates. It is currently operating with a debt coverage ratio of .27 and has outstanding payables slightly in excess of  $60,000. Although rents are currently at the maximum allowable tax credit rate for the area, the average rent on the property is only $426.  Operating expenses of $4,347 per unit are very high for the area and must be reduced significantly in order for  the property to break even. The Operating General Partner indicated that a portion of the high expenses have been attributable to improper tenant screening by the management company, which resulted in high turnover and repair cost. The screening problem has since been corrected. The property’s operating reserve account has a balance of $33,940, and the Operating General Partner has an obligation to fund any operating deficits through 2007.

Pinedale II, LP (Pinedale Apartments II) is a 60-unit, family property located in Menomonie, Wisconsin. The property operated with an average occupancy of 95% for the year 2002 which slightly declined to 91% for the first quarter 2003.  The property’s operating expenses are below the state average.  Despite the occupancy being in the 90’s, the low rental rates in the area prevented the property from achieving breakeven operations in the first quarter of 2003. The management agent continues to market the available units by working closely with the housing authority and continuing various marketing efforts to attract qualified residents. The Operating General Partner continues to financially support the partnership. The mortgage, taxes, insurance and payables are current.

(Series 22).  As of March 31, 2003 and 2002, the average Qualified Occupancy for the series was 100%.  The series had total of 29 properties at March 31, 2003, all of which were at 100% qualified occupancy.

For the tax years ended December 31, 2002 and 2001, the series, in total, generated $1,864,572 and $1,869,136, respectively, in passive income tax losses that were passed through to the investors and also provided $1.25 and $1.26, respectively, in tax credit per BAC to the investors.

As of March 31, 2003 and 2002, Investments in Operating Partnerships for Series 22 was $9,514,695 and $11,087,299, respectively.  The decrease is primarily a result of the way the Fund accounts for such investments, the equity method.  By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the years ended March 31, 2003 and 2002, the net loss of the series was $1,825,108 and $1,693,382, respectively.  The major components of these amounts are the Fund’s share of losses from Operating Partnerships and the fund management fee. It is anticipated that the net loss will remain relatively consistent in future years as the series has finished acquiring Operating Partnerships and all are reporting stable operations.

Black River Run, LP (River Run Apartments) is a 48-unit, family property located in Black River Falls, Wisconsin. The property operated with an average occupancy of 86% for the year 2002. The first quarter 2003 occupancy increased to an average of 91%, which is consistent with the fourth quarter of 2002. The operating expenses are below the state average. Although the occupancy

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increased slightly, the low rental rates in the area prevented the property from achieving breakeven operations in the first quarter of 2003. The management agent continues to market the available units by working closely with the housing authority and continuing various marketing efforts to attract qualified residents. The Operating General Partner continues to financially support the partnership. The mortgage, taxes, insurance and payables are current.

Roxbury Veterans Housing, Limited Partnership (Highland House) is a 14 unit property located in Roxbury, Massachusetts.  The Operating General partner has been very inconsistent in reporting occupancy and operational numbers to the Investment General Partner.  In addition, the Investment General Partner identified potential discrepancies in the tax returns submitted and is currently working with the Operating General Partner to resolve these issues.

(Series 23). As of March 31, 2003 and 2002, the average Qualified Occupancy for the series was 100%.  The series had a total of 22 properties at March 31, 2003, all of which were at 100% qualified occupancy.

For the tax years ended December 31, 2002 and 2001, the series, in total, generated $1,651,061 and $2,076,947, respectively, in passive income tax losses that were passed through to investors and also provided $1.31 for both years in tax credits per BAC to the investors.

As of March 31, 2003 and 2002, Investments in Operating Partnerships for Series 23 was $16,373,993 and $17,726,828, respectively.   The decrease is a result of the way the Fund accounts for such investments, the equity method.  By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the years ended March 31, 2003 and 2002, the net loss of the series was $1,611,679 and $1,634,244, respectively.  The major components of these amounts are the Fund’s share of losses from Operating Partnerships and the fund management fee.  It is anticipated that the net loss will be relatively consistent in future years as the series has finished acquiring Operating Partnerships and they are fully operational.

Series 23 has invested in 2 Operating Partnerships (the “Calhoun Partnerships”) in which the Operating General Partner is Riemer Calhoun, Jr. or an entity which is affiliated with and controlled by Riemer Calhoun (the “Riemer Calhoun Group”).  The Operating Partnerships are Mathis Apartments. Ltd. and Orange Grove Seniors.  The affordable housing properties owned by the Calhoun Partnerships are located in Texas and consist of approximately 56 apartment units in total.  The low income housing tax credit available annually to Series 23 from the Calhoun Partnerships is approximately $73,077, which is approximately 2% of the total annual tax credit available to investors in Series 23.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax

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credit calculation with respect to approximately 40 Operating Partnerships in which Series 23 is not an investor.  The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor which built the apartment properties (an affiliate of Mr. Calhoun’s) overbilled the respective partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming.   Sentencing is scheduled for late July, 2003 and is likely to involve fines and incarceration.  (Certain other business associates of Riemer Calhoun earlier pleaded guilty to various related charges.)

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

The Internal Revenue Service has commenced an audit of the Calhoun Partnerships which will finally determine the amount of overstated tax credits.  At the Investment General Partner and its affiliates insistence, Riemer Calhoun has personally funded an escrow in the amount of $1,282,202 which will be available to compensate investors for any tax credits which are ultimately disallowed by the IRS.  It is hoped, but not certain, that the escrow fund will be sufficient to fully protect investors. (We are also pursuing a resolution with the IRS whereby escrow funds would be used to make a settlement payment directly to the IRS instead of requiring affected Partnerships and investors to restate tax returns to reflect less credit and then pay additional taxes.)

With respect to each of the Calhoun Partnerships where Riemer Calhoun has been the Operating General Partner or in control of an entity which has been the Operating General Partner, the Investment General Partner and its affiliates are in the process of replacing them with another entity which is controlled by Murray Calhoun, the son of Riemer Calhoun.  Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships.  Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

The Investment General Partner and its affiliates have also undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom.  RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

South Hills Apartments L.P. (South Hills Apartments) is a 72-unit, family property located in Bellevue, Nebraska. The property operated with an average occupancy of 83% in 2002. The occupancy increased to 89% in the first quarter

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of 2003. The management company hired a new manager in April 2002, and there were several evictions during the second and third quarters of 2002. The management company continues to offer rental concessions to increase applicant traffic. The Operating General Partner continues to fund the operating deficits, as needed. The property’s mortgage, taxes and insurance are all current.

(Series 24). As of March 31, 2003 and 2002, the average Qualified Occupancy for the series was 99.9% and 100%, respectively.  The series had a total of 24 properties at March 31, 2003. Out of the total, 22 were at 100% qualified occupancy.

For the tax years ended December 31, 2002 and 2001, the series, in total, generated $970,718 and $1,357,571, respectively, in passive income tax losses that were passed through to investors and also provided $1.28 for both years in tax credits per BAC to the investors.

As of March 31, 2003 and 2002, Investments in Operating Partnerships for Series 24 was $9,168,660 and $9,240,905, respectively.  The decrease is primarily the result of the way the Fund accounts for such investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued

For the years ended March 31, 2003 and 2002, the net loss of the Series was $206,100 and $2,001,698, respectively. The major components of these amounts are the Fund’s share of losses from Operating Partnerships and the fund management fee.  The difference in net loss is primarily due to events that effected operations in the current fiscal year for two of the Operating Partnerships. In the prior year a large loss was reported by a foreclosed on property, Los Lunas Apts. In the current year there was a recission of foreclosure and income was reported to reverse the prior year entries.  Income was also reported for the discount of debt and forgiven debt interest.  Further detail on events effecting this Operating Partnership is provided below. The reduction in net loss is also due to settlement proceeds income reported by one of the Operating Partnerships, which had filed a suit against its former Operating General Partner.  In addition, the Operating Partnership used some the settlement proceeds to repay interest bearing loans and interest to the Investment Partnership resulting in increased interest income in the current fiscal year. It is anticipated that the net loss in future years will be more consistent with the prior year as these events are not expected to effect future years.

Series 24 has invested in Zwolle Partnership, A LA Partnership in Commendam (the “Calhoun Partnership”) in which the Operating General Partner is Riemer Calhoun, Jr. or an entity which is affiliated with and controlled by Riemer Calhoun (the “Riemer Calhoun Group”).  The affordable housing property owned by the Calhoun Partnership is located in Louisiana and consist of approximately 32 apartment units in total.  The low income housing tax credit available annually to Series 24 from the Calhoun Partnership is approximately $39,393, which is approximately 1% of the total annual tax credit available to investors in Series 24.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun Group was

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under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 24 is not an investor.  The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor which built the apartment properties (an affiliate of Mr. Calhoun’s) overbilled the respective partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming.   Sentencing is scheduled for late July, 2003 and is likely to involve fines and incarceration.  (Certain other business associates of Riemer Calhoun earlier pleaded guilty to various related charges.)

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

The Internal Revenue Service has commenced an audit of the Calhoun Partnerships which will finally determine the amount of overstated tax credits.  At the Investment General Partner and its affiliate’s insistence, Riemer Calhoun has personally funded an escrow in the amount of $1,282,202 which will be available to compensate investors for any tax credits which are ultimately disallowed by the IRS.  It is hoped, but not certain, that the escrow fund will be sufficient to fully protect investors. (We are also pursuing a resolution with the IRS whereby escrow funds would be used to make a settlement payment directly to the IRS instead of requiring affected Partnerships and investors to restate tax returns to reflect less credit and then pay additional taxes.)

With respect to each of the Calhoun Partnerships where Riemer Calhoun has been the Operating General Partner or in control of an entity which has been the Operating General Partner, the Investment General Partner and its affiliates are in the process of replacing them with another entity which is controlled by Murray Calhoun, the son of Riemer Calhoun.  Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships.  Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

The Investment General Partner and its affiliates have also undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom.  RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

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Elm Street Associates Limited Partnership (Elm Street Apartments) is located in Yonkers, New York.  The neighborhood has been a difficult one in which to operate due in part to high crime.  Almost all tenants have some public subsidy, making this a very management-intensive property.  Poor tenancy has historically resulted in operating deficits.  Management issues, including poor rent collections and deferred maintenance, had negatively impacted  the property.  Consequently, the existing management company was replaced by Westhab, Inc. on January 1, 2003.  Westhab is a non-profit housing developer and manager dedicated to providing housing for low income residents of Westchester County.  An affiliate of Westhab also was admitted as a replacement Operating General Partner on January 1, 2003.

Subsequent to the Westhab takeover, property operations have improved markedly. Physical occupancy at the property for the first quarter ranged from 94% to 97%. Westhab however may need to evict some of the current residents in order to complete the process of restablizing the property.  Economic occupancy averaged 95% for the quarter, even with some extraordinary expenses arising from the need to address deferred maintenance.

In early February 2002, the Operating Partnership concluded a restructure of the first mortgage loan with the loan servicer, Community Preservation Corporation(CPC). The loan had been in default for more than a year.  The newly restructured loan has a lower loan balance, a longer amortization schedule and a lower interest rate, which will make the loan more affordable to the Partnership.  Series 24 has contributed approximately $35,000 to the restructure of the Partnership and the first mortgage loan.  It is anticipated that Westhab will continue the stabilization process and that going forward the property will operate at or near breakeven.

Los Lunas Apartments Limited (Hillridge Apartments) was foreclosed upon on January 14, 2002 by New Mexico Housing Finance Authority.  In the third quarter of 2002, the Investment General Partner was successful in rescinding the foreclosure sale by restructuring the debt.  In order to fund the debt restructure, Series 24 sold 33.33% of its interest in 5 Operating Partnerships to Series 42 on April 1, 2003.  Since the debt restructure needed to be funded prior to the April 1, 2003 transfer date, Series 42 loaned the sales proceeds to the Operating Partnership at the time of the debt restructure.  The purpose of the recession was to avoid the consequences of a recapture of the credits previously taken by Series 24, thereby protecting the yield to its investors. Future tax credit benefits that were sold to Series 42, estimated to be $.487 per BAC, will not be realized by the investors in Series 24, however, the consequences of recapture and penalties to the investors, estimated to be approximately $.568 per BAC, were avoided.

North Hampton Place Limited Partnership (North Hampton Place), located in Columbia, Missouri, operated below breakeven during 2002 and the first quarter of 2003. The main reason for its continuing cash deficit is low occupancy, which averaged 87% for the first quarter of 2003 and 71% overall in 2002, and high operating expenses.  The mortgage was refinanced in the fourth quarter of 2002 with a more favorable interest rate and amortization period, and this

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should help to alleviate the property’s cash deficit.  To address the low occupancy at the property, the management company replaced the site manager.  New management is marketing the property to possible tenants through newspapers, churches and civic groups and occupancy had improved to 97% at April 30, 2003. The property’s mortgage, taxes and insurance were all current as of March 31, 2003.

(Series 25). As of March 31, 2003 and 2002, the average Qualified Occupancy for the series was 99.9%.  The series had a total of 22 properties at March 31, 2003.  Out of the total, 21 were at 100% qualified occupancy.

For the tax year ended December 31, 2002 and 2001, the series, in total, generated $1,381,624 and $1,707,535, respectively in passive income tax losses that were passed through to investors and also provided $1.24 for both years in tax credits per BAC to the investors.

As of March 31, 2003 and 2002, Investments in Operating Partnerships for Series 25 was $15,315,756 and $16,265,562, respectively.  The decrease is a result of the way the Fund accounts for such investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the years ended March 31, 2003 and 2002, the net loss of the series was $1,063,014 and $1,557,890, respectively.  The major components of these amounts are the Fund’s share of losses from Operating Partnerships and the fund management fee. The reduction in net loss is primarily due to settlement proceeds income received by one of the Operating Partnerships, which had filed a suit against its former Operating General Partner.  The Operating Partnership used some the settlement proceeds to repay interest bearing loans and interest to the Investment Partnership resulting in increased interest income in the current fiscal year.  It is anticipated that the net loss in future years will be more consistent with the prior year as these events are not expected to effect future years.

Ohio Investors Limited Partnership (Washington Arms) is a 93 unit property located in Dayton, Ohio.  The property operated significantly below breakeven due to low occupancy, low rental rates, and high debt service.  Average occupancy for the first quarter of 2003 was 89%.  The management company attributes the low occupancy to high turnover.  The project requested a rent increase; however, the project is currently charging the maximum allowable rent possible, per section 8 requirements.  Average physical occupancy for 2002 was 92%, and the property expended cash of just over $50,500.  The Operating General Partner contributed $57,500 to the property during 2002 to cover the excess expenses, despite the fact that his guarantee expired in September of 2001.  The Operating General Partner is in the process of restructuring the debt with the current lender, Key Bank.  The lender has proposed to extend the loan term 15- years beyond the original maturity date (October 2011).  As a result, the monthly debt service payment would drop from $21,739 to $15,749, representing an approximate savings of $5,990 per month, which should allow the property to breakeven.

Sutton Place Apartments, L.P. (Sutton Place Apartments) owns and operates a 360 unit complex in Indianapolis, Indiana. The property has operated with an average occupancy rate of 95% in 2002 compared to an average of 93% for the

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year that ended December 31, 2001.  Management believes that stability in the office staff and maintenance staff is resulting in continued high occupancy and continuing economic gains as well.  Economic occupancy has also improved and, through December 31, 2002 has been close to 95%. Despite this improvement in overall operations, first quarter 2003 occupancy was weak at 91%. During April 2003, however, occupancy climbed back up to 95%.

The property still suffers somewhat from high maintenance expenses as a result of tenant abuse and unit turnover, but the property was able to control operating expenses throughout 2002 and has continued to do so through the first quarter of 2003. When coupled with the increase in income resulting from improved occupancy, net operating income increased by 11% in 2002. Based upon its first quarter 2003 performance, it is anticipated that the property will continue to improve throughout 2003. Criminal activity, which has historically been high, has declined substantially over the last year.  This results from the fact that the property hired uniformed, off duty police officers as security and with the fact that criminal activity overall has declined in Indianapolis.  The Operating General Partner is obligated under his guarantee to fund operating deficits and in 2002 he funded $96,250. The mortgage, taxes and insurance were all current as of March 31, 2003.

352 Lenox Associates, LP, (Lenox Avenue Apartments) is an 18 unit property located in Manhattan, NY. During 2002, the property operated below breakeven, primarily as a result of high operating expenses.  The property has an inefficient gas fired boiler, which contributed significantly toward the negative cash flow.  As a result of the negative cash flow, the property has high payables and insufficient working capital.   The physical occupancy at the property has been consistently strong since inception, averaging above 95%.  Occupancy as of March 31, 2003 is at 100%.  The Investment General Partner is working with the Operating General Partner to decrease operating expenses and stabilize the property.  The Operating General Partner is funding all operating deficits. The mortgage, taxes, and property insurance are all current.

M.R.H., L.P. (The Mary Ryder Home), a 48 unit property located in St. Louis, MO, received a 60-day letter issued by the IRS proposing to reduce the amount of low income housing tax credits allowable because it asserts that certain fees and other expenditures were not includible in the eligible basis of the property. The 60-day letter was the result of an IRS audit of the Operating Partnership’s books and records. As a result of their audit, the IRS has proposed an adjustment that would disallow approximately 18% of past and future tax credits. The adjustment would also include interest. The Investment General Partner and its counsel along with the Operating General Partner and its counsel will likely file an appeal and continue negotiations with the IRS Appeals Office.

(Series 26). As of March 31, 2002 and 2001, the average Qualified Occupancy for the series was 100%.  The series had a total of 45 properties at March 31, 2002, all of which were at 100% qualified occupancy.

For the tax years ended December 31, 2002 and 2001, the series, in total, generated $2,046,344 and $2,711,648, respectively, in passive income tax losses that were passed through to investors and also provided $1.18 for both years in tax credits per BAC to the investors.

As of March 31, 2003 and 2002, Investments in Operating Partnerships

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for Series 26 was $23,716,013 and $24,785,250, respectively.  The decrease is a result of the way the Fund accounts for such investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the years ended March 31, 2003 and 2002, the net loss of the series was $1,428,884 and $2,264,403, respectively.  The major components of these amounts are the Fund’s share of losses from Operating Partnerships, the fund management fee and interest income.  The reduction in net loss is primarily due to settlement proceeds income received by one of the Operating Partnerships, which had filed a suit against its former Operating General Partner.  The Operating Partnership used some the settlement proceeds to repay interest bearing loans and interest to the Investment Partnership resulting in increased interest income in the current fiscal year.  It is anticipated that the net loss in future years will be more consistent with the prior year as these events are not expected to effect future years.

Series 26 has invested in 6 Operating Partnerships (the “Calhoun Partnerships”) in which the Operating General Partner is Riemer Calhoun, Jr. or an entity which is affiliated with and controlled by Riemer Calhoun (the “Riemer Calhoun Group”).  The operating partnerships are Bearuegard Apartments Partnership, Brookhaven Apartments Partnership, Butler Estates, Cameron Apartments Partnership, Southwind Apartments and TR Bobb  Apartments A LDHA.  The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 191 apartment units in total.  The low income housing tax credit available annually to Series 26 from the Calhoun Partnerships is approximately $617,547, which is approximately 13% of the total annual tax credit available to investors in Series 26.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Oartnerships in which Series 26 is not an investor.  The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor which built the apartment properties (an affiliate of Mr. Calhoun’s) overbilled the respective partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming.   Sentencing is scheduled for late July, 2003 and is likely to involve fines and incarceration.  (Certain other business associates of Riemer Calhoun earlier pleaded guilty to various related charges.)

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

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The Internal Revenue Service has commenced an audit of the Calhoun Partnerships which will finally determine the amount of overstated tax credits.  At the Investment General Partner and its affiliate’s insistence, Riemer Calhoun has personally funded an escrow in the amount of $1,282,202 which will be available to compensate investors for any tax credits which are ultimately disallowed by the IRS.  It is hoped, but not certain, that the escrow fund will be sufficient to fully protect investors. (We are also pursuing a resolution with the IRS whereby escrow funds would be used to make a settlement payment directly to the IRS instead of requiring affected Partnerships and investors to restate tax returns to reflect less credit and then pay additional taxes.)

With respect to each of the Calhoun Partnerships where Riemer Calhoun has been the Operating General Partner or in control of an entity which has been the Operating General Partner, the Investment General Partner and its affiliates are in the process of replacing them with another entity which is controlled by Murray Calhoun, the son of Riemer Calhoun.  Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships.  Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

The Investment General Partner and its affiliates have also undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom.  RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

Warrensburg Heights, Limited Partnership, (Warrensburg Heights) located in Warrensburg, Missouri, operated below breakeven during 2002 and the first quarter of 2003. The main reason for its continuing cash deficit is low occupancy, which averaged 74% for the first five months of 2003 and 89% overall in 2002, and high operating expenses.  High turnover at the property has caused occupancy levels to stagnate, and operating expenses were high during the first quarter due to the high turnover.  During the fourth quarter of 2002, the site manager at the property was replaced, and the property is being marketed through newspapers, churches and civic groups.  The property’s mortgage, taxes and insurance were all current as of March 31, 2003.

Country Edge LP (Country Edge Apts.) is a 48 unit property located in Fargo, North Dakota.   During 2002, the property operated below breakeven, primarily due to strong competition stemming from a significant increase in newer tax credit properties with more amenities in Fargo.  The significant increase in competition has negatively impacted the occupancy at the property.  As a result of the negative cash flow, the property had insufficient working capital during the year.   During 2002, the Operating General Partner decreased rents and implemented concessions to stabilize occupancy, which averaged 90% for the year.  As of March 31, 2003, occupancy was 92% and averaged 87% for the first quarter, which was 11% higher than the first

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quarter of 2002.  However, the property continued to operate below breakeven during the first quarter of 2003 due to the continued lowered rents and concessions.  The Investment General Partner will continue to work with the Operating General Partner to stabilize the occupancy.   In addition, the economy in the Fargo area is expected to expand during 2003, which should have a positive impact on demand for affordable housing.  The Operating General Partner continues to fund all operating deficits, despite the expiration of their guarantee.  The mortgage, trade payables, property taxes, and insurance are current.

Grandview Apartments (Grandview Apts.) is a 48 unit property located in Fargo, North Dakota.  During 2002, the property operated below breakeven primarily due to strong competition stemming from a significant increase in newer tax credit properties with more amenities in Fargo.  The significant increase in competition has negatively impacted the occupancy at the property.  During 2002, the Operating General Partner decreased rents and implemented concessions to stabilize occupancy, which averaged 87% for the year.  As of March 31, 2003, occupancy was 75% and averaged 82% for the first quarter, which was 2% higher than the first quarter of 2002. However, the property continued to operate below breakeven during the first quarter of 2003 due to the continued lowered rents and concessions.  The Investment Limited Partner will continue to work with the Operating General Partner to stabilize the physical occupancy.  In addition, the economy in the Fargo area is expected to expand during 2003, which should have a positive impact on demand for affordable housing.  The Operating General Partner continues to fund all operating deficits, despite the expiration of their guarantee.  The mortgage, trade payables, property taxes, and insurance are current.

(Series 27). As of March 31, 2003 and 2002 the average Qualified Occupancy for the series was 100%.  The series had a total of 16 properties at March 31, 2003, all of which were at 100% qualified occupancy.

For the tax years ended December 31, 2002 and 2001, the series, in total, generated $1,225,573 and $1,221,646, respectively, in passive income tax losses that were passed through to investors and also provided $1.14, respectively, in tax credits per BAC to the investors.

As of March 31, 2003 and 2002, Investments in Operating Partnerships for Series 27 was $14,645,587 and $15,447,161, respectively.  The balance was affected by the way the Fund accounts for such investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the year ended March 31, 2003 and 2002, the net loss of the series was $1,080,803 and $598,368, respectively.  The major components of these amounts are the Fund’s share of losses from Operating Partnerships and the fund management fee.  The difference in net loss is mainly the result of cancellation of debt income reported by one of the Operating Partnerships in the prior year.  It is anticipated that the net loss will begin to stabilize in future years as the Operating Partnerships stabilize operations.

Series 27 has invested in Magnolia Place Apartments Partnership (the “Calhoun Partnership”) in which the Operating General Partner is Riemer Calhoun, Jr. or an entity which is affiliated with and controlled by Riemer Calhoun (the “Riemer Calhoun Group”).  The affordable housing property owned by the Calhoun

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Partnership is located in Mississippi and consist of approximately 40 apartment units in total.  The low income housing tax credit available annually to Series 27 from the Calhoun Partnership is approximately $129,037, which is approximately 5% of the total annual tax credit available to investors in Series 27.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 27 is not an investor.  The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor which built the apartment properties (an affiliate of Mr. Calhoun’s) overbilled the respective partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming.   Sentencing is scheduled for late July, 2003 and is likely to involve fines and incarceration.  (Certain other business associates of Riemer Calhoun earlier pleaded guilty to various related charges.)

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

The Internal Revenue Service has commenced an audit of the Calhoun Partnerships which will finally determine the amount of overstated tax credits.  At the Investment General Partner and its affiliate’s insistence, Riemer Calhoun has personally funded an escrow in the amount of $1,282,202 which will be available to compensate investors for any tax credits which are ultimately disallowed by the IRS.  It is hoped, but not certain, that the escrow fund will be sufficient to fully protect investors. (We are also pursuing a resolution with the IRS whereby escrow funds would be used to make a settlement payment directly to the IRS instead of requiring affected Partnerships and investors to restate tax returns to reflect less credit and then pay additional taxes.)

With respect to each of the Calhoun Partnerships where Riemer Calhoun has been the Operating General Partner or in control of an entity which has been the Operating General Partner, the Investment General Partner and its affiliates are in the process of replacing them with another entity which is controlled by Murray Calhoun, the son of Riemer Calhoun.  Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships.  Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

The Investment General Partner and its affiliates have also undertaken discussions with the Rural Housing Service of the U.S. Department of

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Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom.  RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

Holly Heights Limited Partnership (Holly Heights Apartments) continues to incur operating deficits due to high tenant turnover. Occupancy has increased to 88% for the first quarter of 2003 from the fourth quarter 2002 average of 86%. There are limited job opportunities in this area and, as a result, some residents have moved from the area to find work.  Management will continue to offer rental concessions until occupancy has stabilized.  As a result of the low occupancy in 2002, there was negative cash flow and high payables. An audit by the state regulatory agency identified issues of non-compliance.  The Operating General Partner is diligently working to resolve all issues and the Investment General Partner will continue to closely monitor the property. The mortgage, taxes, and insurance are all current.

Angelou Court (Angelou Court Apts.)  is a 23 unit property located in Harlem, New York.  During 2002, the property operated below breakeven, primarily due to high operating expenses.  Physical occupancy has been consistent at 100% since inception of the property.  As a result of the negative cash flow, the property has insufficient working capital to cover trade accounts payable.  The Investment General Partner will work with the Operating General Partner to develop alternatives to reduce operating expenses and stabilize the property. The Operating General Partner is responsible for funding all operating deficits and has an unlimited guarantee to the property.  The mortgage and property insurance are current.  The property pays no property taxes as the result of a tax abatement.

(Series 28). As of March 31, 2003 and 2002, the average Qualified Occupancy for the series was 100%.  The series had a total of 26 properties at March 31, 2003, all of which were at 100% qualified occupancy.

For the tax years ended December 31, 2002 and 2001, the series, in total, generated $1,089,909 and $2,512,925, respectively, in passive income tax losses that were passed through to investors and also provided $1.05 for both years in tax credits per BAC to the investors.

As of March 31, 2003 and 2002, Investments in Operating Partnerships for Series 28 was $25,184,476 and $26,355,147, respectively.  The decrease is a result the way the Fund accounts for such investments, the equity method.  By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the year ended March 31, 2003 and 2002 the net loss of the series was $1,443,856 and $1,802,088, respectively.  The major components of these amounts are the Fund’s share of losses from Operating Partnerships and the fund management fee.  It is anticipated that operations will be relatively consistent in future years as series had finished acquiring Operating Partnerships and they are all reporting stable operations.

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Series 28 has invested in 6 Operating Partnerships (the “Calhoun Partnerships”) in which the Operating General Partner is Riemer Calhoun, Jr. or an entity which is affiliated with and controlled by Riemer Calhoun (the “Riemer Calhoun Group”).  The Operating Partnerships are Bienville III Apartments, Blanchard Partnership, Cottonwood Partnership, in Commendam, Evangeline Partnership, Jackson Place Apartments LP and Maplewood Apartments Partnership.  The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 200 apartment units in total.  The low income housing tax credit available annually to Series 28 from the Calhoun Partnerships is approximately $516,536, which is approximately 12% of the total annual tax credit available to investors in Series 28.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 28 is not an investor.  The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor which built the apartment properties (an affiliate of Mr. Calhoun’s) overbilled the respective partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming.   Sentencing is scheduled for late July, 2003 and is likely to involve fines and incarceration.  (Certain other business associates of Riemer Calhoun earlier pleaded guilty to various related charges.)

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

The Internal Revenue Service has commenced an audit of the Calhoun Partnerships which will finally determine the amount of overstated tax credits.  At the Investment General Partner and its affiliate’s insistence, Riemer Calhoun has personally funded an escrow in the amount of $1,282,202 which will be available to compensate investors for any tax credits which are ultimately disallowed by the IRS.  It is hoped, but not certain, that the escrow fund will be sufficient to fully protect investors. (We are also pursuing a resolution with the IRS whereby escrow funds would be used to make a settlement payment directly to the IRS instead of requiring affected Partnerships and investors to restate tax returns to reflect less credit and then pay additional taxes.)

With respect to each of the Calhoun Partnerships where Riemer Calhoun has been the Operating General Partner or in control of an entity which has been the Operating General Partner, the Investment General Partner and its affiliates are in the process of replacing them with another entity which is controlled by Murray Calhoun, the son of Riemer Calhoun.  Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level

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management services for the apartment properties owned by the Calhoun Partnerships.  Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

The Investment General Partner and its affiliates have also undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom.  RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

1374 Boston Road L.P. (1374 Boston Road) is a 15 unit property located in New York City.  During 2002 the property operated below breakeven, primarily due to high debt service and operating expenses.  The debt service coverage ratio for 2002 was .50.  As a result of the negative cash flow, the property had insufficient working capital.  The Investment General Partner will work with the Operating General Partner to develop potential refinance options and explore alternatives to reduce operating expenses and stabilize the property.  The Operating General Partner is responsible for funding all operating deficits. The mortgage, property taxes and insurance are current.

(Series 29). As of March 31, 2003 and 2002, the average Qualified Occupancy for the series was 100%.  The series had a total of 22 properties at March 31, 2003, all of which were at 100% qualified occupancy.

For the tax years ended December 31, 2002 and 2001 the series, in total, generated $2,066,987 and $2,674,479, respectively in passive income tax losses that were passed through to investors and also provided $1.08 for both years in tax credits per BAC to the investors.

As of March 31, 2003 and 2002, Investments in Operating Partnerships for Series 29 was $22,450,900 and $24,490,660, respectively.  The decrease is a result the way the Fund accounts for such investments, the equity method.  By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the year ended March 31, 2003 and 2002, the net loss of the series was $2,395,108 and $2,421,150, respectively.  The major components of these amounts are the Fund’s share of losses from Operating Partnerships and the fund management fee. It is anticipated that operations will be relatively consistent in future years as series had finished acquiring Operating Partnerships and they are reporting stable operations.

Series 29 has invested in 3 Operating Partnerships (the “Calhoun Partnerships”) in which the Operating General Partner is Riemer Calhoun, Jr. or an entity which is affiliated with and controlled by Riemer Calhoun (the “Riemer Calhoun Group”).  The Operating Partnerships are Edgewood Apartments Partnership, Plametto Place Apartments and Westfield Apartments Partnership.  The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 152 apartment units in

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total.  The low income housing tax credit available annually to Series 29 from the Calhoun Partnerships is approximately $603,385, which is approximately 14% of the total annual tax credit available to investors in Series 29.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 29 is not an investor.  The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor which built the apartment properties (an affiliate of Mr. Calhoun’s) overbilled the respective partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming.   Sentencing is scheduled for late July, 2003 and is likely to involve fines and incarceration.  (Certain other business associates of Riemer Calhoun earlier pleaded guilty to various related charges.)

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

The Internal Revenue Service has commenced an audit of the Calhoun Partnerships which will finally determine the amount of overstated tax credits.  At the Investment General Partner and its affiliate’s insistence, Riemer Calhoun has personally funded an escrow in the amount of $1,282,202 which will be available to compensate investors for any tax credits which are ultimately disallowed by the IRS.  It is hoped, but not certain, that the escrow fund will be sufficient to fully protect investors. (We are also pursuing a resolution with the IRS whereby escrow funds would be used to make a settlement payment directly to the IRS instead of requiring affected Partnerships and investors to restate tax returns to reflect less credit and then pay additional taxes.)

With respect to each of the Calhoun Partnerships where Riemer Calhoun has been the Operating General Partner or in control of an entity which has been the Operating General Partner, the Investment General Partner and its affiliates are in the process of replacing them with another entity which is controlled by Murray Calhoun, the son of Riemer Calhoun.  Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships.  Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

The Investment General Partner and its affiliates have also undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will

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continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom.  RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

Lombard Partners LP (Lombard Heights Apts.) located in Springfield, Missouri, operated below breakeven during the first quarter of 2003. The main reason for its continuing cash expenditure is its low occupancy, which averaged 88% for the quarter.  To address the low occupancy at the property, management is marketing the property through newspapers, churches and civic groups.  The property’s mortgage, taxes and insurance were all current as of March 31, 2003.

(Series 30). As of March 31, 2003 and 2002 the average Qualified Occupancy for the series was 100%.  The series had a total of 20 properties at March 31, 2003, all of which were at 100% qualified occupancy.

For the tax years ended December 31, 2002 and 2001, the series, in total, generated $1,710,868 and $1,747,744, respectively, in passive income tax losses that were passed through to investors and also provided $1.06 for both years in tax credits per BAC to the investors.

As of March 31, 2003 and 2002, Investments in Operating Partnerships for Series 30 was $16,661,934 and $17,826,875, respectively.  The decrease is a result of the way the Fund accounts for such investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the years ended March 31, 2003 and 2002, the net loss of the series was $1,425,215 and $1,298,251, respectively. The major components of these amounts are the Fund’s share of loss from Operating Partnerships and the Fund management fee. It is anticipated that operations will be relatively consistent in future years as series had finished acquiring Operating Partnerships and they are for the most part reporting stable operations.

Mesa Grande, LP (Mesa Grande Apartments) is a 72-unit, family property located in Carlsbad, New Mexico.  The mortgage lender submitted default letters to the Investment Limited Partner and the Operating General Partner on April 2, 2003 for the following deficiencies: two months unpaid mortgage payments, unpaid tax payment and under funded replacement reserve account.  The Investment General Partner and the Operating General Partner executed an agreement on April 25, 2003 that remedied the mortgage note deficiencies.  The Operating General Partner made the most current mortgage payment and the Investment General Partner provided approval to release funds from the property’s operating reserve to remedy the remaining financial deficiencies.  On May 2, 2003, Form 8823 was issued by the New Mexico Mortgage Finance Authority for failure to pay the annual tax credit monitoring fee.  The Investment General Partner will work with the Operating General Partner to ensure that the non-compliance issue is corrected.  As a result of the defaults by the Operating General Partner and Management Company, a related entity, the Investment General Partner will be looking to replace the Management Company by August 1, 2003.

Sunrise Homes, LP (Broadway Place Apartments) is a 32-unit, family property

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located in Hobbs, New Mexico.  The mortgage lender submitted default letters to the Investment Limited Partner and the Operating General Partner on April 2, 2003 for the following deficiencies: one month unpaid mortgage payment, unpaid tax payment and under funded replacement reserve account.  The Investment Genral Partner and the Operating General Partner executed an agreement on April 25, 2003 that remedied the mortgage note deficiencies.  The Operating General Partner made the most current mortgage payment and the Investment General Partner provided approval to release funds from the operating reserve to remedy the remaining financial deficiencies.  On May 2, 2003, Form 8823 was issued by the New Mexico Mortgage Finance Authority for failure to pay the annual tax credit monitoring fee.  The Investment General Partner will work with the Operating General Partner to ensure that the non-compliance issue is corrected.  As a result of the defaults by the Operating General Partner and Management Company, a related entity, the Investment General Partner will be looking to replace the Management Company by August 1, 2003.

JMC Limited Liability Company (Farwell Mills Apts.) is a 27-unit development located in Lisbon, ME. For the first quarter of 2003, occupancy was 93%, which is consistent with past performance. The property has been unable to break even due to high operating expenses. In 2002, operating expenses were $4,827 per unit, which is $553 per unit higher than the Investment General Partner’s state average of $4,274. Despite favorable financing arrangements, the property is operating with a debt coverage ratio of .12. The Investment General Partner has been working closely with the management company to improve operations on this property. The management company was recently able to secure a 4% increase, from the Maine State Housing Authority, in voucher amounts for the units. They have also transferred who they consider to be their best site manager to the property to improve operations.

Linden Partners II (Western Trails Apartments II) is a 30-unit property located in Council Bluffs, IA, which suffered from high payables and high tenant account receivables. Although the occupancy was stabilized there was a cash flow deficit as a result of high operating expenses. The tax expense for 2002 was paid in full along with the 2001 tax deficit.  The property was reassessed in 2002 and the reassessed value will decrease the tax liability going forward.

(Series 31). As of March 31, 2003 and 2002, the average Qualified Occupancy for the series was 100%.  The series had a total of 27 properties at March 31, 2003, all of which were at 100% qualified occupancy.

For the tax years ended December 31, 2002 and 2001, the series, in total, generated $3,159,272 and $3,159,272, respectively, in passive income tax losses to pass through to the investors and also provided $1.03 for both years in tax credits per BAC to the investors.

As of March 31, 2003 and 2002, Investments in Operating Partnerships for Series 31 was $25,656,110 and $27,720,981, respectively.  The decrease is a result 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.  The amount was also affected by the acquisition of one additional operating partnership.

For the years ended March 31, 2003 and 2002, the net loss of the series was $2,409,358 and $2,489,687, respectively.  The major components of these

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amounts are the Fund’s share of loss from Operating Partnerships and the fund management fee.  The improved operations were mainly the result of a decrease in interest expense and depreciation reported by one of the Operating Partnerships in the current fiscal year.  It is anticipated that operations will stabilize in future years as the series has finished acquiring operating partnerships, and construction and lease-up is complete for all of the partnerships.

Seagraves Apartments, Limited Partnership (Western Hills Apartments) is a 16-unit family property located in Ferris, TX.  Occupancy averaged 91% in 2002, but extremely high utility expenses caused the property to operate below breakeven.  Occupancy dropped to 83% for the first quarter 2003 due to a rental increase that was implemented in January 2003.  The Operating General Partner, who also acts as the management agent is confident that occupancy will return to the low 90s in the next few months.  Despite the drop in occupancy, the property operated above breakeven in the first quarter of 2003, due to the increase in rental rates.  The Operating General Partner’s focus is to increase occupancy to the mid 90s and reduce utility expenses.  The Investment General Partner will continue to monitor this property on a monthly basis.

(Series 32). As of March 31, 2003 and 2002, the average Qualified Occupancy for the series was 100%.  The series had a total of 17 properties at March 31, 2003, all of which were at 100% qualified occupancy.

For the tax years ended December 31, 2002 and 2001, the series, in total, generated $2,507,281 and $3,065,920, respectively in passive income tax losses that were passed through to investors, and also provided $1.04 and $1.02, respectively, in tax credits per BAC to the investors.

As of March 31, 2003 and 2002, Investments in Operating Partnerships for Series 32 was $31,094,955 and $32,959,161, respectively.  The decrease is a result of 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.  The balance was also affected by the acquisition of one additional operating partnership.

For the years ended March 31, 2003 and 2002, the net loss of the series was $2,292,954 and $2,429,115, respectively.  The major components of these amounts are the Fund’s share of loss from Operating Partnerships and the fund management fee.  It is anticipated that the net loss will stabilize in future years as the series has finished acquiring Operating Partnerships and construction and lease-up are complete for all of the partnerships.

Series 32 has invested in 3 Operating Partnerships (the “Calhoun Partnerships”) in which the Operating General Partner is Riemer Calhoun, Jr. or an entity which is affiliated with and controlled by Riemer Calhoun (the “Riemer Calhoun Group”).  The Operating Partnerships are Pearlwood Apartments LP, Pecan Manor Apartments and Pineridge Apartments Partnership.  The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana or Mississippi and consist of approximately 120 apartment units in total.  The low income housing tax credit available annually to Series 32 from the Calhoun Partnerships is approximately $537,868, which is approximately 11% of the total annual tax credit available to investors in Series 32.

In the summer of 2002, the US Attorney for the Western District of Louisiana

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notified the Investment General Partner that the Riemer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 32 is not an investor.  The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor which built the apartment properties (an affiliate of Mr. Calhoun’s) overbilled the respective partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming.   Sentencing is scheduled for late July, 2003 and is likely to involve fines and incarceration.  (Certain other business associates of Riemer Calhoun earlier pleaded guilty to various related charges.)

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

The Internal Revenue Service has commenced an audit of the Calhoun Partnerships which will finally determine the amount of overstated tax credits.  At the Investment General Partner and its affiliate’s insistence, Riemer Calhoun has personally funded an escrow in the amount of $1,282,202 which will be available to compensate investors for any tax credits which are ultimately disallowed by the IRS.  It is hoped, but not certain, that the escrow fund will be sufficient to fully protect investors. (We are also pursuing a resolution with the IRS whereby escrow funds would be used to make a settlement payment directly to the IRS instead of requiring affected Partnerships and investors to restate tax returns to reflect less credit and then pay additional taxes.)

With respect to each of the Calhoun Partnerships where Riemer Calhoun has been the Operating General Partner or in control of an entity which has been the Operating General Partner, the Investment General Partner and its affiliates are in the process of replacing them with another entity which is controlled by Murray Calhoun, the son of Riemer Calhoun.  Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships.  Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

The Investment General Partner and its affiliates have also undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom.  RHS has also indicated that it will consent to the replacement of general partners noted above.

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Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

Series 32 invested in FFLM Associates an Operating Partnership that owns 3 limited partner interests, one of which is Carriage Pointe Investors, LP.  Carriage Pointe Investors LP (Carriage Pointe Apartments) historically has suffered from negative cash flow, high accounts payables, and under-funded replacement reserves, in part due to the fact that the property only has 18 units.  Several options were considered in recent months to improve the performance of the property, including replacement of the Operating General Partner and refinancing the first mortgage.  Neither of these options proved to be viable. The Operating General Partner continues to fund all operating deficits and the first mortgage lender is content to leave the loan in place.

Martinsville I, Ltd. (Martinsville Apartments) is a 13-unit property located in Shelbyville, Kentucky. The property was 100% occupied and had positive cash flow for the first quarter of 2003.  The Operating General Partner refuses to consider settling with plaintiffs in lawsuits regarding sub-contractor payment disputes. There has been no legal activity regarding these suits so far in 2003.  The Operating General Partner has rebuffed attempts of the Investment General Partner to assist in settling the sub-contractor issues. So long as these matters are outstanding, the Operating General Partners’ personal guarantees remain in place.

Indiana Development Limited Partnership (Clear Creek Apartments), located in North Manchester, Indiana is a 64-unit development.  The occupancy level at this property declined to a first quarter 2003 average of 83%, resulting in below break even operations for the quarter.  The Operating General indicated that the decline in occupancy is the direct result of hiring a new management company that has been focusing on evicting bad tenants.  The Operating General Partner anticipates that occupancy will rebound over the next several months.

(Series 33). As of March 31, 2003 and 2002 the average Qualified Occupancy for the series was 100%.  The series had a total of 10 properties at March 31, 2003, all of which were at 100% qualified occupancy.

For the tax years ended December 31, 2002 and 2001, the series, in total, generated $1,335,367 and $1,600,955, respectively in passive income tax losses that were passed through to investors, and also provided $1.05 and $1.03, respectively, in tax credits per BAC to the investors.

As of March 31, 2003 and 2002, Investments in Operating Partnerships for Series 33 was $17,734,775 and $18,625,977, respectively.  The decrease is a result of the way the Fund accounts for such investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the years ended March 31, 2003 and 2002, the net loss of the Series was $1,118,654 and $1,259,944, respectively.  The major components of these

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amounts are the Fund’s share of loss from Operating Partnerships and the fund management fee.  It is anticipated that operations will be relatively consistent in future years as series had finished acquiring Operating Partnerships and they are all reporting stable operations.

Series 33 has invested in Forest Park Apartments (the “Calhoun Partnership”) in which the Operating General Partner is Riemer Calhoun, Jr. or an entity which is affiliated with and controlled by Riemer Calhoun (the “Riemer Calhoun Group”).  The affordable housing property owned by the Calhoun Partnership is located in Louisiana and consist of approximately 40 apartment units in total.  The low income housing tax credit available annually to Series 33 from the Calhoun Partnership is approximately $208,599, which is approximately 8% of the total annual tax credit available to investors in Series 33.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 33 is not an investor.  The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor which built the apartment properties (an affiliate of Mr. Calhoun’s) overbilled the respective partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming.   Sentencing is scheduled for late July, 2003 and is likely to involve fines and incarceration.  (Certain other business associates of Riemer Calhoun earlier pleaded guilty to various related charges.)

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

The Internal Revenue Service has commenced an audit of the Calhoun Partnerships which will finally determine the amount of overstated tax credits.  At the Investment General Partner and its affiliate’s insistence, Riemer Calhoun has personally funded an escrow in the amount of $1,282,202 which will be available to compensate investors for any tax credits which are ultimately disallowed by the IRS.  It is hoped, but not certain, that the escrow fund will be sufficient to fully protect investors. (We are also pursuing a resolution with the IRS whereby escrow funds would be used to make a settlement payment directly to the IRS instead of requiring affected Partnerships and investors to restate tax returns to reflect less credit and then pay additional taxes.)

With respect to each of the Calhoun Partnerships where Riemer Calhoun has been the Operating General Partner or in control of an entity which has been the Operating General Partner, the Investment General Partner and its affiliates are in the process of replacing them with another entity which is controlled by Murray Calhoun, the son of Riemer Calhoun.  Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level

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management services for the apartment properties owned by the Calhoun Partnerships.  Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

The Investment General Partner and its affiliates have also undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom.  RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

Series 33 invested in FFLM Associates an Operating Partnership that owns 3 limited partner interests, one of which is Carriage Pointe Investors, LP.  Carriage Pointe Investors LP (Carriage Pointe Apartments) historically has suffered from negative cash flow, high accounts payables, and under-funded replacement reserves, in part due to the fact that the property only has 18 units.  Several options were considered in recent months to improve the performance of the property, including replacement of the Operating General Partner and refinancing the first mortgage.  Neither of these options proved to be viable. The Operating General Partner continues to fund all operating deficits and the first mortgage lender is content to leave the loan in place.

Stearns Assisted Housing Associates, L.P. (Stearns Assisted Housing), is a 20-unit property in Millinocket, ME providing congregate housing to seniors. Stearns Assisted Housing is the rehabilitation of the George Stearns High School. The building contains another property, which is affiliated with the Investment General Partner called Stearns Congregate Housing.

The Fire Marshall of Millinocket delayed the issuance of the Certificates of Occupancy until June 2001. Stearns Congregate Housing Associates was projected to be 100% leased-up by August 2001. It achieved 100% qualified occupancy in December 2001. The property is in a remote location, which added to the difficulties of the lease-up efforts. Occupancy is no longer an issue for this property as it averaged 98% for 2002 and the first quarter of 2003.

The Investment Limited Partner visited the property in June 2002 and was pleased with the property’s physical attributes and very positive response from the tenants. The Investment Limited Partner also met with the Town Manager and discussed the economic challenges within the Town of Millinocket.

Coastal Affordable, a non-profit organization, became a co-general partner in June 2002.  The admission of the non-profit general partner allows the partnership to utilize a PILOT Program that will reduce real estate taxes from $40,000 to $20,000 annually. Although this will help reduce expenses, the property’s high operating expenses remain the biggest concern.  Due to the

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inefficiency of the old building the property occupies, utility expenses are abnormally high. Through December 31, 2002 utility expense was $2,579 per unit. The Investment General Partner is currently working with management to investigate methods to reduce the property’s utility expense. Until the property can substantially reduce its operating expenses, it will continue to operate at a loss. The property was recently granted a rent increase of $93 per month on 9 of its 20 units, which will help offset a portion of the unusually high utility expenses. The Operating General Partner is obligated, as part of his development guarantee, to fund all deficits.

Bradford Group Partners of Jefferson County, L.P. (Bradford Square North Apartments) is a 50 unit senior complex located in Jefferson City, TN. The occupancy at this property averaged 85% for 2002 decreasing from the 2001 average of 99%. Due to a downturn in the local economy, occupancy averaged 84% for the first quarter of 2003. Some vacating tenants moved into a nearby, subsidized housing project, which has rental assistance. Additionally, the partnership suffers from high payables. The site manager was replaced in July of 2002. The new manager aggressively marketed the property, which resulted in an increase in occupancy to 94% at the end of May 2003. The taxes and insurance are being properly escrowed and the mortgage is current.

(Series 34). As of March 31, 2003 and 2002, the average Qualified Occupancy for the series was 100%.  The series had a total of 14 properties at March 31, 2003, all of which were at 100% qualified occupancy.

For the tax years ended December 31, 2002 and 2001, the series, in total, generated $2,254,136 and $2,343,979, respectively in passive income tax losses that were passed through to investors, and also provided $.98 for both years in tax credits per BAC to the investors.

As of March 31, 2003 and 2002 Investments in Operating Partnerships for Series 34 was $22,240,109 and $23,851,276, respectively.  The decrease is a result of the way the Fund accounts for such investments, the equity method.  By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the years ended March 31, 2003 and 2002, the net loss of the Series was $1,986,319 and $2,113,249, respectively.  The major components of these amounts are the Fund’s share of loss from Operating Partnerships and the fund management fee. It is anticipated that operations will stabilize in future years as the series has finished acquiring Operating Partnerships and construction and lease-up are complete for the partnerships.

RHP 96-I Limited Partnership(Hillside Club Apartments), a 56-unit property located in Petosky, Michigan, operated below breakeven during the first quarter of 2003 as a result of a low occupancy, which averaged 64% for the first quarter of 2003. The Operating General Partner indicates that the local economy relies heavily on seasonal employment.  These types of businesses have been negatively impacted by the overall downturn in the economy, which has resulted in higher than normal move outs at Hillside Club Apartments.  It is anticipated that occupancy will rebound over the second and third quarters of 2003.

(Series 35). As of March 31, 2003 and 2002 the average Qualified Occupancy for the series was 100% and 93.1%, respectively.  The series had a total of 11 properties at March 31, 2003 all of which were at 100% qualified occupancy.

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For the tax year ended December 31, 2002 and 2001 the series, in total, generated $2,075,209 and $1,614,496, respectively in passive income tax losses that were passed through to investors and also provided $.95 and $.88, respectively in tax credits per BAC to the investors.

As of March 31, 2003 and 2002, Investments in Operating Partnerships for Series 35 was $19,767,681 and $20,932,858, respectively.  Investments in Operating Partnerships was effected by the acquisition of one additional Operating Partnership and by the way the Fund accounts for such investments, the equity method.  By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the years ended March 31, 2003 and 2002 the net loss of the series was $1,530,349 and $1,211,672, respectively.  The major components of these amounts are the Fund’s share of loss from Operating Partnerships, the fund management fee and amortization of acquisition costs. It is anticipated that the net loss will fluctuate in future years until the Operating Partnerships they become fully leased and stabilize operations.

(Series 36). As of March 31, 2003 and 2002 the average Qualified Occupancy for the series was 100%.  The series had a total of 11 properties at March 31, 2003, all of which were at 100% qualified occupancy.

For the tax years ended December 31, 2002 and 2001 the series, in total, generated $1,600,625 and $503,717, respectively in passive income tax losses that were passed through to investors and also provided $.98 and $.99, respectively in tax credits per BAC to the investors.

As of March 31, 2003 and 2002, Investments in Operating Partnerships for Series 36 was $12,486,013 and $13,473,738, respectively.  The decrease is a result of the way the Fund accounts for such investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the year ended March 31, 2003 and 2002, the net loss of the series was $1,250,570 and $1,529,736, respectively. The major components of these amounts are the Fund’s share of loss from Operating Partnerships, the fund management fee and amortization of acquisition costs. The difference in net loss is primarily the result of a interest expense reported by one of the Operating Partnerships in the last fiscal year to correct for understated interest in prior years.  It is anticipated that operations will stabilize in future years as the series has finished acquiring Operating Partnerships and construction and lease-up are complete for all of the partnerships.

Series 36 has invested in 2 Operating Partnerships (the “Calhoun Partnerships”) in which the Operating General Partner is Riemer Calhoun, Jr. or an entity which is affiliated with and controlled by Riemer Calhoun (the “Riemer Calhoun Group”).  The Operating Partnerships are Willowbrook Apartments Partnership and Wingfield Apartments LP.  The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 80 apartment units in total.  The low income housing tax credit available annually to Series 36 from the Calhoun Partnerships is approximately $382,522, which is approximately 18% of the total annual tax credit available to investors in Series 36.

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In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 36 is not an investor.  The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor which built the apartment properties (an affiliate of Mr. Calhoun’s) overbilled the respective partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming.   Sentencing is scheduled for late July, 2003 and is likely to involve fines and incarceration.  (Certain other business associates of Riemer Calhoun earlier pleaded guilty to various related charges.)

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

The Internal Revenue Service has commenced an audit of the Calhoun Partnerships which will finally determine the amount of overstated tax credits.  At the Investment General Partner and its affiliate’s insistence, Riemer Calhoun has personally funded an escrow in the amount of $1,282,202 which will be available to compensate investors for any tax credits which are ultimately disallowed by the IRS.  It is hoped, but not certain, that the escrow fund will be sufficient to fully protect investors. (We are also pursuing a resolution with the IRS whereby escrow funds would be used to make a settlement payment directly to the IRS instead of requiring affected Partnerships and investors to restate tax returns to reflect less credit and then pay additional taxes.)

With respect to each of the Calhoun Partnerships where Riemer Calhoun has been the Operating General Partner or in control of an entity which has been the Operating General Partner, the Investment General Partner and its affiliates are in the process of replacing them with another entity which is controlled by Murray Calhoun, the son of Riemer Calhoun.  Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships.  Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

The Investment General Partner and its affiliates have also undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom.  RHS has also indicated that it will consent to the replacement of general partners noted above.

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Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

Annadale Housing Partners (Annadale Apartments) has historically reported net losses due to operational issues associated with the property.  As a result of efforts by the management company operations have improved significantly.  Rental increases combined with improved collections, increased rental revenues by $96,611 in 2002. Expenses (particularly maintenance) saw increases in 2002. This is in part due to repairs mandated by the Housing Agency as a result of a site inspection done during 2002.  Another factor affecting maintenance costs are the provisions of the loan documents, which stipulate that the Partnership must spend a minimum of $55,000 per year on capital improvements funded from operations.  As a result of the increased rental revenues, the property operated at breakeven despite the increase in expenses.     A welfare tax exemption was approved in 2001, and the Partnership received a refund of $29,982 in January 2002.  Occupancy averaged 88.29% in 2002, however, occupancy dropped to 86% in December and has averaged only 83.78% in the first quarter of 2003.  The majority of the vacancies are in the elderly designated units.  Management is trying to broaden the scope of advertising to attract more potential residents to the site.  Although operations have demonstrated significant improvement, we will continue to monitor this Partnership until occupancy increases and stabilizes.

(Series 37). As of March 31, 2003 and 2002 the average Qualified Occupancy for the series was 100% and 88.7%, respectively.  The series had a total of 7 properties at March 31, 2003 all of which were at 100% qualified occupancy.

For the tax years ended December 31, 2002 and 2001, the series, in total, generated $2,000,990 and $932,687, respectively in passive income tax losses that were passed through to investors and also provided $.91 and $.71, respectively, in tax credits per BAC to the investors.

As of March 31, 2003 and 2002, Investments in Operating Partnerships for Series 37 was $16,153,757 and $17,469,596, respectively.  The decrease is a result of the way the Fund accounts for such investments, the equity method.  By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the years ended March 31, 2003 and 2002, the net loss of the series was $1,634,835 and $1,051,460, respectively. The major components of these amounts are the Fund’s share of loss from Operating Partnerships, the fund management fee and amortization of acquisition costs. It is anticipated that the net loss will increase in future years until the series finishes acquiring Operating Partnerships, construction is completed on the Operating Partnerships, they become fully leased-up, and stabilize operations.

Stearns Assisted Housing Associates, L.P. (Stearms Assisted Housing), is a 20-unit property in Millinocket, ME providing congregate housing to seniors. Stearns Assisted Housing is the rehabilitation of the George Stearns High School. The building contains another property, which is affiliated with the Investment General Partner called Stearns Congregate Housing.

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The Fire Marshall of Millinocket delayed the issuance of the Certificates of Occupancy until June 2001. Stearns Congregate Housing Associates was projected to be 100% leased-up by August 2001. It achieved 100% qualified occupancy in December 2001. The property is in a remote location, which added to the difficulties of the lease-up efforts. Occupancy is no longer an issue for this property as it averaged 98% for 2002 and the first quarter of 2003.

The Investment Limited Partner visited the property in June 2002 and was pleased with the property’s physical attributes and very positive response from the tenants. The Investment Limited Partner also met with the Town Manager and discussed the economic challenges within the Town of Millinocket.

Coastal Affordable, a non-profit organization, became a co-general partner in June 2002.  The admission of the non-profit general partner allows the partnership to utilize a PILOT Program that will reduce real estate taxes from $40,000 to $20,000 annually. Although this will help reduce expenses, the property’s high operating expenses remain the biggest concern. Due to the inefficiency of the old building the property occupies, utility expenses are abnormally high. Through December 31, 2002 utility expense was $2,579.00 per unit. The Investment General Partner is currently working with management to investigate methods to reduce the property’s utility expense. Until the property can substantially reduce its operating expenses, it will continue to operate at a loss. The property was recently granted a rent increase of $93 per month on 9 of its 20 units, which will help offset a portion of the unusually high utility expenses. The Operating General Partner is obligated, as part of his development guarantee, to fund all deficits.

(Series 38). As of March 31, 2003 and 2002, the average Qualified Occupancy for the series was 100% and 92.7%, respectively.  The series had a total of 10 properties at March 31, 2003, all of which were at 100% qualified occupancy.

For the tax years ended December 31, 2002 and 2001, the series, in total, generated $1,712,857 and $145,959 in passive income tax losses that were passed through to investors.  The series also provided tax credits to the investors of $.42 for 2001 and between $.08 and $.13 for 2000, depending on the investors’ date of admission.

As of March 31, 2003 and 2002, Investments in Operating Partnerships for Series 38 was $16,658,700 and $17,632,089, respectively.  The decrease is a result of 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.  The balance was also affected by the acquisition of one additional Operating Partnership in the current fiscal year.

For the years ended March 31, 2003 and 2002, the net loss of the series was $1,170,974 and $1,405,509, respectively.  The major components of these amounts are the Fund’s share of loss from Operating Partnerships, the fund management fee and amortization of acquisition costs. It is anticipated that the net loss will fluctuate in future years until the Operating Partnerships become fully leased-up and stabilize operations.

Series 38 has invested in 2 Operating Partnerships (the “Calhoun Partnerships”) in which the Operating General Partner is Riemer Calhoun, Jr. or an entity which is affiliated with and controlled by Riemer Calhoun (the

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“Riemer Calhoun Group”).  The Operating Partnerships are Hammond Place Apartments Partnership and Willowbrook II Apartments Partnership.  The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 80 apartment units in total.  The low income housing tax credit available annually to Series 38 from the Calhoun Partnerships is approximately $386,388, which is approximately 16% of the total annual tax credit available to investors in Series 38.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner affiliate that the Riemer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 38 is not an investor.  The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor which built the apartment properties (an affiliate of Mr. Calhoun’s) overbilled the respective partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming.   Sentencing is scheduled for late July, 2003 and is likely to involve fines and incarceration.  (Certain other business associates of Riemer Calhoun earlier pleaded guilty to various related charges.)

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

The Internal Revenue Service has commenced an audit of the Calhoun Partnerships which will finally determine the amount of overstated tax credits.  At the Investment General Partner and its affiliate’s insistence, Riemer Calhoun has personally funded an escrow in the amount of $1,282,202 which will be available to compensate investors for any tax credits which are ultimately disallowed by the IRS.  It is hoped, but not certain, that the escrow fund will be sufficient to fully protect investors. (We are also pursuing a resolution with the IRS whereby escrow funds would be used to make a settlement payment directly to the IRS instead of requiring affected Partnerships and investors to restate tax returns to reflect less credit and then pay additional taxes.)

With respect to each of the Calhoun Partnerships where Riemer Calhoun has been the Operating General Partner or in control of an entity which has been the Operating General Partner, the Investment General Partner and its affiliates are in the process of replacing them with another entity which is controlled by Murray Calhoun, the son of Riemer Calhoun.  Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships.  Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun. The Investment General

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Partner and its affiliates have also undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom.  RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

(Series 39). As of March 31, 2003 and 2002 the average Qualified Occupancy for the series was 100% and 86.1%, respectively.  The series had a total of 9 properties at March 31, 2003, all of which were at 100% qualified occupancy.

For the tax year ended December 31, 2002 and 2001 the series, in total, generated $1,623,752 and $1,257,903, respectively, in passive income that were passed through to investors. The series also provided $.84 and $.22, respectively, in tax credits per BAC to the investors.

As of March 31, 2003 and 2002, Investments in Operating Partnerships for Series 39 was $14,730,373 and $16,095,151, respectively. The decrease is a result of 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.  The balance was also affected by the acquisition of two additional Operating Partnerships in the current fiscal year.

For the years ended March 31, 2003 and 2002 the net loss of the series was $1,340,819 and $1,126,847, respectively. The major components of these amounts are the Fund’s share of loss from Operating Partnerships, the fund management fee, amortization of acquisition costs and interest income.  It is anticipated that the net loss will fluctuate in future years until the Operating Partnerships become fully leased-up and stabilize operations.

Series 39 has invested in 2 Operating Partnerships (the “Calhoun Partnerships”) in which the Operating General Partner is Riemer Calhoun, Jr. or an entity which is affiliated with and controlled by Riemer Calhoun (the “Riemer Calhoun Group”).  The Operating Partnerships are Tally-Ho II Partnership and Timber Trails I Partnership.  The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 58 apartment units in total.  The low income housing tax credit available annually to Series 39 from the Calhoun Partnerships is approximately $126,268, which is approximately 6% of the total annual tax credit available to investors in Series 39.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation for each of the Calhoun

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Partnerships (as well as with respect to approximately 38 other operating partnerships in which Series 39 is not an investor).  The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships.  In effect, it appears that the contractor which built the apartment properties (an affiliate of Mr. Calhoun’s) overbilled the respective partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming.   Sentencing is scheduled for late July, 2003 and is likely to involve fines and incarceration.  (Certain other business associates of Riemer Calhoun earlier pleaded guilty to various related charges.)

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

The Internal Revenue Service has commenced an audit of the Calhoun Partnerships which will finally determine the amount of overstated tax credits.  At the Investment General Partner and its affiliate’s insistence, Riemer Calhoun has personally funded an escrow in the amount of $1,282,202 which will be available to compensate investors for any tax credits which are ultimately disallowed by the IRS.  It is hoped, but not certain, that the escrow fund will be sufficient to fully protect investors. (We are also pursuing a resolution with the IRS whereby escrow funds would be used to make a settlement payment directly to the IRS instead of requiring affected Partnerships and investors to restate tax returns to reflect less credit and then pay additional taxes.)

With respect to each of the Calhoun Partnerships where Riemer Calhoun has been the Operating General Partner or in control of an entity which has been the Operating General Partner, the Investment General Partner and its affiliates are in the process of replacing them with another entity which is controlled by Murray Calhoun, the son of Riemer Calhoun.  Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships.  Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

The Investment General Partner and its affiliates have also undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom.  RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

(Series 40). As of March 31, 2003 and 2002 the average Qualified Occupancy for the series was 100% and 92.5%, respectively.  The series had a total of 16 properties at March 31, 2003 all of which were at 100%

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For the tax years ended December 31, 2002 and 2001 the series, in total, generated $1,093,023 and $642,925, respectively in passive income tax losses that were passed through to investors.  The series also provided tax credits to the investors of $.79 for 2002 and between $.11 and $.18 for 2001, depending on the investors’ date of admission.

As of March 31, 2003 and 2002, Investments in Operating Partnerships for Series 40 was $18,256,397 and $18,540,930, respectively.  The decrease is a result of 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.  The amount was also effected by the acquisition of one additional Operating Partnership.

For the years ended March 31, 2003 and 2002 the net loss of the series was $1,121,025 and $597,386, respectively.  The major components of these amounts are the Fund’s share of loss from Operating Partnerships, the fund management fee and interest income.  It is anticipated that the net loss will fluctuate in future years until the Operating Partnerships become fully leased-up and stabilize operations.

Series 40 has invested in 3 Operating Partnerships (the “Calhoun Partnerships”) in which the Operating General Partner is Riemer Calhoun, Jr. or an entity which is affiliated with and controlled by Riemer Calhoun (the “Riemer Calhoun Group”). The Operating Partnerships are Center Place Apartments II LP and Oakland Partnership.  The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana or Texas and consist of approximately 126 apartment units in total.  The low income housing tax credit available annually to Series 40 from the Calhoun Partnerships is approximately $255,292, which is approximately 10% of the total annual tax credit available to investors in Series 40.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications.  In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation for each of the Calhoun Partnerships (as well as with respect to approximately 37 other operating partnerships in which Series 40 is not an investor).  The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships.  In effect, it appears that the contractor which built the apartment properties (an affiliate of Mr. Calhoun’s) overbilled the respective partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming.   Sentencing is scheduled for late July, 2003 and is likely to involve fines and incarceration.  (Certain other business associates of Riemer Calhoun earlier pleaded guilty to various related charges.)

The Investment General Partner has cooperated fully with the US Attorney in

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the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

The Internal Revenue Service has commenced an audit of the Calhoun Partnerships which will finally determine the amount of overstated tax credits.  At the Investment General Partner and its affiliate’s insistence, Riemer Calhoun has personally funded an escrow in the amount of $1,282,202 which will be available to compensate investors for any tax credits which are ultimately disallowed by the IRS.  It is hoped, but not certain, that the escrow fund will be sufficient to fully protect investors. (We are also pursuing a resolution with the IRS whereby escrow funds would be used to make a settlement payment directly to the IRS instead of requiring affected Partnerships and investors to restate tax returns to reflect less credit and then pay additional taxes.)

With respect to each of the Calhoun Partnerships where Riemer Calhoun has been the Operating General Partner or in control of an entity which has been the Operating General Partner, the Investment General Partner and its affiliates are in the process of replacing them with another entity which is controlled by Murray Calhoun, the son of Riemer Calhoun.  Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships.  Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

The Investment General Partner and its affiliates have also undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom.  RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

(Series 41) As of March 31, 2003 and 2002 the average Qualified Occupancy for the series was 97.8% and 100%, respectively.  The series had a total of 20 properties at March 31, 2003.  Out of the total, 18 were at 100% qualified occupancy and 1 was in initial lease-up.  The series also had 1 property that was still under construction at March 31, 2003.

For the tax year ended December 31, 2002 and 2001 the series, in total, generated $2,707,332 and $642,925, respectively in passive income that were passed through to investors.  The series also provided $.46 and less than $.004, respectively, in tax credits per BAC the investors.

As of March 31, 2003 and 2002, Investments in Operating Partnerships for Series 41 was $19,421,142 and $20,029,680, respectively.  The decrease is a result of 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

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distributions received or accrued.  The amount was also affected by the acquisition of 9 additional interests in Operating Partnerships.

For year ended March 31, 2003 and the period ended March 31, 2002 the net loss of the series was $1,848,385 and $283,923, respectively.  The major components of these amounts are the Fund’s share of loss from Operating Partnerships, the fund management fee and amortization of acquisition costs.  It is anticipated that the net loss will fluctuate in future years until the Operating Partnerships fully leased-up and stabilize operations.

Series 41 has invested in 2 Operating Partnerships (the “Calhoun Partnerships”) in which the Operating General Partner is Riemer Calhoun, Jr. or an entity which is affiliated with and controlled by Riemer Calhoun (the “Riemer Calhoun Group”).  The Operating Partnerships are Bienville Partnership and Red Hill Apartments I Partnership.  The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 64 apartment units in total.  The low income housing tax credit available annually to Series 41 from the Calhoun Partnerships is approximately $128,767, which is approximately 5% of the total annual tax credit available to investors in Series 41.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation for each of the Calhoun Partnerships (as well as with respect to approximately 38 other operating partnerships in which Series 41 is not an investor).  The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships.  In effect, it appears that the contractor which built the apartment properties (an affiliate of Mr. Calhoun’s) overbilled the respective partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming.   Sentencing is scheduled for late July, 2003 and is likely to involve fines and incarceration.  (Certain other business associates of Riemer Calhoun earlier pleaded guilty to various related charges.)

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

The Internal Revenue Service has commenced an audit of the Calhoun Partnerships which will finally determine the amount of overstated tax credits.  At the Investment General Partner and its affiliate’s insistence, Riemer Calhoun has personally funded an escrow in the amount of $1,282,202 which will be available to compensate investors for any tax credits which are ultimately disallowed by the IRS.  It is hoped, but not certain, that the escrow fund will be sufficient to fully protect investors. (We are also pursuing a resolution with the IRS whereby escrow funds would be used to make a settlement payment directly to the IRS instead of requiring affected

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Partnerships and investors to restate tax returns to reflect less credit and then pay additional taxes.)

With respect to each of the Calhoun Partnerships where Riemer Calhoun has been the Operating General Partner or in control of an entity which has been the Operating General Partner, the Investment General Partner and its affiliates are in the process of replacing them with another entity which is controlled by Murray Calhoun, the son of Riemer Calhoun.  Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships.  Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

The Investment General Partner and its affiliates have also undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom.  RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

San Diego/Fox Hollow LP (Hollywood Palms Apts.) and its limited Partner, BCP/Fox Hollow LLC have filed a law suit against the former Operating General Partner and its affiliates for breaches of various agreements.  The former Operating General Partner and its affiliates have filed a counter law suit against the Operating Limited Partnership, its Limited Partner and affiliates. The law suits are in discovery stage.  The Investment General Partner believes the counter claim is without merit and intends to defend it position vigorously.

(Series 42). As of March 31, 2003 the average Qualified Occupancy for the series was 91.2%.  The series had a total of 17 properties at March 31, 2003. Out of the total 7, were at 100% qualified occupancy and 3 were in initial lease-up.  The series also had 7 properties that were still under construction at March 31, 2003.  Since all of the properties were under construction at March 31, 2002 there is no comparative information to report.

For the tax year ended December 31, 2002 the series, in total, generated $786,767 in passive income tax losses that were passed through to investors.  The series also provided tax credits to the investors.  Below is a summary of tax credits per BAC by month of admission.

March	$	.20
April	$	.18
May	$	.16
June	$	.14
July	$	.12

Since the series did not commence operations until subsequent to December 31, 2001, it does not have comparative information to report.

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As of March 31, 2003 and 2002, Investments in Operating Partnerships for Series 42 was $19,580,489 and $2,675,537, respectively. The increase is a result of the Fund acquiring 15 additional interests in Operating Partnerships. Investments in Operating Partnerships was also affected by the way the Fund accounts for such investments, the equity method.  By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the year ended March 31, 2003 and for the period ended March 31, 2002 the net loss of the series was $521,411 and $110,267, respectively. the Fund’s share of loss from Operating Partnerships, the fund management fee, interest income and organization expenses.  It is anticipated that the net loss will increase in future years until the series finishes acquiring Operating Partnerships, construction is completed on the Operating Partnerships and they become fully leased-up and stabilize operations.

Series 42 has invested in 2 Operating Partnerships (the “Calhoun Partnerships”) in which the Operating General Partner is Riemer Calhoun, Jr. or an entity which is affiliated with and controlled by Riemer Calhoun (the “Riemer Calhoun Group”).  The Operating Partnerships are Natchez Place II Partnership and Wingfield Apartments Partnership II.  The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 74 apartment units in total.  The low income housing tax credit available annually to Series 42 from the Calhoun Partnerships is approximately $286,417, which is approximately 13% of the total annual tax credit available to investors in Series 42.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun Group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun Group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation for each of the Calhoun Partnerships (as well as with respect to approximately 38 other operating partnerships in which Series 42 is not an investor).  The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships.  In effect, it appears that the contractor which built the apartment properties (an affiliate of Mr. Calhoun’s) overbilled the respective partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming.   Sentencing is scheduled for late July, 2003 and is likely to involve fines and incarceration.  (Certain other business associates of Riemer Calhoun earlier pleaded guilty to various related charges.)

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

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The Internal Revenue Service has commenced an audit of the Calhoun Partnerships which will finally determine the amount of overstated tax credits.  At the Investment General Partner and its affiliate’s insistence, Riemer Calhoun has personally funded an escrow in the amount of $1,282,202 which will be available to compensate investors for any tax credits which are ultimately disallowed by the IRS.  It is hoped, but not certain, that the escrow fund will be sufficient to fully protect investors. (We are also pursuing a resolution with the IRS whereby escrow funds would be used to make a settlement payment directly to the IRS instead of requiring affected Partnerships and investors to restate tax returns to reflect less credit and then pay additional taxes.)

With respect to each of the Calhoun Partnerships where Riemer Calhoun has been the Operating General Partner or in control of an entity which has been the Operating General Partner, the Investment General Partner and its affiliates are in the process of replacing them with another entity which is controlled by Murray Calhoun, the son of Riemer Calhoun.  Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships.  Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

The Investment General Partner and its affiliates have also undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom.  RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

San Diego/Fox Hollow LP (Hollywood Palms Apts.) and its limited Partner, BCP/Fox Hollow LLC have filed a law suit against the former Operating General Partner and its affiliates for breaches of various agreements.  The former Operating General Partner and its affiliates have filed a counter law suit against the Operating Limited Partnership, its Limited Partner and affiliates. The law suits are in discovery stage.  The Investment General Partner believes the counter claim is without merit and intends to defend it position vigorously.

(Series 43) As of March 31, 2003 the average Qualified Occupancy for the series was 85.3%. The series had a total of 16 properties as of March 31, 2003.  Out of the total, 4 were at 100% qualified occupancy and 3 were in initial lease-up.  The series also had 8 properties under construction and 1 property with multiple buildings, some of which were under construction and some of which were in lease-up at March 31, 2003.

For the tax year ended December 31, 2002 the series, in total, generated $63,946 in passive income tax losses that were passed through to investors.  The series also provided tax credits to the investors.  Below is a summary of tax credits per BAC by month of admission.

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September	$	.07
October	$	.05
November	$	.03
December	$	.02

As of March 31, 2003, Investments in Operating Partnerships for Series 43 was $18,349,599.  The amount is a result of the Fund acquiring 16 interests in Operating Partnerships.  Investments in Operating Partnerships, was also affected by the way the Fund accounts for such investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the period ended March 31, 2003 the net loss of the series was $490,370.  The major components of this amount are the Fund’s share of loss from Operating Partnerships and organization expenses.

Since Series 43 did not commence operations until after March 31, 2002, it does not have any comparative information to report.

San Diego/Fox Hollow LP (Hollywood Palms Apts.) and its limited Partner, BCP/Fox Hollow LLC have filed a law suit against the former Operating General Partner and its affiliates for breaches of various agreements.  The former Operating General Partner and its affiliates have filed a counter law suit against the Operating Limited Partnership, its Limited Partner and affiliates. The law suits are in discovery stage.  The Investment General Par tner believes the counter claim is without merit and intends to defend it position vigorously.

(Series 44). As of March 31, 2003 the average Qualified Occupancy for the series was 34%. The series had a total of 4 properties as of March 31, 2003. Out of the total, 3 were under construction and 1 was in initial lease-up.

The series had not admitted any investors as of December 31, 2002, therefore, it had no passive income tax losses or tax credits to pass through to the investors for the tax years ended December 31, 2002 or 2001.

As of March 31, 2003, Investments in Operating Partnerships for Series 44 was $4,651,676.  The amount is a result of the Fund acquiring 4 interests in Operating Partnerships.  In the future, Investments in Operating Partnerships, will also be 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 period ended March 31, 2003 the net loss of the series was $115,020.  The maj or component of this amount is organization expenses.  It is anticipated that the net loss will increase in future years until the series finishes acquiring Operating Partnerships, construction is completed on the Operating Partnerships and they become fully leased-up and stabilize operations.

Since Series 44 did not commence operations until after March 31, 2002, it does not have any comparative information to report.

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Critical Accounting Policies and Estimates

The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which requires the Partnership to make certain estimates and assumptions.  A summary of significant accounting policies is provided in Note A to the financial statements.  The following section is a summary of certain aspects of those accounting policies that may require subjective or complex judgments and are most important to the portrayal of Partnership’s financial condition and results of operations.  The Partnership believes that there is a low probability that the use of different estimates or assumptions in making these judgments would result in materially different amounts being reported in the financial statements.

The Partnership accounts for its investment in local partnerships in accordance with the equity method of accounting since the Partnership does not control the operations of an Operating Partnership.

If the book value of Partnership’s investment in a Operating Partnership exceeds the estimated value derived by management, the Partnership reduces its investment in any such Operating Partnership and includes such reduction in equity in loss of investment in operating partnerships.

Recent Accounting Statements Not Yet Adopted

In August 2001, the Financial Accounting Standards Board issued SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”.  SFAS No. 144 provides accounting guidance for financial accounting and reporting of impairment or disposal of long-lived assets.  SFAS No.144 supercedes SFAS No. 121, “Accounting for the Impairment of Long-Lived Assts and for Long-Lived Assets to be Disposed Of”.  SFAS No. 144 is effective for fiscal years beginning after December 15, 2001. Implementation of SFAS No. 144 has not had a material effect on the financial position or results of the operation of the partnership.

In January 2003, the FASB issued Interpretation No. 46 (FIN 46), “Consolidation of Variable Interest Entities”, an interpretation of ARB No. 51, “Consolidated Financial Statements”, which provides new accounting guidance on when to consolidate a variable interest, as defined in FIN 46, in another entity.  FIN 46 applies to variable interests in variable interest entities acquired after January 31, 2003.  FIN 46 should be implemented no later than December 31, 2004. The general partner is in the process of analyzing FIN 46 to determine the impact, if any, on the Partnership’s financial statements.  Management has not yet made any determination of the potential impact FIN 46 might have on the Partnership’s current accounting for its investments in operating partnerships or whether any of those investments might be required to be consolidated.

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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 15 of this Annual Report on Form 10-K.
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
	None

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.

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John P. Manning, age 55, is co-founder, and since 1974 has been the President and Chief Executive Officer of Boston Capital Corporation, where he is primarily responsible for strategic planning and business development. In addition to his responsibilities at Boston Capital Corporation, Mr. Manning is a proactive leader in the industry.  He served in 1990 as a member of the Mitchell-Danforth Task Force, which reviewed and suggested reforms to the Low Income Housing Tax Credit program.  He was the founding President of the Affordable Housing Tax Credit Coalition, is a former member of the board of the National Leased Housing Association, and currently sits on theExecutive Committees of the National Housing Conference and the National Multi Housing Council.  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 appointed Mr. Manning to the President’s Export Council, which is the premiere committee comprised of major corporate CEOs that advise the President on matters of foreign trade and commerce.  Mr. Manning sits on the Board of Directors of the John F. Kennedy Presidential Library in Boston where he serves as Chairman of the Distinguished Visitors Program. He also serves as a member of the Advisory Board of the Woodrow Wilson Institute for International Scholars in Washington D.C.   Mr. Manning is a graduate of Boston College.

Mr. Manning is the principal shareholder of C&M Management, Inc., a Massachusetts corporation which is the ultimate general partner of Boston Capital. Mr. Manning is also the principal of Boston Capital Corporation. While Boston Capital is not a direct subsidiary of Boston Capital Corporation, each of the entities is under the common control of Mr. Manning.

Richard J. DeAgazio, age 57, has been the Executive Vice President of Boston Capital Corporation, and is President of Boston Capital Services, Inc., Boston Capital’s NASD registered broker/dealer since 1981.  Mr. DeAgazio formerly served on the national Board of Governors of the National Association of Securities Dealers (NASD). He recently served as a member of the National Adjudicatory Council of the NASD. He was the Vice Chairman of the NASD’s District 11 Committee, and served as Chairman of the NASD’s Statutory 80 Disqualification Subcommittee of the National Business Conduct Committee. He also served on the NASD State Liaison Committee and the Direct Participation Program Committee.

He is a founder and past President of the National Real Estate Investment Association, past President of the Real Estate Securities and Syndication Institute (Massachusetts Chapter) and the Real Estate Investment Association. Prior to joining Boston Capital in 1981, Mr. DeAgazio was the Senior Vice President and Director of the Brokerage Division of Dresdner Securities (USA), Inc., an international investment banking firm owned by four major European banks, and was a Vice President of Burgess & Leith/Advest. He has been a member of the Boston Stock Exchange since 1967.  He is on the Board of

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Directors of FurnitureFind.com and Cognistar Corporation. He is a leader in the community and serves on Board of Trustees for Bunker Hill Community College, the Business Leaders Council of the Boston Symphony, Board of Trustees of Junior Achievement of Northern New England, 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.

Jeffrey H. Goldstein, age 41, is Chief Operating Officer and Director of Real Estate of Boston Capital Corporation since 1996. He directs Boston Capital Corporation’s comprehensive real estate services, which include all aspects of origination, underwriting, due diligence and acquisition. As COO, Mr. Goldstein is responsible for the financial and operational areas of Boston Capital Corporation and assists in the design and implementation of business development and strategic planning objectives. Mr. Goldstein previously served as the Director of the Asset Management division as well as the head of the dispositions and troubled assets group. Utilizing his 16 years experience in the real estate syndication and development industry, Mr. Goldstein has been instrumental in the diversification and expansion of Boston Capital Corporation’s businesses. Prior to joining Boston Capital Corporation in 1990, Mr. Goldstein was Manager of Finance for A.J. Lane & Co., where he was responsible for placing debt on all new construction projects and debt structure for existing apartment properties. Prior to that, he served as Manager for Homeowner Financial Services, a financial consulting firm for residential and commercial properties, and worked as an analyst responsible for budgeting and forecasting for the New York City Council Finance Division. He graduated from the University of Colorado and received his MBA from Northeastern University.

Kevin P. Costello, age 57, has been the Executive Vice President and Director of Institutional Investing for Boston Capital Corporation since 1994. Kevin Costello directs Boston Capital Corporation’s institutional investment business. He has overseen this segment of Boston Capital Corporation’s investment business which encompasses investment activities for corporate institutional funding, private proprietary funds and state CRA funds, since its inception in 1992. Mr. Costello has over 20 years experience in the real estate syndication and investment services industry, including previous roles at Boston Capital Corporation leading the acquisition team and managing the structuring and distribution of conventional and tax credit private placements. Prior to joining Boston Capital in 1987, he held senior management positions with Reynolds Securities, Bache & Company and First Winthrop where he focused on real estate syndication. Mr. Costello graduated from Stonehill College and received his MBA with honors from Rutgers’ Graduate School of Business Administration.

Marc N. Teal, age 39, was promoted to Chief Financial Officer in 2003. Mr. Teal previously served as Senior Vice President and Director of Accounting of Boston Capital Corporation and has been with Boston Capital Corporation since 1990.  He oversees all of the accounting, financial reporting, SEC reporting, budgeting, audit, tax and compliance for Boston Capital, its affiliated entities and all Boston Capital Corporation sponsored partnerships. Additionally, he is responsible for maintaining all banking and borrowing relationships of Boston Capital Corporation and management of all working capital reserves. Prior to joining Boston Capital in 1990, Mr. Teal was a Senior Accountant for Cabot, Cabot & Forbes, a multifaceted real estate company, and prior to that was a Senior Accountant for Liberty Real Estate Corp. He received a Bachelor of Science Accountancy from Bentley College and a Masters in Finance from Suffolk University.

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(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 2002 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, less the amount of reporting fees received, has been accrued or paid to Boston Capital Asset Management Limited Partnership. The annual fund management fees charged to operations for the year ended March 31, 2003 was $5,283,658.

2.  The Fund has reimbursed an affiliate of the General Partner a total of $619,497 for amounts charged to operations during the year ended March 31, 2003.  The reimbursement includes, but may not be limited to postage, printing, travel, and overhead allocations.

3.  The Fund has reimbursed affiliates of the General Partner a total of $278,384 for amounts charged to syndication during the year ended March 31, 2003.  The reimbursement includes, but may not be limited to postage, printing, travel, and overhead allocations.

4.  The General Partner has the right to charge acquisition fees and expenses in connection with the purchase of Operating Partnership interests.  During the 2003 fiscal year, the Fund accrued or paid $6,488,282 of acquisition fees and expenses to the General Partner or its affiliates.

5.  Dealer Manager fees of $1,139,235 were accrued or paid to Boston Capital Services, Inc. during the 2003 fiscal year in respect to the sale of units.

Item 12.		Security Ownership of Certain Beneficial Owners and Management
	(a)	Security ownership of certain beneficial owners.
		As of March 31, 2003, 75,662,578 BACs had been issued.  No person is known to own beneficially in excess of 5% of the outstanding BACs in any of the series.

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	(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.
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 43 of the Prospectus, as supplemented, under the caption “Compensation and Fees”, which is incorporated herein by reference.  See Note B of Notes to Financial Statements in Item 15 of this Annual Report on Form 10-K for amounts accrued or paid to the General Partner and its affiliates for the period April 1, 1995 through March 31, 2003.
	(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.
Item 14.		Controls & Procedures
	(a)	Evaluation of Disclosure Controls and Procedures
		Within the 90 days prior to the date of this report, the Partnership’s Chief Executive Officer and Chief Financial Officer carried out an evaluation of the effectiveness of the Partnership’s “disclosure controls and procedures” as defined in the Securities Exchange Act of 1934 Rules 13a-14(c) and 15(d)-14(c). Based on that evaluation, the Partnership’s Chief Executive Officer and Principal Financial Officer have concluded that as of the date of the evaluation, the Partnership’s disclosure controls and procedures were adequate and effective in timely alerting them to material information relating to the Partnership required to be included in the Partnership’s periodic SEC filings.

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(b)	Changes in Internal Controls
	There were no significant changes in the Partnership’s internal controls or in other factors that could significantly affect the Partnership’s internal controls subsequent to the date of that evaluation.

PART IV

Item 15.	Exhibits, Financial Statement Schedules, and Reports on Form 8-K
(a) 1 & 2	Financial Statements and Financial Statement Schedules; Filed herein as Exhibits 13 and 99.4
	Boston Capital Tax Credit IV L.P.; filed herein as exhibit 13
		Independent Auditors’ Report
		Balance Sheets, March 31, 2003 and 2002
		Statements of Operations for the years or periods ended March 31, 2003, 2002 and 2001
		Statements of Changes in Partners’ Capital for the years or periods ended March 31, 2003, 2002 and 2001
		Statements of Cash Flows for the years or periods ended March 31, 2003, 2002, and 2001
		Notes to Financial Statements, March 31, 2003, 2002 and 2001
		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 thereto.

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(b) 1	Reports on Form 8-K
		Report on Form 8-K dated September 2002 concerning the Partnership’s investment in Breezewood II Limited Partnership filed with the commission on October 30, 2002; incorporated by reference.
		Report on Form 8-K dated September 2002 concerning the Partnership’s investment in Wingfield Apartments II filed with the commission on November 12, 2002; incorporated by reference.
		Report on Form 8-K dated September 2002 concerning the Partnership’s investment in Natchez Place Apartments filed with the commission on November 13, 2002; incorporated by reference..
(c) 1	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 IV L.P.  (Incorporated by reference from Exhibit 3 to the Fund’s Registration Statement No. 33-70564 on Form S-11 as filed with the Securities and Exchange Commission on October 19, 1993.
Exhibit No. 4 - Instruments defining the rights of security holders, including indentures.
a.	Agreement of Limited Partnership of Boston Capital Tax Credit Fund IV L.P.  (Incorporated by reference from Exhibit 4 to the Fund’s Registration Statement No. 33-70564 on Form S-11 as filed with the Securities and Exchange Commission on October 19, 1993.
Exhibit No. 10 - Material contracts.
a.	Beneficial Assignee Certificate.  (Incorporated by reference from Exhibit 10A to the Fund’s Registration Statement No. 33-70564 on Form S-11 as filed with the Securities and Exchange Commission on October 19, 1993
Exhibit No. 13 - Financial Statements.
a.	Audited Financial Statement of Boston Capital Tax Credit Fund IV L.P.; Filed herein.
Exhibit No. 28 - Additional exhibits.
a.	Agreement of Limited Partnership of Better Homes for Havelock Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on February 1, 1995).

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b.	Agreement of Limited Partnership of Cynthiana Properties Limited (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on February 1, 1995).
c.	Agreement of Limited Partnership of North Hampton Place Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on October 13, 1995).
d.	Agreement of Limited Partnership of Brook Summitt Apartments, LP (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on February 29, 1996).
e.	Agreement of Limited Partnership of New Madison Park IV Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on December 16, 1997).
f.	Agreement of Limited Partnership of Smith House II Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on December 16, 1997).
g.	Agreement of Limited Partnership of New Madison Park IV Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on February 11, 1997).
h.	Agreement of Limited Partnership of M.R.H., L.P. (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on February 14, 1997).
i.	Agreement of Limited Partnership of 352 Lenox Associates, L.P.(Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on December 16, 1997).
j.	Agreement of Limited Partnership of Decro Nordoff, L.P. (Incorporated by reference from Registrant’s current  report on Form 8-K  as filed with the Securities and Exchange Commission on December 16, 1997).
k.	Agreement of Limited Partnership of Hurricane Hills, L.P. (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 25, 1997).
l.	Agreement of Limited Partnership of Main Everett Housing, L.P. (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 25, 1997).
m.	Agreement of Limited Partnership of Mokapoke Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 25, 1997).

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n.	Agreement of Limited Partnership of Autumn Ridge L.P. (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 26, 1997).
o.	Agreement of Limited Partnership of Century East Apartments II Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 26, 1997).
p.	Agreement of Limited Partnership of Coolidge-Pinal II Associates (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 26, 1997).
q.	Agreement of Limited Partnership of Dublin Housing Associates Phase II (Incorporated by reference from Registrant’s current report on Form K as filed with the Securities and Exchange Commission on March 26, 1997).
r.	Agreement of Limited Partnership of East Park Apartments II Limited Partnership(Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 26, 1997).
s.	Agreement of Limited Partnership of Edenfield Place Apartments, L.P. (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 26, 1997).
t.	Agreement of Limited Partnership of Ethel Housing, L.P. (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 26, 1997).
u.	Agreement of Limited Partnership of Los Lunas Limited Partnership(Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 26, 1997).
v.	Agreement of Limited Partnership of New Devonshire West, Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 26, 1997).
w.	Agreement of Limited Partnership of Northfield Housing, L.P.(Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 26, 1997).
x.	Agreement of Limited Partnership of Ohio Investors Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 26, 1997).

116

y.	Agreement of Limited Partnership of Osborne Housing, L.P.(Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 26, 1997).
z.	Agreement of Limited Partnership of Overton Associates Limited Partnership(Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 26, 1997).
aa.	Agreement of Limited Partnership of Pahrump Valley Investors (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 26, 1997).
ab.	Agreement of Limited Partnership of Osborne Housing, L.P.(Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 26, 1997).
ac.	Agreement of Limited Partnership of Shannon Housing, L.P. (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 26, 1997).
ad.	Agreement of Limited Partnership of Sutton Place Apartments (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 26, 1997).
ae.	Agreement of Limited Partnership of West Point Housing, L.P.(Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 26, 1997).
af.	Agreement of Limited Partnership of Jeremy Associates Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 27, 1997).
ag.	Agreement of Limited Partnership of Laurelwood Park Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 27, 1997).
ah.	Agreement of Limited Partnership of Jeremy Associates Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 27, 1997).
ai.	Agreement of Limited Partnership of Roxbury Housing Veterans Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on March 27, 1997).
aj.	Agreement of Limited Partnership of Elm Street Associates, L.P. (incorporated by reference from Registrants current report on form 8-k as filed with the Securities and Exchange Commission on April 7, 1997.)

117

ak.	Agreement of Limited Partnership of Brookhaven Apartments Partnership (incorporated by reference from Registrants current report on form 8-k as filed with the Securities and Exchange Commission on May 21, 1997.)
al.	Agreement of Limited Partnership of Maple Limited Partnership (incorporated by reference from Registrants current report on form 8-k as filed with the Securities and Exchange Commission on July 16, 1997.)
am.	Agreement of Limited Partnership of Byam Limited Partnership (incorporated by reference from Registrants current report on form 8-k as filed with the Securities and Exchange Commission on July 22, 1997.)
an.	Agreement of Limited Partnership of Harbor Limited Partnership (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on July 22, 1997.)
ao.	Agreement of Limited Partnership of Bradley Phase II Limited Partnership (incorporated by Reference from registrants current report on form 8-K as filed with the Securities and Exchange Commission on July 22, 1997.)
ap.	Agreement of Limited Partnership of Butler Street/Hanover Towers Limited Partnership (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on July 22, 1997.)
aq.	Agreement of Limited Partnership of Bradley Phase I Limited Partnership (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on July 22, 1997.)
ar.	Agreement of Limited Partnership of 1374 Boston Road Limited Partnership (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on August 5, 1997.)
as.	Agreement of Limited Partnership of Centenary Housing Limited Partnership (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on August 5, 1997.)
at.	Agreement of Limited Partnership of Lake Apartments II Limited Partnership (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on August 5, 1997.)
au.	Agreement of Limited Partnership of AHAB Project One, LP (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on August 8, 1997.)

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av.	Agreement of Limited Partnership of Grandview Limited Partnership (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on April 23, 1998.)
aw.	Agreement of Limited Partnership of Angelou Associates, L.P. (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on April 23, 1998.)
ax.	Agreement of Limited Partnership of Country Edge Apartments I Limited Partnership(incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on April 24, 1998.)
ay.	Agreement of Limited Partnership of Sumner House Limited Partnership (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on April 27, 1998.)
az.	Agreement of Limited Partnership of Magnolia Place Apartments Partnerships (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on April 30, 1998.)
ba.	Agreement of Limited Partnership of Edgewood Apartments Partnership (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on April 30, 1998.)
bb.	Agreement of Limited Partnership of Harrisonville Heights L.P. (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on April 30, 1998.)
bc.	Agreement of Limited Partnership of Neighborhood Restorations Limited Partnership VII incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on April 30, 1998.)
bd.	Agreement of Limited Partnership of Escher SRO Project, L.P. (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on May 1, 1998.)
be.	Agreement of Limited Partnership of Silver Creek/MHT Limited Partnership (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on June 30, 1999.)
bf.	Agreement of Limited Partnership of Meridian Housing Limited Partnership (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on June 30, 1999.)

119

bg.	Agreement of Limited Partnership of Southaven Partners I, L.P. (incorporated by reference from registrants current report on form 8-j as filed with the Securities and Exchange on July 27, 1999.)
bh.	Agreement of Limited Partnership of Athens Partners, L.P. (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on July 27, 1999.)
bi.	Agreement of Limited Partnership of Pearl Partners, L.P. (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on November 30, 1999.)
bj.	Agreement of Limited Partnership of Harbor Pointe/MHT Limited Dividend Housing Association Limited Partnership (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on December 28, 1999.)
bk.	Agreement of Limited Partnership of Level Creek Partners, L.P. (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on December 29, 1999.)
bm.	Agreement of Limited Partnership of Lake City Limited Partnership (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on February 3, 2000.)
bn.	Agreement of Limited Partnership of Pine Ridge Apartments Partnership (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange on on February 9, 2000.)
bo.	Agreement of Limited Partnership of Pecan Manor Apartments Partnership (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on February 10, 2000.)
bp.	Agreement of Limited Partnership of Pyramid Four Limited Partnership (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on February 16, 2000.)
bq.	Agreement of Limited Partnership of Lombard Partners, L.P. (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on January 26, 2000.)
br.	Agreement of Limited Partnership of Belmont Affordable Housing II LP (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on September 29, 2000.)

120

bs.	Agreement of Limited Partnership of Jackson Bond LP (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on September 29, 2000.)
bt.	Agreement of Limited Partnership of Fort Bend NHC, L.P. (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on September 29, 2000.)
bu.	Agreement of Limited Partnership of Breezewood II, L.P. (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on October 30, 2002.)
bv.	Agreement of Limited Partnership of Wingfield Apartments II L.P. (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on November 12, 2002.)
bw.	Agreement of Limited Partnership of Natchez Place Apartments L.P. (incorporated by reference from registrants current report on form 8-k as filed with the Securities and Exchange Commission on November 13, 2002.)

Exhibit No. 99 - Additional exhibits
1.	Certification pursuant to 18 U.S.C. Section 1350, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herein
2.	Certification pursuant to 18 U.S.C. Section 1350, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herein
3.	Independent Auditor’s Reports for Operating Partnerships, filed herein.

121

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 IV L.P.
	By:	Boston Capital Associates IV L.P. General Partner
	By:	BCA Associates Limited Partnership General Partner
	By:	C&M Management, Inc. General Partner
Date:  July 15, 2003		By:	/s/ John P. Manning
			John P. Manning

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Fund and in the capacities and on the dates indicated:

DATE:	SIGNATURE:	TITLE:
July 15, 2003	/s/ John P. Manning	Director, President (Principal Executive Officer), C&M Management, Inc.; Director, President (Principal Executive Officer) BCTC IV Assignor Corp.
	John P. Manning

122

I, John P. Manning, certify that:

1.  I have reviewed this annual report on Form 10-K of Boston Capital Tax Credit Fund IV L.P. (the “Fund”);

2.  Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;

3.  Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this annual report;

4.  The Fund’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the Company and we have:

(a)  designed such disclosure controls and procedures to ensure that material information relating to the Fund, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;

(b)  evaluated the effectiveness of the Fund’s disclosure controls and procedures as of a date (the “Evaluation Date”) within 90 days prior to the filing date of this annual report; and

(c)  presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

5.  The Fund’s other certifying officer and I have disclosed, based on our most recent evaluation, to the Fund’s auditors and the audit committee of the Fund’s board of directors (or persons performing the equivalent function):

(a)  all significant deficiencies in the design or operation of internal controls which could adversely affect the Fund’s ability to record, process, summarize and report financial data and have identified for the Fund’s auditors any material weaknesses in internal controls; and

(b)  any fraud, whether or not material, that involves management or other employees who have a significant role in the Fund’s internal controls; and

6.  The Fund’s other certifying officer and I have indicated in this annual report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the Evaluation Date, including any corrective actions with regard to significant deficiencies and material weaknesses.

Date:  July 15, 2003	/s/ John P. Manning
	John P. Manning
	Director, President
	(Principal Executive
	Officer), C&M
	Management Inc.;

123

I, Marc Teal, certify that:

1.I have reviewed this annual report on Form 10-K of Boston Capital Tax Credit Fund IV L.P. (the “Fund”);

2.  Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;

3.  Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this annual report;

4.  The Fund’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the Company and we have:

(d)  designed such disclosure controls and procedures to ensure that material information relating to the Fund, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;

(e)  evaluated the effectiveness of the Fund’s disclosure controls and procedures as of a date (the “Evaluation Date”) within 90 days prior to the filing date of this annual report; and

(f)  presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

5.  The Fund’s other certifying officer and I have disclosed, based on our most recent evaluation, to the Fund’s auditors and the audit committee of the Fund’s board of directors (or persons performing the equivalent function):

(c)  all significant deficiencies in the design or operation of internal controls which could adversely affect the Fund’s ability to record, process, summarize and report financial data and have identified for the Fund’s auditors any material weaknesses in internal controls; and

(d)  any fraud, whether or not material, that involves management or other employees who have a significant role in the Fund’s internal controls; and

6.  The Fund’s other certifying officer and I have indicated in this annual report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the Evaluation Date, including any corrective actions with regard to significant deficiencies and material weaknesses.

Date:  July 15, 2003	/s/ Marc N. Teal
	Marc N. Teal, Chief Financial Officer

124

EX-13

Exhibit 13

FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT

BOSTON CAPITAL TAX CREDIT FUND IV L.P. -

SERIES 20 THROUGH SERIES 44

MARCH 31, 2003 AND 2002

Boston Capital Tax Credit Fund IV L.P. -

Series 20 through Series 44

TABLE OF CONTENTS

INDEPENDENT AUDITORS’ REPORT
FINANCIAL STATEMENTS
	BALANCE SHEETS
	STATEMENTS OF OPERATIONS
	STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL
	STATEMENTS OF CASH FLOWS
	NOTES TO FINANCIAL STATEMENTS
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 the information is included in the financial statements or the notes thereto.

Reznick Fedder & Silverman

Certified Public Accountants * A Professional Corporation

7700 Old Georgetown Road * Suite 400 * Bethesda, MD 20814-6224

(301) 652-9100 * Fax (301) 652-1848

INDEPENDENT AUDITORS’ REPORT

To the Partners of

Boston Capital Tax Credit Fund IV L.P.

We have audited the accompanying balance sheets of Boston Capital Tax Credit Fund IV L.P. as of March 31, 2003 and 2002, and the related statements of operations, changes in partners’ capital and cash flows for the years ended March 31, 2003, 2002 and 2001 in total and Boston Capital Tax Credit Fund IV L.P. - Series 20 through 44 as of March 31, 2003 and Series 20 through 42 as of March 31, 2002 and the related statements of operations, partners’ capital and cash flows for the years ended March 31, 2003, 2002 and 2001 for Series 20 through 38, for the years ended March 31, 2003 and 2002 and for the period August 1, 2000 (date of inception) through March 31, 2001 for Series 39, for the years ended March 31, 2003 and 2002 and for the period February 1, 2001 (date of inception) through March 31, 2001 for Series 40, for the year ended March 31, 2003 and the period August 1, 2001 (date of inception) through March 31, 2002 for Series 41, for the year ended March 31, 2003 and the period February 1, 2002 (date of inception) though March 31, 2002 for Series 42, for the period August 1, 2002 (date of inception) through March 31, 2003 for Series 43, and for the period January 1, 2003 (date of inception) through March 31, 2003 for Series 44.  These 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 IV L.P. owns a limited partnership interest.  Investments in such partnerships comprise the following percentages: Total, 7% and 21% of the assets as of March 31, 2003 and 2002, respectively, and 6%, 19% and 22% of the partnership loss for the years ended March 31, 2003, 2002 and 2001, respectively; of the assets for Series 20 as of March 31, 2003 and 2002, 1% and 17%, respectively; of the partnership loss for Series 20 for the years ended March 31, 2003, 2002 and 2001, 1%, 16% and 19%, respectively; of the assets for Series 21 as of March 31, 2003 and 2002, 9% and 38%, respectively; of the partnership loss for Series 21 for the years ended March 31, 2003, 2002 and 2001, 13%, 10% and 26%, respectively; of the assets for Series 22 as of March 31, 2003 and 2002, 8% and 18%, respectively; of the partnership loss for Series 22 for the years ended March 31, 2003, 2002 and 2001, 2%, 20% and 8%, respectively; of the assets for Series 23 as of March 31, 2003 and 2002, 18% and 47%, respectively; of the partnership loss for Series 23 for the years ended March 31, 2003, 2002 and 2001, 4%, 39% and 31%, respectively; of the assets for Series 24 as of March 31, 2003 and 2002, 17% and 15%, respectively; of the partnership loss for Series 24 for the years ended March 31, 2003, 2002 and 2001, 42%, 16% and 25%, respectively; of the assets for Series 25 as of March 31, 2003 and 2002, 27% and 37%, respectively; of the partnership loss for Series 25 for the years ended March 31, 2003, 2002 and

F-3

2001, 23%, 38% and 31%, respectively; of the assets for Series 26 as of March 31, 2003 and 2002, 20% and 17%, respectively; of the partnership loss for Series 26 for the years ended March 31, 2003, 2002 and 2001, 29%, 25% and 38%, respectively; of the assets for Series 27 as of March 31, 2003 and 2002, 18% and 22%, respectively; of the partnership loss for Series 27 for the years ended March 31, 2003, 2002 and 2001, 27%, 39% and 35%, respectively; of the assets for Series 28 as of March 31, 2003 and 2002, 3% and 45%, respectively; of the partnership loss for Series 28 for the years ended March 31, 2003, 2002 and 2001, 4%, 29% and 39%, respectively; of the assets for Series 29 as of March 31, 2003 and 2002, 1% and 30%, respectively; of the partnership loss for Series 29 for the years ended March 31, 2003, 2002 and 2001, 1%, 13% and 9%, respectively; of the assets for Series 30 as of March 31, 2003 and 2002, 3% and 40%, respectively; of the partnership loss for Series 30 for the years ended March 31, 2003, 2002 and 2001, 4%, 33% and 40%, respectively; of the assets for Series 31 as of March 31, 2003 and 2002, 15% and 40%, respectively; of the partnership loss for Series 31 for the years ended March 31, 2003, 2002 and 2001, 15%, 26% and 16%, respectively; of the assets for Series 32 as of March 31, 2003 and 2002, 9% and 21%, respectively; of the partnership loss for Series 32 for the years ended March 31, 2003, 2002 and 2001, 5%, 17% and 21%, respectively; of the assets for Series 33 as of March 31, 2003 and 2002, 0% and 27%, respectively; of the partnership loss for Series 33 for the years ended March 31, 2003, 2002 and 2001, 0%, 31% and 33%, respectively; of the assets for Series 34 as of March 31, 2003 and 2002, 0% and 17%, respectively; of the partnership loss for Series 34 for the years ended March 31, 2003, 2002 and 2001, 0%, 12% and 7%, respectively; of the assets for Series 35 as of March 31, 2003 and 2002, 0% and 22%, respectively; of the partnership loss for Series 35 for the years ended March 31, 2003, 2002 and 2001, 0%, 17% and 7%, respectively; of the assets for Series 36 as of March 31, 2003 and 2002, 5% and 11%, respectively; of the partnership loss for Series 36 for the years ended March 31, 2003, 2002 and 2001, 2%, 9% and 26%, respectively; of the assets for Series 37 as of March 31, 2003 and 2002, 0% and 8%, respectively; of the partnership loss for Series 37 for the years ended March 31, 2003, 2002 and 2001, 0%, 1% and 13%, respectively; of the assets for Series 38 as of March 31, 2003 and 2002, 1% and 0%, respectively; and of the partnership loss for Series 38 for the years ended March 31, 2003, 2002 and 2001, 1%, 0% and 0%, respectively; of the assets for Series 39 as of March 31, 2003 and 2002, 0% and 19%, respectively; of the partnership loss for Series 39 for the years ended March 31, 2003 and 2002 and for the period August 1, 2000 (date of inception) through March 31, 2001, 0%, 12% and 2%, respectively; of the assets for Series 40 as of March 31, 2003 and 2002, 3% and 21%, respectively; and of the partnership loss for Series 40 for the years ended March 31, 2003 and 2002 and for the period February 1, 2001 (date of inception) through March 31, 2001, 1%, 20% and 0%, respectively; of the assets for Series 41 as of March 31, 2003 and 2002, 1% and 10%, respectively; and of the partnership loss for Series 41 for the year ended March 31, 2003 and for the period August 1, 2001 (date of inception) through March 31, 2002, 3% and 0%, respectively; of the assets for Series 42 as of March 31, 2003 and 2002, 11% and 0%, respectively; and of the partnership loss for Series 42 for the year ended March 31, 2003 and for the period February 1, 2002 (date of inception) through March 31, 2002, 5% and 0%, respectively; of the assets for Series 43 as of March 31, 2003, 9%; and of the partnership loss for Series 43 for the period August 1, 2003 (date of inception) through March 31, 2003, 10%; of the assets for Series 44 as of March 31, 2003, 0%; and of the partnership loss for Series 44 for the period January 1, 2003

F-4

(date of inception) through March 31, 2003, 0%.  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 auditing standards generally accepted in the United States of America.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits and the reports of the other auditors provide a reasonable basis for our opinion.

In our opinion, based on our audits and the reports of the other auditors, the financial statements referred to above present fairly, in all material respects, the financial position of Boston Capital Tax Credit Fund IV L.P. as of March 31, 2003 and 2002, and the results of its operations and its cash flows for the years ended March 31, 2003, 2002 and 2001 for Series 20 through 38, for the years ended March 31, 2003 and 2002 and for the period August 1, 2000 (date of inception) through March 31, 2001 for Series 39, for the years ended March 31, 2003 and 2002 and for the period February 1, 2001 (date of inception) through March 31, 2001 for Series 40, for the year ended March 31, 2003 and for the period August 1, 2001 (date of inception) through March 31, 2002 for Series 41, for the year ended March 31, 2003 and for the period February 1, 2002 (date of inception) through March 31, 2002 for Series 42, for the period August 1, 2002 (date of inception) through March 31, 2003 for Series 43 and for the period January 1, 2003 (date of inception) through March 31, 2003 for Series 44, in conformity with accounting principles generally accepted in the United States of America.

We and other auditors have also audited the information included in the related financial statement schedules listed in Form 10-K, Item 15(a) of Boston Capital Tax Credit Fund IV L.P. - Series 20 through Series 44 as of March 31, 2003.  In our opinion, the schedules present fairly, in all material respects, the information required to be set forth therein, in conformity with accounting principles generally accepted in the United States of America.

Bethesda, Maryland	/s/ Reznick, Fedder
July 2, 2003	& Silverman

F-5

Boston Capital Tax Credit Fund IV L.P.

BALANCE SHEETS

March 31, 2003 and 2002

	Total
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	424,883,445		$	410,857,851
OTHER ASSETS
Cash and cash equivalents (notes A and H)	25,882,162			18,950,441
Investments available-for-sale (notes A and G)	6,018,380			7,474,493
Notes receivable (note D)	14,733,948			17,736,231
Deferred acquisition costs (note A)	30,817,914			24,043,671
Other assets (note E)	13,158,071			14,311,335
	$	515,493,920		$	493,374,022
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	1,090,107		$	897,555
Line of credit (note I)	—			5,708,074
Accounts payable - affiliates (note B)	15,528,445			12,227,766
Capital contributions payable (note C)	34,899,189			38,224,714
	51,517,741			57,058,109
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 75,662,578 and 68,028,269 at March 31, 2003 and 2002, respectively, are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 75,662,578 and  68,029,269 at March 31, 2003 and 2002, respectively, issued and outstanding	465,720,104			437,739,660
General partner	(1,790,531		)	(1,446,904		)
Accumulated other comprehensive income	46,606			23,157
	463,976,179			436,315,913
	$	515,493,920		$	493,374,022

Series 43 and 44 were not formed until after March 31, 2002, therefore no comparative information has been included.

F-6

	Series 20
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	12,675,770		$	14,695,373
OTHER ASSETS
Cash and cash equivalents (notes A and H)	244,384			217,550
Investments available-for-sale (notes A and G)	—			—
Notes receivable (note D)	—			—
Deferred acquisition costs (note A)	83,947			87,518
Other assets (note E)	1,199,682			1,087,346
	$	14,203,783		$	16,087,787
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	9,902		$	—
Line of credit (note I)	—			—
Accounts payable - affiliates (note B)	3,190,282			2,699,399
Capital contributions payable (note C)	388,026			388,026
	3,588,210			3,087,425
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 3,866,700 at March 31, 2003 and 2002 are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,866,700 at March 31, 2003 and 2002 issued and outstanding	10,839,982			13,200,923
General partner	(224,409		)	(200,561		)
Accumulated other comprehensive income	—			—
	10,615,573			13,000,362
	$	14,203,783		$	16,087,787

F-7

	Series 21
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	2,393,876		$	2,929,817
OTHER ASSETS
Cash and cash equivalents (notes A and H)	211,070			237,787
Investments available-for-sale (notes A and G)	—			9,223
Notes receivable (note D)	457,639			641,542
Deferred acquisition costs (note A)	45,916			47,870
Other assets (note E)	451,825			410,611
	$	3,560,326		$	4,276,850
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	—		$	—
Line of credit (note I)	—			—
Accounts payable - affiliates (note B)	627,029			501,190
Capital contributions payable (note C)	457,642			641,543
	1,084,671			1,142,733
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 1,892,700 at March 31, 2003 and 2002 are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 1,892,700 at March 31, 2003 and 2002 issued and outstanding	2,612,851			3,264,672
General partner	(137,196		)	(130,612		)
Accumulated other comprehensive income	—			57
	2,475,655			3,134,117
	$	3,560,326		$	4,276,850

F-8

	Series 22
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	9,514,695		$	11,087,299
OTHER ASSETS
Cash and cash equivalents (notes A and H)	354,902			254,977
Investments available-for-sale (notes A and G)	—			175,011
Notes receivable (note D)	450,981			450,981
Deferred acquisition costs (note A)	144,285			150,424
Other assets (note E)	167,919			167,361
	$	10,632,782		$	12,286,053
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	—		$	—
Line of credit (note I)	—			—
Accounts payable - affiliates (note B)	1,634,923			1,455,331
Capital contributions payable (note C)	480,996			487,655
	2,115,919			1,942,986
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 2,564,400 at March 31, 2003 and 2002 are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,564,400 at March 31, 2003 and 2002 issued and outstanding	8,650,776			10,457,633
General partner	(133,913		)	(115,662		)
Accumulated other comprehensive income	—			1,096
	8,516,863			10,343,067
	$	10,632,782		$	12,286,053

F-9

	Series 23
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	16,373,993		$	17,726,828
OTHER ASSETS
Cash and cash equivalents (notes A and H)	167,196			176,646
Investments available-for-sale (notes A and G)	—			—
Notes receivable (note D)	—			—
Deferred acquisition costs (note A)	214,573			223,704
Other assets (note E)	269,370			269,370
	$	17,025,132		$	18,396,548
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	—		$	—
Line of credit (note I)	—			—
Accounts payable - affiliates (note B)	1,074,211			833,948
Capital contributions payable (note C)	117,796			117,796
	1,192,007			951,744
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 3,336,727 at March 31, 2003 and 2002 are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,336,727 at March 31, 2003 and 2002 issued and outstanding	15,959,640			17,555,202
General partner	(126,515		)	(110,398		)
Accumulated other comprehensive income	—			—
	15,833,125			17,444,804
	$	17,025,132		$	18,396,548

F-10

	Series 24
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	9,168,660		$	9,240,905
OTHER ASSETS
Cash and cash equivalents (notes A and H)	233,010			264,742
Investments available-for-sale (notes A and G)	—			213,962
Notes receivable (note D)	155,478			534,342
Deferred acquisition costs (note A)	239,807			250,011
Other assets (note E)	318,194			716,362
	$	10,115,149		$	11,220,324
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	39,878		$	—
Line of credit (note I)	—			—
Accounts payable - affiliates (note B)	1,154,667			1,246,315
Capital contributions payable (note C)	368,239			1,214,204
	1,562,784			2,460,519
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 2,169,878 at March 31, 2003 and 2002 are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,169,878 at March 31, 2003 and 2002 issued and outstanding	8,652,140			8,856,179
General partner	(99,775		)	(97,714		)
Accumulated other comprehensive income	—			1,340
	8,552,365			8,759,805
	$	10,115,149		$	11,220,324

F-11

	Series 25
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	15,315,756		$	16,265,562
OTHER ASSETS
Cash and cash equivalents (notes A and H)	489,697			463,598
Investments available-for-sale (notes A and G)	—			258,716
Notes receivable (note D)	—			523,193
Deferred acquisition costs (note A)	240,834			251,082
Other assets (note E)	747,614			1,323,019
	$	16,793,901		$	19,085,170
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	30,878		$	—
Line of credit (note I)	—			—
Accounts payable - affiliates (note B)	863,380			990,704
Capital contributions payable (note C)	943,704			2,073,892
	1,837,962			3,064,596
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 3,026,109 at March 31, 2003 and 2002 are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,026,109 at March 31, 2003 and 2002 issued and outstanding	15,063,824			16,116,208
General partner	(107,885		)	(97,255		)
Accumulated other comprehensive income	—			1,621
	14,955,939			16,020,574
	$	16,793,901		$	19,085,170

F-12

	Series 26
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	23,716,013		$	24,785,250
OTHER ASSETS
Cash and cash equivalents (notes A and H)	516,145			324,565
Investments available-for-sale (notes A and G)	—			—
Notes receivable (note D)	135,822			571,335
Deferred acquisition costs (note A)	422,596			439,500
Other assets (note E)	1,594,656			2,227,346
	$	26,385,232		$	28,347,996
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	100,683		$	90
Line of credit (note I)	—			—
Accounts payable - affiliates (note B)	1,654,168			1,566,588
Capital contributions payable (note C)	1,475,380			2,197,433
	3,230,231			3,764,111
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 3,995,900 at March 31, 2003 and 2002 are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,995,900 at March 31, 2003 and 2002 issued and outstanding	23,263,704			24,678,299
General partner	(108,703		)	(94,414		)
Accumulated other comprehensive income	—			—
	23,155,001			24,583,885
	$	26,385,232		$	28,347,996

F-13

	Series 27
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	14,645,587		$	15,447,161
OTHER ASSETS
Cash and cash equivalents (notes A and H)	339,714			430,440
Investments available-for-sale (notes A and G)	—			226,453
Notes receivable (note D)	—			—
Deferred acquisition costs (note A)	351,248			366,195
Other assets (note E)	172,425			172,383
	$	15,508,974		$	16,642,632
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	—		$	—
Line of credit (note I)	—			—
Accounts payable - affiliates (note B)	1,240,107			1,174,903
Capital contributions payable (note C)	39,749			156,389
	1,279,856			1,331,292
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 2,460,700 at March 31, 2003 and 2002 are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,460,700 at March 31, 2003 and 2002 issued and outstanding	14,293,274			15,363,269
General partner	(64,156		)	(53,348		)
Accumulated other comprehensive income	—			1,419
	14,229,118			15,311,340
	$	15,508,974		$	16,642,632

F-14

	Series 28
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	25,184,476		$	26,355,147
OTHER ASSETS
Cash and cash equivalents (notes A and H)	304,688			510,061
Investments available-for-sale (notes A and G)	150,337			431,404
Notes receivable (note D)	638,346			775,000
Deferred acquisition costs (note A)	77,562			80,861
Other assets (note E)	353,370			2,633
	$	26,708,779		$	28,155,106
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	—		$	—
Line of credit (note I)	—			—
Accounts payable - affiliates (note B)	—			—
Capital contributions payable (note C)	148,783			148,783
	148,783			148,783
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 4,000,738 at March 31, 2003 and 2002 are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 4,000,738 at March 31, 2003 and 2002 issued and outstanding	26,637,876			28,067,294
General partner	(78,151		)	(63,713		)
Accumulated other comprehensive income	271			2,742
	26,559,996			28,006,323
	$	26,708,779		$	28,155,106

F-15

	Series 29
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	22,450,900		$	24,490,660
OTHER ASSETS
Cash and cash equivalents (notes A and H)	468,746			577,830
Investments available-for-sale (notes A and G)	49,929			227,525
Notes receivable (note D)	20,935			20,935
Deferred acquisition costs (note A)	77,761			81,073
Other assets (note E)	150,723			4,622
	$	23,218,994		$	25,402,645
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	—		$	—
Line of credit (note I)	—			—
Accounts payable - affiliates (note B)	422,795			209,815
Capital contributions payable (note C)	304,770			304,770
	727,565			514,585
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 3,991,800 at March 31, 2003 and 2002 are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,991,800 at March 31, 2003 and 2002 issued and outstanding	22,605,257			24,976,414
General partner	(113,731		)	(89,780		)
Accumulated other comprehensive income	(97		)	1,426
	22,491,429			24,888,060
	$	23,218,994		$	25,402,645

F-16

	Series 30
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	16,661,934		$	17,826,875
OTHER ASSETS
Cash and cash equivalents (notes A and H)	121,470			256,324
Investments available-for-sale (notes A and G)	—			159,267
Notes receivable (note D)	301,842			385,438
Deferred acquisition costs (note A)	499,058			520,298
Other assets (note E)	1,773			258,095
	$	17,586,077		$	19,406,297
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	—		$	—
Line of credit (note I)	—			—
Accounts payable - affiliates (note B)	309			176
Capital contributions payable (note C)	134,311			528,451
	134,620			528,627
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 2,651,000 at March 31, 2003 and 2002 are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,651,000 at March 31, 2003 and 2002 issued and outstanding	17,503,999			18,914,962
General partner	(52,542		)	(38,290		)
Accumulated other comprehensive income	—			998
	17,451,457			18,877,670
	$	17,586,077		$	19,406,297

F-17

	Series 31
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	25,656,110		$	27,720,981
OTHER ASSETS
Cash and cash equivalents (notes A and H)	294,050			680,648
Investments available-for-sale (notes A and G)	—			303,367
Notes receivable (note D)	655,675			655,675
Deferred acquisition costs (note A)	—			—
Other assets (note E)	483,572			497,363
	$	27,089,407		$	29,858,034
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	—		$	—
Line of credit (note I)	—			—
Accounts payable - affiliates (note B)	—			33,120
Capital contributions payable (note C)	705,771			1,030,019
	705,771			1,063,139
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 4,417,857 at March 31, 2003 and 2002 are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 4,417,857 at March 31, 2003 and 2002 issued and outstanding	26,499,059			28,884,324
General partner	(115,423		)	(91,330		)
Accumulated other comprehensive income	—			1,901
	26,383,636			28,794,895
	$	27,089,407		$	29,858,034

F-18

	Series 32
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	31,094,955		$	32,959,161
OTHER ASSETS
Cash and cash equivalents (notes A and H)	303,823			491,354
Investments available-for-sale (notes A and G)	—			—
Notes receivable (note D)	573,581			630,673
Deferred acquisition costs (note A)	714,463			744,760
Other assets (note E)	448,301			607,309
	$	33,135,123		$	35,433,257
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	—		$	—
Line of credit (note I)	—			—
Accounts payable - affiliates (note B)	345,962			213,058
Capital contributions payable (note C)	936,164			1,074,248
	1,282,126			1,287,306
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 4,754,198 at March 31, 2003 and 2002 are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 4,754,198 at March 31, 2003 and 2002 issued and outstanding	31,940,828			34,210,853
General partner	(87,831		)	(64,902		)
Accumulated other comprehensive income	—			—
	31,852,997			34,145,951
	$	33,135,123		$	35,433,257

F-19

	Series 33
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	17,734,775		$	18,625,977
OTHER ASSETS
Cash and cash equivalents (notes A and H)	179,335			724,344
Investments available-for-sale (notes A and G)	—			—
Notes receivable (note D)	111,787			113,575
Deferred acquisition costs (note A)	641,071			668,347
Other assets (note E)	133,131			261,627
	$	18,800,099		$	20,393,870
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	—		$	—
Line of credit (note I)	—			—
Accounts payable - affiliates (note B)	293,402			219,438
Capital contributions payable (note C)	202,285			751,366
	495,687			970,804
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 2,636,533 at March 31, 2003 and 2002 are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,636,533 at March 31, 2003 and 2002 issued and outstanding	18,347,148			19,454,616
General partner	(42,736		)	(31,550		)
Accumulated other comprehensive income	—			—
	18,304,412			19,423,066
	$	18,800,099		$	20,393,870

F-20

	Series 34
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	22,240,109		$	23,851,276
OTHER ASSETS
Cash and cash equivalents (notes A and H)	286,228			382,970
Investments available-for-sale (notes A and G)	—			—
Notes receivable (note D)	3,547			164,562
Deferred acquisition costs (note A)	1,018,828			1,062,184
Other assets (note E)	—			493,688
	$	23,548,712		$	25,954,680
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	—		$	—
Line of credit (note I)	—			—
Accounts payable - affiliates (note B)	596,996			303,802
Capital contributions payable (note C)	95,968			807,004
	692,964			1,110,806
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 3,529,319 at March 31, 2003 and 2002 are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,529,319 at March 31, 2003 and 2002 issued and outstanding	22,927,581			24,895,844
General partner	(71,833		)	(51,970		)
Accumulated other comprehensive income	—			—
	22,855,748			24,843,874
	$	23,548,712		$	25,954,680

F-21

	Series 35
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	19,767,681		$	20,932,858
OTHER ASSETS
Cash and cash equivalents (notes A and H)	581,040			708,626
Investments available-for-sale (notes A and G)	—			611,447
Notes receivable (note D)	322,784			918,319
Deferred acquisition costs (note A)	2,887,248			3,010,116
Other assets (note E)	203,170			228,480
	$	23,761,923		$	26,409,846
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	—		$	—
Line of credit (note I)	—			—
Accounts payable - affiliates (note B)	72,122			76,932
Capital contributions payable (note C)	603,740			1,716,237
	675,862			1,793,169
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 3,300,463 at March 31, 2003 and 2002 are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,300,463 at March 31, 2003 and 2002 issued and outstanding	23,137,225			24,652,271
General partner	(51,164		)	(35,861		)
Accumulated other comprehensive income	—			267
	23,086,061			24,616,677
	$	23,761,923		$	26,409,846

F-22

	Series 36
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	12,486,013		$	13,473,738
OTHER ASSETS
Cash and cash equivalents (notes A and H)	96,390			45,839
Investments available-for-sale (notes A and G)	—			—
Notes receivable (note D)	322,784			322,784
Deferred acquisition costs (note A)	1,982,467			2,066,827
Other assets (note E)	338,833			407,465
	$	15,226,487		$	16,316,653
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	—		$	6,669
Line of credit (note I)	—			—
Accounts payable - affiliates (note B)	457,898			290,825
Capital contributions payable (note C)	680,429			680,429
	1,138,327			977,923
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 2,106,837 at March 31, 2003 and 2002 are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,106,837 at March 31, 2003 and 2002 issued and outstanding	14,125,942			15,364,006
General partner	(37,782		)	(25,276		)
Accumulated other comprehensive income	—			—
	14,088,160			15,338,730
	$	15,226,487		$	16,316,653

F-23

	Series 37
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	16,153,757		$	17,469,596
OTHER ASSETS
Cash and cash equivalents (notes A and H)	305,836			559,002
Investments available-for-sale (notes A and G)	—			—
Notes receivable (note D)	1,810,486			1,814,211
Deferred acquisition costs (note A)	2,204,852			2,294,151
Other assets (note E)	219,635			345,617
	$	20,694,566		$	22,482,577
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	—		$	100,000
Line of credit (note I)	—			—
Accounts payable - affiliates (note B)	258,632			81,688
Capital contributions payable (note C)	1,944,309			2,165,429
	2,202,941			2,347,117
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 2,512,500 at March 31, 2003 and 2002 are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,512,500 at March 31, 2003 and 2002 issued and outstanding	18,522,272			20,149,669
General partner	(30,647		)	(14,209		)
Accumulated other comprehensive income	—			—
	18,491,625			20,135,460
	$	20,694,566		$	22,482,577

F-24

	Series 38
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	16,658,700		$	17,632,089
OTHER ASSETS
Cash and cash equivalents (notes A and H)	155,345			644,013
Investments available-for-sale (notes A and G)	—			502,334
Notes receivable (note D)	—			—
Deferred acquisition costs (note A)	2,493,427			2,588,159
Other assets (note E)	85,396			130,369
	$	19,392,868		$	21,496,964
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	—		$	—
Line of credit (note I)	—			—
Accounts payable - affiliates (note B)	233,429			69,025
Capital contributions payable (note C)	135,173			1,232,066
	368,602			1,301,091
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 2,543,100 at March 31, 2003 and 2002, are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,543,100 at March 31, 2003 and 2002, issued and outstanding	19,052,308			20,211,572
General partner	(28,042		)	(16,332		)
Accumulated other comprehensive income	—			633
	19,024,266			20,195,873
	$	19,392,868		$	21,496,964

F-25

	Series 39
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	14,730,373		$	16,095,151
OTHER ASSETS
Cash and cash equivalents (notes A and H)	49,200			532,334
Investments available-for-sale (notes A and G)	—			27,025
Notes receivable (note D)	—			543,567
Deferred acquisition costs (note A)	2,304,288			2,390,716
Other assets (note E)	299,374			902,108
	$	17,383,235		$	20,490,901
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	—		$	—
Line of credit (note I)	—			—
Accounts payable - affiliates (note B)	187,645			50,845
Capital contributions payable (note C)	161,805			2,065,285
	349,450			2,116,130
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 2,292,152 at March 31, 2003 and 2002 are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,292,152 at March 31, 2003 and 2002 issued and outstanding	17,059,889			18,387,300
General partner	(26,104		)	(12,696		)
Accumulated other comprehensive income	—			167
	17,033,785			18,374,771
	$	17,383,235		$	20,490,901

F-26

	Series 40
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	18,256,397		$	18,540,930
OTHER ASSETS
Cash and cash equivalents (notes A and H)	97,331			795,646
Investments available-for-sale (notes A and G)	—			1,918,956
Notes receivable (note D)	312,318			1,321,601
Deferred acquisition costs (note A)	2,789,041			2,812,641
Other assets (note E)	312,625			46,216
	$	21,767,712		$	25,435,990
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	37,533		$	67,062
Line of credit (note I)	—			—
Accounts payable - affiliates (note B)	414,409			125,733
Capital contributions payable (note C)	651,411			3,449,417
	1,103,353			3,642,212
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 2,630,256 at March 31, 2003 and 2002, are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,630,256 at March 31, 2003 and 2002, issued and outstanding	20,682,658			21,789,671
General partner	(18,299		)	(7,089		)
Accumulated other comprehensive income	—			11,196
	20,664,359			21,793,778
	$	21,767,712		$	25,435,990

F-27

	Series 41
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	19,421,142		$	20,029,680
OTHER ASSETS
Cash and cash equivalents (notes A and H)	930,843			8,231,905
Investments available-for-sale (notes A and G)	496,399			2,409,803
Notes receivable (note D)	372,883			6,058,498
Deferred acquisition costs (note A)	3,047,101			3,186,688
Other assets (note E)	1,320,885			895,834
	$	25,589,253		$	40,812,408
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	2,800		$	105,274
Line of credit (note I)	—			3,010,000
Accounts payable - affiliates (note B)	378,757			78,897
Capital contributions payable (note C)	2,284,064			12,919,212
	2,665,621			16,113,383
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 2,891,626 at March 31, 2003 and 2002 are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,891,626 at March 31, 2003 and 2002 issued and outstanding	22,944,988			24,703,570
General partner	(21,323		)	(2,839		)
Accumulated other comprehensive income	(33		)	(1,706		)
	22,923,632			24,699,025
	$	25,589,253		$	40,812,408

F-28

	Series 42
	2003			2002
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	19,580,498		$	2,675,537
OTHER ASSETS
Cash and cash equivalents (notes A and H)	1,528,577			1,439,240
Investments available-for-sale (notes A and G)	3,524,918			—
Notes receivable (note D)	3,361,150			1,290,000
Deferred acquisition costs (note A)	3,044,611			720,546
Other assets (note E)	1,039,347			2,856,111
	$	32,079,101		$	8,981,434
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	1,038		$	618,460
Line of credit (note I)	—			2,698,074
Accounts payable - affiliates (note B)	264,878			6,034
Capital contributions payable (note C)	8,777,237			2,075,060
	9,043,153			5,397,628
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 2,744,262 and 457,776 at March 31, 2003 and 2002 are issued and outstanding to the assignees	—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,744,262 and 457,776 at March 31, 2003 and 2002 issued and outstanding	22,997,666			3,584,909
General partner	(6,317		)	(1,103		)
Accumulated other comprehensive income	44,599			—
	23,035,948			3,583,806
	$	32,079,101		$	8,981,434

F-29

	Series 43
	2003
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	18,349,599
OTHER ASSETS
Cash and cash equivalents (notes A and H)	11,183,205
Investments available-for-sale (notes A and G)	1,796,797
Notes receivable (note D)	3,361,995
Deferred acquisition costs (note A)	3,706,564
Other assets (note E)	2,762,634
	$	41,160,794
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	111,966
Line of credit (note I)	—
Accounts payable - affiliates (note B)	97,417
Capital contributions payable (note C)	9,830,712
	10,040,095
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 3,637,987 at March 31, 2003 are issued and outstanding to the assignees	—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,637,987 at March 31, 2003 issued and outstanding	31,123,737
General partner	(4,904		)
Accumulated other comprehensive income	1,866
	31,120,699
	$	41,160,794

Series 43 and 44 were not formed until after March 31, 2002, therefore no comparative information has been included.

F-30

	Series 44
	2003
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (notes A and C)	$	4,651,676
OTHER ASSETS
Cash and cash equivalents (notes A and H)	6,439,937
Investments available-for-sale (notes A and G)	—
Notes receivable (note D)	1,363,915
Deferred acquisition costs (note A)	1,586,366
Other assets (note E)	83,617
	$	14,125,511
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses	$	755,429
Line of credit (note I)	—
Accounts payable - affiliates (note B)	65,027
Capital contributions payable (note C)	3,030,725
	3,851,181
PARTNERS’ CAPITAL (note A)
Assignor limited partner
Units of limited partnership interest consisting of 94,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 1,708,836 at March 31, 2003 are issued and outstanding to the assignees	—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 1,708,836 at March 31, 2003 issued and outstanding	10,275,480
General partner	(1,150		)
Accumulated other comprehensive income	—
	10,274,330
	$	14,125,511

Series 43 and 44 were not formed until after March 31, 2002, therefore no comparative information has been included.

See notes to financial statements

F-31

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS

	Total
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Income
Interest income	$	1,039,697		$	884,348		$	2,433,397
Miscellaneous	71,537			42,091			45,188
	1,111,234			926,439			2,478,585
Share of losses from operating limited partnerships (note A)	(26,840,274		)	(30,093,432		)	(27,258,366		)
Expenses
Fund management fee (note B)	5,283,658			4,762,222			4,759,655
Amortization (note A)	881,921			603,339			520,593
General and administrative expenses (note B)	949,645			893,561			947,534
Professional fees	583,813			634,694			489,423
Impairment loss	770,199			—			—
Organization expense (note A)	164,728			183,946			154,973
	8,633,964			7,077,762			6,872,178
NET LOSS (note A)	$	(34,363,004	)	$	(36,244,755	)	$	(31,651,959	)
Net loss allocated to general partner	$	(343,627	)	$	(362,447	)	$	(316,520	)
Net loss allocated to assignees	$	(34,019,377	)	$	(35,882,308	)	$	(31,335,439	)
Net loss per BAC	$	(0.49	)	$	(0.54	)	$	(0.52	)

Series 41 and 42 were not formed until after March 31, 2001, therefore only two periods of comparative information has been included.  Series 43 and 44 were not formed until after March 31, 2002, therefore no comparative information has been included. 

F-32

	Series 20
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Income
Interest income	$	1,533		$	2,236		$	4,185
Miscellaneous	6,986			5,936			4,650
	8,519			8,172			8,835
Share of losses from operating limited partnerships (note A)	(2,005,043		)	(2,032,664		)	(1,998,506		)
Expenses
Fund management fee (note B)	315,994			299,467			320,496
Amortization (note A)	3,571			3,573			3,572
General and administrative expenses (note B)	39,104			33,731			31,041
Professional fees	29,596			26,567			21,601
Impairment loss	—			—			—
Organization expense (note A)	—			—			—
	388,265			363,338			376,710
NET LOSS (note A)	$	(2,384,789	)	$	(2,387,830	)	$	(2,366,381	)
Net loss allocated to general partner	$	(23,848	)	$	(23,878	)	$	(23,664	)
Net loss allocated to assignees	$	(2,360,941	)	$	(2,363,952	)	$	(2,342,717	)
Net loss per BAC	$	(0.61	)	$	(0.61	)	$	(0.61	)

F-33

	Series 21
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Income
Interest income	$	34,360		$	8,761		$	42,540
Miscellaneous	3,000			4,800			150
	37,360			13,561			42,690
Share of losses from operating limited partnerships (note A)	(453,916		)	(2,720,700		)	(885,755		)
Expenses
Fund management fee (note B)	179,015			218,756			202,560
Amortization (note A)	1,954			1,953			1,954
General and administrative expenses (note B)	22,567			24,649			22,730
Professional fees	38,313			24,159			17,091
Impairment loss	—			—			—
Organization expense (note A)	—			—			—
	241,849			269,517			244,335
NET LOSS (note A)	$	(658,405	)	$	(2,976,656	)	$	(1,087,400	)
Net loss allocated to general partner	$	(6,584	)	$	(29,767	)	$	(10,874	)
Net loss allocated to assignees	$	(651,821	)	$	(2,946,889	)	$	(1,076,526	)
Net loss per BAC	$	(0.34	)	$	(1.57	)	$	(0.57	)

F-34

	Series 22
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Income
Interest income	$	14,456		$	12,263		$	24,514
Miscellaneous	6,050			3,150			3,450
	20,506			15,413			27,964
Share of losses from operating limited partnerships (note A)	(1,154,777		)	(1,429,401		)	(1,225,393		)
Expenses
Fund management fee (note B)	214,068			215,442			233,351
Amortization (note A)	6,139			6,140			6,140
General and administrative expenses (note B)	40,292			30,451			26,055
Professional fees	25,647			27,361			21,676
Impairment loss	404,691			—			—
Organization expense (note A)	—			—			—
	690,837			279,394			287,222
NET LOSS (note A)	$	(1,825,108	)	$	(1,693,382	)	$	(1,484,651	)
Net loss allocated to general partner	$	(18,251	)	$	(16,934	)	$	(14,847	)
Net loss allocated to assignees	$	(1,806,857	)	$	(1,676,448	)	$	(1,469,804	)
Net loss per BAC	$	(0.70	)	$	(0.65	)	$	(0.57	)

F-35

	Series 23
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Income
Interest income	$	918		$	4,117		$	8,491
Miscellaneous	3,300			4,500			4,289
	4,218			8,617			12,780
Share of losses from operating limited partnerships (note A)	(1,347,032		)	(1,381,392		)	(1,137,319		)
Expenses
Fund management fee (note B)	197,700			194,492			200,200
Amortization (note A)	9,131			9,130			7,688
General and administrative expenses (note B)	35,878			32,789			28,745
Professional fees	26,156			25,058			19,767
Impairment loss	—			—			—
Organization expense (note A)	—			—			—
	268,865			261,469			256,400
NET LOSS (note A)	$	(1,611,679	)	$	(1,634,244	)	$	(1,380,939	)
Net loss allocated to general partner	$	(16,117	)	$	(16,342	)	$	(13,809	)
Net loss allocated to assignees	$	(1,595,562	)	$	(1,617,902	)	$	(1,367,130	)
Net loss per BAC	$	(0.48	)	$	(0.49	)	$	(0.41	)

F-36

	Series 24
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Income
Interest income	$	110,591		$	14,372		$	21,739
Miscellaneous	3,847			—			5,700
	114,438			14,372			27,439
Share of losses from operating limited partnerships (note A)	(62,763		)	(1,716,153		)	(1,528,706		)
Expenses
Fund management fee (note B)	192,817			208,943			199,421
Amortization (note A)	10,204			10,205			10,205
General and administrative expenses (note B)	28,847			29,367			25,943
Professional fees	25,907			51,402			40,466
Impairment loss	—			—			—
Organization expense (note A)	—			—			—
	257,775			299,917			276,035
NET LOSS (note A)	$	(206,100	)	$	(2,001,698	)	$	(1,777,302	)
Net loss allocated to general partner	$	(2,061	)	$	(20,017	)	$	(17,773	)
Net loss allocated to assignees	$	(204,039	)	$	(1,981,681	)	$	(1,759,529	)
Net loss per BAC	$	(0.09	)	$	(0.91	)	$	(0.81	)

F-37

	Series 25
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Income
Interest income	$	161,872		$	18,584		$	75,561
Miscellaneous	8,100			—			—
	169,972			18,584			75,561
Share of losses from operating limited partnerships (note A)	(921,532		)	(1,274,826		)	(1,297,955		)
Expenses
Fund management fee (note B)	229,568			229,126			242,146
Amortization (note A)	15,218			15,218			15,218
General and administrative expenses (note B)	36,622			32,637			29,765
Professional fees	30,046			24,667			31,335
Impairment loss	—			—			—
Organization expense (note A)	—			—			—
	311,454			301,648			318,464
NET LOSS (note A)	$	(1,063,014	)	$	(1,557,890	)	$	(1,540,858	)
Net loss allocated to general partner	$	(10,630	)	$	(15,579	)	$	(15,409	)
Net loss allocated to assignees	$	(1,052,384	)	$	(1,542,311	)	$	(1,525,449	)
Net loss per BAC	$	(0.35	)	$	(0.51	)	$	(0.50	)

F-38

	Series 26
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Income
Interest income	$	111,683		$	4,287		$	57,264
Miscellaneous	6,900			—			11,850
	118,583			4,287			69,114
Share of losses from operating limited partnerships (note A)	(1,054,359		)	(1,829,836		)	(2,038,026		)
Expenses
Fund management fee (note B)	367,525			350,204			368,280
Amortization (note A)	16,904			17,939			17,650
General and administrative expenses (note B)	55,614			36,237			32,559
Professional fees	53,065			34,474			32,596
Impairment loss	—			—			—
Organization expense (note A)	—			—			—
	493,108			438,854			451,085
NET LOSS (note A)	$	(1,428,884	)	$	(2,264,403	)	$	(2,419,997	)
Net loss allocated to general partner	$	(14,289	)	$	(22,644	)	$	(24,200	)
Net loss allocated to assignees	$	(1,414,595	)	$	(2,241,759	)	$	(2,395,797	)
Net loss per BAC	$	(0.35	)	$	(0.56	)	$	(0.60	)

F-39

	Series 27
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Income
Interest income	$	19,621		$	18,493		$	76,968
Miscellaneous	23,454			23,705			—
	43,075			42,198			76,968
Share of losses from operating limited partnerships (note A)	(782,076		)	(293,465		)	(595,643		)
Expenses
Fund management fee (note B)	275,028			269,712			288,374
Amortization (note A)	15,655			15,655			15,655
General and administrative expenses (note B)	28,530			28,204			23,693
Professional fees	22,589			33,530			18,381
Impairment loss	—			—			—
Organization expense (note A)	—			—			—
	341,802			347,101			346,103
NET LOSS (note A)	$	(1,080,803	)	$	(598,368	)	$	(864,778	)
Net loss allocated to general partner	$	(10,808	)	$	(5,984	)	$	(8,648	)
Net loss allocated to assignees	$	(1,069,995	)	$	(592,384	)	$	(856,130	)
Net loss per BAC	$	(0.43	)	$	(0.24	)	$	(0.35	)

F-40

	Series 28
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Income
Interest income	$	58,188		$	63,990		$	164,915
Miscellaneous	9,900			—			—
	68,088			63,990			164,915
Share of losses from operating limited partnerships (note A)	(1,131,178		)	(1,503,553		)	(1,714,275		)
Expenses
Fund management fee (note B)	299,403			278,658			322,781
Amortization (note A)	3,299			3,300			3,300
General and administrative expenses (note B)	43,079			43,906			43,289
Professional fees	34,985			36,661			32,037
Impairment loss	—			—			—
Organization expense (note A)	—			—			—
	380,766			362,525			401,407
NET LOSS (note A)	$	(1,443,856	)	$	(1,802,088	)	$	(1,950,767	)
Net loss allocated to general partner	$	(14,438	)	$	(18,021	)	$	(19,508	)
Net loss allocated to assignees	$	(1,429,418	)	$	(1,784,067	)	$	(1,931,259	)
Net loss per BAC	$	(0.36	)	$	(0.45	)	$	(0.48	)

F-41

	Series 29
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Income
Interest income	$	25,181		$	44,936		$	95,276
Miscellaneous	—			—			—
	25,181			44,936			95,276
Share of losses from operating limited partnerships (note A)	(1,671,213		)	(2,116,714		)	(2,074,428		)
Expenses
Fund management fee (note B)	305,896			277,424			315,514
Amortization (note A)	3,312			3,312			3,277
General and administrative expenses (note B)	41,237			39,496			47,198
Professional fees	33,123			29,140			24,841
Impairment loss	365,508			—			—
Organization expense (note A)	—			—			—
	749,076			349,372			390,830
NET LOSS (note A)	$	(2,395,108	)	$	(2,421,150	)	$	(2,369,982	)
Net loss allocated to general partner	$	(23,951	)	$	(24,211	)	$	(23,700	)
Net loss allocated to assignees	$	(2,371,157	)	$	(2,396,939	)	$	(2,346,282	)
Net loss per BAC	$	(0.59	)	$	(0.60	)	$	(0.59	)

F-42

	Series 30
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Income
Interest income	$	13,261		$	39,414		$	184,266
Miscellaneous	—			—			—
	13,261			39,414			184,266
Share of losses from operating limited partnerships (note A)	(1,158,391		)	(1,085,876		)	(1,177,274		)
Expenses
Fund management fee (note B)	208,865			142,376			187,698
Amortization (note A)	21,240			21,240			21,209
General and administrative expenses (note B)	28,417			28,859			54,788
Professional fees	21,563			59,314			27,130
Impairment loss	—			—			—
Organization expense (note A)	—			—			—
	280,085			251,789			290,825
NET LOSS (note A)	$	(1,425,215	)	$	(1,298,251	)	$	(1,283,833	)
Net loss allocated to general partner	$	(14,252	)	$	(12,983	)	$	(12,838	)
Net loss allocated to assignees	$	(1,410,963	)	$	(1,285,268	)	$	(1,270,995	)
Net loss per BAC	$	(0.53	)	$	(0.48	)	$	(0.48	)

F-43

	Series 31
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Income
Interest income	$	19,248		$	67,579		$	127,556
Miscellaneous	—			—			14,123
	19,248			67,579			141,679
Share of losses from operating limited partnerships (note A)	(2,057,441		)	(2,172,471		)	(2,698,823		)
Expenses
Fund management fee (note B)	298,940			309,298			336,774
Amortization (note A)	—			—			—
General and administrative expenses (note B)	40,941			40,509			57,045
Professional fees	31,284			34,988			28,307
Impairment loss	—			—			—
Organization expense (note A)	—			—			—
	371,165			384,795			422,126
NET LOSS (note A)	$	(2,409,358	)	$	(2,489,687	)	$	(2,979,270	)
Net loss allocated to general partner	$	(24,093	)	$	(24,897	)	$	(29,792	)
Net loss allocated to assignees	$	(2,385,265	)	$	(2,464,790	)	$	(2,949,478	)
Net loss per BAC	$	(0.54	)	$	(0.56	)	$	(0.67	)

F-44

	Series 32
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Income
Interest income	$	29,408		$	46,041		$	316,656
Miscellaneous	—			—			—
	29,408			46,041			316,656
Share of losses from operating limited partnerships (note A)	(1,894,224		)	(2,062,829		)	(2,669,373		)
Expenses
Fund management fee (note B)	313,404			295,155			323,500
Amortization (note A)	36,624			36,625			36,303
General and administrative expenses (note B)	43,001			48,211			77,531
Professional fees	35,109			32,336			31,887
Impairment loss	—			—			—
Organization expense (note A)	—			—			—
	428,138			412,327			469,221
NET INCOME (LOSS) (note A)	$	(2,292,954	)	$	(2,429,115	)	$	(2,821,938	)
Net income (loss) allocated to general partner	$	(22,929	)	$	(24,291	)	$	(28,219	)
Net income (loss) allocated to assignees	$	(2,270,025	)	$	(2,404,824	)	$	(2,793,719	)
Net income (loss) per BAC	$	(0.48	)	$	(0.51	)	$	(0.59	)

F-45

	Series 33
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Income
Interest income	$	1,841		$	21,827		$	197,659
Miscellaneous	—			—			—
	1,841			21,827			197,659
Share of losses from operating limited partnerships (note A)	(892,301		)	(1,059,178		)	(1,294,005		)
Expenses
Fund management fee (note B)	155,906			131,568			166,360
Amortization (note A)	27,276			27,266			27,066
General and administrative expenses (note B)	28,731			30,020			72,226
Professional fees	16,281			33,739			22,136
Impairment loss	—			—			—
Organization expense (note A)	—			—			—
	228,194			222,593			287,788
NET INCOME (LOSS) (note A)	$	(1,118,654	)	$	(1,259,944	)	$	(1,384,134	)
Net income (loss) allocated to general partner	$	(11,186	)	$	(12,599	)	$	(13,841	)
Net income (loss) allocated to assignees	$	(1,107,468	)	$	(1,247,345	)	$	(1,370,293	)
Net income (loss) per BAC	$	(0.42	)	$	(0.47	)	$	(0.52	)

F-46

	Series 34
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Income
Interest income	$	2,482		$	5,402		$	124,513
Miscellaneous	—			—			976
	2,482			5,402			125,489
Share of losses from operating limited partnerships (note A)	(1,610,062		)	(1,760,695		)	(2,140,987		)
Expenses
Fund management fee (note B)	281,041			255,289			284,285
Amortization (note A)	43,938			43,940			44,236
General and administrative expenses (note B)	34,789			40,889			56,620
Professional fees	18,971			17,838			23,855
Impairment loss	—			—			—
Organization expense (note A)	—			—			—
	378,739			357,956			408,996
NET INCOME (LOSS) (note A)	$	(1,986,319	)	$	(2,113,249	)	$	(2,424,494	)
Net income (loss) allocated to general partner	$	(19,863	)	$	(21,132	)	$	(24,245	)
Net income (loss) allocated to assignees	$	(1,966,456	)	$	(2,092,117	)	$	(2,400,249	)
Net income (loss) per BAC	$	(0.56	)	$	(0.59	)	$	(0.68	)

F-47

	Series 35
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Income
Interest income	$	56,678		$	81,661		$	236,430
Miscellaneous	—			—			—
	56,678			81,661			236,430
Share of losses from operating limited partnerships (note A)	(1,198,689		)	(875,205		)	(1,875,497		)
Expenses
Fund management fee (note B)	214,873			226,671			215,860
Amortization (note A)	129,236			129,251			128,479
General and administrative expenses (note B)	33,099			48,714			98,387
Professional fees	11,130			13,492			24,245
Impairment loss	—			—			—
Organization expense (note A)	—			—			—
	388,338			418,128			466,971
NET LOSS (note A)	$	(1,530,349	)	$	(1,211,672	)	$	(2,106,038	)
Net loss allocated to general partner	$	(15,303	)	$	(12,117	)	$	(21,060	)
Net loss allocated to assignees	$	(1,515,046	)	$	(1,199,555	)	$	(2,084,978	)
Net loss per BAC	$	(0.46	)	$	(0.36	)	$	(0.63	)

F-48

	Series 36
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Income
Interest income	$	9,488		$	9,428		$	83,521
Miscellaneous	—			—			—
	9,488			9,428			83,521
Share of losses from operating limited partnerships (note A)	(982,302		)	(1,268,122		)	(457,746		)
Expenses
Fund management fee (note B)	150,871			139,721			160,756
Amortization (note A)	88,463			88,463			86,996
General and administrative expenses (note B)	22,593			31,702			37,943
Professional fees	15,829			11,156			33,140
Impairment loss	—			—			—
Organization expense (note A)	—			—			—
	277,756			271,042			318,835
NET LOSS (note A)	$	(1,250,570	)	$	(1,529,736	)	$	(693,060	)
Net loss allocated to general partner	$	(12,506	)	$	(15,297	)	$	(6,931	)
Net loss allocated to assignees	$	(1,238,064	)	$	(1,514,439	)	$	(686,129	)
Net loss per BAC	$	(0.59	)	$	(0.72	)	$	(0.33	)

F-49

	Series 37
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Income
Interest income	$	3,813		$	11,642		$	331,766
Miscellaneous	—			—			—
	3,813			11,642			331,766
Share of losses from operating limited partnerships (note A)	(1,337,643		)	(750,493		)	(318,507		)
Expenses
Fund management fee (note B)	171,945			167,806			141,045
Amortization (note A)	94,823			94,713			91,645
General and administrative expenses (note B)	27,439			37,592			72,810
Professional fees	15,798			12,498			23,622
Impairment loss	—			—			—
Organization expense (note A)	—			—			—
	310,005			312,609			329,122
NET LOSS (note A)	$	(1,643,835	)	$	(1,051,460	)	$	(315,863	)
Net loss allocated to general partner	$	(16,438	)	$	(10,515	)	$	(3,159	)
Net loss allocated to assignees	$	(1,627,397	)	$	(1,040,945	)	$	(312,704	)
Net loss per BAC	$	(0.65	)	$	(0.41	)	$	(0.12	)

F-50

	Series 38
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Income
Interest income	$	14,985		$	92,319		$	207,525
Miscellaneous	—			—			—
	14,985			92,319			207,525
Share of losses from operating limited partnerships (note A)	(892,478		)	(1,230,809		)	(133,908		)
Expenses
Fund management fee (note B)	144,604			157,190			162,131
Amortization (note A)	98,914			50,939			—
General and administrative expenses (note B)	32,173			43,789			46,242
Professional fees	17,790			15,101			11,217
Impairment loss	—			—			—
Organization expense (note A)	—			—			—
	293,481			267,019			219,590
NET LOSS (note A)	$	(1,170,974	)	$	(1,405,509	)	$	(145,973	)
Net loss allocated to general partner	$	(11,710	)	$	(14,055	)	$	(1,460	)
Net loss allocated to assignees	$	(1,159,264	)	$	(1,391,454	)	$	(144,513	)
Net loss per BAC	$	(0.46	)	$	(0.55	)	$	(0.07	)

F-51

	Series 39
	March 31, 2003			March 31, 2002			Period August 1, 2000 (date of inception) through March 31, 2001
Income
Interest income	$	2,441		$	116,518		$	49,735
Miscellaneous	—			—			—
	2,441			116,518			49,735
Share of income (losses) from operating limited partnerships (note A)	(1,093,075		)	(996,269		)	3,760
Expenses
Fund management fee (note B)	115,714			136,795			88,123
Amortization (note A)	90,324			24,477			—
General and administrative expenses (note B)	23,140			61,793			48,374
Professional fees	21,007			24,031			3,564
Impairment loss	—			—			—
Organization expense (note A)	—			—			56,271
	250,185			247,096			196,332
NET LOSS (note A)	$	(1,340,819	)	$	(1,126,847	)	$	(142,837	)
Net loss allocated to general partner	$	(13,408	)	$	(11,268	)	$	(1,428	)
Net loss allocated to assignees	$	(1,327,411	)	$	(1,115,579	)	$	(141,409	)
Net loss per BAC	$	(0.58	)	$	(0.49	)	$	(0.11	)

F-52

	Series 40
	March 31, 2003			March 31, 2002			Period February 1, 2001 (date of inception) through March 31, 2001
Income
Interest income	$	119,938		$	147,345		$	2,317
Miscellaneous	—			—			—
	119,938			147,345			2,317
Share of losses from operating limited partnerships (note A)	(986,508		)	(438,656		)	—
Expenses
Fund management fee (note B)	145,292			167,367			—
Amortization (note A)	32,319			—			—
General and administrative expenses (note B)	49,928			81,747			14,550
Professional fees	26,916			29,025			529
Impairment loss	—			—			—
Organization expense (note A)	—			27,936			98,702
	254,455			306,075			113,781
NET LOSS (note A)	$	(1,121,025	)	$	(597,386	)	$	(111,464	)
Net loss allocated to general partner	$	(11,210	)	$	(5,974	)	$	(1,115	)
Net loss allocated to assignees	$	(1,109,815	)	$	(591,412	)	$	(110,349	)
Net loss per BAC	$	(0.42	)	$	(0.28	)	$	(0.91	)

F-53

	Series 41
	March 31, 2003			Period August 1, 2001 (date of inception) through March 31, 2002
Income
Interest income	$	74,991		$	52,147
Miscellaneous	—			—
	74,991			52,147
Share of losses from operating limited partnerships (note A)	(1,443,650		)	(94,125		)
Expenses
Fund management fee (note B)	258,137			90,762
Amortization (note A)	133,377			—
General and administrative expenses (note B)	70,134			53,115
Professional fees	18,078			20,518
Impairment loss	—			—
Organization expense (note A)	—			77,550
	479,726			241,945
NET LOSS (note A)	$	(1,848,385	)	$	(283,923	)
Net loss allocated to general partner	$	(18,484	)	$	(2,839	)
Net loss allocated to assignees	$	(1,829,901	)	$	(281,084	)
Net loss per BAC	$	(0.63	)	$	(0.18	)

Series 41 and 42 were not formed until after March 31, 2001, therefore only two periods of comparative information has been included.

F-54

	Series 42
	March 31, 2003			Period February 1, 2002 (date of inception) through March 31, 2002
Income
Interest income	$	121,043		$	986
Miscellaneous	—			—
	121,043			986
Share of losses from operating limited partnerships (note A)	(404,748		)	—
Expenses
Fund management fee (note B)	143,388			—
Amortization (note A)	—			—
General and administrative expenses (note B)	63,702			15,154
Professional fees	10,616			17,639
Impairment loss	—			—
Organization expense (note A)	20,000			78,460
	237,706			111,253
NET LOSS (note A)	$	(521,411	)	$	(110,267	)
Net loss allocated to general partner	$	(5,214	)	$	(1,103	)
Net loss allocated to assignees	$	(516,197	)	$	(109,164	)
Net loss per BAC	$	(0.32	)	$	(0.58	)

Series 41 and 42 were not formed until after March 31, 2001, therefore only two periods of comparative information has been included.

F-55

	Series 43
	Period August 1, 2002 (date of inception) through March 31, 2003
Income
Interest income	$	30,298
Miscellaneous	—
	30,298
Share of losses from operating limited partnerships (note A)	(304,873		)
Expenses
Fund management fee (note B)	97,417
Amortization (note A)	—
General and administrative expenses (note B)	57,242
Professional fees	3,772
Impairment loss	—
Organization expense (note A)	57,364
	215,795
NET LOSS (note A)	$	(490,370	)
Net loss allocated to general partner	$	(4,904	)
Net loss allocated to assignees	$	(485,466	)
Net loss per BAC	$	(0.54	)

Series 43 and 44 were not formed until after March 31, 2002, therefore no comparative information has been included.

F-56

	Series 44
	Period January 1, 2003 (date of inception) through March 31, 2003
Income
Interest income	$	1,379
Miscellaneous	—
	1,379
Share of losses from operating limited partnerships (note A)	—
Expenses
Fund management fee (note B)	6,247
Amortization (note A)	—
General and administrative expenses (note B)	22,546
Professional fees	242
Impairment loss	—
Organization expense (note A)	87,364
	116,399
NET LOSS (note A)	$	(115,020	)
Net loss allocated to general partner	$	(1,150	)
Net loss allocated to assignees	$	(113,870	)
Net loss per BAC	$	(1.62	)

Series 43 and 44 were not formed until after March 31, 2002, therefore no comparative information has been included.

See notes to financial statements

F-57

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL

Years ended March 31, 2003, 2002 and 2001

Total	Assignees			General partner			Accumulated other comprehensive income			Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2000	$	416,025,620		$	(767,937	)	$	830,515					$	416,088,198
Capital contributions	47,265,000			—			—						47,265,000
Selling commissions and registration costs	(6,852,583		)	—			—						(6,852,583		)
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(31,335,439		)	(316,520		)	—			$	(31,651,959	)	(31,651,959		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(746,571		)	(746,571		)	(746,571		)
Total comprehensive income (loss)										$	(32,398,530	)
Partners’ capital (deficit), March 31, 2001	425,102,598			(1,084,457		)	83,944						424,102,085
Capital contributions	56,387,270			—			—						56,387,270
Selling commissions and registration costs	(7,867,900		)	—			—						(7,867,900		)
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(35,882,308		)	(362,447		)	—			$	(36,244,755	)	(36,244,755		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(60,787		)	(60,787		)	(60,787		)
Total comprehensive income (loss)										$	(36,305,542	)
Partners’ capital (deficit), March 31, 2002	437,739,660			(1,446,904		)	23,157						436,315,913
Capital contributions	72,035,700			—			—						72,035,700
Selling commissions and registration costs	(10,035,879		)	—			—						(10,035,879		)
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(34,019,377		)	(343,627		)	—			$	(34,363,004	)	(34,363,004		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			23,449			23,449			23,449
Total comprehensive income (loss)										$	(34,339,555	)
Partners’ capital (deficit), March 31, 2003	$	465,720,104		$	(1,790,531	)	$	46,606					$	463,976,179

Series 41 and 42 were not formed until after March 31, 2001, therefore only two periods of comparative information has been included.  Series 43 and 44 were not formed until after March 31, 2002, therefore no comparative information has been included.

F-58

Series 20	Assignees			General partner			Accumulated other comprehensive income		Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2000	$	17,907,592		$	(153,019)		$	—				$	17,754,573
Capital contributions	—			—			—					—
Selling commissions and registration costs	—			—			—					—
Distributions	—			—			—					—
Comprehensive income (loss)
Net income (loss)	(2,342,717		)	(23,664		)	—		$	(2,366,381	)	(2,366,381		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			—		—			—
Total comprehensive income (loss)									$	(2,366,381	)
Partners’ capital (deficit), March 31, 2001	15,564,875			(176,683		)	—					15,388,192
Capital contributions	—			—			—					—
Selling commissions and registration costs	—			—			—					—
Distributions	—			—			—					—
Comprehensive income (loss)
Net income (loss)	(2,363,952		)	(23,878		)	—		$	(2,387,830	)	(2,387,830		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			—		—			—
Total comprehensive income (loss)									$	(2,387,830	)
Partners’ capital (deficit), March 31, 2002	13,200,923			(200,561		)	—					13,000,362
Capital contributions	—			—			—					—
Selling commissions and registration costs	—			—			—					—
Distributions	—			—			—					—
Comprehensive income (loss)
Net income (loss)	(2,360,941		)	(23,848		)	—		$	(2,384,789	)	(2,384,789		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			—		—			—
Total comprehensive income (loss)									$	(2,384,789	)
Partners’ capital (deficit), March 31, 2003	$	10,839,982		$	(224,409	)	$	—				$	10,615,573

F-59

Series 21	Assignees			General partner			Accumulated other comprehensive income			Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2000	$	7,288,087		$	(89,971	)	$	18,464					$	7,216,580
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,076,526		)	(10,874		)	—			$	(1,087,400	)	(1,087,400		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(17,268		)	(17,268		)	(17,268		)
Total comprehensive income (loss)										$	(1,104,668	)
Partners’ capital (deficit), March 31, 2001	6,211,561			(100,845		)	1,196						6,111,912
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(2,946,889		)	(29,767		)	—			$	(2,976,656	)	(2,976,656		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(1,139		)	(1,139		)	(1,139		)
Total comprehensive income (loss)										$	(2,977,795	)
Partners’ capital (deficit), March 31, 2002	3,264,672			(130,612		)	57						3,134,117
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(651,821		)	(6,584		)	—			$	(658,405	)	(658,405		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(57		)	(57		)	(57		)
Total comprehensive income (loss)										$	(658,462	)
Partners’ capital (deficit), March 31, 2003	$	2,612,851		$	(137,196	)	$	—					$	2,475,655

F-60

Series 22	Assignees			General partner			Accumulated other comprehensive income			Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2000	$	13,603,885		$	(83,881	)	$	9,776					$	13,529,780
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,469,804		)	(14,847		)	—			$	(1,484,651	)	(1,484,651		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(9,125		)	(9,125		)	(9,125		)
Total comprehensive income (loss)										$	(1,493,776	)
Partners’ capital (deficit), March 31, 2001	12,134,081			(98,728		)	651						12,036,004
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,676,448		)	(16,934		)	—			$	(1,693,382	)	(1,693,382		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			445			445			445
Total comprehensive income (loss)										$	(1,692,937	)
Partners’ capital (deficit), March 31, 2002	10,457,633			(115,662		)	1,096						10,343,067
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,806,857		)	(18,251		)	—			$	(1,825,108	)	(1,825,108		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(1,096		)	(1,096		)	(1,096		)
Total comprehensive income (loss)										$	(1,826,204	)
Partners’ capital (deficit), March 31, 2003	$	8,650,776		$	(133,913	)	$	—					$	8,516,863

F-61

Series 23	Assignees			General partner			Accumulated other comprehensive income		Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2000	$	20,540,234		$	(80,247	)	$	—				$	20,459,987
Capital contributions	—			—			—					—
Selling commissions and registration costs	—			—			—					—
Distributions	—			—			—					—
Comprehensive income (loss)
Net income (loss)	(1,367,130		)	(13,809		)	—		$	(1,380,939	)	(1,380,939		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			—		—			—
Total comprehensive income (loss)									$	(1,380,939	)
Partners’ capital (deficit), March 31, 2001	19,173,104			(94,056		)	—					19,079,048
Capital contributions	—			—			—					—
Selling commissions and registration costs	—			—			—					—
Distributions	—			—			—					—
Comprehensive income (loss)
Net income (loss)	(1,617,902		)	(16,342		)	—		$	(1,634,244	)	(1,634,244		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			—		—			—
Total comprehensive income (loss)									$	(1,634,244	)
Partners’ capital (deficit), March 31, 2002	17,555,202			(110,398		)	—					17,444,804
Capital contributions	—			—			—					—
Selling commissions and registration costs	—			—			—					—
Distributions	—			—			—					—
Comprehensive income (loss)
Net income (loss)	(1,595,562		)	(16,117		)	—		$	(1,611,679	)	(1,611,679		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			—		—			—
Total comprehensive income (loss)									$	(1,611,679	)
Partners’ capital (deficit), March 31, 2003	$	15,959,640		$	(126,515	)	$	—				$	15,833,125

F-62

Series 24	Assignees			General partner			Accumulated other comprehensive income			Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2000	$	12,597,389		$	(59,924	)	$	8,292					$	12,545,757
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,759,529		)	(17,773		)	—			$	(1,777,302	)	(1,777,302		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(7,499		)	(7,499		)	(7,499		)
Total comprehensive income (loss)										$	(1,784,801	)
Partners’ capital (deficit), March 31, 2001	10,837,860			(77,697		)	793						10,760,956
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,981,681		)	(20,017		)	—			$	(2,001,698	)	(2,001,698		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			547			547			547
Total comprehensive income (loss)										$	(2,001,151	)
Partners’ capital (deficit), March 31, 2002	8,856,179			(97,714		)	1,340						8,759,805
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(204,039		)	(2,061		)	—			$	(206,100	)	(206,100		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(1,340		)	(1,340		)	(1,340		)
Total comprehensive income (loss)										$	(207,440	)
Partners’ capital (deficit), March 31, 2003	$	8,652,140		$	(99,775	)	$	—					$	8,552,365

F-63

Series 25	Assignees			General partner			Accumulated other comprehensive income			Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2000	$	19,183,968		$	(66,267	)	$	18,997					$	19,136,698
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,525,449		)	(15,409		)	—			$	(1,540,858	)	(1,540,858		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(18,032		)	(18,032		)	(18,032		)
Total comprehensive income (loss)										$	(1,558,890	)
Partners’ capital (deficit), March 31, 2001	17,658,519			(81,676		)	965						17,577,808
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,542,311		)	(15,579		)	—			$	(1,557,890	)	(1,557,890		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			656			656			656
Total comprehensive income (loss)										$	(1,557,234	)
Partners’ capital (deficit), March 31, 2002	16,116,208			(97,255		)	1,621						16,020,574
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,052,384		)	(10,630		)	—			$	(1,063,014	)	(1,063,014		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(1,621		)	(1,621		)	(1,621		)
Total comprehensive income (loss)										$	(1,064,635	)
Partners’ capital (deficit), March 31, 2003	$	15,063,824		$	(107,885	)	$	—					$	14,955,939

F-64

Series 26	Assignees			General partner			Accumulated other comprehensive income			Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2000	$	29,315,855		$	(47,570	)	$	7,044					$	29,275,329
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(2,395,797		)	(24,200		)	—			$	(2,419,997	)	(2,419,997		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(7,044		)	(7,044		)	(7,044		)
Total comprehensive income (loss)										$	(2,427,041	)
Partners’ capital (deficit), March 31, 2001	26,920,058			(71,770		)	—						26,848,288
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(2,241,759		)	(22,644		)	—			$	(2,264,403	)	(2,264,403		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			—			—			—
Total comprehensive income (loss)										$	(2,264,403	)
Partners’ capital (deficit), March 31, 2002	24,678,299			(94,414		)	—						24,583,885
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,414,595		)	(14,289		)	—			$	(1,428,884	)	(1,428,884		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			—			—			—
Total comprehensive income (loss)										$	(1,428,884	)
Partners’ capital (deficit), March 31, 2003	$	23,263,704		$	(108,703	)	$	—					$	23,155,001

F-65

Series 27	Assignees			General partner			Accumulated other comprehensive income			Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2000	$	16,811,783		$	(38,716	)	$	17,825					$	16,790,892
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(856,130		)	(8,648		)	—			$	(864,778	)	(864,778		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(16,704		)	(16,704		)	(16,704		)
Total comprehensive income (loss)										$	(881,482	)
Partners’ capital (deficit), March 31, 2001	15,955,653			(47,364		)	1,121						15,909,410
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(592,384		)	(5,984		)	—			$	(598,368	)	(598,368		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			298			298			298
Total comprehensive income (loss)										$	(598,070	)
Partners’ capital (deficit), March 31, 2002	15,363,269			(53,348		)	1,419						15,311,340
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,069,995		)	(10,808		)	—			$	(1,080,803	)	(1,080,803		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(1,419		)	(1,419		)	(1,419		)
Total comprehensive income (loss)										$	(1,082,222	)
Partners’ capital (deficit), March 31, 2003	$	14,293,274		$	(64,156	)	$	—					$	14,229,118

F-66

Series 28	Assignees			General partner			Accumulated other comprehensive income			Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2000	$	31,782,620		$	(26,184	)	$	63,510					$	31,819,946
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,931,259		)	(19,508		)	—			$	(1,950,767	)	(1,950,767		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(59,117		)	(59,117		)	(59,117		)
Total comprehensive income (loss)										$	(2,009,884	)
Partners’ capital (deficit), March 31, 2001	29,851,361			(45,692		)	4,393						29,810,062
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,784,067		)	(18,021		)	—			$	(1,802,088	)	(1,802,088		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(1,651		)	(1,651		)	(1,651		)
Total comprehensive income (loss)										$	(1,803,739	)
Partners’ capital (deficit), March 31, 2002	28,067,294			(63,713		)	2,742						28,006,323
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,429,418		)	(14,438		)	—			$	(1,443,856	)	(1,443,856		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(2,471		)	(2,471		)	(2,471		)
Total comprehensive income (loss)										$	(1,446,327	)
Partners’ capital (deficit), March 31, 2003	$	26,637,876		$	(78,151	)	$	271					$	26,559,996

F-67

Series 29	Assignees			General partner			Accumulated other comprehensive income			Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2000	$	29,719,635		$	(41,869	)	$	33,958					$	29,711,724
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(2,346,282		)	(23,700		)	—			$	(2,369,982	)	(2,369,982		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(27,873		)	(27,873		)	(27,873		)
Total comprehensive income (loss)										$	(2,397,855	)
Partners’ capital (deficit), March 31, 2001	27,373,353			(65,569		)	6,085						27,313,869
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(2,396,939		)	(24,211		)	—			$	(2,421,150	)	(2,421,150		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(4,659		)	(4,659		)	(4,659		)
Total comprehensive income (loss)										$	(2,425,809	)
Partners’ capital (deficit), March 31, 2002	24,976,414			(89,780		)	1,426						24,888,060
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(2,371,157		)	(23,951		)	—			$	(2,395,108	)	(2,395,108		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(1,523		)	(1,523		)	(1,523		)
Total comprehensive income (loss)										$	(2,396,631	)
Partners’ capital (deficit), March 31, 2003	$	22,605,257		$	(113,731	)	$	(97	)				$	22,491,429

F-68

Series 30	Assignees			General partner			Accumulated other comprehensive income			Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2000	$	21,471,225		$	(12,469	)	$	63,230					$	21,521,986
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,270,995		)	(12,838		)	—			$	(1,283,833	)	(1,283,833		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(58,569		)	(58,569		)	(58,569		)
Total comprehensive income (loss)										$	(1,342,402	)
Partners’ capital (deficit), March 31, 2001	20,200,230			(25,307		)	4,661						20,179,584
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,285,268		)	(12,983		)	—			$	(1,298,251	)	(1,298,251		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(3,663		)	(3,663		)	(3,663		)
Total comprehensive income (loss)										$	(1,301,914	)
Partners’ capital (deficit), March 31, 2002	18,914,962			(38,290		)	998						18,877,670
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,410,963		)	(14,252		)	—			$	(1,425,215	)	(1,425,215		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(998		)	(998		)	(998		)
Total comprehensive income (loss)										$	(1,426,213	)
Partners’ capital (deficit), March 31, 2003	$	17,503,999		$	(52,542	)	$	—					$	17,451,457

F-69

Series 31	Assignees			General partner			Accumulated other comprehensive income			Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2000	$	34,298,592		$	(36,641	)	$	70,407					$	34,332,358
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(2,949,478		)	(29,792		)	—			$	(2,979,270	)	(2,979,270		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(60,839		)	(60,839		)	(60,839		)
Total comprehensive income (loss)										$	(3,040,109	)
Partners’ capital (deficit), March 31, 2001	31,349,114			(66,433		)	9,568						31,292,249
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(2,464,790		)	(24,897		)	—			$	(2,489,687	)	(2,489,687		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(7,667		)	(7,667		)	(7,667		)
Total comprehensive income (loss)										$	(2,497,354	)
Partners’ capital (deficit), March 31, 2002	28,884,324			(91,330		)	1,901						28,794,895
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(2,385,265		)	(24,093		)	—			$	(2,409,358	)	(2,409,358		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(1,901		)	(1,901		)	(1,901		)
Total comprehensive income (loss)										$	(2,411,259	)
Partners’ capital (deficit), March 31, 2003	$	26,499,059		$	(115,423	)	$	—					$	26,383,636

F-70

Series 32	Assignees			General partner			Accumulated other comprehensive income			Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2000	$	39,409,396		$	(12,392	)	$	80,336					$	39,477,340
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(2,793,719		)	(28,219		)	—			$	(2,821,938	)	(2,821,938		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(70,858		)	(70,858		)	(70,858		)
Total comprehensive income (loss)										$	(2,892,796	)
Partners’ capital (deficit), March 31, 2001	36,615,677			(40,611		)	9,478						36,584,544
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(2,404,824		)	(24,291		)	—			$	(2,429,115	)	(2,429,115		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(9,478		)	(9,478		)	(9,478		)
Total comprehensive income (loss)										$	(2,438,593	)
Partners’ capital (deficit), March 31, 2002	34,210,853			(64,902		)	—						34,145,951
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(2,270,025		)	(22,929		)	—			$	(2,292,954	)	(2,292,954		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			—			—			—
Total comprehensive income (loss)										$	(2,292,954	)
Partners’ capital (deficit), March 31, 2003	$	31,940,828		$	(87,831	)	$	—					$	31,852,997

F-71

Series 33	Assignees			General partner			Accumulated other comprehensive income			Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2000	$	22,072,254		$	(5,110	)	$	89,389					$	22,156,533
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,370,293		)	(13,841		)	—			$	(1,384,134	)	(1,384,134		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(77,196		)	(77,196		)	(77,196		)
Total comprehensive income (loss)										$	(1,461,330	)
Partners’ capital (deficit), March 31, 2001	20,701,961			(18,951		)	12,193						20,695,203
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,247,345		)	(12,599		)	—			$	(1,259,944	)	(1,259,944		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(12,193		)	(12,193		)	(12,193		)
Total comprehensive income (loss)										$	(1,272,137	)
Partners’ capital (deficit), March 31, 2002	19,454,616			(31,550		)	—						19,423,066
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,107,468		)	(11,186		)	—			$	(1,118,654	)	(1,118,654		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			—			—			—
Total comprehensive income (loss)										$	(1,118,654	)
Partners’ capital (deficit), March 31, 2003	$	18,347,148		$	(42,736	)	$	—					$	18,304,412

F-72

Series 34	Assignees			General partner			Accumulated other comprehensive income			Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2000	$	29,388,210		$	(6,593	)	$	95,352					$	29,476,969
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(2,400,249		)	(24,245		)	—			$	(2,424,494	)	(2,424,494		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(95,352		)	(95,352		)	(95,352		)
Total comprehensive income (loss)										$	(2,519,846	)
Partners’ capital (deficit), March 31, 2001	26,987,961			(30,838		)	—						26,957,123
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(2,092,117		)	(21,132		)	—			$	(2,113,249	)	(2,113,249		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			—			—			—
Total comprehensive income (loss)										$	(2,113,249	)
Partners’ capital (deficit), March 31, 2002	24,895,844			(51,970		)	—						24,843,874
Capital contributions	—			—			—						—
Selling commissions and registration costs	(1,807		)	—			—						(1,807		)
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,966,456		)	(19,863		)	—			$	(1,986,319	)	(1,986,319		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			—			—			—
Total comprehensive income (loss)										$	(1,986,319	)
Partners’ capital (deficit), March 31, 2003	$	22,927,581		$	(71,833	)	$	—					$	22,855,748

F-73

Series 35	Assignees			General partner			Accumulated other comprehensive income			Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2000	$	27,937,304		$	(2,684	)	$	76,772					$	28,011,392
Capital contributions	—			—			—						—
Selling commissions and registration costs	(500		)	—			—						(500		)
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(2,084,978		)	(21,060		)	—			$	(2,106,038	)	(2,106,038		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(66,797		)	(66,797		)	(66,797		)
Total comprehensive income (loss)										$	(2,172,835	)
Partners’ capital (deficit), March 31, 2001	25,851,826			(23,744		)	9,975						25,838,057
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,199,555		)	(12,117		)	—			$	(1,211,672	)	(1,211,672		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(9,708		)	(9,708		)	(9,708		)
Total comprehensive income (loss)										$	(1,221,380	)
Partners’ capital (deficit), March 31, 2002	24,652,271			(35,861		)	267						24,616,677
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,515,046		)	(15,303		)	—			$	(1,530,349	)	(1,530,349		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(267		)	(267		)	(267		)
Total comprehensive income (loss)										$	(1,530,616	)
Partners’ capital (deficit), March 31, 2003	$	23,137,225		$	(51,164	)	$	—					$	23,086,061

F-74

Series 36	Assignees			General partner			Accumulated other comprehensive income			Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2000	$	17,569,744		$	(3,048	)	$	53,275					$	17,619,971
Capital contributions	—			—			—						—
Selling commissions and registration costs	(5,170		)	—			—						(5,170		)
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(686,129		)	(6,931		)	—			$	(693,060	)	(693,060		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(53,275		)	(53,275		)	(53,275		)
Total comprehensive income (loss)										$	(746,335	)
Partners’ capital (deficit), March 31, 2001	16,878,445			(9,979		)	—						16,868,466
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,514,439		)	(15,297		)	—			$	(1,529,736	)	(1,529,736		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			—			—			—
Total comprehensive income (loss)										$	(1,529,736	)
Partners’ capital (deficit), March 31, 2002	15,364,006			(25,276		)	—						15,338,730
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,238,064		)	(12,506		)	—			$	(1,250,570	)	(1,250,570		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			—			—			—
Total comprehensive income (loss)										$	(1,250,570	)
Partners’ capital (deficit), March 31, 2003	$	14,125,942		$	(37,782	)	$	—					$	14,088,160

F-75

Series 37	Assignees			General partner			Accumulated other comprehensive income			Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2000	$	21,622,194		$	(535	)	$	123,888					$	21,745,547
Capital contributions	—			—			—						—
Selling commissions and registration costs	(18,876		)	—			—						(18,876		)
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(312,704		)	(3,159		)	—			$	(315,863	)	(315,863		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(118,506		)	(118,506		)	(118,506		)
Total comprehensive income (loss)										$	(434,369	)
Partners’ capital (deficit), March 31, 2001	21,290,614			(3,694		)	5,382						21,292,302
Capital contributions	—			—			—						—
Selling commissions and registration costs	(100,000		)	—			—						(100,000		)
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,040,945		)	(10,515		)	—			$	(1,051,460	)	(1,051,460		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(5,382		)	(5,382		)	(5,382		)
Total comprehensive income (loss)										$	(1,056,842	)
Partners’ capital (deficit), March 31, 2002	20,149,669			(14,209		)	—						20,135,460
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,627,397		)	(16,438		)	—			$	(1,643,835	)	(1,643,835		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			—			—			—
Total comprehensive income (loss)										$	(1,643,835	)
Partners’ capital (deficit), March 31, 2003	$	18,522,272		$	(30,647	)	$	—					$	18,491,625

F-76

Series 38	Assignees			General partner			Accumulated other comprehensive income			Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2000	$	3,505,653		$	(817	)	$	—					$	3,504,836
Capital contributions	20,968,000			—			—						20,968,000
Selling commissions and registration costs	(2,826,076		)	—			—						(2,826,076		)
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(144,513		)	(1,460		)	—			$	(145,973	)	(145,973		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			4,237			4,237			4,237
Total comprehensive income (loss)										$	(141,736	)
Partners’ capital (deficit), March 31, 2001	21,503,064			(2,277		)	4,237						21,505,024
Capital contributions	—			—			—						—
Selling commissions and registration costs	99,962			—			—						99,962
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,391,454		)	(14,055		)	—			$	(1,405,509	)	(1,405,509		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(3,604		)	(3,604		)	(3,604		)
Total comprehensive income (loss)										$	(1,409,113	)
Partners’ capital (deficit), March 31, 2002	20,211,572			(16,332		)	633						20,195,873
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,159,264		)	(11,710		)	—			$	(1,170,974	)	(1,170,974		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(633		)	(633		)	(633		)
Total comprehensive income (loss)										$	(1,171,607	)
Partners’ capital (deficit), March 31, 2003	$	19,052,308		$	(28,042	)	$	—					$	19,024,266

F-77

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL

Year ended March 31, 2003 and for the period August 1, 2000 (date of inception) through March 31, 2001

Series 39	Assignees			General partner			Accumulated other comprehensive income			Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2000	$	—		$	—		$	—					$	—
Capital contributions	22,921,000			—			—						22,921,000
Selling commissions and registration costs	(3,263,410		)	—			—						(3,263,410		)
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(141,409		)	(1,428		)	—			$	(142,837	)	(142,837		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			13,246			13,246			13,246
Total comprehensive income (loss)										$	(129,591	)
Partners’ capital (deficit), March 31, 2001	19,516,181			(1,428		)	13,246						19,527,999
Capital contributions	—			—			—						—
Selling commissions and registration costs	(13,302		)	—			—						(13,302		)
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,115,579		)	(11,268		)	—			$	(1,126,847	)	(1,126,847		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(13,079		)	(13,079		)	(13,079		)
Total comprehensive income (loss)										$	(1,139,926	)
Partners’ capital (deficit), March 31, 2002	18,387,300			(12,696		)	167						18,374,771
Capital contributions	—			—			—						—
Selling commissions and registration costs	—			—			—						—
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,327,411		)	(13,408		)	—			$	(1,340,819	)	(1,340,819		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(167		)	(167		)	(167		)
Total comprehensive income (loss)										$	(1,340,986	)
Partners’ capital (deficit), March 31, 2003	$	17,059,889		$	(26,104	)	$	—					$	17,033,785

F-78

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL

Year ended March 31, 2003 and for the period February 1, 2001 (date of inception) through March 31, 2001

Series 40	Assignees			General partner			Accumulated other comprehensive income			Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2000	$	—		$	—		$	—					$	—
Capital contributions	3,376,000			—			—						3,376,000
Selling commissions and registration costs	(738,551		)	—			—						(738,551		)
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(110,349		)	(1,115		)	—			$	(111,464	)	(111,464		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			—			—			—
Total comprehensive income (loss)										$	(111,464	)
Partners’ capital (deficit), March 31, 2001	2,527,100			(1,115		)	—						2,525,985
Capital contributions	22,893,250			—			—						22,893,250
Selling commissions and registration costs	(3,039,267		)	—			—						(3,039,267		)
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(591,412		)	(5,974		)	—			$	(597,386	)	(597,386		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			11,196			11,196			11,196
Total comprehensive income (loss)										$	(586,190	)
Partners’ capital (deficit), March 31, 2002	21,789,671			(7,089		)	11,196						21,793,778
Capital contributions	—			—			—						—
Selling commissions and registration costs	2,802			—			—						2,802
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,109,815		)	(11,210		)	—			$	(1,121,025	)	(1,121,025		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(11,196		)	(11,196		)	(11,196		)
Total comprehensive income (loss)										$	(1,132,221	)
Partners’ capital (deficit), March 31, 2003	$	20,682,658		$	(18,299	)	$	—					$	20,664,359

F-79

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL

Year ended March 31, 2003 and for the period August 1, 2001 (date of inception) through March 31, 2003

Series 41	Assignees			General partner			Accumulated other comprehensive income			Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2001	$	—		$	—		$	—					$	—
Capital contributions	28,916,260			—			—						28,916,260
Selling commissions and registration costs	(3,931,606		)	—			—						(3,931,606		)
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(281,084		)	(2,839		)	—			$	(283,923	)	(283,923		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			(1,706		)	(1,706		)	(1,706		)
Total comprehensive income (loss)										$	(285,629	)
Partners’ capital (deficit), March 31, 2002	24,703,570			(2,839		)	(1,706		)				24,699,025
Capital contributions	—			—			—						—
Selling commissions and registration costs	71,319			—			—						71,319
Distributions	—			—			—						—
Comprehensive income (loss)
Net income (loss)	(1,829,901		)	(18,484		)	—			$	(1,848,385	)	(1,848,385		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			1,673			1,673			1,673
Total comprehensive income (loss)										$	(1,846,712	)
Partners’ capital (deficit), March 31, 2003	$	22,944,988		$	(21,323	)	$	(33	)				$	22,923,632

Series 41 and 42 were not formed until after March 31, 2001, therefore only two periods of comparative information has been included.

F-80

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL

Year ended March 31, 2003 and for the period February 1, 2002 (date of inception) through March 31, 2003

Series 42	Assignees			General partner			Accumulated other comprehensive income		Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2001	$	—		$	—		$	—				$	—
Capital contributions	4,577,760			—			—					4,577,760
Selling commissions and registration costs	(883,687		)	—			—					(883,687		)
Distributions	—			—			—					—
Comprehensive income (loss)
Net income (loss)	(109,164		)	(1,103		)	—		$	(110,267	)	(110,267		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			—		—			—
Total comprehensive income (loss)									$	(110,267	)
Partners’ capital (deficit), March 31, 2002	3,584,909			(1,103		)	—					3,583,806
Capital contributions	22,864,860			—			—					22,864,860
Selling commissions and registration costs	(2,935,906		)	—			—					(2,935,906		)
Distributions	—			—			—					—
Comprehensive income (loss)
Net income (loss)	(516,197		)	(5,214		)	—		$	(521,411	)	(521,411		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			44,599		44,599			44,599
Total comprehensive income (loss)									$	(476,812	)
Partners’ capital (deficit), March 31, 2003	$	22,997,666		$	(6,317	)	$	44,599				$	23,035,948

Series 41 and 42 were not formed until after March 31, 2001, therefore only two periods of comparative information has been included.

F-81

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL

For the period August 1, 2002 (date of inception) through March 31, 2003

Series 43	Assignees			General partner			Accumulated other comprehensive income		Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2002	$	—		$	—		$	—				$	—
Capital contributions	36,379,870			—			—					36,379,870
Selling commissions and registration costs	(4,770,667		)	—			—					(4,770,667		)
Distributions	—			—			—					—
Comprehensive income (loss)
Net income (loss)	(485,466		)	(4,904		)	—		$	(490,370	)	(490,370		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			1,866		1,866			1,866
Total comprehensive income (loss)									$	(488,504	)
Partners’ capital (deficit), March 31, 2003	$	31,123,737		$	(4,904	)	$	1,866				$	31,120,699

Series 43 and 44 were not formed until after March 31, 2002, therefore no comparative information has been included.

F-82

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL

For the period January 1, 2003 (date of inception) through March 31, 2003

Series 44	Assignees			General partner			Accumulated other comprehensive income		Comprehensive income (loss)			Total
Partners’ capital (deficit), March 31, 2002	$	—		$	—		$	—				$	—
Capital contributions	12,790,970			—			—					12,790,970
Selling commissions and registration costs	(2,401,620		)	—			—					(2,401,620		)
Distributions	—			—			—					—
Comprehensive income (loss)
Net income (loss)	(113,870		)	(1,150		)	—		$	(115,020	)	(115,020		)
Other comprehensive income (loss)
Unrealized gain (loss) on securities available-for-sale	—			—			—		—			—
Total comprehensive income (loss)									$	(115,020	)
Partners’ capital (deficit), March 31, 2003	$	10,275,480		$	(1,150	)	$	—				$	10,274,330

Series 43 and 44 were not formed until after March 31, 2002, therefore no comparative information has been included.

See notes to financial statements

F-83

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

	Total
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Cash flows from operating activities
Net income (loss)	$	(34,363,004	)	$	(36,244,755	)	$	(31,651,959	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	26,840,274			30,093,432			27,258,366
Impairment loss	770,199			—			—
Distributions received from operating limited partnerships	150,808			169,728			94,023
Amortization	881,921			603,339			520,593
Changes in assets and liabilities
Other assets	1,168,100			(1,808,453		)	(1,338,459		)
Accounts payable and accrued expenses	247,251			744,932			(275,327		)
Accounts payable - affiliates	3,300,679			3,518,586			1,587,362
Net cash provided by (used in) operating activities	(1,003,772		)	(2,923,191		)	(3,805,401		)
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	(7,592,992		)	(6,616,734		)	(5,336,815		)
Capital contributions paid to operating limited partnerships	(35,700,528		)	(34,494,994		)	(49,544,266		)
Deposits for purchases of operating limited partnerships	—			(470,389		)	(1,530,054		)
(Advances to) repayments from operating limited partnerships	(6,542,296		)	(10,546,117		)	105,466
Purchase of investments (net of proceeds from sales and maturities of investments)	1,479,562			303,754			24,661,281
Net cash provided by (used in) investing activities	(48,356,254		)	(51,824,480		)	(31,644,388		)
Cash flows from financing activities
Capital contributions received	72,035,700			56,387,270			47,265,000
Selling commissions and registration costs (paid)/refunded	(10,035,879		)	(7,867,900		)	(6,852,583		)
Distributions paid	—			—			—
Proceeds from (repayment of) line of credit	(5,708,074		)	3,582,526			1,149,199
Net cash provided by (used in) financing activities	56,291,747			52,101,896			41,561,616
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	6,931,721			(2,645,775		)	6,111,827
Cash and cash equivalents, beginning	18,950,441			21,596,216			15,484,389
Cash and cash equivalents, ending	$	25,882,162		$	18,950,441		$	21,596,216

F-84

	Total
	Year ended March 31, 2003		Year ended March 31, 2002		Year ended March 31, 2001
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.	$	41,047,253	$	35,068,694	$	46,777,452
The fund has decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	135,030	$	374,247	$	562,543
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	7,809,477	$	3,166,025	$	8,171,871
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	711,322	$	364,300	$	220,514

Series 41 and 42 were not formed until after March 31, 2001, therefore only two periods of comparative information has been included.  Series 43 and 44 were not formed until after March 31, 2002, therefore no comparative information has been included.

F-85

	Series 20
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Cash flows from operating activities
Net income (loss)	$	(2,384,789	)	$	(2,387,830	)	$	(2,366,381	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	2,005,043			2,032,664			1,998,506
Impairment loss	—			—			—
Distributions received from operating limited partnerships	13,860			10,499			15,172
Amortization	3,571			3,573			3,572
Changes in assets and liabilities
Other assets	(111,636		)	(210,329		)	(182,806		)
Accounts payable and accrued expenses	9,902			—			—
Accounts payable - affiliates	490,883			589,638			398,549
Net cash provided by (used in) operating activities	26,834			38,215			(133,388		)
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	—			—			—
Capital contributions paid to operating limited partnerships	—			—			—
Deposits for purchases of operating limited partnerships	—			—			—
(Advances to) repayments from operating limited partnerships	—			—			—
Purchase of investments (net of proceeds from sales and maturities of investments)	—			—			—
Net cash provided by (used in) investing activities	—			—			—
Cash flows from financing activities
Capital contributions received	—			—			—
Selling commissions and registration costs (paid)/refunded	—			—			—
Distributions paid	—			—			—
Proceeds from (repayment of) line of credit	—			—			—
Net cash provided by (used in) financing activities	—			—			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	26,834			38,215			(133,388		)
Cash and cash equivalents, beginning	217,550			179,335			312,723
Cash and cash equivalents, ending	$	244,384		$	217,550		$	179,335

F-86

	Series 20
	Year ended March 31, 2003		Year ended March 31, 2002		Year ended March 31, 2001
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 decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	—	$	—	$	—
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	—	$	—	$	—
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	700	$	—	$	—

F-87

	Series 21
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Cash flows from operating activities
Net income (loss)	$	(658,405	)	$	(2,976,656	)	$	(1,087,400	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	453,916			2,720,700			885,755
Impairment loss	—			—			—
Distributions received from operating limited partnerships	3,941			7,251			437
Amortization	1,954			1,953			1,954
Changes in assets and liabilities
Other assets	36,872			941			(818		)
Accounts payable and accrued expenses	—			—			—
Accounts payable - affiliates	125,839			25,840			(174,160		)
Net cash provided by (used in) operating activities	(35,883		)	(219,971		)	(374,232		)
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	—			—			—
Capital contributions paid to operating limited partnerships	—			—			—
Deposits for purchases of operating limited partnerships	—			—			—
(Advances to) repayments from operating limited partnerships	—			—			—
Purchase of investments (net of proceeds from sales and maturities of investments)	9,166			222,534			337,233
Net cash provided by (used in) investing activities	9,166			222,534			337,233
Cash flows from financing activities
Capital contributions received	—			—			—
Selling commissions and registration costs (paid)/refunded	—			—			—
Distributions paid	—			—			—
Proceeds from (repayment of) line of credit	—			—			—
Net cash provided by (used in) financing activities	—			—			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(26,717		)	2,563			(36,999		)
Cash and cash equivalents, beginning	237,787			235,224			272,223
Cash and cash equivalents, ending	$	211,070		$	237,787		$	235,224

F-88

	Series 21
	Year ended March 31, 2003		Year ended March 31, 2002		Year ended March 31, 2001
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 decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	—	$	47,815	$	25,505
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	183,901	$	—	$	—
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	78,084	$	7,991	$	59,725

F-89

	Series 22
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Cash flows from operating activities
Net income (loss)	$	(1,825,108	)	$	(1,693,382	)	$	(1,484,651	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	1,154,777			1,429,401			1,225,393
Impairment loss	404,691			—			—
Distributions received from operating limited partnerships	7,977			9,778			3,912
Amortization	6,139			6,140			6,140
Changes in assets and liabilities
Other assets	(558		)	(4,746		)	(450		)
Accounts payable and accrued expenses	—			—			—
Accounts payable - affiliates	179,592			254,592			154,594
Net cash provided by (used in) operating activities	(72,490		)	1,783			(95,062		)
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	—			—			—
Capital contributions paid to operating limited partnerships	(1,500		)	(51,114		)	—
Deposits for purchases of operating limited partnerships	—			—			—
(Advances to) repayments from operating limited partnerships	—			—			—
Purchase of investments (net of proceeds from sales and maturities of investments)	173,915			(47,713		)	175,429
Net cash provided by (used in) investing activities	172,415			(98,827		)	175,429
Cash flows from financing activities
Capital contributions received	—			—			—
Selling commissions and registration costs (paid)/refunded	—			—			—
Distributions paid	—			—			—
Proceeds from (repayment of) line of credit	—			—			—
Net cash provided by (used in) financing activities	—			—			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	99,925			(97,044		)	80,367
Cash and cash equivalents, beginning	254,977			352,021			271,654
Cash and cash equivalents, ending	$	354,902		$	254,977		$	352,021

F-90

	Series 22
	Year ended March 31, 2003		Year ended March 31, 2002		Year ended March 31, 2001
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 decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	5,159	$	—	$	—
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	—	$	—	$	—
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	—	$	—	$	—

F-91

	Series 23
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Cash flows from operating activities
Net income (loss)	$	(1,611,679	)	$	(1,634,244	)	$	(1,380,939	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	1,347,032			1,381,392			1,137,319
Impairment loss	—			—			—
Distributions received from operating limited partnerships	5,803			11,274			315
Amortization	9,131			9,130			7,688
Changes in assets and liabilities
Other assets	—			1			—
Accounts payable and accrued expenses	—			—			—
Accounts payable - affiliates	240,263			115,264			190,267
Net cash provided by (used in) operating activities	(9,450		)	(117,183		)	(45,350		)
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	—			—			—
Capital contributions paid to operating limited partnerships	—			—			—
Deposits for purchases of operating limited partnerships	—			—			—
(Advances to) repayments from operating limited partnerships	—			—			—
Purchase of investments (net of proceeds from sales and maturities of investments)	—			—			—
Net cash provided by (used in) investing activities	—			—			—
Cash flows from financing activities
Capital contributions received	—			—			—
Selling commissions and registration costs (paid)/refunded	—			—			—
Distributions paid	—			—			—
Proceeds from (repayment of) line of credit	—			—			—
Net cash provided by (used in) financing activities	—			—			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(9,450		)	(117,183		)	(45,350		)
Cash and cash equivalents, beginning	176,646			293,829			339,179
Cash and cash equivalents, ending	$	167,196		$	176,646		$	293,829

F-92

	Series 23
	Year ended March 31, 2003		Year ended March 31, 2002		Year ended March 31, 2001
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 decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	—	$	—	$	—
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	—	$	340,835	$	—
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	—	$	—	$	—

F-93

	Series 24
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Cash flows from operating activities
Net income (loss)	$	(206,100	)	$	(2,001,698	)	$	(1,777,302	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	62,763			1,716,153			1,528,706
Impairment loss	—			—			—
Distributions received from operating limited partnerships	3,202			7,254			4,634
Amortization	10,204			10,205			10,205
Changes in assets and liabilities
Other assets	25,968			(4,491		)	(33,903		)
Accounts payable and accrued expenses	39,878			—			—
Accounts payable - affiliates	(91,648		)	233,352			233,352
Net cash provided by (used in) operating activities	(155,733		)	(39,225		)	(34,308		)
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	—			—			—
Capital contributions paid to operating limited partnerships	(88,621		)	—			—
Deposits for purchases of operating limited partnerships	—			—			—
(Advances to) repayments from operating limited partnerships	—			—			—
Purchase of investments (net of proceeds from sales and maturities of investments)	212,622			(58,334		)	101,756
Net cash provided by (used in) investing activities	124,001			(58,334		)	101,756
Cash flows from financing activities
Capital contributions received	—			—			—
Selling commissions and registration costs (paid)/refunded	—			—			—
Distributions paid	—			—			—
Proceeds from (repayment of) line of credit	—			—			—
Net cash provided by (used in) financing activities	—			—			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(31,732		)	(97,559		)	67,448
Cash and cash equivalents, beginning	264,742			362,301			294,853
Cash and cash equivalents, ending	$	233,010		$	264,742		$	362,301

F-94

	Series 24
	Year ended March 31, 2003		Year ended March 31, 2002		Year ended March 31, 2001
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 decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	6,280	$	—	$	45,141
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	751,064	$	—	$	—
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	—	$	—	$	—

F-95

	Series 25
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Cash flows from operating activities
Net income (loss)	$	(1,063,014	)	$	(1,557,890	)	$	(1,540,858	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	921,532			1,274,826			1,297,955
Impairment loss	—			—			—
Distributions received from operating limited partnerships	10,163			25,888			6,251
Amortization	15,218			15,218			15,218
Changes in assets and liabilities
Other assets	116,164			30,735			(30,629		)
Accounts payable and accrued expenses	30,878			—			—
Accounts payable - affiliates	(127,324		)	272,676			172,676
Net cash provided by (used in) operating activities	(96,383		)	61,453			(79,387		)
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	—			—			—
Capital contributions paid to operating limited partnerships	(134,613		)	(21,500		)	(352,859		)
Deposits for purchases of operating limited partnerships	—			—			—
(Advances to) repayments from operating limited partnerships	—			—			—
Purchase of investments (net of proceeds from sales and maturities of investments)	257,095			(70,538		)	399,597
Net cash provided by (used in) investing activities	122,482			(92,038		)	46,738
Cash flows from financing activities
Capital contributions received	—			—			—
Selling commissions and registration costs (paid)/refunded	—			—			—
Distributions paid	—			—			—
Proceeds from (repayment of) line of credit	—			—			—
Net cash provided by (used in) financing activities	—			—			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	26,099			(30,585		)	(32,649		)
Cash and cash equivalents, beginning	463,598			494,183			526,832
Cash and cash equivalents, ending	$	489,697		$	463,598		$	494,183

F-96

	Series 25
	Year ended March 31, 2003		Year ended March 31, 2002		Year ended March 31, 2001
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.	$	—	$	11,500	$	—
The fund has decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	13,141	$	—	$	79,685
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	982,434	$	—	$	—
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	—	$	—	$	—

F-97

	Series 26
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Cash flows from operating activities
Net income (loss)	$	(1,428,884	)	$	(2,264,403	)	$	(2,419,997	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	1,054,359			1,829,836			2,038,026
Impairment loss	—			—			—
Distributions received from operating limited partnerships	15,982			13,449			22,612
Amortization	16,904			17,939			17,650
Changes in assets and liabilities
Other assets	396,024			(44,902		)	49
Accounts payable and accrued expenses	100,593			—			—
Accounts payable - affiliates	87,580			437,580			437,580
Net cash provided by (used in) operating activities	242,558			(10,501		)	95,920
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	—			—			—
Capital contributions paid to operating limited partnerships	(50,978		)	—			(180,117		)
Deposits for purchases of operating limited partnerships	—			—			—
(Advances to) repayments from operating limited partnerships	—			—			—
Purchase of investments (net of proceeds from sales and maturities of investments)	—			—			217,461
Net cash provided by (used in) investing activities	(50,978		)	—			37,344
Cash flows from financing activities
Capital contributions received	—			—			—
Selling commissions and registration costs (paid)/refunded	—			—			—
Distributions paid	—			—			—
Proceeds from (repayment of) line of credit	—			—			—
Net cash provided by (used in) financing activities	—			—			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	191,580			(10,501		)	133,264
Cash and cash equivalents, beginning	324,565			335,066			201,802
Cash and cash equivalents, ending	$	516,145		$	324,565		$	335,066

F-98

	Series 26
	Year ended March 31, 2003		Year ended March 31, 2002		Year ended March 31, 2001
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 decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	—	$	1,993	$	—
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	672,179	$	—	$	329,618
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	—	$	—	$	—

F-99

	Series 27
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Cash flows from operating activities
Net income (loss)	$	(1,080,803	)	$	(598,368	)	$	(864,778	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	782,076			293,465			595,643
Impairment loss	—			—			—
Distributions received from operating limited partnerships	9,614			10,532			5,862
Amortization	15,655			15,655			15,655
Changes in assets and liabilities
Other assets	(42		)	867			247,993
Accounts payable and accrued expenses	—			—			—
Accounts payable - affiliates	65,204			215,204			215,205
Net cash provided by (used in) operating activities	(208,296		)	(62,645		)	215,580
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	—			—			—
Capital contributions paid to operating limited partnerships	(107,464		)	(147,217		)	(249,384		)
Deposits for purchases of operating limited partnerships	—			—			—
(Advances to) repayments from operating limited partnerships	—			—			99,549
Purchase of investments (net of proceeds from sales and maturities of investments)	225,034			(7,050		)	331,546
Net cash provided by (used in) investing activities	117,570			(154,267		)	181,711
Cash flows from financing activities
Capital contributions received	—			—			—
Selling commissions and registration costs (paid)/refunded	—			—			—
Distributions paid	—			—			—
Proceeds from (repayment of) line of credit	—			—			—
Net cash provided by (used in) financing activities	—			—			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(90,726		)	(216,912		)	397,291
Cash and cash equivalents, beginning	430,440			647,352			250,061
Cash and cash equivalents, ending	$	339,714		$	430,440		$	647,352

F-100

	Series 27
	Year ended March 31, 2003		Year ended March 31, 2002		Year ended March 31, 2001
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 decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	9,176	$	11,705	$	38,328
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	—	$	—	$	537,000
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	—	$	—	$	65,183

F-101

	Series 28
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Cash flows from operating activities
Net income (loss)	$	(1,443,856	)	$	(1,802,088	)	$	(1,950,767	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	1,131,178			1,503,553			1,714,275
Impairment loss	—			—			—
Distributions received from operating limited partnerships	39,493			25,213			2,643
Amortization	3,299			3,300			3,300
Changes in assets and liabilities
Other assets	(350,737		)	3,441			(3,056		)
Accounts payable and accrued expenses	—			—			(104		)
Accounts payable - affiliates	—			—			—
Net cash provided by (used in) operating activities	(620,623		)	(266,581		)	(233,709		)
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	—			—			—
Capital contributions paid to operating limited partnerships	—			(596,003		)	(1,718,582		)
Deposits for purchases of operating limited partnerships	—			—			—
(Advances to) repayments from operating limited partnerships	136,654			(775,000		)	1,477,458
Purchase of investments (net of proceeds from sales and maturities of investments)	278,596			1,030,265			495,591
Net cash provided by (used in) investing activities	415,250			(340,738		)	254,467
Cash flows from financing activities
Capital contributions received	—			—			—
Selling commissions and registration costs (paid)/refunded	—			—			—
Distributions paid	—			—			—
Proceeds from (repayment of) line of credit	—			—			—
Net cash provided by (used in) financing activities	—			—			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(205,373		)	(607,319		)	20,758
Cash and cash equivalents, beginning	510,061			1,117,380			1,096,622
Cash and cash equivalents, ending	$	304,688		$	510,061		$	1,117,380

F-102

	Series 28
	Year ended March 31, 2003		Year ended March 31, 2002		Year ended March 31, 2001
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 decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	—	$	—	$	21,136
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	—	$	—	$	—
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	—	$	—	$	—

F-103

	Series 29
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Cash flows from operating activities
Net income (loss)	$	(2,395,108	)	$	(2,421,150	)	$	(2,369,982	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	1,671,213			2,116,714			2,074,428
Impairment loss	365,508			—			—
Distributions received from operating limited partnerships	3,039			2,613			1,050
Amortization	3,312			3,312			3,277
Changes in assets and liabilities
Other assets	(146,101		)	(4,049		)	17,223
Accounts payable and accrued expenses	—			—			—
Accounts payable - affiliates	212,980			209,815			(36		)
Net cash provided by (used in) operating activities	(285,157		)	(92,745		)	(274,040		)
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	—			—			(1,615		)
Capital contributions paid to operating limited partnerships	—			(283,919		)	(1,419,352		)
Deposits for purchases of operating limited partnerships	—			—			—
(Advances to) repayments from operating limited partnerships	—			—			814,943
Purchase of investments (net of proceeds from sales and maturities of investments)	176,073			78,899			1,367,980
Net cash provided by (used in) investing activities	176,073			(205,020		)	761,956
Cash flows from financing activities
Capital contributions received	—			—			—
Selling commissions and registration costs (paid)/refunded	—			—			—
Distributions paid	—			—			—
Proceeds from (repayment of) line of credit	—			—			—
Net cash provided by (used in) financing activities	—			—			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(109,084		)	(297,765		)	487,916
Cash and cash equivalents, beginning	577,830			875,595			387,679
Cash and cash equivalents, ending	$	468,746		$	577,830		$	875,595

F-104

	Series 29
	Year ended March 31, 2003		Year ended March 31, 2002		Year ended March 31, 2001
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 decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	—	$	7,355	$	45,585
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	—	$	—	$	—
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	—	$	—	$	—

F-105

	Series 30
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Cash flows from operating activities
Net income (loss)	$	(1,425,215	)	$	(1,298,251	)	$	(1,283,833	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	1,158,391			1,085,876			1,177,274
Impairment loss	—			—			—
Distributions received from operating limited partnerships	6,550			18,931			11,818
Amortization	21,240			21,240			21,209
Changes in assets and liabilities
Other assets	10			—			1,718
Accounts payable and accrued expenses	—			—			—
Accounts payable - affiliates	133			176			(7,524		)
Net cash provided by (used in) operating activities	(238,891		)	(172,028		)	(79,338		)
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	—			(16		)	(1,468		)
Capital contributions paid to operating limited partnerships	(54,232		)	(451,620		)	(1,114,708		)
Deposits for purchases of operating limited partnerships	—			—			—
(Advances to) repayments from operating limited partnerships	—			70,297			(405,743		)
Purchase of investments (net of proceeds from sales and maturities of investments)	158,269			74,483			1,933,137
Net cash provided by (used in) investing activities	104,037			(306,856		)	411,218
Cash flows from financing activities
Capital contributions received	—			—			—
Selling commissions and registration costs (paid)/refunded	—			—			—
Distributions paid	—			—			—
Proceeds from (repayment of) line of credit	—			—			—
Net cash provided by (used in) financing activities	—			—			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(134,854		)	(478,884		)	331,880
Cash and cash equivalents, beginning	256,324			735,208			403,328
Cash and cash equivalents, ending	$	121,470		$	256,324		$	735,208

F-106

	Series 30
	Year ended March 31, 2003		Year ended March 31, 2002		Year ended March 31, 2001
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.	$	—	$	5,099	$	—
The fund has decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	—	$	56,194	$	—
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	339,908	$	38,520	$	343,443
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	—	$	—	$	—

F-107

	Series 31
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Cash flows from operating activities
Net income (loss)	$	(2,409,358	)	$	(2,489,687	)	$	(2,979,270	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	2,057,441			2,172,471			2,698,823
Impairment loss	—			—			—
Distributions received from operating limited partnerships	7,430			10,372			1,754
Amortization	—			—			—
Changes in assets and liabilities
Other assets	13,791			(215,305		)	144,220
Accounts payable and accrued expenses	—			—			(2,975		)
Accounts payable - affiliates	(33,120		)	33,120			(26,655		)
Net cash provided by (used in) operating activities	(363,816		)	(489,029		)	(164,103		)
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	—			—			(39,059		)
Capital contributions paid to operating limited partnerships	(324,248		)	(327,137		)	(1,954,972		)
Deposits for purchases of operating limited partnerships	—			—			—
(Advances to) repayments from operating limited partnerships	—			200,000			(200,000		)
Purchase of investments (net of proceeds from sales and maturities of investments)	301,466			178,074			2,026,895
Net cash provided by (used in) investing activities	(22,782		)	50,937			(167,136		)
Cash flows from financing activities
Capital contributions received	—			—			—
Selling commissions and registration costs (paid)/refunded	—			—			—
Distributions paid	—			—			—
Proceeds from (repayment of) line of credit	—			—			—
Net cash provided by (used in) financing activities	—			—			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(386,598		)	(438,092		)	(331,239		)
Cash and cash equivalents, beginning	680,648			1,118,740			1,449,979
Cash and cash equivalents, ending	$	294,050		$	680,648		$	1,118,740

F-108

	Series 31
	Year ended March 31, 2003		Year ended March 31, 2002		Year ended March 31, 2001
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.	$	—	$	6,462	$	91,419
The fund has decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	—	$	—	$	107,199
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	—	$	—	$	1,866,296
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	—	$	22,061	$	28,793

F-109

	Series 32
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Cash flows from operating activities
Net income (loss)	$	(2,292,954	)	$	(2,429,115	)	$	(2,821,938	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	1,894,224			2,062,829			2,669,373
Impairment loss	—			—			—
Distributions received from operating limited partnerships	8,500			500			16,004
Amortization	36,624			36,625			36,303
Changes in assets and liabilities
Other assets	143,040			(88,730		)	(122,814		)
Accounts payable and accrued expenses	—			—			—
Accounts payable - affiliates	132,904			132,906			(68,502		)
Net cash provided by (used in) operating activities	(77,662		)	(284,985		)	(291,574		)
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	—			(10,108		)	(1,822		)
Capital contributions paid to operating limited partnerships	(99,104		)	(237,421		)	(1,563,696		)
Deposits for purchases of operating limited partnerships	—			—			—
(Advances to) repayments from operating limited partnerships	(10,765		)	(562,489		)	451,067
Purchase of investments (net of proceeds from sales and maturities of investments)	—			474,374			2,277,424
Net cash provided by (used in) investing activities	(109,869		)	(335,644		)	1,162,973
Cash flows from financing activities
Capital contributions received	—			—			—
Selling commissions and registration costs (paid)/refunded	—			—			—
Distributions paid	—			—			—
Proceeds from (repayment of) line of credit	—			—			—
Net cash provided by (used in) financing activities	—			—			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(187,531		)	(620,629		)	871,399
Cash and cash equivalents, beginning	491,354			1,111,983			240,584
Cash and cash equivalents, ending	$	303,823		$	491,354		$	1,111,983

F-110

	Series 32
	Year ended March 31, 2003		Year ended March 31, 2002		Year ended March 31, 2001
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.	$	18,112	$	52,601	$	199,254
The fund has decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	—	$	43,281	$	110,279
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	57,092	$	—	$	1,714,980
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	—	$	—	$	35,370

F-111

	Series 33
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Cash flows from operating activities
Net income (loss)	$	(1,118,654	)	$	(1,259,944	)	$	(1,384,134	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	892,301			1,059,178			1,294,005
Impairment loss	—			—			—
Distributions received from operating limited partnerships	—			—			—
Amortization	27,276			27,266			27,066
Changes in assets and liabilities
Other assets	129,185			(78,970		)	(121,915		)
Accounts payable and accrued expenses	—			(2,536		)	2,536
Accounts payable - affiliates	73,964			73,923			73,780
Net cash provided by (used in) operating activities	4,072			(181,083		)	(108,662		)
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	—			—			(17,119		)
Capital contributions paid to operating limited partnerships	(549,081		)	(852,865		)	(1,658,030		)
Deposits for purchases of operating limited partnerships	—			—			—
(Advances to) repayments from operating limited partnerships	—			—			(122,900		)
Purchase of investments (net of proceeds from sales and maturities of investments)	—			611,183			2,456,085
Net cash provided by (used in) investing activities	(549,081		)	(241,682		)	658,036
Cash flows from financing activities
Capital contributions received	—			—			—
Selling commissions and registration costs (paid)/refunded	—			—			—
Distributions paid	—			—			—
Proceeds from (repayment of) line of credit	—			—			—
Net cash provided by (used in) financing activities	—			—			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(545,009		)	(422,765		)	549,374
Cash and cash equivalents, beginning	724,344			1,147,109			597,735
Cash and cash equivalents, ending	$	179,335		$	724,344		$	1,147,109

F-112

	Series 33
	Year ended March 31, 2003		Year ended March 31, 2002		Year ended March 31, 2001
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.	$	—	$	49,249	$	—
The fund has decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	—	$	2,652	$	21,314
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	—	$	—	$	1,295
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	—	$	8,131	$	—

F-113

	Series 34
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Cash flows from operating activities
Net income (loss)	$	(1,986,319	)	$	(2,113,249	)	$	(2,424,494	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	1,610,062			1,760,695			2,140,987
Impairment loss	—			—			—
Distributions received from operating limited partnerships	523			631			—
Amortization	43,938			43,940			44,236
Changes in assets and liabilities
Other assets	—			14,248			2,595
Accounts payable and accrued expenses	—			—			—
Accounts payable - affiliates	293,194			292,965			181
Net cash provided by (used in) operating activities	(38,602		)	(770		)	(236,495		)
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	—			—			(31,402		)
Capital contributions paid to operating limited partnerships	(56,333		)	(240,787		)	(3,320,686		)
Deposits for purchases of operating limited partnerships	—			—			—
(Advances to) repayments from operating limited partnerships	—			275,000			—
Purchase of investments (net of proceeds from sales and maturities of investments)	—			—			3,266,100
Net cash provided by (used in) investing activities	(56,333		)	34,213			(85,988		)
Cash flows from financing activities
Capital contributions received	—			—			—
Selling commissions and registration costs (paid)/refunded	(1,807		)	—			—
Distributions paid	—			—			—
Proceeds from (repayment of) line of credit	—			—			—
Net cash provided by (used in) financing activities	(1,807		)	—			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(96,742		)	33,443			(322,483		)
Cash and cash equivalents, beginning	382,970			349,527			672,010
Cash and cash equivalents, ending	$	286,228		$	382,970		$	349,527

F-114

	Series 34
	Year ended March 31, 2003		Year ended March 31, 2002		Year ended March 31, 2001
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.	$	—	$	5,903	$	108,667
The fund has decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	—	$	3,780	$	37,557
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	654,703	$	5,954	$	1,663,458
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	—	$	—	$	6,476

F-115

	Series 35
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Cash flows from operating activities
Net income (loss)	$	(1,530,349	)	$	(1,211,672	)	$	(2,106,038	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	1,198,689			875,205			1,875,497
Impairment loss	—			—			—
Distributions received from operating limited partnerships	—			—			—
Amortization	129,236			129,251			128,479
Changes in assets and liabilities
Other assets	15,390			15,969			(6,136		)
Accounts payable and accrued expenses	—			(224		)	(1,719		)
Accounts payable - affiliates	(4,810		)	76,840			(78,703		)
Net cash provided by (used in) operating activities	(191,844		)	(114,631		)	(188,620		)
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	—			—			(44,455		)
Capital contributions paid to operating limited partnerships	(746,922		)	(84,860		)	(3,893,407		)
Deposits for purchases of operating limited partnerships	—			—			—
(Advances to) repayments from operating limited partnerships	200,000			(200,001		)	(794,296		)
Purchase of investments (net of proceeds from sales and maturities of investments)	611,180			426,170			4,901,470
Net cash provided by (used in) investing activities	64,258			141,309			169,312
Cash flows from financing activities
Capital contributions received	—			—			—
Selling commissions and registration costs (paid)/refunded	—			—			(500		)
Distributions paid	—			—			—
Proceeds from (repayment of) line of credit	—			—			—
Net cash provided by (used in) financing activities	—			—			(500		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(127,586		)	26,678			(19,808		)
Cash and cash equivalents, beginning	708,626			681,948			701,756
Cash and cash equivalents, ending	$	581,040		$	708,626		$	681,948

F-116

	Series 35
	Year ended March 31, 2003		Year ended March 31, 2002		Year ended March 31, 2001
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.	$	—	$	—	$	1,310,104
The fund has decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	—	$	103,459	$	2,558
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	395,535	$	615,734	$	422,261
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	—	$	91,805	$	11,043

F-117

	Series 36
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Cash flows from operating activities
Net income (loss)	$	(1,250,570	)	$	(1,529,736	)	$	(693,060	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	982,302			1,268,122			457,746
Impairment loss	—			—			—
Distributions received from operating limited partnerships	5,215			1,644			—
Amortization	88,463			88,463			86,996
Changes in assets and liabilities
Other assets	64,737			(67,433		)	82,822
Accounts payable and accrued expenses	(6,669		)	2,259			4,410
Accounts payable - affiliates	167,073			160,578			99,303
Net cash provided by (used in) operating activities	50,551			(76,103		)	38,217
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	—			(4,435		)	(97,045		)
Capital contributions paid to operating limited partnerships	—			(314,424		)	(3,036,776		)
Deposits for purchases of operating limited partnerships	—			—			—
(Advances to) repayments from operating limited partnerships	—			—			835,963
Purchase of investments (net of proceeds from sales and maturities of investments)	—			—			2,377,517
Net cash provided by (used in) investing activities	—			(318,859		)	79,659
Cash flows from financing activities
Capital contributions received	—			—			—
Selling commissions and registration costs (paid)/refunded	—			—			(5,170		)
Distributions paid	—			—			—
Proceeds from (repayment of) line of credit	—			—			—
Net cash provided by (used in) financing activities	—			—			(5,170		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	50,551			(394,962		)	112,706
Cash and cash equivalents, beginning	45,839			440,801			328,095
Cash and cash equivalents, ending	$	96,390		$	45,839		$	440,801

F-118

	Series 36
	Year ended March 31, 2003		Year ended March 31, 2002		Year ended March 31, 2001
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 decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	—	$	2,381	$	10,720
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	—	$	462,966	$	1,001,838
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	—	$	3,061	$	—

F-119

	Series 37
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Cash flows from operating activities
Net income (loss)	$	(1,643,835	)	$	(1,051,460	)	$	(315,863	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	1,337,643			750,493			318,507
Impairment loss	—			—			—
Distributions received from operating limited partnerships	5,215			13,899			—
Amortization	94,823			94,713			91,645
Changes in assets and liabilities
Other assets	35,442			(93,567		)	5,348
Accounts payable and accrued expenses	(100,000		)	73,129			26,522
Accounts payable - affiliates	176,944			81,603			(29,717		)
Net cash provided by (used in) operating activities	(93,768		)	(131,190		)	96,442
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	(689		)	(11,420		)	(146,024		)
Capital contributions paid to operating limited partnerships	(162,434		)	(2,129,525		)	(5,590,378		)
Deposits for purchases of operating limited partnerships	—			—			(1,530,054		)
(Advances to) repayments from operating limited partnerships	3,725			997,985			(1,066,200		)
Purchase of investments (net of proceeds from sales and maturities of investments)	—			576,017			3,659,278
Net cash provided by (used in) investing activities	(159,398		)	(566,943		)	(4,673,378		)
Cash flows from financing activities
Capital contributions received	—			—			—
Selling commissions and registration costs (paid)/refunded	—			(100,000		)	(18,876		)
Distributions paid	—			—			—
Proceeds from (repayment of) line of credit	—			—			—
Net cash provided by (used in) financing activities	—			(100,000		)	(18,876		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(253,166		)	(798,133		)	(4,595,812		)
Cash and cash equivalents, beginning	559,002			1,357,135			5,952,947
Cash and cash equivalents, ending	$	305,836		$	559,002		$	1,357,135

F-120

	Series 37
	Year ended March 31, 2003		Year ended March 31, 2002		Year ended March 31, 2001
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.	$	6,314	$	—	$	5,481,597
The fund has decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	—	$	—	$	—
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	65,000	$	1,543,978	$	291,682
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	—	$	231,251	$	13,924

F-121

	Series 38
	Year ended March 31, 2003			Year ended March 31, 2002			Year ended March 31, 2001
Cash flows from operating activities
Net income (loss)	$	(1,170,974	)	$	(1,405,509	)	$	(145,973	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	892,478			1,230,809			133,908
Impairment loss	—			—			—
Distributions received from operating limited partnerships	2,218			—			1,559
Amortization	98,914			50,939			—
Changes in assets and liabilities
Other assets	123,494			(104,115		)	607,963
Accounts payable and accrued expenses	—			(2,733		)	(419,756		)
Accounts payable - affiliates	164,404			69,025			(20,848		)
Net cash provided by (used in) operating activities	110,534			(161,584		)	156,853
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	(1,172		)	—			(2,231,391		)
Capital contributions paid to operating limited partnerships	(1,099,731		)	(3,062,065		)	(12,005,963		)
Deposits for purchases of operating limited partnerships	—			—			—
(Advances to) repayments from operating limited partnerships	—			755,920			(755,920		)
Purchase of investments (net of proceeds from sales and maturities of investments)	501,701			(289,004		)	(212,697		)
Net cash provided by (used in) investing activities	(599,202		)	(2,595,149		)	(15,205,971		)
Cash flows from financing activities
Capital contributions received	—			—			20,968,000
Selling commissions and registration costs (paid)/refunded	—			99,962			(2,826,076		)
Distributions paid	—			—			—
Proceeds from (repayment of) line of credit	—			—			(976,349		)
Net cash provided by (used in) financing activities	—			99,962			17,165,575
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(488,668		)	(2,656,771		)	2,116,457
Cash and cash equivalents, beginning	644,013			3,300,784			1,184,327
Cash and cash equivalents, ending	$	155,345		$	644,013		$	3,300,784

F-122

	Series 38
	Year ended March 31, 2003		Year ended March 31, 2002		Year ended March 31, 2001
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.	$	2,838	$	116,325	$	15,470,521
The fund has decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	—	$	93,632	$	17,536
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	—	$	158,038	$	—
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	78,521	$	—	$	—

F-123

	Series 39
	Year ended March 31, 2003			Year ended March 31, 2002			Period August 1, 2000 (date of inception) through March 31, 2001
Cash flows from operating activities
Net income (loss)	$	(1,340,819	)	$	(1,126,847	)	$	(142,837	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	1,093,075			996,269			(3,760		)
Impairment loss	—			—			—
Distributions received from operating limited partnerships	2,083			—			—
Amortization	90,324			24,477			—
Changes in assets and liabilities
Other assets	2,458			12,796			(29,308		)
Accounts payable and accrued expenses	—			(28,722		)	28,722
Accounts payable - affiliates	136,800			50,845			—
Net cash provided by (used in) operating activities	(16,079		)	(71,182		)	(147,183		)
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	(1,352		)	(75,171		)	(2,337,478		)
Capital contributions paid to operating limited partnerships	(1,036,128		)	(5,441,684		)	(9,586,616		)
Deposits for purchases of operating limited partnerships	—			—			—
(Advances to) repayments from operating limited partnerships	543,567			(1,197,327		)	(228,455		)
Purchase of investments (net of proceeds from sales and maturities of investments)	26,858			1,423,663			(1,450,521		)
Net cash provided by (used in) investing activities	(467,055		)	(5,290,519		)	(13,603,070		)
Cash flows from financing activities
Capital contributions received	—			—			22,921,000
Selling commissions and registration costs (paid)/refunded	—			(13,302		)	(3,263,410		)
Distributions paid	—			—			—
Proceeds from (repayment of) line of credit	—			—			—
Net cash provided by (used in) financing activities	—			(13,302		)	19,657,590
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(483,134		)	(5,375,003		)	5,907,337
Cash and cash equivalents, beginning	532,334			5,907,337			—
Cash and cash equivalents, ending	$	49,200		$	532,334		$	5,907,337

F-124

	Series 39
	Year ended March 31, 2003		Year ended March 31, 2002		Period August 1, 2000 (date of inception) through March 31, 2001
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.	$	—	$	970,254	$	16,338,224
The fund has decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	598	$	284,868	$	—
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	866,754	$	—	$	—
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	266,478	$	—	$	—

F-125

	Series 40
	Year ended March 31, 2003			Year ended March 31, 2002			Period February 1, 2001 (date of inception) through March 31, 2001
Cash flows from operating activities
Net income (loss)	$	(1,121,025	)	$	(597,386	)	$	(111,464	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	986,508			438,656			—
Impairment loss	—			—			—
Distributions received from operating limited partnerships	—			—			—
Amortization	32,319			—			—
Changes in assets and liabilities
Other assets	(2,164		)	907,919			(1,916,555		)
Accounts payable and accrued expenses	25,170			(19,975		)	87,037
Accounts payable - affiliates	288,676			107,713			18,020
Net cash provided by (used in) operating activities	209,484			836,927			(1,922,962		)
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	2,613			(2,549,744		)	(387,937		)
Capital contributions paid to operating limited partnerships	(3,577,924		)	(12,506,389		)	(1,898,740		)
Deposits for purchases of operating limited partnerships	—			—			—
(Advances to) repayments from operating limited partnerships	756,950			(1,359,181		)	—
Purchase of investments (net of proceeds from sales and maturities of investments)	1,907,760			(1,907,760		)	—
Net cash provided by (used in) investing activities	(910,601		)	(18,323,074		)	(2,286,677		)
Cash flows from financing activities
Capital contributions received	—			22,893,250			3,376,000
Selling commissions and registration costs (paid)/refunded	2,802			(3,039,267		)	(738,551		)
Distributions paid	—			—			—
Proceeds from (repayment of) line of credit	—			(2,125,548		)	2,125,548
Net cash provided by (used in) financing activities	2,802			17,728,435			4,762,997
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(698,315		)	242,288			553,358
Cash and cash equivalents, beginning	795,646			553,358			—
Cash and cash equivalents, ending	$	97,331		$	795,646		$	553,358

F-126

	Series 40
	Year ended March 31, 2003		Year ended March 31, 2002		Period February 1, 2001 (date of inception) through March 31, 2001
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.	$	—	$	11,110,565	$	7,777,666
The fund has decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	49,174	$	33,685	$	—
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	91,484	$	1,000,000	$	—
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	158,095	$	—	$	—

F-127

	Series 41
	Year ended March 31, 2003			Period August 1, 2001 (date of inception) through March 31, 2002
Cash flows from operating activities
Net income (loss)	$	(1,848,385	)	$	(283,923	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) income from operating limited partnerships	1,443,650			94,125
Impairment loss	—			—
Distributions received from operating limited partnerships	—			—
Amortization	133,377			—
Changes in assets and liabilities
Other assets	25,782			(42,324		)
Accounts payable and accrued expenses	(102,474		)	105,274
Accounts payable - affiliates	299,860			78,897
Net cash provided by (used in) operating activities	(48,190		)	(47,951		)
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	24,603			(3,234,342		)
Capital contributions paid to operating limited partnerships	(8,775,315		)	(7,156,939		)
Deposits for purchases of operating limited partnerships	—			(470,389		)
(Advances to) repayments from operating limited partnerships	2,521,444			(6,441,619		)
Purchase of investments (net of proceeds from sales and maturities of investments)	1,915,077			(2,411,509		)
Net cash provided by (used in) investing activities	(4,314,191		)	(19,714,798		)
Cash flows from financing activities
Capital contributions received	—			28,916,260
Selling commissions and registration costs (paid)/refunded	71,319			(3,931,606		)
Distributions paid	—			—
Proceeds from (repayment of) line of credit	(3,010,000		)	3,010,000
Net cash provided by (used in) financing activities	(2,938,681		)	27,994,654
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(7,301,062		)	8,231,905
Cash and cash equivalents, beginning	8,231,905			—
Cash and cash equivalents, ending	$	930,843		$	8,231,905

F-128

	Series 41
	Year ended March 31, 2003		Period August 1, 2001 (date of inception) through March 31, 2002
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.	$	376,381	$	20,076,151
The fund has decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	13,204	$	—
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	2,749,423	$	—
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	36,085	$	—

Series 41 and 42 were not formed until after March 31, 2001, therefore only two periods of comparative information have been included.

F-129

	Series 42
	Year ended March 31, 2003			Period February 1, 2002 (date of inception) through March 31, 2002
Cash flows from operating activities
Net income (loss)	$	(521,411	)	$	(110,267	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	404,748			—
Impairment loss	—			—
Distributions received from operating limited partnerships	—			—
Amortization	—			—
Changes in assets and liabilities
Other assets	1,781,758			(1,836,409		)
Accounts payable and accrued expenses	(617,422		)	618,460
Accounts payable - affiliates	258,844			6,034
Net cash provided by (used in) operating activities	1,306,517			(1,322,182		)
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	(2,324,065		)	(731,498		)
Capital contributions paid to operating limited partnerships	(8,391,189		)	(589,525		)
Deposits for purchases of operating limited partnerships	—			—
(Advances to) repayments from operating limited partnerships	(4,252,487		)	(2,309,702		)
Purchase of investments (net of proceeds from sales and maturities of investments)	(3,480,319		)	—
Net cash provided by (used in) investing activities	(18,448,060		)	(3,630,725		)
Cash flows from financing activities
Capital contributions received	22,864,860			4,577,760
Selling commissions and registration costs (paid)/refunded	(2,935,906		)	(883,687		)
Distributions paid	—			—
Proceeds from (repayment of) line of credit	(2,698,074		)	2,698,074
Net cash provided by (used in) financing activities	17,230,880			6,392,147
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	89,337			1,439,240
Cash and cash equivalents, beginning	1,439,240			—
Cash and cash equivalents, ending	$	1,528,577		$	1,439,240

F-130

	Series 42
	Year ended March 31, 2003		Period February 1, 2002 (date of inception) through March 31, 2002
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.	$	17,368,914	$	2,664,585
The fund has decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	38,298	$	—
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	—	$	—
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	93,359	$	—

Series 41 and 42 were not formed until after March 31, 2001, therefore only two periods of comparative information have been included.

F-131

	Series 43
	Period August 1, 2002 (date of inception) through March 31, 2003
Cash flows from operating activities
Net income (loss)	$	(490,370	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) income from operating limited partnerships	304,873
Impairment loss	—
Distributions received from operating limited partnerships	—
Amortization	—
Changes in assets and liabilities
Other assets	(1,127,160		)
Accounts payable and accrued expenses	111,966
Accounts payable - affiliates	97,417
Net cash provided by (used in) operating activities	(1,103,274		)
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	(3,706,564		)
Capital contributions paid to operating limited partnerships	(8,823,760		)
Deposits for purchases of operating limited partnerships	—
(Advances to) repayments from operating limited partnerships	(4,997,469		)
Purchase of investments (net of proceeds from sales and maturities of investments)	(1,794,931		)
Net cash provided by (used in) investing activities	(19,322,724		)
Cash flows from financing activities
Capital contributions received	36,379,870
Selling commissions and registration costs (paid)/refunded	(4,770,667		)
Distributions paid	—
Proceeds from (repayment of) line of credit	—
Net cash provided by (used in) financing activities	31,609,203
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	11,183,205
Cash and cash equivalents, beginning	—
Cash and cash equivalents, ending	$	11,183,205

F-132

	Series 43
	Period August 1, 2002 (date of inception) through March 31, 2003
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.	$	18,633,728
The fund has decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	—
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	—
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	—

Series 43 and 44 were not formed until after March 31, 2002, therefore no comparative information has been included.

F-133

	Series 44
	Period January 1, 2003 (date of inception) through March 31, 2003
Cash flows from operating activities
Net income (loss)	$	(115,020	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	—
Impairment loss	—
Distributions received from operating limited partnerships	—
Amortization	—
Changes in assets and liabilities
Other assets	(3,617		)
Accounts payable and accrued expenses	755,429
Accounts payable - affiliates	65,027
Net cash provided by (used in) operating activities	701,819
Cash flows from investing activities
Acquisition costs (paid)/refunded for operating limited partnerships	(1,586,366		)
Capital contributions paid to operating limited partnerships	(1,620,951		)
Deposits for purchases of operating limited partnerships	—
(Advances to) repayments from operating limited partnerships	(1,443,915		)
Purchase of investments (net of proceeds from sales and maturities of investments)	—
Net cash provided by (used in) investing activities	(4,651,232		)
Cash flows from financing activities
Capital contributions received	12,790,970
Selling commissions and registration costs (paid)/refunded	(2,401,620		)
Distributions paid	—
Proceeds from (repayment of) line of credit	—
Net cash provided by (used in) financing activities	10,389,350
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	6,439,937
Cash and cash equivalents, beginning	—
Cash and cash equivalents, ending	$	6,439,937

F-134

	Series 44
	Period January 1, 2003 (date of inception) through March 31, 2003
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.	$	4,640,966
The fund has decreased its investments in operating limited partnerships and decreased its capital contribution obligation in operating limited partnerships for low-income tax credits not generated.	$	—
The fund has applied notes receivable and advances to its capital contribution obligation in operating limited partnerships.	$	—
The fund has decreased its investments in operating limited partnerships and recorded a receivable for tax credits not generated by the operating limited partnerships.	$	—

Series 43 and 44 were not formed until after March 31, 2002, therefore no comparative information has been included.

See notes to financial statements

F-135

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS

March 31, 2003, 2002 and 2001

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Boston Capital Tax Credit Fund IV L.P. (the “fund”) was organized under the laws of the State of Delaware as of October 5, 1993, for the purpose of acquiring, holding, and disposing of limited partnership interests in operating limited partnerships which will acquire, develop, rehabilitate, operate and own newly-constructed, existing or rehabilitated apartment complexes which qualify for the Low-Income Housing Tax Credit established by the Tax Reform Act of 1986.  Accordingly, the apartment complexes are restricted as to rent charges and operating methods.  Certain of the apartment complexes may also qualify for the Historic Rehabilitation Tax Credit for their rehabilitation of certified historic structures 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 IV L.P. and the limited partner is BCTC IV Assignor Corp. (the assignor limited partner).

In accordance with the limited partnership agreement, 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.

Pursuant to the Securities Act of 1933, the fund filed a Form S-11 Registration Statement with the Securities and Exchange Commission, effective December 16, 1993, which covered the offering (the “Public Offering”) of the beneficial assignee certificates (“BACs”) representing assignments of units of the beneficial interest of the limited partnership interest of the assignor limited partner.  The fund has registered 94,500,000 BACs at $10 per BAC for sale to the public in one or more series.  BACs sold in bulk are offered to investors at a reduced cost per BAC.

F-136

The BACs issued and outstanding in each series at March 31, 2003 and 2002 are as follows:

	2003	2002
Series 20	3,866,700	3,866,700
Series 21	1,892,700	1,892,700
Series 22	2,564,400	2,564,400
Series 23	3,336,727	3,336,727
Series 24	2,169,878	2,169,878
Series 25	3,026,109	3,026,109
Series 26	3,995,900	3,995,900
Series 27	2,460,700	2,460,700
Series 28	4,000,738	4,000,738
Series 29	3,991,800	3,991,800
Series 30	2,651,000	2,651,000
Series 31	4,417,857	4,417,857
Series 32	4,754,198	4,754,198
Series 33	2,636,533	2,636,533
Series 34	3,529,319	3,529,319
Series 35	3,300,463	3,300,463
Series 36	2,106,837	2,106,837
Series 37	2,512,500	2,512,500
Series 38	2,543,100	2,543,100
Series 39	2,292,152	2,292,152
Series 40	2,630,256	2,630,256
Series 41	2,891,626	2,891,626
Series 42	2,744,262	457,776
Series 43	3,637,987	—
Series 44	1,708,836	—
	75,662,578	68,029,269

F-137

Investments in Operating Limited Partnerships

The fund accounts for the investments in the operating limited partnerships using the equity method, whereby the fund adjusts the investment cost for its share of the 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 and its advances to operating limited partnerships.  Unrecognized losses will be suspended and offset against future individual operating limited partnership 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.

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 increases or decreases in actual tax credits from those originally projected as well as for timing differences.  The fund records tax credit adjusters as an increase or decrease in investments 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.

Prior to January 1, 1999 the fund recorded acquisition costs as an increase in its investments in operating limited partnerships.  These costs are amortized by the operating limited partnerships over 27.5 years on the straight-line method.  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 C.  As of January 1, 1999, the fund records acquisition costs incurred after January 1, 1999 as deferred acquisition costs.  These costs are amortized on the straight-line method over 27.5 years.

F-138

During the years ended March 31, 2003 and 2002, the fund acquired interests in operating limited partnerships as follows:

	2003	2002
Series 20	—	—
Series 21	—	—
Series 22	—	—
Series 23	—	—
Series 24	1	—
Series 25	—	—
Series 26	—	—
Series 27	—	—
Series 28	—	—
Series 29	—	—
Series 30	—	—
Series 31	—	—
Series 32	—	1
Series 33	—	—
Series 34	—	—
Series 35	—	—
Series 36	—	—
Series 37	—	—
Series 38	—	1
Series 39	—	2
Series 40	1	9
Series 41	9	11
Series 42	15	2
Series 43	16	—
Series 44	4	—
	46	26

During the year ended March 31, 2003, Series 43 acquired a limited partnership equity interest in seven (7) limited liability companies, which are the general partners of other operating limited partnerships which own or are constructing, rehabilitating or operating apartment complexes.

F-139

During the year ended March 31, 2002, Series 40 and 41 acquired a limited partnership equity interest in five (5) and one (1) limited liability companies, respectively, which are the general partners of other operating limited partnerships which own or are constructing, rehabilitating or operating apartment complexes.

Organization Costs

Initial organization and offering expenses common to all Series, are allocated on a percentage of equity raised to each Series.

In accordance with SOP 98-5, effective April 1, 1999, organization costs are being expensed as incurred.  Before this date, organization costs were amortized on the straight-line method over 60 months.

Deferred Acquisition Costs

Deferred acquisition costs are amortized on the straight-line method over 27.5 years.

Accumulated amortization as of March 31, 2003 and 2002 is as follows:

	2003		2002
Series 20	$	14,288	$	10,717
Series 21	7,816		5,862
Series 22	24,559		18,419
Series 23	32,196		23,065
Series 24	40,818		30,614
Series 25	60,873		45,656
Series 26	69,855		52,951
Series 27	62,618		46,964
Series 28	13,201		9,901
Series 29	13,099		9,787
Series 30	84,825		63,585
Series 31	—		—
Series 32	126,632		90,010
Series 33	108,199		80,923
Series 34	172,218		128,280
Series 35	494,113		364,877
Series 36	334,564		246,101
Series 37	271,516		176,693
Series 38	146,845		47,929
Series 39	112,257		21,933
Series 40	32,319		—
Series 41	133,377		—
Series 42	—		—
Series 43	—		—
Series 44	—		—
	$	2,356,188	$	1,474,267

F-140

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 general partner and assignees individually.

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.

Cash and Cash Equivalents

Cash equivalents include overnight repurchase agreements, tax-exempt sweep accounts and money market accounts having original maturities at date of acquisition of three months or less.  The carrying value approximates fair value because of the short maturity of these instruments.  During the ordinary course of business, amounts on deposit may exceed the FDIC-insured limit.

Fiscal Year

For financial reporting purposes, the fund uses a March 31 year end, whereas for income tax reporting purposes, the fund uses a calendar year.  The operating limited partnerships use a calendar year for both financial and income tax reporting.

F-141

Net Loss Per Beneficial Assignee Certificate Unit

Net loss per beneficial assignee certificate unit is calculated based upon the weighted average number of units outstanding during the year or period.  The weighted average number of units in each series at March 31, 2003, 2002 and 2001 are as follows:

	2003	2002	2001
Series 20	3,866,700	3,866,700	3,866,700
Series 21	1,892,700	1,892,700	1,892,700
Series 22	2,564,400	2,564,400	2,564,400
Series 23	3,336,727	3,336,727	3,336,727
Series 24	2,169,878	2,169,878	2,169,878
Series 25	3,026,109	3,026,109	3,026,109
Series 26	3,995,900	3,995,900	3,995,900
Series 27	2,460,700	2,460,700	2,460,700
Series 28	4,000,738	4,000,738	4,000,738
Series 29	3,991,800	3,991,800	3,991,800
Series 30	2,651,000	2,651,000	2,651,000
Series 31	4,417,857	4,417,857	4,417,857
Series 32	4,754,198	4,754,198	4,754,198
Series 33	2,636,533	2,636,533	2,636,533
Series 34	3,529,319	3,529,319	3,529,319
Series 35	3,300,463	3,300,463	3,300,463
Series 36	2,106,837	2,106,837	2,106,837
Series 37	2,512,500	2,512,500	2,512,500
Series 38	2,543,100	2,543,100	2,150,085
Series 39	2,292,152	2,292,152	1,251,903
Series 40	2,630,256	2,118,814	120,983
Series 41	2,891,626	1,576,505	—
Series 42	1,595,325	189,176	—
Series 43	899,797	—	—
Series 44	70,226	—	—
	70,136,841	65,934,106	60,737,330

F-142

Investments

Investments available-for-sale are being carried at fair market value.  Unrealized gains or losses are reported as other comprehensive income (loss).  Realized gains or losses, determined on the basis of the costs of specific securities sold, are included in earnings.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period.  Actual results could differ from those estimates.

Recent Accounting Pronouncements

In August 2001, the Financial Accounting Standards Board (FASB) issued SFAS No. 144, “Accounting for the Impairment of Disposal of Long-Lived Assets.”  SFAS No. 144 provides accounting guidance for financial accounting and reporting for the impairment of disposal of long-lived assets.  SFAS No. 144 supersedes SFAS No. 121, “Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of.”  SFAS No. 144 is effective for fiscal years beginning after December 15, 2001.  Implementation of SFAS No. 144 has no material effect on the financial position or results of operations of the fund.

In January 2003, the FASB issued Interpretation No. 46 (FIN 46), “Consolidation of Variable Interest Entities,” an interpretation of ARB No. 51, “Consolidated Financial Statements,” which provides new accounting guidance on when to consolidate a variable interest, as defined in FIN 46, in another entity.  FIN 46 applies to variable interests in variable interest entities acquired after January 31, 2003.  FIN 46 should be implemented no later than December 31, 2004.  The general partner is in the process of analyzing FIN 46 to determine the impact, if any, on the fund’s financial statements.  Management has not yet made any determination of the potential impact FIN 46 might have on the fund’s current accounting for its investments in operating partnerships or whether any of those investments might be required to be consolidated.

F-143

NOTE B - RELATED PARTY TRANSACTIONS

During the years ended March 31, 2003, 2002 and 2001, the fund entered into several transactions with various affiliates of the general partner, including Boston Capital Partners, Inc. (BCP), Boston Capital Holdings Limited Partnership (BCHLP), Boston Capital Services, Inc. (BCS) and Boston Capital Asset Management Limited Partnership (BCAM) as follows:

Boston Capital Asset Management Limited Partnership is entitled to an annual fund management fee based on .5 percent of the aggregate cost of all apartment complexes acquired by the operating limited partnerships, less the amount of certain partnership management and reporting fees paid or payable by the operating limited partnerships.  The aggregate cost is comprised of the capital contributions made by each Series to the operating limited partnerships and 99% of the permanent financing at the operating limited partnership level.  The annual fund fees charged to operations during the years ended March 31, 2003, 2002 and 2001, are as follows:

	2003		2002		2001
Series 20	$	315,994	$	299,467	$	320,496
Series 21	179,015		218,756		202,560
Series 22	214,068		215,442		233,351
Series 23	197,700		194,492		200,200
Series 24	192,817		208,943		199,421
Series 25	229,568		229,126		242,146
Series 26	367,525		350,204		368,280
Series 27	275,028		269,712		288,374
Series 28	299,403		278,658		322,781
Series 29	305,896		277,424		315,514
Series 30	208,865		142,376		187,698
Series 31	298,940		309,298		336,774
Series 32	313,404		295,155		323,500
Series 33	155,906		131,568		166,360
Series 34	281,041		255,289		284,285
Series 35	214,873		226,671		215,860
Series 36	150,871		139,721		160,756
Series 37	171,945		167,806		141,045
Series 38	144,604		157,190		162,131
Series 39	115,714		136,795		88,123
Series 40	145,292		167,367		—
Series 41	258,137		90,762		—
Series 42	143,388		—		—
Series 43	97,417		—		—
Series 44	6,247		—		—
	$	5,283,658	$	4,762,222	$	4,759,655

F-144

Boston Capital Services, Inc. received dealer-manager fees for the marketing advice and investment banking services performed at the time of the fund’s offering of BACs.  The dealer-manager fees are included in partners’ capital as selling commissions and registration costs.  During the years ended March 31, 2003, 2002 and 2001, dealer manager fees received by Boston Capital Services, Inc. by series are as follows:

	2003		2002		2001
Series 20	$	—	$	—	$	—
Series 21	—		—		—
Series 22	—		—		—
Series 23	—		—		—
Series 24	—		—		—
Series 25	—		—		—
Series 26	—		—		—
Series 27	—		—		—
Series 28	—		—		—
Series 29	—		—		—
Series 30	—		—		—
Series 31	—		—		—
Series 32	—		—		—
Series 33	—		—		—
Series 34	—		—		—
Series 35	—		—		—
Series 36	—		—		—
Series 37	—		—		—
Series 38	—		—		395,180
Series 39	—		—		431,205
Series 40	—		465,162		64,235
Series 41	—		573,460		—
Series 42	430,358		84,625		—
Series 43	497,725		—		—
Series 44	211,152		—		—
	$	1,139,235	$	1,123,247	$	890,620

F-145

Boston Capital Holdings Limited Partnership is entitled to asset acquisition fees for selecting, evaluating, structuring, negotiating, and closing the fund’s acquisition of interests in the operating limited partnerships.  During the years ended March 31, 2003, 2002 and 2001, acquisition fees incurred to Boston Capital Holdings Limited Partnership by series are as follows:

	2003		2002		2001
Series 20	$	—	$	—	$	—
Series 21	—		—		—
Series 22	—		—		—
Series 23	—		—		—
Series 24	—		—		—
Series 25	—		—		—
Series 26	—		—		—
Series 27	—		—		—
Series 28	—		—		—
Series 29	—		—		—
Series 30	—		—		—
Series 31	—		—		—
Series 32	—		—		—
Series 33	—		—		—
Series 34	—		—		—
Series 35	—		—		—
Series 36	—		—		—
Series 37	—		—		—
Series 38	—		—		1,782,280
Series 39	—		75,172		1,948,285
Series 40	—		1,945,926		286,960
Series 41	—		2,457,882		—
Series 42	1,943,482		389,110		—
Series 43	3,092,289		—		—
Series 44	1,452,511		—		—
	$	6,488,282	$	4,868,090	$	4,017,525

F-146

During the years ended March 31, 2003, 2002 and 2001, general and administrative expenses incurred by Boston Capital Partners, Inc., Boston Capital Holdings Limited Partnership and/or Boston Capital Asset Management Limited Partnership were charged to each series’ operations as follows:

	2003		2002		2001
Series 20	$	24,445	$	18,068	$	14,463
Series 21	16,305		16,186		10,372
Series 22	23,433		17,950		11,727
Series 23	23,116		19,698		13,646
Series 24	20,484		17,043		10,545
Series 25	26,145		17,365		14,730
Series 26	43,066		20,145		16,941
Series 27	18,845		15,897		10,863
Series 28	25,448		18,780		14,255
Series 29	24,975		19,312		14,665
Series 30	20,301		16,085		11,769
Series 31	26,078		18,967		15,123
Series 32	30,765		24,334		19,064
Series 33	21,192		20,422		14,488
Series 34	24,633		22,152		16,492
Series 35	23,474		21,335		17,639
Series 36	17,877		23,278		18,645
Series 37	21,041		23,939		22,898
Series 38	23,050		28,208		31,730
Series 39	18,418		30,428		56,607
Series 40	27,700		67,613		14,238
Series 41	30,561		62,094		—
Series 42	31,514		28,960		—
Series 43	42,268		—		—
Series 44	14,363		—		—
	$	619,497	$	568,259	$	370,900

Accounts payable - affiliates at March 31, 2003, 2002 and 2001 represents general and administrative expenses, fund management fees, and commissions which are payable to Boston Capital Partners, Inc., Boston Capital Holdings Limited Partnership, Boston Capital Services, Inc., and Boston Capital Asset Management Limited Partnership.

F-147

During the years ended March 31, 2003, 2002 and 2001, the fund reimbursed affiliates of the general partner for amounts in connection with the offering of BACs.  These reimbursements include, but are not limited to, postage, printing, travel and overhead allocations and are included in partners’ capital as selling commissions and registrations costs at March 31, 2003, 2002 and 2001.  During the years ended March 31, 2003, 2002 and 2001, the selling commission and registration costs incurred to affiliates by series are as follows:

	2003		2002		2001
Series 20	$	—	$	—	$	—
Series 21	—		—		—
Series 22	—		—		—
Series 23	—		—		—
Series 24	—		—		—
Series 25	—		—		—
Series 26	—		—		—
Series 27	—		—		—
Series 28	—		—		—
Series 29	—		—		—
Series 30	—		—		—
Series 31	—		—		—
Series 32	—		—		—
Series 33	—		—		—
Series 34	—		—		—
Series 35	—		—		—
Series 36	—		—		—
Series 37	—		—		7,215
Series 38	—		—		108,292
Series 39	—		744		130,194
Series 40	—		107,557		41,850
Series 41	3,688		164,458		—
Series 42	92,960		72,026		—
Series 43	116,777		—		—
Series 44	64,959		—		—
	$	278,384	$	344,785	$	287,551

F-148

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS

At March 31, 2003 and 2002, the fund has limited partnership interests in operating limited partnerships, which own or are constructing or rehabilitating operating apartment complexes.  During the year ended March 31, 2002, one of the operating limited partnerships owned by Series 24 was foreclosed on by the mortgage holder (see footnote J).  During the year ended March 31, 2003, Series 24 received the project back.  The number of operating limited partnerships in which the fund has limited partnership interests at March 31, 2003 and 2002 by series are as follows:

	2003	2002
Series 20	24	24
Series 21	14	14
Series 22	29	29
Series 23	22	22
Series 24	24	23
Series 25	22	22
Series 26	45	45
Series 27	16	16
Series 28	26	26
Series 29	22	22
Series 30	20	20
Series 31	27	27
Series 32	17	17
Series 33	10	10
Series 34	14	14
Series 35	11	11
Series 36	11	11
Series 37	7	7
Series 38	10	10
Series 39	9	9
Series 40	16	15
Series 41	20	11
Series 42	17	2
Series 43	16	—
Series 44	4	—
	453	407

F-149

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 or operations.  At March 31, 2003 and 2002, contributions are payable to operating limited partnerships as follows:

	2003		2002
Series 20	$	388,026	$	388,026
Series 21	457,642		641,543
Series 22	480,996		487,655
Series 23	117,796		117,796
Series 24	368,239		1,214,204
Series 25	943,704		2,073,892
Series 26	1,475,380		2,197,433
Series 27	39,749		156,389
Series 28	148,783		148,783
Series 29	304,770		304,770
Series 30	134,311		528,451
Series 31	705,771		1,030,019
Series 32	936,164		1,074,248
Series 33	202,285		751,366
Series 34	95,968		807,004
Series 35	603,740		1,716,237
Series 36	680,429		680,429
Series 37	1,944,309		2,165,429
Series 38	135,173		1,232,066
Series 39	161,805		2,065,285
Series 40	651,411		3,449,417
Series 41	2,284,064		12,919,212
Series 42	8,777,237		2,075,060
Series 43	9,830,712		—
Series 44	3,030,725		—
	$	34,899,189	$	38,224,714

F-150

The fund’s investments in operating limited partnerships at March 31, 2003 is summarized as follows (Series 44 invested in operating limited partnerships subsequent to December 31, 2002):

	Total			Series 20			Series 21
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	531,954,496		$	28,279,035		$	12,370,665
Acquisition costs of operating limited partnerships	46,954,307			3,726,293			1,923,140
Cumulative distributions from operating limited partnerships	(666,861		)	(87,309		)	(31,145		)
Impairment loss in investments in operating limited partnerships	(770,199		)	—			—
Cumulative losses from operating limited partnerships	(152,588,298		)	(19,242,249		)	(11,868,784		)
Investments in operating limited partnerships per balance sheet	424,883,445			12,675,770			2,393,876

F-151

	Total			Series 20			Series 21
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2003 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2002 (see note A).	(36,350,574		)	—			(336,415		)
The fund has recorded acquisition costs at March 31, 2003 which have not been recorded in the net assets of the operating limited partnerships (see note A).	(7,536,203		)	(444,246		)	(110,624		)
Cumulative losses from operating limited partnerships for the three months ended March 31, 2003 which the operating limited partnerships have not included in their capital as of December 31, 2002 due to different year ends (see note A).	2,775,473			404,710			651,466
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A).	(9,394,342		)	(345,946		)	(6,847,429		)
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).	1,614,157			249,367			174,071
Impairment loss in investments in operating limited partnerships	770,199			—			—
Other	(6,621,295		)	(32,839		)	(2,208		)
Equity per operating limited partnerships’ combined financial statements	$	370,140,860		$	12,506,816		$	(4,077,263	)

F-152

	Series 22			Series 23			Series 24
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	18,290,375		$	23,797,395		$	15,658,753
Acquisition costs of operating limited partnerships	2,504,765			3,504,553			2,030,314
Cumulative distributions from operating limited partnerships	(76,499		)	(21,641		)	(60,040		)
Impairment loss in investments in operating limited partnerships	(404,691		)	—			—
Cumulative losses from operating limited partnerships	(10,799,255		)	(10,906,314		)	(8,460,367		)
Investments in operating limited partnerships per balance sheet	9,514,695			16,373,993			9,168,660

F-153

	Series 22			Series 23			Series 24
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2003 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2002 (see note A).	(481,359		)	(11,581		)	(30,158		)
The fund has recorded acquisition costs at March 31, 2003 which have not been recorded in the net assets of the operating limited partnerships (see note A).	(484,368		)	(436,119		)	(516,941		)
Cumulative losses from operating limited partnerships for the three months ended March 31, 2003 which the operating limited partnerships have not included in their capital as of December 31, 2002 due to different year ends (see note A).	259,228			179,850			95,695
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A).	(300,958		)	—			(93,535		)
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).	116,346			46,426			61,209
Impairment loss in investments in operating limited partnerships	404,691			—			—
Other	(214,531		)	(36,701		)	69,593
Equity per operating limited partnerships’ combined financial statements	$	8,813,744		$	16,115,868		$	8,754,523

F-154

	Series 25			Series 26			Series 27
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	21,940,130		$	28,873,740		$	16,975,431
Acquisition costs of operating limited partnerships	2,803,677			3,968,917			2,467,629
Cumulative distributions from operating limited partnerships	(58,304		)	(81,185		)	(34,237		)
Impairment loss in investments in operating limited partnerships	—			—			—
Cumulative losses from operating limited partnerships	(9,369,747		)	(9,045,459		)	(4,763,236		)
Investments in operating limited partnerships per balance sheet	15,315,756			23,716,013			14,645,587

F-155

	Series 25			Series 26			Series 27
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2003 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2002 (see note A).	(286,910		)	(138,524		)	(316,117		)
The fund has recorded acquisition costs at March 31, 2003 which have not been recorded in the net assets of the operating limited partnerships (see note A).	(689,409		)	(73,143		)	(369,748		)
Cumulative losses from operating limited partnerships for the three months ended March 31, 2003 which the operating limited partnerships have not included in their capital as of December 31, 2002 due to different year ends (see note A).	335,542			123,194			205,532
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A).	(753,168		)	(328,540		)	(455,971		)
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).	46,911			195,682			—
Impairment loss in investment in operating limited partnerships	—			—			—
Other	(136,206		)	(112,945		)	60,067
Equity per operating limited partnerships’ combined financial statements	$	13,832,516		$	23,381,737		$	13,769,350

F-156

	Series 28			Series 29			Series 30
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	28,566,056		$	28,777,755		$	19,306,955
Acquisition costs of operating limited partnerships	4,191,674			4,151,886			2,226,856
Cumulative distributions from operating limited partnerships	(83,870		)	(13,101		)	(44,047		)
Impairment loss in investments in operating limited partnerships	—			(365,508		)	—
Cumulative losses from operating limited partnerships	(7,489,384		)	(10,100,132		)	(4,827,830		)
Investments in operating limited partnerships per balance sheet	25,184,476			22,450,900			16,661,934

F-157

	Series 28			Series 29			Series 30
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2003 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2002 (see note A).	(392,653		)	(255,440		)	(224,965		)
The fund has recorded acquisition costs at March 31, 2003 which have not been recorded in the net assets of the operating limited partnerships (see note A).	(665,053		)	(772,541		)	(235,701		)
Cumulative losses from operating limited partnerships for the three months ended March 31, 2003 which the operating limited partnerships have not included in their capital as of December 31, 2002 due to different year ends (see note A).	129,668			265,241			—
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A).	—			—			—
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).	5,653			7,355			6,620
Impairment loss in investments in operating limited partnerships	—			365,508			—
Other	(227,453		)	(66,256		)	3,109
Equity per operating limited partnerships’ combined financial statements	$	24,034,638		$	21,994,767		$	16,210,997

F-158

	Series 31			Series 32			Series 33
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	31,876,958		$	34,641,446		$	19,377,023
Acquisition costs of operating limited partnerships	4,586,765			4,291,123			2,010,987
Cumulative distributions from operating limited partnerships	(19,998		)	(22,498		)	—
Impairment loss in investments in operating limited partnerships	—			—			—
Cumulative losses from operating limited partnerships	(10,787,615		)	(7,815,116		)	(3,653,235		)
Investments in operating limited partnerships per balance sheet	25,656,110			31,094,955			17,734,775

F-159

	Series 31			Series 32			Series 33
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2003 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2002 (see note A).	(452,179		)	(1,907,370		)	(1,536,996		)
The fund has recorded acquisition costs at March 31, 2003 which have not been recorded in the net assets of the operating limited partnerships (see note A).	(77,600		)	(1,741,159		)	(624,017		)
Cumulative losses from operating limited partnerships for the three months ended March 31, 2003 which the operating limited partnerships have not included in their capital as of December 31, 2002 due to different year ends (see note A).	125,347			—			—
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A).	—			(268,795		)	—
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).	80,765			42,262			2,652
Impairment loss in investments in operating limited partnerships	—			—			—
Other	11,156			(903,077		)	(9,808		)
Equity per operating limited partnerships’ combined financial statements	$	25,343,599		$	26,316,816		$	15,566,606

F-160

	Series 34			Series 35			Series 36
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	25,656,209		$	23,911,120		$	15,361,394
Acquisition costs of operating limited partnerships	2,565,728			—			—
Cumulative distributions from operating limited partnerships	(1,154		)	—			(6,859		)
Impairment loss in investments in operating limited partnerships	—			—			—
Cumulative losses from operating limited partnerships	(5,980,674		)	(4,143,439		)	(2,868,522		)
Investments in operating limited partnerships per balance sheet	22,240,109			19,767,681			12,486,013

F-161

	Series 34			Series 35			Series 36
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2003 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2002 (see note A).	(300,928		)	(270,100		)	(37,221		)
The fund has recorded acquisition costs at March 31, 2003 which have not been recorded in the net assets of the operating limited partnerships (see note A).	(295,534		)	—			—
Cumulative losses from operating limited partnerships for the three months ended March 31, 2003 which the operating limited partnerships have not included in their capital as of December 31, 2002 due to different year ends (see note A).	—			—			—
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A).	—			—			—
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).	8,576			85,185			3,061
Impairment loss in investments in operating limited partnerships	—			—			—
Other	(144,363		)	(152,459		)	(56,674		)
Equity per operating limited partnerships’ combined financial statements	$	21,507,860		$	19,430,307		$	12,395,179

F-162

	Series 37			Series 38			Series 39
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	18,624,472		$	18,919,672		$	16,818,040
Acquisition costs of operating limited partnerships	—			—			—
Cumulative distributions from operating limited partnerships	(19,114		)	(3,777		)	(2,083		)
Impairment loss in investments in operating limited partnerships	—			—			—
Cumulative losses from operating limited partnerships	(2,451,601		)	(2,257,195		)	(2,085,584		)
Investments in operating limited partnerships per balance sheet	16,153,757			16,658,700			14,730,373

F-163

	Series 37			Series 38			Series 39
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2003 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2002 (see note A).	(1,839,232		)	(138,836		)	(66,798		)
The fund has recorded acquisition costs at March 31, 2003 which have not been recorded in the net assets of the operating limited partnerships (see note A).	—			—			—
Cumulative losses from operating limited partnerships for the three months ended March 31, 2003 which the operating limited partnerships have not included in their capital as of December 31, 2002 due to different year ends (see note A).	—			—			—
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A).	—			—			—
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).	216,609			78,521			116,387
Impairment loss in investments in operating limited partnerships	—			—			—
Other	(122,355		)	(425,094		)	(225,635		)
Equity per operating limited partnerships’ combined financial statements	$	14,408,779		$	16,173,291		$	14,554,327

F-164

	Series 40			Series 41			Series 42
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	19,681,561		$	20,958,917		$	19,985,246
Acquisition costs of operating limited partnerships	—			—			—
Cumulative distributions from operating limited partnerships	—			—			—
Impairment loss in investments in operating limited partnerships	—			—			—
Cumulative losses from operating limited partnerships	(1,425,164		)	(1,537,775		)	(404,748		)
Investments in operating limited partnerships per balance sheet	18,256,397			19,421,142			19,580,498

F-165

	Series 40			Series 41			Series 42
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2003 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2002 (see note A).	(899,675		)	(2,647,297		)	(9,652,631		)
The fund has recorded acquisition costs at March 31, 2003 which have not been recorded in the net assets of the operating limited partnerships (see note A).	—			—			—
Cumulative losses from operating limited partnerships for the three months ended March 31, 2003 which the operating limited partnerships have not included in their capital as of December 31, 2002 due to different year ends (see note A).	—			—			—
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A).	—			—			—
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).	65,781			—			4,718
Impairment loss in investments in operating limited partnerships	—			—			—
Other	(811,972		)	(901,655		)	(99,405		)
Equity per operating limited partnerships’ combined financial statements	$	16,610,531		$	15,872,190		$	9,833,180

F-166

	Series 43			Series 44
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	18,654,472		$	4,651,676
Acquisition costs of operating limited partnerships	—			—
Cumulative distributions from operating limited partnerships	—			—
Impairment loss in investments in operating limited partnerships	—			—
Cumulative losses from operating limited partnerships	(304,873		)	—
Investments in operating limited partnerships per balance sheet	18,349,599			4,651,676

F-167

	Series 43			Series 44
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2003 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2002 (see note A).	(9,475,513		)	(4,651,676		)
The fund has recorded acquisition costs at March 31, 2003 which have not been recorded in the net assets of the operating limited partnerships (see note A).	—			—
Cumulative losses from operating limited partnerships for the three months ended March 31, 2003 which the operating limited partnerships have not included in their capital as of December 31, 2002 due to different year ends (see note A).	—			—
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A).	—			—
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).	—			—
Impairment loss in investments in operating limited partnerships	—			—
Other	(2,083,584		)	—
Equity per operating limited partnerships’ combined financial statements	$	6,790,502		$	—

F-168

The fund’s investments in operating limited partnerships at March 31, 2002 is summarized as follows (Series 42 invested in operating limited partnerships subsequent to December 31, 2001):

	Total			Series 20			Series 21
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	490,167,039		$	28,279,735		$	12,448,749
Acquisition costs of operating limited partnerships	46,954,889			3,726,293			1,923,140
Cumulative distributions from operating limited partnerships	(516,053		)	(73,449		)	(27,204		)
Cumulative losses from operating limited partnerships	(125,748,024		)	(17,237,206		)	(11,414,868		)
Investments in operating limited partnerships per balance sheet	410,857,851			14,695,373			2,929,817

F-169

	Total			Series 20			Series 21
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2002 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2001 (see note A).	(38,323,461		)	—			(474,354		)
The fund has recorded acquisition costs at March 31, 2002 which have not been recorded in the net assets of the operating limited partnerships (see note A).	(7,582,381		)	(444,246		)	(110,624		)
Cumulative losses from operating limited partnerships for the three months ended March 31, 2002 which the operating limited partnerships have not included in their capital as of December 31, 2001 due to different year ends (see note A).	2,775,473			404,710			651,466
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A).	(8,285,544		)	(211,670		)	(6,257,772		)
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).	1,867,118			249,627			82,561
Other	(3,714,231		)	(35,750		)	(1,050		)
Equity per operating limited partnerships’ combined financial statements	$	357,594,825		$	14,658,044		$	(3,179,956	)

F-170

	Series 22			Series 23			Series 24
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	18,295,534		$	23,797,395		$	15,665,033
Acquisition costs of operating limited partnerships	2,504,765			3,504,553			2,030,314
Cumulative distributions from operating limited partnerships	(68,522		)	(15,838		)	(56,838		)
Cumulative losses from operating limited partnerships	(9,644,478		)	(9,559,282		)	(8,397,604		)
Investments in operating limited partnerships per balance sheet	11,087,299			17,726,828			9,240,905

F-171

	Series 22			Series 23			Series 24
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2002 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2001 (see note A).	(684,398		)	(11,581		)	(773,022		)
The fund has recorded acquisition costs at March 31, 2002 which have not been recorded in the net assets of the operating limited partnerships (see note A).	(365,605		)	(436,119		)	(516,941		)
Cumulative losses from operating limited partnerships for the three months ended March 31, 2002 which the operating limited partnerships have not included in their capital as of December 31, 2001 due to different year ends (see note A).	259,228			179,850			95,695
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A).	(170,267		)	—			(362,514		)
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).	116,346			46,426			61,209
Other	(136,550		)	(41,148		)	49,076
Equity per operating limited partnerships’ combined financial statements	$	10,106,053		$	17,464,256		$	7,794,408

F-172

	Series 25			Series 26			Series 27
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	21,958,241		$	28,872,636		$	16,985,315
Acquisition costs of operating limited partnerships	2,803,677			3,968,917			2,467,629
Cumulative distributions from operating limited partnerships	(48,141		)	(65,203		)	(24,623		)
Cumulative losses from operating limited partnerships	(8,448,215		)	(7,991,100		)	(3,981,160		)
Investments in operating limited partnerships per balance sheet	16,265,562			24,785,250			15,447,161

F-173

	Series 25			Series 26			Series 27
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2002 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2001 (see note A).	(1,244,750		)	(831,489		)	(348,552		)
The fund has recorded acquisition costs at March 31, 2002 which have not been recorded in the net assets of the operating limited partnerships (see note A).	(689,409		)	(73,143		)	(534,689		)
Cumulative losses from operating limited partnerships for the three months ended March 31, 2002 which the operating limited partnerships have not included in their capital as of December 31, 2001 due to different year ends (see note A).	335,542			123,194			205,532
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A).	(553,303		)	(225,038		)	(320,867		)
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).	46,911			321,722			88,477
Other	(198,993		)	(72,679		)	54,428
Equity per operating limited partnerships’ combined financial statements	$	13,961,560		$	24,027,817		$	14,591,490

F-174

	Series 28			Series 29			Series 30
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	28,566,056		$	28,777,755		$	19,306,955
Acquisition costs of operating limited partnerships	4,191,674			4,151,886			2,226,856
Cumulative distributions from operating limited partnerships	(44,377		)	(10,062		)	(37,497		)
Cumulative losses from operating limited partnerships	(6,358,206		)	(8,428,919		)	(3,669,439		)
Investments in operating limited partnerships per balance sheet	26,355,147			24,490,660			17,826,875

F-175

	Series 28			Series 29			Series 30
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2002 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2001 (see note A).	(392,653		)	(255,440		)	(626,664		)
The fund has recorded acquisition costs at March 31, 2002 which have not been recorded in the net assets of the operating limited partnerships (see note A).	(665,053		)	(772,541		)	(235,701		)
Cumulative losses from operating limited partnerships for the three months ended March 31, 2002 which the operating limited partnerships have not included in their capital as of December 31, 2001 due to different year ends (see note A).	129,668			265,241			—
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A).	—			—			—
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).	5,653			7,355			73,730
Other	(238,089		)	(67,713		)	4,917
Equity per operating limited partnerships’ combined financial statements	$	25,194,673		$	23,667,562		$	17,043,157

F-176

	Series 31			Series 32			Series 33
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	31,876,958		$	34,602,928		$	19,375,924
Acquisition costs of operating limited partnerships	4,586,765			4,291,123			2,010,987
Cumulative distributions from operating limited partnerships	(12,568		)	(13,998		)	—
Cumulative losses from operating limited partnerships	(8,730,174		)	(5,920,892		)	(2,760,934		)
Investments in operating limited partnerships per balance sheet	27,720,981			32,959,161			18,625,977

F-177

	Series 31			Series 32			Series 33
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2002 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2001 (see note A).	(466,321		)	(1,982,110		)	(2,083,984		)
The fund has recorded acquisition costs at March 31, 2002 which have not been recorded in the net assets of the operating limited partnerships (see note A).	(77,600		)	(1,741,159		)	(624,017		)
Cumulative losses from operating limited partnerships for the three months ended March 31, 2002 which the operating limited partnerships have not included in their capital as of December 31, 2001 due to different year ends (see note A).	125,347			—			—
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A).	—			(184,113		)	—
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).	80,765			42,262			2,652
Other	7,394			(867,373		)	(10,799		)
Equity per operating limited partnerships’ combined financial statements	$	27,390,566		$	28,226,668		$	15,909,829

F-178

	Series 34			Series 35			Series 36
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	25,656,209		$	23,877,608		$	15,361,602
Acquisition costs of operating limited partnerships	2,566,310			—			—
Cumulative distributions from operating limited partnerships	(631		)	—			(1,644		)
Cumulative losses from operating limited partnerships	(4,370,612		)	(2,944,750		)	(1,886,220		)
Investments in operating limited partnerships per balance sheet	23,851,276			20,932,858			13,473,738

F-179

	Series 34			Series 35			Series 36
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2002 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2001 (see note A).	(315,426		)	(1,383,138		)	(36,100		)
The fund has recorded acquisition costs at March 31, 2002 which have not been recorded in the net assets of the operating limited partnerships (see note A).	(295,534		)	—			—
Cumulative losses from operating limited partnerships for the three months ended March 31, 2002 which the operating limited partnerships have not included in their capital as of December 31, 2001 due to different year ends (see note A).	—			—			—
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A).	—			—			—
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).	8,576			91,805			56,903
Other	(139,108		)	(158,284		)	(110,224		)
Equity per operating limited partnerships’ combined financial statements	$	23,109,784		$	19,483,241		$	13,384,317

F-180

	Series 37			Series 38			Series 39
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	18,597,453		$	18,998,365		$	17,087,660
Acquisition costs of operating limited partnerships	—			—			—
Cumulative distributions from operating limited partnerships	(13,899		)	(1,559		)	—
Cumulative losses from operating limited partnerships	(1,113,958		)	(1,364,717		)	(992,509		)
Investments in operating limited partnerships per balance sheet	17,469,596			17,632,089			16,095,151

F-181

	Series 37			Series 38			Series 39
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2002 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2001 (see note A).	(2,045,431		)	(1,230,575		)	(1,997,147		)
The fund has recorded acquisition costs at March 31, 2002 which have not been recorded in the net assets of the operating limited partnerships (see note A).	—			—			—
Cumulative losses from operating limited partnerships for the three months ended March 31, 2002 which the operating limited partnerships have not included in their capital as of December 31, 2001 due to different year ends (see note A).	—			—			—
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A).	—			—			—
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).	259,074			—			191,379
Other	(123,137		)	(435,107		)	(253,819		)
Equity per operating limited partnerships’ combined financial statements	$	15,560,102		$	15,966,407		$	14,035,564

F-182

	Series 40			Series 41			Series 42
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	18,979,586		$	20,123,805		$	2,675,537
Acquisition costs of operating limited partnerships	—			—			—
Cumulative distributions from operating limited partnerships	—			—			—
Cumulative losses from operating limited partnerships	(438,656		)	(94,125		)	—
Investments in operating limited partnerships per balance sheet	18,540,930			20,029,680			2,675,537

F-183

	Series 40			Series 41			Series 42
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2002 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2001 (see note A).	(4,244,472		)	(14,220,317		)	(2,675,537		)
The fund has recorded acquisition costs at March 31, 2002 which have not been recorded in the net assets of the operating limited partnerships (see note A).	—			—			—
Cumulative losses from operating limited partnerships for the three months ended March 31, 2002 which the operating limited partnerships have not included in their capital as of December 31, 2001 due to different year ends (see note A).	—			—			—
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A).	—			—			—
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).	33,685			—			—
Other	(693,931		)	(246,292		)	—
Equity per operating limited partnerships’ combined financial statements	$	13,636,212		$	5,563,071		$	—

F-184

The combined summarized balance sheets of the operating limited partnerships in which Series 20 through 43 hold an interest as of December 31, 2002 are as follows (Series 44 invested in operating limited partnerships subsequent to December 31, 2002):

COMBINED SUMMARIZED BALANCE SHEETS

	Total		Series 20		Series 21
ASSETS
Buildings and improvements, net of accumulated depreciation	$	1,453,190,271	$	70,340,460	$	25,927,888
Construction in progress	27,948,732		—		—
Land	104,316,192		6,345,961		2,837,606
Other assets	105,179,728		5,676,433		2,328,897
	$	1,690,634,923	$	82,362,854	$	31,094,391
LIABILITIES AND PARTNERS’ CAPITAL
Mortgages and construction loans payable	$	993,731,051	$	56,906,274	$	27,623,271
Accounts payable and accrued expenses	33,764,592		2,792,948		1,615,416
Other liabilities	135,845,270		5,105,288		4,640,210
	1,163,340,913		64,804,510		33,878,897
PARTNERS’ CAPITAL
Boston Capital Tax Credit Fund IV L.P.	370,140,860		12,506,816		(4,077,263		)
Other partners	157,153,150		5,051,528		1,292,757
	527,294,010		17,558,344		(2,784,506		)
	$	1,690,634,923	$	82,362,854	$	31,094,391

F-185

	Series 22		Series 23		Series 24
ASSETS
Buildings and improvements, net of accumulated depreciation	$	67,684,352	$	64,395,791	$	52,121,223
Construction in progress	—		—		—
Land	4,242,201		3,957,131		3,941,855
Other assets	4,896,821		4,260,358		4,961,205
	$	76,823,374	$	72,613,280	$	61,024,283
LIABILITIES AND PARTNERS’ CAPITAL
Mortgages and construction loans payable	$	52,451,983	$	42,124,130	$	39,095,516
Accounts payable and accrued expenses	3,338,079		3,929,074		1,386,514
Other liabilities	3,400,087		5,017,941		5,055,876
	59,190,149		51,071,145		45,537,906
PARTNERS’ CAPITAL
Boston Capital Tax Credit Fund IV L.P.	8,813,744		16,115,868		8,754,523
Other partners	8,819,481		5,426,267		6,731,854
	17,633,225		21,542,135		15,486,377
	$	76,823,374	$	72,613,280	$	61,024,283

F-186

	Series 25		Series 26		Series 27
ASSETS
Buildings and improvements, net of accumulated depreciation	$	55,269,507	$	81,752,637	$	69,425,951
Construction in progress	—		—		—
Land	3,695,640		5,310,128		6,005,394
Other assets	6,780,911		7,636,071		6,207,679
	$	65,746,058	$	94,698,836	$	81,639,024
LIABILITIES AND PARTNERS’ CAPITAL
Mortgages and construction loans payable	$	37,006,817	$	61,078,267	$	52,145,525
Accounts payable and accrued expenses	2,088,991		1,690,483		1,027,103
Other liabilities	6,973,531		4,254,256		6,885,365
	46,069,339		67,023,006		60,057,993
PARTNERS’ CAPITAL
Boston Capital Tax Credit Fund IV L.P.	13,832,516		23,381,737		13,769,350
Other partners	5,844,203		4,294,093		7,811,681
	19,676,719		27,675,830		21,581,031
	$	65,746,058	$	94,698,836	$	81,639,024

F-187

	Series 28		Series 29		Series 30
ASSETS
Buildings and improvements, net of accumulated depreciation	$	70,739,715	$	61,956,229	$	50,380,621
Construction in progress	—		—		—
Land	5,513,936		2,841,806		2,658,139
Other assets	4,938,965		4,325,274		3,505,437
	$	81,192,616	$	69,123,309	$	56,544,197
LIABILITIES AND PARTNERS’ CAPITAL
Mortgages and construction loans payable	$	43,767,110	$	39,990,570	$	29,861,101
Accounts payable and accrued expenses	1,544,422		1,638,993		870,976
Other liabilities	3,685,348		4,244,913		4,158,534
	48,996,880		45,874,476		34,890,611
PARTNERS’ CAPITAL
Boston Capital Tax Credit Fund IV L.P.	24,034,638		21,994,767		16,210,997
Other partners	8,161,098		1,254,066		5,442,589
	32,195,736		23,248,833		21,653,586
	$	81,192,616	$	69,123,309	$	56,544,197

F-188

	Series 31		Series 32		Series 33
ASSETS
Buildings and improvements, net of accumulated depreciation	$	75,467,122	$	76,614,887	$	63,990,148
Construction in progress	—		—		—
Land	4,506,248		4,333,042		5,245,180
Other assets	7,561,527		4,836,598		3,443,556
	$	87,534,897	$	85,784,527	$	72,678,884
LIABILITIES AND PARTNERS’ CAPITAL
Mortgages and construction loans payable	$	53,502,066	$	44,425,558	$	36,301,806
Accounts payable and accrued expenses	1,321,838		1,194,811		947,266
Other liabilities	7,244,081		6,051,555		3,366,985
	62,067,985		51,671,924		40,616,057
PARTNERS’ CAPITAL
Boston Capital Tax Credit Fund IV L.P.	25,343,599		26,316,816		15,566,606
Other partners	123,313		7,795,787		16,496,221
	25,466,912		34,112,603		32,062,827
	$	87,534,897	$	85,784,527	$	72,678,884

F-189

	Series 34		Series 35		Series 36
ASSETS
Buildings and improvements, net of accumulated depreciation	$	69,738,359	$	57,630,254	$	51,672,482
Construction in progress	—		—		—
Land	5,358,490		3,734,936		2,883,167
Other assets	4,141,970		3,107,483		3,072,092
	$	79,238,819	$	64,472,673	$	57,627,741
LIABILITIES AND PARTNERS’ CAPITAL
Mortgages and construction loans payable	$	46,653,030	$	29,337,777	$	34,049,562
Accounts payable and accrued expenses	1,152,295		765,537		852,177
Other liabilities	4,829,563		7,077,032		3,515,101
	52,634,888		37,180,346		38,416,840
PARTNERS’ CAPITAL
Boston Capital Tax Credit Fund IV L.P.	21,507,860		19,430,307		12,395,179
Other partners	5,096,071		7,862,020		6,815,722
	26,603,931		27,292,327		19,210,901
	$	79,238,819	$	64,472,673	$	57,627,741

F-190

	Series 37		Series 38		Series 39
ASSETS
Buildings and improvements, net of accumulated depreciation	$	52,798,325	$	40,578,253	$	35,071,539
Construction in progress	—		—		—
Land	2,423,561		2,253,007		1,909,789
Other assets	3,237,930		1,254,757		1,191,125
	$	58,459,816	$	44,086,017	$	38,172,453
LIABILITIES AND PARTNERS’ CAPITAL
Mortgages and construction loans payable	$	34,714,477	$	17,187,743	$	14,322,272
Accounts payable and accrued expenses	1,411,642		544,684		361,797
Other liabilities	2,423,011		4,049,883		3,077,789
	38,549,130		21,782,310		17,761,858
PARTNERS’ CAPITAL
Boston Capital Tax Credit Fund IV L.P.	14,408,779		16,173,291		14,554,327
Other partners	5,501,907		6,130,416		5,856,268
	19,910,686		22,303,707		20,410,595
	$	58,459,816	$	44,086,017	$	38,172,453

F-191

	Series 40		Series 41		Series 42
ASSETS
Buildings and improvements, net of accumulated depreciation	$	80,196,014	$	99,418,301	$	46,907,173
Construction in progress	—		—		8,286,472
Land	5,081,041		8,229,653		4,726,925
Other assets	3,229,777		4,631,070		4,048,749
	$	88,506,832	$	112,279,024	$	63,969,319
LIABILITIES AND PARTNERS’ CAPITAL
Mortgages and construction loans payable	$	52,702,475	$	67,536,442	$	36,481,104
Accounts payable and accrued expenses	1,036,286		731,008		834,103
Other liabilities	10,223,070		15,561,344		8,679,101
	63,961,831		83,828,794		45,994,308
PARTNERS’ CAPITAL
Boston Capital Tax Credit Fund IV L.P.	16,610,531		15,872,190		9,833,180
Other partners	7,934,470		12,578,040		8,141,831
	24,545,001		28,450,230		17,975,011
	$	88,506,832	$	112,279,024	$	63,969,319

F-192

	Series 43
ASSETS
Buildings and improvements, net of accumulated depreciation	$	33,113,040
Construction in progress	19,662,260
Land	6,281,356
Other assets	5,905,043
	$	64,961,699
LIABILITIES AND PARTNERS’ CAPITAL
Mortgages and construction loans payable	$	44,466,175
Accounts payable and accrued expenses	688,149
Other liabilities	6,325,406
	51,479,730
PARTNERS’ CAPITAL
Boston Capital Tax Credit Fund IV L.P.	6,790,502
Other partners	6,691,467
	13,481,969
	$	64,961,699

F-193

The combined summarized balance sheets of the operating limited partnerships in which Series 20 through 41 hold an interest as of December 31, 2001 are as follows (Series 42 invested in operating limited partnerships subsequent to December 31, 2001):

COMBINED SUMMARIZED BALANCE SHEETS

	Total		Series 20		Series 21
ASSETS
Buildings and improvements, net of accumulated depreciation	$	1,276,986,787	$	73,661,465	$	26,777,939
Construction in progress	21,649,111		—		—
Land	82,942,354		6,345,961		2,837,606
Other assets	92,702,097		5,473,725		2,378,765
	$	1,474,280,349	$	85,481,151	$	31,994,310
LIABILITIES AND PARTNERS’ CAPITAL
Mortgages and construction loans payable	$	836,173,617	$	57,488,628	$	27,872,528
Accounts payable and accrued expenses	29,415,768		3,060,234		1,237,842
Other liabilities	120,870,988		5,493,870		4,635,453
	986,460,373		66,042,732		33,745,823
PARTNERS’ CAPITAL
Boston Capital Tax Credit Fund IV L.P.	357,594,825		14,658,044		(3,179,956		)
Other partners	130,225,151		4,780,375		1,428,443
	487,819,976		19,438,419		(1,751,513		)
	$	1,474,280,349	$	85,481,151	$	31,994,310

F-194

	Series 22		Series 23		Series 24
ASSETS
Buildings and improvements, net of accumulated depreciation	$	70,404,427	$	66,762,604	$	54,275,834
Construction in progress	—		—		—
Land	4,242,201		3,957,131		3,941,855
Other assets	4,762,601		4,184,553		5,229,664
	$	79,409,229	$	74,904,288	$	63,447,353
LIABILITIES AND PARTNERS’ CAPITAL
Mortgages and construction loans payable	$	52,764,423	$	42,282,144	$	40,591,928
Accounts payable and accrued expenses	3,114,452		3,427,486		1,805,213
Other liabilities	3,355,070		5,283,754		8,269,088
	59,233,945		50,993,384		50,666,229
PARTNERS’ CAPITAL
Boston Capital Tax Credit Fund IV L.P.	10,106,053		17,464,256		7,794,408
Other partners	10,069,231		6,446,648		4,986,716
	20,175,284		23,910,904		12,781,124
	$	79,409,229	$	74,904,288	$	63,447,353

F-195

	Series 25		Series 26		Series 27
ASSETS
Buildings and improvements, net of accumulated depreciation	$	57,711,877	$	84,973,268	$	71,630,865
Construction in progress	—		—		—
Land	3,695,640		5,310,128		6,005,394
Other assets	6,796,587		7,335,534		6,097,224
	$	68,204,104	$	97,618,930	$	83,733,483
LIABILITIES AND PARTNERS’ CAPITAL
Mortgages and construction loans payable	$	37,469,696	$	61,914,557	$	52,616,662
Accounts payable and accrued expenses	2,176,934		2,034,466		1,037,515
Other liabilities	9,359,700		5,064,938		7,226,324
	49,006,330		69,013,961		60,880,501
PARTNERS’ CAPITAL
Boston Capital Tax Credit Fund IV L.P.	13,961,560		24,027,817		14,591,490
Other partners	5,236,214		4,577,152		8,261,492
	19,197,774		28,604,969		22,852,982
	$	68,204,104	$	97,618,930	$	83,733,483

F-196

	Series 28		Series 29		Series 30
ASSETS
Buildings and improvements, net of accumulated depreciation	$	73,564,262	$	64,337,212	$	52,193,320
Construction in progress	—		—		—
Land	5,513,936		2,841,806		2,658,139
Other assets	4,594,636		3,787,582		3,490,364
	$	83,672,834	$	70,966,600	$	58,341,823
LIABILITIES AND PARTNERS’ CAPITAL
Mortgages and construction loans payable	$	44,313,867	$	39,799,987	$	30,279,461
Accounts payable and accrued expenses	1,473,102		1,278,477		891,927
Other liabilities	3,687,108		4,730,873		4,762,603
	49,474,077		45,809,337		35,933,991
PARTNERS’ CAPITAL
Boston Capital Tax Credit Fund IV L.P.	25,194,673		23,667,562		17,043,157
Other partners	9,004,084		1,489,701		5,364,675
	34,198,757		25,157,263		22,407,832
	$	83,672,834	$	70,966,600	$	58,341,823

F-197

	Series 31		Series 32		Series 33
ASSETS
Buildings and improvements, net of accumulated depreciation	$	78,468,773	$	79,990,807	$	66,683,609
Construction in progress	—		—		—
Land	4,506,248		4,333,042		5,245,180
Other assets	6,829,471		4,505,418		3,423,842
	$	89,804,492	$	88,829,267	$	75,352,631
LIABILITIES AND PARTNERS’ CAPITAL
Mortgages and construction loans payable	$	53,800,759	$	44,802,341	$	36,596,048
Accounts payable and accrued expenses	1,120,655		1,151,373		930,735
Other liabilities	7,341,164		6,218,546		4,235,529
	62,262,578		52,172,260		41,762,312
PARTNERS’ CAPITAL
Boston Capital Tax Credit Fund IV L.P.	27,390,566		28,226,668		15,909,829
Other partners	151,348		8,430,339		17,680,490
	27,541,914		36,657,007		33,590,319
	$	89,804,492	$	88,829,267	$	75,352,631

F-198

	Series 34		Series 35		Series 36
ASSETS
Buildings and improvements, net of accumulated depreciation	$	72,593,306	$	59,611,456	$	53,503,681
Construction in progress	—		—		—
Land	5,358,490		3,734,936		3,007,609
Other assets	4,151,428		2,794,991		3,084,139
	$	82,103,224	$	66,141,383	$	59,595,429
LIABILITIES AND PARTNERS’ CAPITAL
Mortgages and construction loans payable	$	46,931,327	$	29,536,167	$	34,085,850
Accounts payable and accrued expenses	1,079,893		701,514		591,556
Other liabilities	5,061,369		8,244,544		3,841,734
	53,072,589		38,482,225		38,519,140
PARTNERS’ CAPITAL
Boston Capital Tax Credit Fund IV L.P.	23,109,784		19,483,241		13,384,317
Other partners	5,920,851		8,175,917		7,691,972
	29,030,635		27,659,158		21,076,289
	$	82,103,224	$	66,141,383	$	59,595,429

F-199

	Series 37		Series 38		Series 39
ASSETS
Buildings and improvements, net of accumulated depreciation	$	54,866,526	$	41,771,992	$	32,515,781
Construction in progress	—		—		3,736,024
Land	2,423,561		2,253,007		1,909,789
Other assets	3,451,161		1,443,601		1,319,399
	$	60,741,248	$	45,468,600	$	39,480,993
LIABILITIES AND PARTNERS’ CAPITAL
Mortgages and construction loans payable	$	33,857,644	$	17,816,425	$	14,660,485
Accounts payable and accrued expenses	998,431		420,064		287,196
Other liabilities	3,839,077		4,849,550		4,569,996
	38,695,152		23,086,039		19,517,677
PARTNERS’ CAPITAL
Boston Capital Tax Credit Fund IV L.P.	15,560,102		15,966,407		14,035,564
Other partners	6,485,994		6,416,154		5,927,752
	22,046,096		22,382,561		19,963,316
	$	60,741,248	$	45,468,600	$	39,480,993

F-200

	Series 40		Series 41
ASSETS
Buildings and improvements, net of accumulated depreciation	$	34,185,586	$	6,502,197
Construction in progress	6,376,753		11,536,334
Land	1,746,945		1,073,750
Other assets	3,623,726		3,943,686
	$	45,933,010	$	23,055,967
LIABILITIES AND PARTNERS’ CAPITAL
Mortgages and construction loans payable	$	23,201,808	$	13,490,882
Accounts payable and accrued expenses	571,423		25,280
Other liabilities	7,544,610		3,256,088
	31,317,841		16,772,250
PARTNERS’ CAPITAL
Boston Capital Tax Credit Fund IV L.P.	13,636,212		5,563,071
Other partners	978,957		720,646
	14,615,169		6,283,717
	$	45,933,010	$	23,055,967

F-201

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2002 for operating limited partnerships in which Series 20 through Series 43 had an interest as of December 31, 2002 are as follows (Series 44 invested in operating limited partnerships subsequent to December 31, 2002):

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

	Total			Series 20			Series 21
Revenue
Rent	$	159,657,657		$	11,875,880		$	5,191,301
Interest and other	11,991,803			884,867			179,797
	171,649,460			12,760,747			5,371,098
Expenses
Interest	52,642,294			4,004,170			1,972,676
Depreciation and amortization	57,582,248			3,649,676			927,204
Taxes and insurance	24,334,714			1,727,929			731,811
Repairs and maintenance	25,529,365			2,512,591			1,171,291
Operating expenses	50,883,653			3,448,337			1,594,189
Other expenses	4,709,802			181,316			132,083
	215,682,076			15,524,019			6,529,254
NET LOSS	$	(44,032,616	)	$	(2,763,272	)	$	(1,158,156	)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P.  *	$	(28,300,735	)	$	(2,139,319	)	$	(1,043,573	)
Net loss allocated to other partners	$	(15,731,881	)	$	(623,953	)	$	(114,583	)

*Amounts include $134,276, $589,657, $130,691, $82,684, $199,865, $103,502, $135,104 and $84,682 for Series 20, 21, 22, 24, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-202

	Series 22			Series 23			Series 24
Revenue
Rent	$	9,101,750		$	8,265,969		$	8,030,634
Interest and other	667,058			406,342			2,277,606
	9,768,808			8,672,311			10,308,240
Expenses
Interest	2,893,491			2,734,917			2,656,741
Depreciation and amortization	2,816,716			2,434,323			2,517,117
Taxes and insurance	1,443,086			1,332,880			1,198,374
Repairs and maintenance	1,857,612			1,579,772			1,234,854
Operating expenses	2,893,929			2,670,273			2,550,939
Other expenses	366,827			276,039			177,688
	12,271,661			11,028,204			10,335,713
NET LOSS	$	(2,502,853	)	$	(2,355,893	)	$	(27,473	)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(1,285,468	)	$	(1,347,032	)	$	(145,447	)
Net income (loss) allocated to other partners	$	(1,217,385	)	$	(1,008,861	)	$	117,974

*Amounts include $134,276, $589,657, $130,691, $82,684, $199,865, $103,502, $135,104 and $84,682 for Series 20, 21, 22, 24, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-203

	Series 25			Series 26			Series 27
Revenue
Rent	$	10,275,291		$	10,177,213		$	8,771,639
Interest and other	1,188,355			1,226,006			263,322
	11,463,646			11,403,219			9,034,961
Expenses
Interest	2,919,200			2,737,264			3,265,331
Depreciation and amortization	2,739,574			3,308,517			2,589,974
Taxes and insurance	1,388,435			1,687,688			1,128,860
Repairs and maintenance	2,112,745			1,582,311			997,516
Operating expenses	3,264,286			3,238,445			2,189,846
Other expenses	251,719			260,750			243,361
	12,675,959			12,814,975			10,414,888
NET LOSS	$	(1,212,313	)	$	(1,411,756	)	$	(1,379,927	)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(1,121,397	)	$	(1,157,861	)	$	(917,180	)
Net loss allocated to other partners	$	(90,916	)	$	(253,895	)	$	(462,747	)

*Amounts include $134,276, $589,657, $130,691, $82,684, $199,865, $103,502, $135,104 and $84,682 for Series 20, 21, 22, 24, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-204

	Series 28			Series 29			Series 30
Revenue
Rent	$	8,486,736		$	6,916,360		$	6,093,622
Interest and other	206,739			254,894			232,249
	8,693,475			7,171,254			6,325,871
Expenses
Interest	2,585,777			2,016,026			1,651,323
Depreciation and amortization	3,058,539			2,660,961			1,932,302
Taxes and insurance	1,129,167			1,058,777			879,856
Repairs and maintenance	1,235,518			944,152			974,599
Operating expenses	2,574,230			2,108,889			2,065,548
Other expenses	62,127			216,579			302,038
	10,645,358			9,005,384			7,805,666
NET LOSS	$	(1,951,883	)	$	(1,834,130	)	$	(1,479,795	)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(1,131,178	)	$	(1,671,213	)	$	(1,158,391	)
Net loss allocated to other partners	$	(820,705	)	$	(162,917	)	$	(321,404	)

*Amounts include $134,276, $589,657, $130,691, $82,684, $199,865, $103,502, $135,104 and $84,682 for Series 20, 21, 22, 24, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-205

	Series 31			Series 32			Series 33
Revenue
Rent	$	9,511,763		$	7,838,059		$	6,671,896
Interest and other	365,343			347,191			281,177
	9,877,106			8,185,250			6,953,073
Expenses
Interest	2,190,584			2,332,271			2,452,538
Depreciation and amortization	3,267,440			3,520,220			2,860,373
Taxes and insurance	1,527,741			1,334,762			1,022,065
Repairs and maintenance	1,447,899			1,116,747			826,282
Operating expenses	3,137,043			2,224,261			1,724,977
Other expenses	369,390			232,666			96,445
	11,940,097			10,760,927			8,982,680
NET LOSS	$	(2,062,991	)	$	(2,575,677	)	$	(2,029,607	)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(2,057,441	)	$	(1,978,906	)	$	(892,301	)
Net loss allocated to other partners	$	(5,550	)	$	(596,771	)	$	(1,137,306	)

*Amounts include $134,276, $589,657, $130,691, $82,684, $199,865, $103,502, $135,104 and $84,682 for Series 20, 21, 22, 24, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-206

	Series 34			Series 35			Series 36
Revenue
Rent	$	7,346,400		$	5,478,443		$	5,470,468
Interest and other	445,961			653,548			601,614
	7,792,361			6,131,991			6,072,082
Expenses
Interest	2,571,682			1,703,764			2,146,344
Depreciation and amortization	3,107,186			2,200,417			2,102,933
Taxes and insurance	1,135,143			860,745			706,599
Repairs and maintenance	955,051			742,081			979,200
Operating expenses	2,033,084			1,848,842			1,836,621
Other expenses	113,280			485,790			96,246
	9,915,426			7,841,639			7,867,943
NET LOSS	$	(2,123,065	)	$	(1,709,648	)	$	(1,795,861	)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(1,610,062	)	$	(1,198,689	)	$	(982,302	)
Net loss allocated to other partners	$	(513,003	)	$	(510,959	)	$	(813,559	)

*Amounts include $134,276, $589,657, $130,691, $82,684, $199,865, $103,502, $135,104 and $84,682 for Series 20, 21, 22, 24, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-207

	Series 37			Series 38			Series 39
Revenue
Rent	$	5,031,297		$	3,629,047		$	2,667,994
Interest and other	206,123			87,921			123,888
	5,237,420			3,716,968			2,791,882
Expenses
Interest	1,495,327			998,016			689,415
Depreciation and amortization	2,374,926			1,727,277			1,623,446
Taxes and insurance	785,869			557,976			461,375
Repairs and maintenance	608,312			475,393			300,498
Operating expenses	1,771,196			1,335,337			1,092,425
Other expenses	107,696			67,696			238,214
	7,143,326			5,161,695			4,405,373
NET LOSS	$	(1,905,906	)	$	(1,444,727	)	$	(1,613,491	)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(1,337,643	)	$	(892,478	)	$	(1,093,075	)
Net loss allocated to other partners	$	(568,263	)	$	(552,249	)	$	(520,416	)

*Amounts include $134,276, $589,657, $130,691, $82,684, $199,865, $103,502, $135,104 and $84,682 for Series 20, 21, 22, 24, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-208

	Series 40			Series 41			Series 42
Revenue
Rent	$	5,401,479		$	3,865,359		$	1,924,942
Interest and other	293,117			342,820			96,908
	5,694,596			4,208,179			2,021,850
Expenses
Interest	2,570,774			2,127,638			841,461
Depreciation and amortization	2,542,183			2,326,576			767,987
Taxes and insurance	941,898			820,093			230,567
Repairs and maintenance	704,363			596,930			286,010
Operating expenses	1,981,469			1,940,501			759,601
Other expenses	103,478			129,535			123,749
	8,844,165			7,941,273			3,009,375
NET LOSS	$	(3,149,569	)	$	(3,733,094	)	$	(987,525	)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P.  *	$	(986,508	)	$	(1,443,650	)	$	(404,748	)
Net loss allocated to other partners	$	(2,163,061	)	$	(2,289,444	)	$	(582,777	)

*Amounts include $134,276, $589,657, $130,691, $82,684, $199,865, $103,502, $135,104 and $84,382 for Series 20, 21, 22, 24, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-209

	Series 43
Revenue
Rent	$	1,634,115
Interest and other	358,957
	1,993,072
Expenses
Interest	1,085,564
Depreciation and amortization	526,381
Taxes and insurance	243,018
Repairs and maintenance	287,638
Operating expenses	599,385
Other expenses	75,090
	2,817,076
NET LOSS	$	(824,004	)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P.  *	$	(304,873	)
Net loss allocated to other partners	$	(519,131	)

*Amounts include $134,276, $589,657, $130,691, $82,684, $199,865, $103,502, $135,104 and $84,682 for Series 20, 21, 22, 24, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-210

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2001 for operating limited partnerships in which Series 20 through Series 41 had an interest as of December 31, 2002 are as follows (Series 42 invested in operating limited partnerships subsequent to December 31, 2001):

	Total			Series 20			Series 21
Revenue
Rent	$	140,146,170		$	11,782,224		$	5,156,253
Interest and other	9,224,481			925,334			108,745
	149,370,651			12,707,558			5,264,998
Expenses
Interest	48,575,592			4,148,677			2,004,829
Depreciation and amortization	50,792,098			3,808,467			958,693
Taxes and insurance	19,626,534			1,501,553			727,845
Repairs and maintenance	22,090,929			2,314,342			1,169,585
Operating expenses	44,398,393			3,573,075			1,531,416
Other expenses	13,422,852			252,996			8,093,623
	198,906,398			15,599,110			14,485,991
NET LOSS	$	(49,535,747	)	$	(2,891,552	)	$	(9,220,993	)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P.  *	$	(37,692,674	)	$	(2,115,335	)	$	(8,978,470	)
Net loss allocated to other partners	$	(11,843,073	)	$	(776,217	)	$	(242,523	)

*Amounts include $82,671, $6,257,770, $82,786, $362,514, $296,353, $221,008, $115,322 and $180,818 for Series 20, 21, 22, 24, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-211

	Series 22			Series 23			Series 24
Revenue
Rent	$	8,861,641		$	8,076,453		$	7,805,291
Interest and other	577,318			493,150			289,426
	9,438,959			8,569,603			8,094,717
Expenses
Interest	2,920,640			2,796,703			2,773,982
Depreciation and amortization	2,889,650			2,499,984			2,522,023
Taxes and insurance	1,386,285			1,282,013			1,094,578
Repairs and maintenance	1,795,340			1,461,595			1,346,721
Operating expenses	2,877,030			2,594,130			2,296,329
Other expenses	342,979			175,764			892,307
	12,211,924			10,810,189			10,925,940
NET LOSS	$	(2,772,965	)	$	(2,240,586	)	$	(2,831,223	)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(1,512,187	)	$	(1,381,392	)	$	(2,078,667	)
Net loss allocated to other partners	$	(1,260,778	)	$	(859,194	)	$	(752,556	)

*Amounts include $82,671, $6,257,770, $82,786, $362,514, $296,353, $221,008, $115,322 and $180,818 for Series 20, 21, 22, 24, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-212

	Series 25			Series 26			Series 27
Revenue
Rent	$	10,066,447		$	9,764,609		$	8,790,296
Interest and other	522,742			756,535			656,378
	10,589,189			10,521,144			9,446,674
Expenses
Interest	3,057,584			3,078,537			3,416,690
Depreciation and amortization	2,819,472			3,446,023			2,586,905
Taxes and insurance	1,299,609			1,434,905			914,540
Repairs and maintenance	2,307,756			1,563,640			874,461
Operating expenses	2,918,409			3,099,197			2,354,046
Other expenses	125,453			327,855			229,524
	12,528,283			12,950,157			10,376,166
NET LOSS	$	(1,939,094	)	$	(2,429,013	)	$	(929,492	)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(1,571,179	)	$	(2,050,844	)	$	(408,787	)
Net loss allocated to other partners	$	(367,915	)	$	(378,169	)	$	(520,705	)

*Amounts include $82,671, $6,257,770, $82,786, $362,514, $296,353, $221,008, $115,322 and $180,818 for Series 20, 21, 22, 24, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-213

	Series 28			Series 29			Series 30
Revenue
Rent	$	8,184,885		$	6,673,215		$	5,949,111
Interest and other	301,762			360,779			337,246
	8,486,647			7,033,994			6,286,357
Expenses
Interest	2,556,131			2,358,240			1,709,980
Depreciation and amortization	3,106,704			2,642,084			1,973,222
Taxes and insurance	992,059			962,215			827,912
Repairs and maintenance	1,130,317			927,916			839,569
Operating expenses	2,870,816			2,114,888			1,835,977
Other expenses	139,847			154,573			645,221
	10,795,874			9,159,916			7,831,881
NET LOSS	$	(2,309,227	)	$	(2,125,922	)	$	(1,545,524	)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(1,503,553	)	$	(2,116,714	)	$	(1,085,876	)
Net loss allocated to other partners	$	(805,674	)	$	(9,208	)	$	(459,648	)

*Amounts include $82,671, $6,257,770, $82,786, $362,514, $296,353, $221,008, $115,322 and $180,818 for Series 20, 21, 22, 24, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-214

	Series 31			Series 32			Series 33
Revenue
Rent	$	9,293,631		$	7,622,766		$	6,651,807
Interest and other	429,173			462,377			404,016
	9,722,804			8,085,143			7,055,823
Expenses
Interest	2,343,388			2,602,586			2,577,149
Depreciation and amortization	3,345,552			3,687,868			2,947,959
Taxes and insurance	1,461,824			1,114,486			976,062
Repairs and maintenance	1,447,195			1,094,611			863,622
Operating expenses	3,012,066			2,275,053			1,788,010
Other expenses	411,086			306,179			141,300
	12,021,111			11,080,783			9,294,102
NET LOSS	$	(2,298,307	)	$	(2,995,640	)	$	(2,238,279	)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(2,172,471	)	$	(2,243,647	)	$	(1,059,178	)
Net loss allocated to other partners	$	(125,836	)	$	(751,993	)	$	(1,179,101	)

*Amounts include $82,671, $6,257,770, $82,786, $362,514, $296,353, $221,008, $115,322 and $180,818 for Series 20, 21, 22, 24, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-215

	Series 34			Series 35			Series 36
Revenue
Rent	$	7,462,093		$	4,540,642		$	5,048,498
Interest and other	598,384			802,350			669,984
	8,060,477			5,342,992			5,718,482
Expenses
Interest	2,836,315			1,706,333			2,608,190
Depreciation and amortization	3,174,166			1,862,678			2,188,690
Taxes and insurance	1,178,447			766,530			548,149
Repairs and maintenance	882,027			540,467			543,027
Operating expenses	1,965,649			1,561,426			2,118,368
Other expenses	257,055			134,366			127,745
	10,293,659			6,571,800			8,134,169
NET LOSS	$	(2,233,182	)	$	(1,228,808	)	$	(2,415,687	)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(1,760,695	)	$	(875,205	)	$	(1,268,122	)
Net loss allocated to other partners	$	(472,487	)	$	(353,603	)	$	(1,147,565	)

*Amounts include $82,671, $6,257,770, $82,786, $362,514, $296,353, $221,008, $115,322 and $180,818 for Series 20, 21, 22, 24, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-216

	Series 37			Series 38			Series 39
Revenue
Rent	$	4,064,548		$	1,675,836		$	883,755
Interest and other	215,572			67,815			69,246
	4,280,120			1,743,651			953,001
Expenses
Interest	1,140,598			818,118			518,687
Depreciation and amortization	1,891,196			1,007,582			748,951
Taxes and insurance	553,798			301,946			121,793
Repairs and maintenance	420,069			229,782			113,511
Operating expenses	1,500,914			828,729			633,307
Other expenses	45,000			239,565			254,943
	5,551,575			3,425,722			2,391,192
NET LOSS	$	(1,271,455	)	$	(1,682,071	)	$	(1,438,191	)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(750,493	)	$	(1,230,809	)	$	(996,269	)
Net loss allocated to other partners	$	(520,962	)	$	(451,262	)	$	(441,922	)

*Amounts include $82,671, $6,257,770, $82,786, $362,514, $296,353, $221,008, $115,322 and $180,818 for Series 20, 21, 22, 24, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-217

	Series 40			Series 41
Revenue
Rent	$	1,563,882		$	228,287
Interest and other	164,255			11,894
	1,728,137			240,181
Expenses
Interest	542,122			60,113
Depreciation and amortization	579,419			104,810
Taxes and insurance	160,832			19,153
Repairs and maintenance	183,495			41,881
Operating expenses	564,353			85,205
Other expenses	102,111			23,360
	2,132,332			334,522
NET LOSS	$	(404,195	)	$	(94,341	)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(438,656	)	$	(94,125	)
Net income (loss) allocated to other partners	$	34,461		$	(216	)

*Amounts include $82,671, $6,257,770, $82,786, $362,514, $296,353, $221,008, $115,322 and $180,818 for Series 20, 21, 22, 24, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-218

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2000 for operating limited partnerships in which Series 20 through Series 39 had an interest as of December 31, 2000 are as follows (Series 40 invested in operating limited partnerships subsequent to December 31, 2000):

	Total			Series 20			Series 21
Revenue
Rent	$	120,709,402		$	11,222,138		$	5,129,582
Interest and other	9,590,670			988,886			255,449
	130,300,072			12,211,024			5,385,031
Expenses
Interest	47,233,466			4,311,365			2,061,035
Depreciation and amortization	46,025,684			3,857,459			1,213,472
Taxes and insurance	15,863,916			1,419,485			571,445
Repairs and maintenance	18,949,527			2,093,947			965,774
Operating expenses	38,361,024			3,154,684			1,454,994
Other expenses	2,819,350			206,548			66,464
	169,252,967			15,043,488			6,333,184
NET LOSS	$	(38,952,895	)	$	(2,832,464	)	$	(948,153	)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(27,801,953	)	$	(2,033,098	)	$	(885,755	)
Net loss allocated to other partners	$	(11,150,942	)	$	(799,366	)	$	(62,398	)

*Amounts include $34,592, $53,295, $242,824, $4,034, $205,547 and $3,295 for Series 20, 22, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-219

	Series 22			Series 23			Series 24
Revenue
Rent	$	8,366,424		$	7,756,815		$	7,657,124
Interest and other	741,516			658,068			265,885
	9,107,940			8,414,883			7,923,009
Expenses
Interest	2,909,677			2,780,715			3,171,751
Depreciation and amortization	3,043,219			2,622,912			2,548,469
Taxes and insurance	1,224,748			1,098,158			988,850
Repairs and maintenance	1,608,667			1,175,818			1,279,479
Operating expenses	2,721,888			2,648,533			2,101,349
Other expenses	353,046			135,921			179,600
	11,861,245			10,462,057			10,269,498
NET LOSS	$	(2,753,305	)	$	(2,047,174	)	$	(2,346,489	)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(1,278,688	)	$	(1,137,319	)	$	(1,528,706	)
Net loss allocated to other partners	$	(1,474,617	)	$	(909,855	)	$	(817,783	)

*Amounts include $34,592, $53,295, $242,824, $4,034, $205,547 and $3,295 for Series 20, 22, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-220

	Series 25			Series 26			Series 27
Revenue
Rent	$	9,799,455		$	9,384,853		$	8,433,161
Interest and other	502,073			763,424			294,078
	10,301,528			10,148,277			8,727,239
Expenses
Interest	3,133,315			3,382,352			3,518,165
Depreciation and amortization	2,926,117			3,417,186			2,597,287
Taxes and insurance	1,202,786			1,419,975			863,640
Repairs and maintenance	2,195,994			1,452,999			901,919
Operating expenses	2,745,067			2,793,578			2,038,020
Other expenses	99,023			277,197			201,408
	12,302,302			12,743,287			10,120,439
NET LOSS	$	(2,000,774	)	$	(2,595,010	)	$	(1,393,200	)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(1,540,779	)	$	(2,042,060	)	$	(801,190	)
Net loss allocated to other partners	$	(459,995	)	$	(552,950	)	$	(592,010	)

*Amounts include $34,592, $53,295, $242,824, $4,034, $205,547 and $3,295 for Series 20, 22, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-221

	Series 28			Series 29			Series 30
Revenue
Rent	$	7,978,231		$	6,486,268		$	5,103,300
Interest and other	256,455			364,163			272,677
	8,234,686			6,850,431			5,375,977
Expenses
Interest	2,593,109			2,549,602			1,496,948
Depreciation and amortization	3,295,574			2,673,182			1,861,924
Taxes and insurance	969,985			774,292			676,204
Repairs and maintenance	959,973			844,359			799,175
Operating expenses	2,541,493			2,077,478			1,899,848
Other expenses	132,983			163,295			218,357
	10,493,117			9,082,208			6,952,456
NET LOSS	$	(2,258,431	)	$	(2,231,777	)	$	(1,576,479	)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(1,714,275	)	$	(2,074,428	)	$	(1,177,274	)
Net loss allocated to other partners	$	(544,156	)	$	(157,349	)	$	(399,205	)

*Amounts include $34,592, $53,295, $242,824, $4,034, $205,547 and $3,295 for Series 20, 22, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-222

	Series 31			Series 32			Series 33
Revenue
Rent	$	8,849,728		$	6,562,886		$	5,994,805
Interest and other	478,470			357,296			331,291
	9,328,198			6,920,182			6,326,096
Expenses
Interest	2,779,313			3,060,552			2,877,717
Depreciation and amortization	3,432,486			3,436,630			2,769,394
Taxes and insurance	1,226,925			1,005,450			866,216
Repairs and maintenance	1,421,745			848,899			729,115
Operating expenses	3,008,128			2,120,242			1,788,413
Other expenses	171,864			226,979			76,000
	12,040,461			10,698,752			9,106,855
NET LOSS	$	(2,712,263	)	$	(3,778,570	)	$	(2,780,759	)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(2,698,823	)	$	(2,672,668	)	$	(1,294,005	)
Net loss allocated to other partners	$	(13,440	)	$	(1,105,902	)	$	(1,486,754	)

*Amounts include $34,592, $53,295, $242,824, $4,034, $205,547 and $3,295 for Series 20, 22, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-223

	Series 34			Series 35			Series 36
Revenue
Rent	$	5,507,004		$	1,818,966		$	2,974,874
Interest and other	598,101			332,051			1,214,274
	6,105,105			2,151,017			4,189,148
Expenses
Interest	2,629,967			1,453,169			1,387,609
Depreciation and amortization	2,780,616			1,316,721			1,316,088
Taxes and insurance	806,682			381,834			245,556
Repairs and maintenance	616,693			292,667			545,788
Operating expenses	1,759,985			1,248,547			1,396,448
Other expenses	273,611			8,000			29,054
	8,867,554			4,700,938			4,920,543
NET LOSS	$	(2,762,449	)	$	(2,549,921	)	$	(731,395	)
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(2,140,987	)	$	(1,875,497	)	$	(457,746	)
Net loss allocated to other partners	$	(621,462	)	$	(674,424	)	$	(273,649	)

*Amounts include $34,592, $53,295, $242,824, $4,034, $205,547 and $3,295 for Series 20, 22, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-224

	Series 37			Series 38			Series 39
Revenue
Rent	$	1,283,722		$	384,789		$	15,277
Interest and other	636,984			8,159			271,370
	1,920,706			392,948			286,647
Expenses
Interest	750,353			163,267			223,485
Depreciation and amortization	757,003			147,342			12,603
Taxes and insurance	87,572			32,695			1,418
Repairs and maintenance	166,267			50,249			—
Operating expenses	664,512			169,507			28,310
Other expenses	—			—			—
	2,425,707			563,060			265,816
NET INCOME (LOSS)	$	(505,001	)	$	(170,112	)	$	20,831
Net income (loss) allocated to Boston Capital Tax Credit Fund IV L.P. *	$	(318,507	)	$	(133,908	)	$	3,760
Net income (loss) allocated to other partners	$	(186,494	)	$	(36,204	)	$	17,071

*Amounts include $34,592, $53,295, $242,824, $4,034, $205,547 and $3,295 for Series 20, 22, 25, 26, 27 and 32, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-225

NOTE D - NOTES RECEIVABLE

Notes receivable at March 31, 2003 and 2002 consist of advance installments of $14,733,948 and $17,736,231, respectively, of capital contributions to operating limited partnerships.  The notes are comprised of noninterest bearing and interest bearing notes with rates ranging from prime to prime + 1%.  Prime was 4.25% and 4.75% as of March 31, 2003 and 2002, respectively.  These notes will be applied against future payments of capital contributions or paid upon demand.  The carrying value of the notes receivable at March 31, 2003 and 2002 approximates fair value.  The notes at March 31, 2003 and 2002 by series are as follows:

	2003		2002
Series 20	$	—	$	—
Series 21	457,639		641,542
Series 22	450,981		450,981
Series 23	—		—
Series 24	155,478		534,342
Series 25	—		523,193
Series 26	135,822		571,335
Series 27	—		—
Series 28	638,346		775,000
Series 29	20,935		20,935
Series 30	301,842		385,438
Series 31	655,675		655,675
Series 32	573,581		630,673
Series 33	111,787		113,575
Series 34	3,547		164,562
Series 35	322,784		918,319
Series 36	322,784		322,784
Series 37	1,810,486		1,814,211
Series 38	—		—
Series 39	—		543,567
Series 40	312,318		1,321,601
Series 41	372,883		6,058,498
Series 42	3,361,150		1,290,000
Series 43	3,361,995		—
Series 44	1,363,915		—
	$	14,733,948	$	17,736,231

F-226

NOTE E - OTHER ASSETS

Other assets include $2,372,306 of cash held by an escrow agent at March 31, 2002.  The cash held for Series 20 through 42 at March 31, 2002 represents capital contributions to be released to the operating limited partnerships when certain criteria have been met.  The escrows held at March 31, 2002 by series are as follows:

	2002
Series 20	$	—
Series 21	—
Series 22	—
Series 23	—
Series 24	—
Series 25	—
Series 26	—
Series 27	—
Series 28	—
Series 29	—
Series 30	—
Series 31	—
Series 32	—
Series 33	—
Series 34	—
Series 35	—
Series 36	—
Series 37	—
Series 38	—
Series 39	882,215
Series 40	—
Series 41	470,389
Series 42	1,019,702
	$	2,372,306

F-227

NOTE F - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO TAX RETURN

For income tax purposes, the fund reports using a December 31 year end.  The fund’s net income (loss) for financial reporting and tax return purposes for the year ended March 31, 2003 is reconciled as follows:

	Total			Series 20			Series 21
Net income (loss) for financial reporting purposes	$	(34,363,004	)	$	(2,384,789	)	$	(658,405	)
Operating limited partnership rents received in advance	219,131			64,063			203
Partnership fund management fee	5,001,131			379,247			225,840
Other	(14,085		)	(49,180		)	283,607
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting	(1,460,461		)	(134,276		)	(589,657		)
Excess of tax depreciation over book depreciation on operating limited partnership assets	(9,191,601		)	(86,976		)	(263,375		)
Impairment loss not recognized for tax purposes	770,199			—			—
Tax exempt interest income	—			—			—
Difference due to fiscal year for book purposes and calendar year for tax purposes	(1,662,203		)	(5,102		)	(8,839		)
Income (loss) for tax return purposes, December 31, 2002	$	(40,700,893	)	$	(2,217,013	)	$	(1,010,626	)

F-228

	Series 22			Series 23			Series 24
Net income (loss) for financial reporting purposes	$	(1,825,108	)	$	(1,611,679	)	$	(206,100	)
Operating limited partnership rents received in advance	874			(5,915		)	6,419
Partnership fund management fee	179,592			240,263			233,352
Other	(254,793		)	281,369			(356,644		)
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting	(130,691		)	—			(82,684		)
Excess of tax depreciation over book depreciation on operating limited partnership assets	(259,869		)	(506,660		)	(72,599		)
Impairment loss not recognized for tax purposes	404,691			—			—
Tax exempt interest income	—			—			—
Difference due to fiscal year for book purposes and calendar year for tax purposes	15,105			(65,116		)	(72,129		)
Income (loss) for tax return purposes, December 31, 2002	$	(1,870,199	)	$	(1,667,738	)	$	(550,385	)

F-229

	Series 25			Series 26			Series 27
Net income (loss) for financial reporting purposes	$	(1,063,014	)	$	(1,428,884	)	$	(1,080,803	)
Operating limited partnership rents received in advance	17,631			56,919			4,649
Partnership fund management fee	272,676			437,580			315,205
Other	(177,945		)	(389,879		)	119,890
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting	(199,865		)	(103,502		)	(135,104		)
Excess of tax depreciation over book depreciation on operating limited partnership assets	(96,603		)	(545,162		)	(482,932		)
Impairment loss not recognized for tax purposes	—			—			—
Tax exempt interest income	—			—			—
Difference due to fiscal year for book purposes and calendar year for tax purposes	(119,020		)	(93,226		)	38,709
Income (loss) for tax return purposes, December 31, 2002	$	(1,366,140	)	$	(2,066,154	)	$	(1,220,386	)

F-230

	Series 28			Series 29			Series 30
Net income (loss) for financial reporting purposes	$	(1,443,856	)	$	(2,395,108	)	$	(1,425,215	)
Operating limited partnership rents received in advance	(306		)	27,763			(83		)
Partnership fund management fee	—			337,980			—
Other	700,402			(43,404		)	(1,372		)
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	(311,447		)	(354,808		)	(324,143		)
Impairment loss not recognized for tax purposes	—			365,508			—
Tax exempt interest income	—			—			—
Difference due to fiscal year for book purposes and calendar year for tax purposes	2,146			(9,112		)	32,102
Income (loss) for tax return purposes, December 31, 2002	$	(1,053,061	)	$	(2,071,181	)	$	(1,718,711	)

F-231

	Series 31			Series 32			Series 33
Net income (loss) for financial reporting purposes	$	(2,409,358	)	$	(2,292,954	)	$	(1,118,654	)
Operating limited partnership rents received in advance	4,339			10,345			105
Partnership fund management fee	—			332,904			173,964
Other	(75,321		)	16,382			(94,700		)
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting	—			(84,682		)	—
Excess of tax depreciation over book depreciation on operating limited partnership assets	(566,728		)	(305,709		)	(243,884		)
Impairment loss not recognized for tax purposes	—			—			—
Tax exempt interest income	—			—			—
Difference due to fiscal year for book purposes and calendar year for tax purposes	7,581			(206,276		)	(1,064,156		)
Income (loss) for tax return purposes, December 31, 2002	$	(3,039,487	)	$	(2,529,990	)	$	(2,347,325	)

F-232

	Series 34			Series 35			Series 36
Net income (loss) for financial reporting purposes	$	(1,986,319	)	$	(1,530,349	)	$	(1,250,570	)
Operating limited partnership rents received in advance	17,004			1,692			13,301
Partnership fund management fee	293,194			228,358			160,603
Other	(216,422		)	(118,958		)	(690		)
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	(363,539		)	(491,657		)	(524,864		)
Impairment loss not recognized for tax purposes	—			—			—
Tax exempt interest income	—			—			—
Difference due to fiscal year for book purposes and calendar year for tax purposes	(20,499		)	(182,960		)	(14,573		)
Income (loss) for tax return purposes, December 31, 2002	$	(2,276,581	)	$	(2,093,874	)	$	(1,616,793	)

F-233

	Series 37			Series 38			Series 39
Net income (loss) for financial reporting purposes	$	(1,643,835	)	$	(1,170,974	)	$	(1,340,819	)
Operating limited partnership rents received in advance	(1,629		)	—			—
Partnership fund management fee	176,944			164,404			136,800
Other	(237,432		)	55,511			14,805
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	(295,306		)	(459,238		)	(424,944		)
Impairment loss not recognized for tax purposes	—			—			—
Tax exempt interest income	—			—			—
Difference due to fiscal year for book purposes and calendar year for tax purposes	(19,944		)	(4,741		)	(25,070		)
Income (loss) for tax return purposes, December 31, 2002	$	(2,021,202	)	$	(1,415,038	)	$	(1,639,228	)

F-234

	Series 40			Series 41			Series 42
Net income (loss) for financial reporting purposes	$	(1,121,025	)	$	(1,848,385	)	$	(521,411	)
Operating limited partnership rents received in advance	1,344			21			392
Partnership fund management fee	192,002			270,837			145,722
Other	310,347			130,484			56,442
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	(352,572		)	(1,389,778		)	(435,214		)
Impairment loss not recognized for tax purposes	—			—			—
Tax exempt interest income	—			—			—
Difference due to fiscal year for book purposes and calendar year for tax purposes	(116,239		)	(31,082		)	(1,892		)
Income (loss) for tax return purposes, December 31, 2002	$	(1,086,143	)	$	(2,867,903	)	$	(755,961	)

F-235

	Series 43			Series 44
Net income (loss) for financial reporting purposes	$	(490,370	)	$	(115,020	)
Operating limited partnership rents received in advance	—			—
Partnership fund management fee	97,417			6,247
Other	33,416			—
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	(33,594		)	—
Impairment loss not recognized for tax purposes	—			—
Tax exempt interest income	—			—
Difference due to fiscal year for book purposes and calendar year for tax purposes	199,443			102,687
Income (loss) for tax return purposes, December 31, 2002	$	(193,688	)	$	(6,086	)

F-236

For income tax purposes, the fund reports using a December 31 year end.  The fund’s net income (loss) for financial reporting and tax return purposes for the year ended March 31, 2002 is reconciled as follows:

	Total			Series 20			Series 21
Net income (loss) for financial reporting purposes	$	(36,244,755	)	$	(2,387,830	)	$	(2,976,656	)
Operating limited partnership rents received in advance	(7,983		)	5,316			1,461
Partnership fund management fee	3,308,065			379,248			25,840
Other	3,017,739			273,441			206,746
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting	(7,599,233		)	(82,668		)	(6,257,772		)
Excess of tax depreciation over book depreciation on operating limited partnership assets	(6,802,111		)	(94,590		)	(243,198		)
Impairment loss not recognized for tax purposes	7,891,976			—			7,891,976
Tax exempt interest income	—			—			—
Difference due to fiscal year for book purposes and calendar year for tax purposes	(1,912,380		)	(30,345		)	(527,651		)
Income (loss) for tax return purposes, December 31, 2001	$	(38,348,682	)	$	(1,937,428	)	$	(1,879,254	)

F-237

	Series 22			Series 23			Series 24
Net income (loss) for financial reporting purposes	$	(1,693,382	)	$	(1,634,244	)	$	(2,001,698	)
Operating limited partnership rents received in advance	(1,208		)	(5,334		)	18,007
Partnership fund management fee	254,592			115,264			233,252
Other	43,579			17,252			713,906
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting	(82,786		)	—			(362,514		)
Excess of tax depreciation over book depreciation on operating limited partnership assets	(282,713		)	(525,795		)	80,687
Impairment loss not recognized for tax purposes	—			—			—
Tax exempt interest income	—			—			—
Difference due to fiscal year for book purposes and calendar year for tax purposes	(117,336		)	(62,547		)	(42,926		)
Income (loss) for tax return purposes, December 31, 2001	$	(1,879,254	)	$	(2,095,404	)	$	(1,361,286	)

F-238

	Series 25			Series 26			Series 27
Net income (loss) for financial reporting purposes	$	(1,557,890	)	$	(2,264,403	)	$	(598,368	)
Operating limited partnership rents received in advance	168			5,871			1,787
Partnership fund management fee	272,676			437,580			215,204
Other	55,956			(30,943		)	(89,014		)
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting	(296,351		)	(221,004		)	(115,320		)
Excess of tax depreciation over book depreciation on operating limited partnership assets	(84,566		)	(645,799		)	(551,454		)
Impairment loss not recognized for tax purposes	—			—			—
Tax exempt interest income	—			—			—
Difference due to fiscal year for book purposes and calendar year for tax purposes	(100,980		)	(20,080		)	(84,054		)
Income (loss) for tax return purposes, December 31, 2001	$	(1,710,987	)	$	(2,738,778	)	$	(1,221,219	)

F-239

	Series 28			Series 29			Series 30
Net income (loss) for financial reporting purposes	$	(1,802,088	)	$	(2,421,150	)	$	(1,298,251	)
Operating limited partnership rents received in advance	368			(4,568		)	(4,370		)
Partnership fund management fee	—			209,815			—
Other	(338,171		)	126,243			(13,689		)
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	(333,389		)	(387,606		)	(372,582		)
Impairment loss not recognized for tax purposes	—			—			—
Tax exempt interest income	—			—			—
Difference due to fiscal year for book purposes and calendar year for tax purposes	(11,544		)	(181,155		)	(33,084		)
Income (loss) for tax return purposes, December 31, 2001	$	(2,484,824	)	$	(2,658,421	)	$	(1,721,976	)

F-240

	Series 31			Series 32			Series 33
Net income (loss) for financial reporting purposes	$	(2,489,687	)	$	(2,429,115	)	$	(1,259,944	)
Operating limited partnership rents received in advance	(4,301		)	(11,320		)	634
Partnership fund management fee	33,120			132,904			73,923
Other	50,483			193,257			(28,676		)
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting	—			(180,818		)	—
Excess of tax depreciation over book depreciation on operating limited partnership assets	(650,770		)	(339,204		)	(264,396		)
Impairment loss not recognized for tax purposes	—			—			—
Tax exempt interest income	—			—			—
Difference due to fiscal year for book purposes and calendar year for tax purposes	(64,373		)	(403,367		)	(102,580		)
Income (loss) for tax return purposes, December 31, 2001	$	(3,125,528	)	$	(3,037,663	)	$	(1,581,039	)

F-241

	Series 34			Series 35			Series 36
Net income (loss) for financial reporting purposes	$	(2,113,249	)	$	(1,211,672	)	$	(1,529,736	)
Operating limited partnership rents received in advance	(5,589		)	(945		)	1,431
Partnership fund management fee	293,190			76,931			160,578
Other	38,032			13,183			1,109,319
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	(491,338		)	(541,076		)	(244,453		)
Impairment loss not recognized for tax purposes	—			—			—
Tax exempt interest income	—			—			—
Difference due to fiscal year for book purposes and calendar year for tax purposes	(85,106		)	90,404			(5,944		)
Income (loss) for tax return purposes, December 31, 2001	$	(2,364,060	)	$	(1,573,175	)	$	(508,805	)

F-242

	Series 37			Series 38			Series 39
Net income (loss) for financial reporting purposes	$	(1,051,460	)	$	(1,405,509	)	$	(1,126,847	)
Operating limited partnership rents received in advance	(5,435		)	—			—
Partnership fund management fee	81,688			69,026			50,845
Other	367,272			76,861			113,357
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	(238,508		)	(340,292		)	(155,890		)
Impairment loss not recognized for tax purposes	—			—			—
Tax exempt interest income	—			—			—
Difference due to fiscal year for book purposes and calendar year for tax purposes	(65,194		)	(85,798		)	(46,733		)
Income (loss) for tax return purposes, December 31, 2001	$	(911,637	)	$	(1,685,712	)	$	(1,165,268	)

F-243

	Series 40			Series 41			Series 42
Net income (loss) for financial reporting purposes	$	(597,386	)	$	(283,923	)	$	(110,267	)
Operating limited partnership rents received in advance	44			—			—
Partnership fund management fee	125,733			66,656			—
Other	(31,631		)	40,709			110,267
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	(80,880		)	(14,299		)	—
Impairment loss not recognized for tax purposes	—			—			—
Tax exempt interest income	—			—			—
Difference due to fiscal year for book purposes and calendar year for tax purposes	(2,776		)	70,789			—
Income (loss) for tax return purposes, December 31, 2001	$	(586,896	)	$	(120,068	)	$	—

F-244

For income tax purposes, the fund reports using a December 31 year end.  The fund’s net income (loss) for financial reporting and tax return purposes for the year ended March 31, 2001 is reconciled as follows:

	Total			Series 20			Series 21
Net income (loss) for financial reporting purposes	$	(31,651,959	)	$	(2,366,381	)	$	(1,087,400	)
Operating limited partnership rents received in advance	(39,583		)	21,936			(1,126		)
Partnership fund management fee	2,103,549			379,248			(174,160		)
Other	55,759			4,917			—
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting	(536,998		)	(34,591		)	—
Excess of tax depreciation over book depreciation on operating limited partnership assets	(6,111,241		)	154,771			(268,938		)
Tax exempt interest income	1,552,367			—			32,958
Difference due to fiscal year for book purposes and calendar year for tax purposes	(3,948,465		)	(137,202		)	(282,757		)
Income (loss) for tax return purposes, December 31, 2000	$	(38,576,571	)	$	(1,977,302	)	$	(1,781,423	)

F-245

	Series 22			Series 23			Series 24
Net income (loss) for financial reporting purposes	$	(1,484,651	)	$	(1,380,939	)	$	(1,777,302	)
Operating limited partnership rents received in advance	(2,688		)	(4,372		)	8,927
Partnership fund management fee	154,592			190,264			233,352
Other	8,225			(66,568		)	9,503
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting	(53,294		)	—			—
Excess of tax depreciation over book depreciation on operating limited partnership assets	(240,690		)	(468,215		)	(119,418		)
Tax exempt interest income	16,303			6,552			13,844
Difference due to fiscal year for book purposes and calendar year for tax purposes	(5,845		)	(100,822		)	(156,289		)
Income (loss) for tax return purposes, December 31, 2000	$	(1,608,048	)	$	(1,824,100	)	$	(1,787,383	)

F-246

	Series 25			Series 26			Series 27
Net income (loss) for financial reporting purposes	$	(1,540,858	)	$	(2,419,997	)	$	(864,778	)
Operating limited partnership rents received in advance	(145,302		)	5,967			3,591
Partnership fund management fee	272,676			437,580			315,204
Other	7,011			(16,036		)	7,259
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting	(242,827		)	(4,034		)	(205,547		)
Excess of tax depreciation over book depreciation on operating limited partnership assets	(32,467		)	(470,823		)	(688,741		)
Tax exempt interest income	44,320			8,213			25,803
Difference due to fiscal year for book purposes and calendar year for tax purposes	(239,205		)	84,252			57,523
Income (loss) for tax return purposes, December 31, 2000	$	(1,876,652	)	$	(2,374,878	)	$	(1,349,686	)

F-247

	Series 28			Series 29			Series 30
Net income (loss) for financial reporting purposes	$	(1,950,767	)	$	(2,369,982	)	$	(1,283,833	)
Operating limited partnership rents received in advance	838			21,455			4,908
Partnership fund management fee	—			—			—
Other	(12,000		)	(2,695		)	(13,558		)
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	(266,761		)	(550,475		)	(421,067		)
Tax exempt interest income	138,591			63,123			111,376
Difference due to fiscal year for book purposes and calendar year for tax purposes	(548,728		)	(171,071		)	(270,437		)
Income (loss) for tax return purposes, December 31, 2000	$	(2,638,827	)	$	(3,009,645	)	$	(1,872,611	)

F-248

	Series 31			Series 32			Series 33
Net income (loss) for financial reporting purposes	$	(2,979,270	)	$	(2,821,938	)	$	(1,384,134	)
Operating limited partnership rents received in advance	4,521			15,213			146
Partnership fund management fee	—			80,154			73,780
Other	9,840			40,640			5,611
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting	—			3,295			—
Excess of tax depreciation over book depreciation on operating limited partnership assets	(809,291		)	(402,389		)	(288,614		)
Tax exempt interest income	119,183			142,723			167,488
Difference due to fiscal year for book purposes and calendar year for tax purposes	(253,569		)	39,075			(266,846		)
Income (loss) for tax return purposes, December 31, 2000	$	(3,908,586	)	$	(2,903,227	)	$	(1,692,569	)

F-249

	Series 34			Series 35			Series 36
Net income (loss) for financial reporting purposes	$	(2,424,494	)	$	(2,106,038	)	$	(693,060	)
Operating limited partnership rents received in advance	12,831			1,092			(971		)
Partnership fund management fee	10,612			—			130,247
Other	12,872			15,200			11,231
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	(559,386		)	(333,953		)	(231,680		)
Tax exempt interest income	138,618			190,841			73,145
Difference due to fiscal year for book purposes and calendar year for tax purposes	(155,794		)	(399,568		)	(1,190,475		)
Income (loss) for tax return purposes, December 31, 2000	$	(2,964,741	)	$	(2,632,426	)	$	(1,901,563	)

F-250

	Series 37			Series 38			Series 39
Net income (loss) for financial reporting purposes	$	(315,863	)	$	(145,973	)	$	(142,837	)
Operating limited partnership rents received in advance	12,126			647			678
Partnership fund management fee	—			—			—
Other	3,148			31,159			—
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	(25,870		)	(85,886		)	(1,348		)
Tax exempt interest income	198,895			59,534			857
Difference due to fiscal year for book purposes and calendar year for tax purposes	(262,941		)	(11,222		)	211,992
Income (loss) for tax return purposes, December 31, 2000	$	(390,505	)	$	(151,741	)	$	69,342

F-251

	Series 40
Net income (loss) for financial reporting purposes	$	(111,464	)
Operating limited partnership rents received in advance	—
Partnership fund management fee	—
Other	—
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	—
Tax exempt interest income	—
Difference due to fiscal year for book purposes and calendar year for tax purposes	111,464
Income (loss) for tax return purposes, December 31, 2000	$	—

F-252

The differences between the investments in operating limited partnerships for tax purposes and financial statement purposes at March 31, 2003, are as follows:

	Total			Series 20			Series 21
Investments in operating limited partnerships - tax return December 31, 2002	$	390,269,813		$	12,148,677		$	4,343,316
Operating limited partnerships acquired during the three month period ended March 31, 2003	1,304,078			—			—
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method	9,394,342			345,946			6,847,429
Historic tax credits - cumulative	794,154			570,617			—
Less share of loss - three months ended March 31, 2003	(2,775,473		)	(404,710		)	(651,466		)
Other	25,896,531			15,240			(8,145,403		)
Investments in operating limited partnerships - as reported	$	424,883,445		$	12,675,770		$	2,393,876

F-253

	Series 22			Series 23			Series 24
Investments in operating limited partnerships - tax return December 31, 2002	$	7,797,721		$	13,582,126		$	8,217,082
Operating limited partnerships acquired during the three month period ended March 31, 2003	—			—			—
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method	300,958			—			93,535
Historic tax credits - cumulative	223,537			—			—
Less share of loss - three months ended March 31, 2003	(259,228		)	(179,850		)	(95,695		)
Other	1,451,707			2,971,717			953,738
Investments in operating limited partnerships - as reported	$	9,514,695		$	16,373,993		$	9,168,660

F-254

	Series 25			Series 26			Series 27
Investments in operating limited partnerships - tax return December 31, 2002	$	13,841,526		$	20,252,587		$	12,512,310
Operating limited partnerships acquired during the three month period ended March 31, 2003	—			—			—
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method	753,168			328,540			455,971
Historic tax credits - cumulative	—			—			—
Less share of loss - three months ended March 31, 2003	(335,542		)	(123,194		)	(205,532		)
Other	1,056,604			3,258,080			1,882,838
Investments in operating limited partnerships - as reported	$	15,315,756		$	23,716,013		$	14,645,587

F-255

	Series 28			Series 29			Series 30
Investments in operating limited partnerships - tax return December 31, 2002	$	24,087,706		$	21,584,242		$	14,893,877
Operating limited partnerships acquired during the three month period ended March 31, 2003	—			—			—
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method	—			—			—
Historic tax credits - cumulative	—			—			—
Less share of loss - three months ended March 31, 2003	(129,668		)	(265,241		)	—
Other	1,226,438			1,131,899			1,768,057
Investments in operating limited partnerships - as reported	$	25,184,476		$	22,450,900		$	16,661,934

F-256

	Series 31			Series 32		Series 33
Investments in operating limited partnerships - tax return December 31, 2002	$	23,111,051		$	29,665,463	$	16,680,498
Operating limited partnerships acquired during the three month period ended March 31, 2003	—			—		—
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method	—			268,795		—
Historic tax credits - cumulative	—			—		—
Less share of loss - three months ended March 31, 2003	(125,347		)	—		—
Other	2,670,406			1,160,697		1,054,277
Investments in operating limited partnerships - as reported	$	25,656,110		$	31,094,955	$	17,734,775

F-257

	Series 34		Series 35		Series 36
Investments in operating limited partnerships - tax return December 31, 2002	$	20,006,755	$	18,276,918	$	11,625,848
Operating limited partnerships acquired during the three month period ended March 31, 2003	—		—		—
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method	—		—		—
Historic tax credits - cumulative	—		—		—
Less share of loss - three months ended March 31, 2003	—		—		—
Other	2,233,354		1,490,763		860,165
Investments in operating limited partnerships - as reported	$	22,240,109	$	19,767,681	$	12,486,013

F-258

	Series 37		Series 38		Series 39
Investments in operating limited partnerships - tax return December 31, 2002	$	15,662,758	$	15,888,701	$	14,309,713
Operating limited partnerships acquired during the three month period ended March 31, 2003	—		—		—
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method	—		—		—
Historic tax credits - cumulative	—		—		—
Less share of loss - three months ended March 31, 2003	—		—		—
Other	490,999		769,999		420,660
Investments in operating limited partnerships - as reported	$	16,153,757	$	16,658,700	$	14,730,373

F-259

	Series 40		Series 41		Series 42
Investments in operating limited partnerships - tax return December 31, 2002	$	17,832,411	$	18,644,417	$	18,529,983
Operating limited partnerships acquired during the three month period ended March 31, 2003	—		—		—
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method	—		—		—
Historic tax credits - cumulative	—		—		—
Less share of loss - three months ended March 31, 2003	—		—		—
Other	423,986		776,725		1,050,515
Investments in operating limited partnerships - as reported	$	18,256,397	$	19,421,142	$	19,580,498

F-260

	Series 43		Series 44
Investments in operating limited partnerships - tax return December 31, 2002	$	14,370,320	$	2,403,807
Operating limited partnerships acquired during the three month period ended March 31, 2003	1,304,078		—
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method	—		—
Historic tax credits - cumulative	—		—
Less share of loss - three months ended March 31, 2003	—		—
Other	2,675,201		2,247,869
Investments in operating limited partnerships - as reported	$	18,349,599	$	4,651,676

F-261

The differences between the investments in operating limited partnerships for tax purposes and financial statement purposes at March 31, 2002, are as follows:

	Total			Series 20			Series 21
Investments in operating limited partnerships - tax return December 31, 2001	$	385,095,638		$	14,374,211		$	5,393,717
Operating limited partnerships acquired during the three month period ended March 31, 2002	7,896,556			—			—
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method	8,285,544			211,670			6,257,772
Historic tax credits - cumulative	794,154			570,617			—
Less share of loss - three months ended March 31, 2002	(2,775,473		)	(404,710		)	(651,466		)
Other	11,561,432			(56,415		)	(8,070,206		)
Investments in operating limited partnerships - as reported	$	410,857,851		$	14,695,373		$	2,929,817

F-262

	Series 22			Series 23			Series 24
Investments in operating limited partnerships - tax return December 31, 2001	$	9,613,029		$	15,167,202		$	8,796,837
Operating limited partnerships acquired during the three month period ended March 31, 2002	—			—			—
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method	170,267			—			362,514
Historic tax credits - cumulative	223,537			—			—
Less share of loss - three months ended March 31, 2002	(259,228		)	(179,850		)	(95,695		)
Other	1,339,694			2,739,476			177,249
Investments in operating limited partnerships - as reported	$	11,087,299		$	17,726,828		$	9,240,905

F-263

	Series 25			Series 26			Series 27
Investments in operating limited partnerships - tax return December 31, 2001	$	15,258,271		$	22,298,903		$	13,799,914
Operating limited partnerships acquired during the three month period ended March 31, 2002	—			—			—
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method	553,303			225,038			320,867
Historic tax credits - cumulative	—			—			—
Less share of loss - three months ended March 31, 2002	(335,542		)	(123,194		)	(205,532		)
Other	789,530			2,384,503			1,531,912
Investments in operating limited partnerships - as reported	$	16,265,562		$	24,785,250		$	15,447,161

F-264

	Series 28			Series 29			Series 30
Investments in operating limited partnerships - tax return December 31, 2001	$	24,870,667		$	23,627,280		$	16,302,490
Operating limited partnerships acquired during the three month period ended March 31, 2002	—			—			—
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method	—			—			—
Historic tax credits - cumulative	—			—			—
Less share of loss - three months ended March 31, 2002	(129,668		)	(265,241		)	—
Other	1,614,148			1,128,621			1,524,385
Investments in operating limited partnerships - as reported	$	26,355,147		$	24,490,660		$	17,826,875

F-265

	Series 31			Series 32		Series 33
Investments in operating limited partnerships - tax return December 31, 2001	$	25,834,800		$	31,894,531	$	17,919,409
Operating limited partnerships acquired during the three month period ended March 31, 2002	—			—		—
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method	—			184,113		—
Historic tax credits - cumulative	—			—		—
Less share of loss - three months ended March 31, 2002	(125,347		)	—		—
Other	2,011,528			880,517		706,568
Investments in operating limited partnerships - as reported	$	27,720,981		$	32,959,161	$	18,625,977

F-266

	Series 34		Series 35		Series 36
Investments in operating limited partnerships - tax return December 31, 2001	$	22,874,351	$	20,119,504	$	13,129,727
Operating limited partnerships acquired during the three month period ended March 31, 2002	—		—		—
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method	—		—		—
Historic tax credits - cumulative	—		—		—
Less share of loss - three months ended March 31, 2002	—		—		—
Other	976,925		813,354		344,011
Investments in operating limited partnerships - as reported	$	23,851,276	$	20,932,858	$	13,473,738

F-267

	Series 37			Series 38		Series 39
Investments in operating limited partnerships - tax return December 31, 2001	$	17,758,286		$	17,352,065	$	16,281,310
Operating limited partnerships acquired during the three month period ended March 31, 2002	—			—		—
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method	—			—		—
Historic tax credits - cumulative	—			—		—
Less share of loss - three months ended March 31, 2002	—			—		—
Other	(288,690		)	280,024		(186,159		)
Investments in operating limited partnerships - as reported	$	17,469,596		$	17,632,089	$	16,095,151

F-268

	Series 40		Series 41		Series 42
Investments in operating limited partnerships - tax return December 31, 2001	$	18,332,221	$	14,096,913	$	—
Operating limited partnerships acquired during the three month period ended March 31, 2002	—		5,221,019		2,675,537
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method	—		—		—
Historic tax credits - cumulative	—		—		—
Less share of loss - three months ended March 31, 2002	—		—		—
Other	208,709		711,748		—
Investments in operating limited partnerships - as reported	$	18,540,930	$	20,029,680	$	2,675,537

F-269

NOTE G - INVESTMENTS AVAILABLE-FOR-SALE

At March 31, 2003, the amortized cost and fair value of investments available-for-sale are as follows:

	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Tax-exempt municipal bonds	$	5,467,891	$	43,974	$	—	$	5,511,865
Other	503,883		2,632		—		506,515
	$	5,971,774	$	46,606	$	—	$	6,018,380

The amortized cost and fair value of investments available-for-sale by maturity as of March 31, 2003 is shown below:

	Amortized cost		Fair value
Due in one year or less	$	4,845,371	$	4,824,100
Due in one year through five years	1,126,403		1,194,280
	$	5,971,774	$	6,018,380

Proceeds from sales and maturities of investments during the year ended March 31, 2003 were $2,472,446, resulting in a realized loss of $24,441, included in interest income.

The tax-exempt coupon rates for the investments held during the year ranged from 3.75% to 6.25%.

F-270

	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Tax-exempt municipal bonds	$	6,879,909	$	23,157	$	—	$	6,903,066
Other	571,427		—		—		571,427
	$	7,451,336	$	23,157	$	—	$	7,474,493

The amortized cost and fair value of investments available-for-sale by maturity as of March 31, 2002 is shown below:

	Amortized cost		Fair value
Due in one year or less	$	2,878,297	$	2,882,300
Due in one year through five years	4,573,039		4,592,193
	$	7,451,336	$	7,474,493

Proceeds from sales and maturities of investments during the year ended March 31, 2002 were $5,692,758, resulting in a realized loss of $63,626, included in interest income.

The tax-exempt coupon rates for the investments held during the year ranged from 1.55% to 7.375%.

F-271

NOTE H - CASH EQUIVALENTS

On March 31, 2003 and 2002, the fund purchased $20,150,000 and $11,400,259 of U.S. Government Securities under agreements for resale on April 1, 2003 and April 1, 2002, respectively.  Interest is earned at rates ranging from 0.6% to 3.3% per annum.

Cash equivalents of $5,732,162 and $7,509,564 as of March 31, 2003 and 2002, respectively, include tax-exempt sweep accounts and money market accounts with interest rates ranging from 0.62% to 2.6% per annum.

NOTE I - LINE OF CREDIT

During the years ended March 31, 2003 and 2002, the partnership has a line of credit with a bank in the amount of $40,000,000 and $40,000,000, respectively, of which $0 and $5,708,074 was outstanding as of March 31, 2003 and 2002, respectively.  The line bears interest at the prime rate (4.25% and 4.75% at March 31, 2003 and 2002, respectively) plus .25%.  Interest is payable monthly.  During the years ended March 31, 2003 and 2002, $196,831 and $69,039, respectively, of interest was incurred and paid.  As of March 31, 2003 and 2002, interest of $112,892 and $58,606, respectively, is included in investments in operating limited partnerships and $83,939 and $10,433, respectively, is included in other assets.  The line is guaranteed by Boston Capital Holdings, L.P. and various affiliates and expires on August 31, 2003.

NOTE J - CONTINGENCIES

M.R.H., L.P., an operating limited partnership, received a 60-day letter issued by the IRS proposing to reduce the amount of low-income housing tax credits allowable because it asserts that certain fees and other expenditures were not includible in the eligible basis of the property.  The 60-day letter was the result of an IRS audit of the Operating Partnership’s books and records.  As a result of their audit, the IRS has proposed an adjustment that would disallow approximately 18% of past and future tax credits.  The adjustment will also include interest.  The Investment General Partner and its counsel along with the Operating General Partner and its counsel will likely file an appeal and continue negotiations with the IRS Appeals Office.

F-272

The fund has invested in nine operating partnerships in which the general partner of the operating limited partnerships has been found guilty of wire fraud and conspiracy to commit equity skimming in connection with the cost certifications of these properties.  The investment balances in these properties total $5,092,117 at March 31, 2003.  The fund has recorded tax credit adjusters totaling $457,575 at March 31, 2003 for what it believes is the impact of this matter.  The tax credit adjuster receivable is expected to be funded from an escrow provided to an affiliate of the fund by the general partner of the operating limited partnerships but there can be no assurance that there will be sufficient funds in the escrow account to satisfy all receivables.  The Internal Revenue Service is in the process of reviewing the revised cost certifications at the operating partnership level.  Consequently, the ultimate impact to the fund for this matter cannot be determined and no additional provision has been made in the accompanying financial statements.

Martinsville-I, Ltd., an operating limited partnership, is involved in several lawsuits with various former subcontractors over construction-related issues.  The Investment General Partner continues to monitor this situation and does not anticipate an outcome that will have a material adverse effect on the financial statements.  Accordingly, no adjustment has been made in the accompanying financial statements.

San Diego/Fox Hollow, L.P., an operating limited partnership, and its limited partners and affiliates have filed a lawsuit against the former Operating General Partner and its affiliates for breaches of various agreements.  The former Operating General Partner and its affiliates have filed a counter lawsuit against the operating limited partnership, its limited partners and affiliates.  The lawsuits are in the discovery stage.  The Investment General Partner believes the counter claim is without merit and intends to defend its position vigorously.  Accordingly, no adjustment has been made in the accompanying financial statements.

F-273

NOTE K - QUARTERLY FINANCIAL INFORMATION - UNAUDITED

The following is a summary of the results of operations for each of the four quarters for the years indicated:

	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
2003
Total revenue	$	259,474		$	142,336		$	294,586		$	414,838
Loss from operations	(1,453,307		)	(1,923,525		)	(1,698,902		)	(2,446,996		)
Share of losses from operating limited partnerships	(5,771,092		)	(6,486,339		)	(6,148,954		)	(8,433,889		)
Net loss	(7,224,399		)	(8,409,864		)	(7,847,856		)	(10,880,885		)
2002
Total revenue	$	218,471		$	206,062		$	335,241		$	166,665
Loss from operations	(1,266,160		)	(1,753,034		)	(1,621,962		)	(1,510,167		)
Share of losses from operating limited partnerships	(5,781,968		)	(5,671,369		)	(5,640,259		)	(12,999,836		)
Net loss	(7,048,128		)	(7,424,403		)	(7,262,221		)	(14,510,003		)
2001
Total revenue	$	660,856		$	832,357		$	596,209		$	389,163
Loss from operations	(881,971		)	(1,006,961		)	(974,738		)	(1,529,923		)
Share of losses from operating limited partnerships	(4,435,838		)	(3,966,301		)	(3,799,251		)	(15,056,976		)
Net loss	(5,317,809		)	(4,973,262		)	(4,773,989		)	(16,586,899		)

F-274

Boston Capital Tax Credit Fund IV LP - Series 20
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2003

	Initial cost to company			Cost capitalized subsequent to acquisition		Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements		Land	Buildings and Improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
2730 LAFFERTY ST	4,977,496	435,550	3,717,895	4,177,621		435,550	7,895,516	8,331,066	3,160,889	09/95	06/94	5-27.5
ASHBURY APTS	1,138,137	148,007	2,158,237	90,440		148,007	2,248,677	2,396,684	665,587	06/94	04/94	5-27.5
BENNETS PT	1,328,873	71,749	1,557,622	21,304		71,749	1,578,926	1,650,675	532,742	08/94	03/94	5-27.5
BRADLEY ELDERLY	790,392	4,000	986,204	(18,018	)	4,000	968,186	972,186	296,442	03/95	08/94	5-27.5
BREEZE COVE	2,644,416	128,751	5,333,835	34,529		128,751	5,368,364	5,497,115	1,851,166	10/94	05/94	5-27.5
CASCADES COMMONS	14,241,563	5,131,293	2,743,532	23,525,751		3,375,809	26,269,283	29,645,092	6,816,593	10/95	06/94	5-27.5
CLARKESVILLE ESTATES	686,066	28,550	838,235	14,646		28,550	852,881	881,431	357,923	09/94	06/94	5-27.5
COLLEGE GREEN	3,712,242	225,000	6,813,536	45,975		225,000	6,859,511	7,084,511	2,071,693	08/95	03/95	5-27.5
CONCORDIA HOUSING	1,451,278	0	1,997,510	0		0	1,997,510	1,997,510	427,684	07/95	08/94	10-40
COUSHATTA SR II	705,304	25,700	904,920	2,640		25,700	907,560	933,260	202,074	03/94	05/94	5-27.5
CYNTHIANA HOUSING	767,449	32,117	1,016,135	678,695		32,117	1,694,830	1,726,947	567,865	04/95	10/94	5-27.5
EAST DOUGLAS	2,083,380	23,913	2,593,259	1,460,043		23,913	4,053,302	4,077,215	1,076,054	12/95	07/94	5-27.5
EDISON LANE	712,943	6,900	951,249	1,156		6,900	952,405	959,305	275,811	10/95	09/94	5-27.5
EVERGREEN HILLS	2,734,009	157,537	4,337,312	565,830		157,537	4,903,142	5,060,679	1,781,945	01/95	08/94	5-27.5
FAIR OAKS	1,401,662	123,600	1,767,207	2,689		125,000	1,769,896	1,894,896	537,576	05/95	07/94	5-27.5
FLORAL ACRES	1,022,690	148,672	1,187,134	28,441		148,672	1,215,575	1,364,247	250,108	08/94	05/94	5-27.5
FOREST GLEN	1,317,667	84,800	1,663,592	5,199		109,800	1,668,791	1,778,591	540,489	02/95	07/94	5-27.5
FRANKLINTON ELDERLY	1,678,258	64,300	2,074,319	10,517		64,300	2,084,836	2,149,136	434,114	10/94	04/94	5-50
GOLDENROD LTD	7,156,224	800,000	13,425,210	80,116		770,000	13,505,326	14,275,326	4,023,581	06/95	04/94	5-27.5
HARRISONBURG	679,874	10,160	877,026	0		10,160	877,026	887,186	209,747	01/94	05/94	7-40
NORTHFIELD	2,829,171	192,208	4,326,388	2,189,091		193,208	6,515,479	6,708,687	1,900,020	05/95	06/94	5-27.5

F-275

	Initial cost to company			Cost capitalized subsequent to acquisition	Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements	Land	Buildings and Improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
PARKSIDE HOUSING	649,649	80,000	943,917	51,750	80,000	995,667	1,075,667	328,615	01/94	12/94	5-27.5
SHADY LANE	932,056	60,000	1,157,181	174,280	60,000	1,331,461	1,391,461	272,419	10/93	05/94	5-27.5
VIRGINIA AVENUE	1,265,475	121,238	3,510,339	9,654	121,238	3,519,993	3,641,231	1,112,546	10/94	10/94	5-27.5
	56,906,274	8,104,045	66,881,794	33,152,349	6,345,961	100,034,143	106,380,104	29,693,683

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2002.

There were no carrying costs as of December 31, 2002.  The column has been omitted for presentation purposes.

F-276

Notes to Schedule III

Boston Capital Tax Credit Fund IV LP - Series 20

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/94			$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	47,152,331
Improvements, etc	0
Other	0
			$	47,152,331
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/95			$	47,152,331
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	6,999,847
Improvements, etc	50,521,023
Other	0
			$	57,520,870
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/96			$	104,673,201
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	718,412
Other	0
			$	718,412
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/97			$	105,391,613

F-277

Balance at close of period - 3/31/97			$	105,391,613
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	286,982
Other	0
			$	286,982
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/98			$	105,678,595
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	152,834
Other	0
			$	152,834
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/99			$	105,831,429
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	55,995
Other	0
			$	55,995
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/00			$	105,887,424

F-278

Balance at close of period - 3/31/00			$	105,887,424
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	90,819
Other	0
			$	90,819
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/01			$	105,978,243
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	124,625
Other	0
			$	124,625
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/02			$	106,102,868
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	277,236
Other	0
			$	277,236
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/03			$	106,380,104

F-279

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/94			$	0
Current year expense	$	509,226
Balance at close of period - 3/31/95			$	509,226
Current year expense	$	2,750,192
Balance at close of period - 3/31/96			$	3,259,418
Current year expense	$	3,936,515
Balance at close of period - 3/31/97			$	7,195,933
Current year expense	$	3,837,060
Balance at close of period - 3/31/98			$	11,032,933
Current year expense	$	3,805,824
Balance at close of period - 3/31/99			$	14,838,817
Current year expense	$	3,729,052
Balance at close of period - 3/31/99			$	18,567,869
Current year expense	$	3,774,641
Balance at close of period - 3/31/01			$	22,342,510
Current year expense	$	3,752,932
Balance at close of period - 3/31/02			$	26,095.442
Current year expense	$	3,598,241
Balance at close of period - 3/31/03			$	29,693,683

F-280

Boston Capital Tax Credit Fund II Limited Partnership - Series 21
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2003

	Initial cost to company			Cost capitalized subsequent to acquisition		Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements		Land	Buildings and Improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
ATLANTIC CITY	5,175,000	100,000	8,334,766	(8,334,766	)	0	0	0	0	10/95	09/94	5-27.5
BLACK RIVER RUN	1,188,136	15,000	2,171,360	20,606		15,000	2,191,966	2,206,966	515,978	12/94	10/94	5-27.5
CAMPTON HOUSING	1,013,413	74,511	1,256,245	38,703		74,511	1,294,948	1,369,459	295,762	10/94	08/94	5-40
CATTARAGUS MANOR	1,084,560	56,630	1,238,241	190,196		56,630	1,428,437	1,485,067	304,668	04/95	08/94	5-27.5
CENTRUM FAIRFAX	5,731,944	1,160,250	7,247,614	(175,832	)	1,160,250	7,071,782	8,232,032	1,295,349	09/95	11/94	5-30
CENTRUM FREDERICK	4,749,380	1,380,000	6,922,259	(86,761	)	1,080,000	6,835,498	7,915,498	1,298,825	09/95	10/94	5-27.5
FORT HALIFAX	1,111,165	120,000	1,324,762	260,877		121,200	1,585,639	1,706,839	437,507	01/95	09/94	5-27.5
HAVELOCK MANOR	1,826,589	120,000	2,194,078	16,121		120,000	2,210,199	2,330,199	503,320	10/95	12/94	5-27.5
HOLLY VILLAGE	704,960	15,270	962,236	6,231		15,270	968,467	983,737	296,565	06/95	08/94	5-27.5
LIVE OAK VILLAGE	755,654	63,210	899,606	29,036		63,210	928,642	991,852	190,346	07/95	10/94	6-40
LOOKOUT RIDGE	618,548	62,000	1,639,096	0		62,000	1,639,096	1,701,096	476,824	12/94	12/94	5-27.5
PINEDALE II	1,331,587	27,906	2,876,158	8,568		12,906	2,884,726	2,897,632	663,594	12/94	10/94	5-27.5
PUMPHOUSE CROSSING	1,217,042	10,000	2,431,087	15,520		10,000	2,446,607	2,456,607	584,368	12/94	10/94	5-27.5
TOWERVIEW	1,115,293	46,629	1,571,026	86,630		46,629	1,657,656	1,704,285	352,669	05/95	11/94	5-27.5
	27,623,271	3,251,406	41,068,534	(7,924,871	)	2,837,606	33,143,663	35,981,269	7,215,775

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2002.

There were no carrying costs as of December 31, 2002.  The column has been omitted for presentation purposes.

F-281

Notes to Schedule III

Boston Capital Tax Credit Fund IV LP - Series 21

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/94				$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	14,011,014
Improvements, etc	0
Other	0
				$	14,011,014
Deductions during period:
Cost of real estate sold	$	0
Other	0
				$	0
Balance at close of period - 3/31/95				$	14,011,014
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	31,821,601
Improvements, etc	693,221
Other	0
				$	32,514,822
Deductions during period:
Cost of real estate sold	$	0
Other	0
				$	0
Balance at close of period - 3/31/96				$	46,525,836
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	102,815
Other	0
				$	102,815
Deductions during period:
Cost of real estate sold	$	(1,512,675	)
Other	(193,671		)
				$	(1,706,346	)
Balance at close of period - 3/31/97				$	44,922,305

F-282

Balance at close of period - 3/31/97			$	44,922,305
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	108,749
Other	0
			$	108,749
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/98			$	45,031,054
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	77,404
Other	0
			$	77,404
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/99			$	45,108,458
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	135,007
Other	0
			$	135,007
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/00			$	45,243,465

F-283

Balance at close of period - 3/31/00				$	45,243,465
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	38,153
Other	0
				$	38,153
Deductions during period:
Cost of real estate sold	$	0
Other	0
				$
Balance at close of period - 3/31/01				$	45,281,618
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	46,621
Other	0
				$	46,621
Deductions during period:
Cost of real estate sold	$	0
Other	(9,396,711		)
				$	(9,396,711	)
Balance at close of period - 3/31/02				$	35,931,528
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	49,741
Other	0
				$	49,741
Deductions during period:
Cost of real estate sold	$	0
Other	0
				$	0
Balance at close of period - 3/31/03				$	35,981,269

F-284

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/94				$	0
Current year expense	$	117,569
Balance at close of period - 3/31/95				$	117,569
Current year expense	$	790,213
Balance at close of period - 3/31/96				$	907,782
Current year expense	$	1,104,203
Balance at close of period - 3/31/97				$	2,011,985
Current year expense	$	1,204,163
Balance at close of period - 3/31/98				$	3,216,148
Current year expense	$	1,204,255
Balance at close of period - 3/31/99				$	4,420,403
Current year expense	$	1,205,452
Balance at close of period - 3/31/00				$	5,625,855
Current year expense	$	1,193,549
Balance at close of period - 3/31/01				$	6,819,404
Current year expense	$	(503,421	)
Balance at close of period - 3/31/02				$	6,315,983
Current year expense	$	899,792
Balance at close of period - 3/31/03				$	7,215,775

F-285

Boston Capital Tax Credit Fund IV Limited Partnership - Series 22
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2003

	Initial cost to company			Cost capitalized subsequent to acquisition		Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements		Land	Buildings and improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
ALBAMARLE VILLAGE	1,431,305	91,280	1,720,443	21,921		91,280	1,742,364	1,833,644	585,243	09/94	09/94	5-27.5
BAYOU CROSSING	8,615,411	867,209	16,061,472	60,768		857,500	16,122,240	16,979,740	3,152,200	01/96	11/94	12-39
BELLWOOD LP	1,235,761	64,715	1,505,852	83,954		64,715	1,589,806	1,654,521	323,218	07/95	09/95	5-27.5
BIRCH RIDGE	2,800,000	178,000	0	5,680,205		178,000	5,680,205	5,858,205	1,064,802	03/96	01/95	5-40
BLACK RIVER RUN	1,188,136	15,000	2,171,360	20,606		15,000	2,191,966	2,206,966	515,978	12/94	04/95	5-27.5
CLARENDON COURT	1,435,854	41,930	1,799,906	1,328		41,930	1,801,234	1,843,164	549,852	04/95	10/94	7-27.5
COBBLESTONE	1,401,719	79,567	1,679,627	6,537		79,567	1,686,164	1,765,731	564,453	05/94	01/95	5-27.5
CONCORDIA II	1,480,613	169,820	1,854,563	0		179,040	1,854,563	2,033,603	406,430	11/95	01/95	10-40
CONCORDIA III	1,469,851	0	0	1,895,814		172,090	1,895,814	2,067,904	400,148	12/95	02/95	10-40
CRYSTAL CITY FESTUS	1,369,910	120,732	3,137,651	56,769		120,732	3,194,420	3,315,152	917,299	11/95	01/95	5-27.5
DRAKES BRANCH	1,254,181	75,473	1,511,490	(50,471	)	75,473	1,461,019	1,536,492	453,514	06/95	01/95	5-27.5
EDMOND PROP	3,768,496	160,000	0	7,037,006		160,000	7,037,006	7,197,006	1,549,695	03/96	11/94	5-27.5
ELKS TOWER	795,675	10,000	1,344,357	304,286		10,000	1,648,643	1,658,643	335,303	12/96	10/95	27.5
FONDA LP	1,013,411	25,000	1,310,014	55,968		25,000	1,365,982	1,390,982	453,524	10/94	12/94	5-27.5
GOLDENROD	7,156,224	770,000	13,323,746	181,580		770,000	13,505,326	14,275,326	4,023,581	06/95	03/95	7-27.5
KIMBARK 1200	1,960,989	495,120	3,102,192	72,433		495,120	3,174,625	3,669,745	576,161	12/95	09/95	40
LAKE STREET	1,347,650	20,000	1,846,543	80,799		20,000	1,927,342	1,947,342	402,178	09/95	04/95	5-27.5
LAKE CITY	1,275,486	111,455	1,419,645	0		111,455	1,419,645	1,531,100	269,728	08/98	06/98	5-27.5
LOST TREE	1,549,505	85,000	4,510,201	19,770		85,000	4,529,971	4,614,971	1,005,300	06/95	04/95	5-27.5
MARKSVILLE SQUARE	950,950	66,000	250,449	996,658		66,000	1,247,107	1,313,107	229,590	01/96	01/95	5-40
PHILADELPHIA HOUSING I	538,952	13,750	757,989	16,430		13,750	774,419	788,169	120,856	08/95	07/95	5-27.5

F-286

	Initial cost to company			Cost capitalized subsequent to acquisition		Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements		Land	Buildings and improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
PHILADELPHIA HOUSING II	842,112	25,000	1,219,579	18,002		25,000	1,237,581	1,262,581	191,134	08/95	07/95	5-27.5
QUANKEY HILLS	1,000,533	51,368	1,189,397	4,656		51,368	1,194,053	1,245,421	369,225	03/95	01/95	5-27.5
RICHMOND HARDIN	840,696	55,000	2,143,538	24,412		55,232	2,167,950	2,223,182	692,241	02/95	12/94	5-27.5
ROXBURY VETERANS	715,700	0	0	1,288,143		27,956	1,288,143	1,316,099	297,417	05/97	12/96	5-27.5
SACRAMENTO APTS	430,597	18,000	575,442	0		18,000	575,442	593,442	163,246	09/95	08/95	5-27.5
SALEM LP	940,085	33,093	1,132,389	4,657		33,093	1,137,046	1,170,139	363,089	12/94	01/95	5-27.5
SWEDESBORO HOUSING	1,800,015	168,295	1,814,291	(23,027	)	168,295	1,791,264	1,959,559	375,480	06/95	07/95	5-27.5
TROY VILLA	1,842,166	231,605	4,084,841	13,742		231,605	4,098,583	4,330,188	1,304,686	06/95	12/94	5-27.5
	52,451,983	4,042,412	71,466,977	17,872,946		4,242,201	89,339,923	93,582,124	21,655,571

Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 2002.

There we no carrying costs as of December 31, 2002. The Column has been omitted for presentation purposes.

F-287

Notes to Schedule III

Boston Capital Tax Credit Fund IV LP - Series 22

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/94				$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	2,699,758
Improvements, etc	0
Other	0
				$	2,699,758
Deductions during period:
Cost of real estate sold	$	0
Other	0
				$	0
Balance at close of period - 3/31/95				$	2,699,758
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	75,121,060
Improvements, etc	15,793
Other	0
				$	75,136,853
Deductions during period:
Cost of real estate sold	$	0
Other	0
				$	0
Balance at close of period - 3/31/96				$	77,836,611
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	16,438,316
Other	0
				$	16,438,316
Deductions during period:
Cost of real estate sold	(3,852,006		)
Other	0
				$	(3,852,006	)
Balance at close of period - 3/31/97				$	90,422,921

F-288

Balance at close of period - 3/31/97			$	90,422,921
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	1,217,148
Other	0
			$	1,217,148
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/98			$	91,640,069
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	1,515,875
Improvements, etc	64,662
Other	0
			$	1,580,537
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/99			$	93,220,606
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	186,728
Other	0
			$	186,728
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/00			$	93,407,334

F-289

Balance at close of period - 3/31/00			$	93,407,334
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	5,064
Other	0
			$	5,064
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/01			$	93,412,398
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	122,651
Other	0
			$	122,651
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/02			$	93,535,049
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	47,075
Other	0
			$	47,075
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/03			$	93,582,124

F-290

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/94			$	0
Current year expense	$	16,389
Balance at close of period - 3/31/95			$	16,389
Current year expense	$	1,685,278
Balance at close of period - 3/31/96			$	1,701,667
Current year expense	$	2,638,228
Balance at close of period - 3/31/97			$	4,339,895
Current year expense	$	2,931,844
Balance at close of period - 3/31/98			$	7,271,739
Current year expense	$	2,937,708
Balance at close of period - 3/31/99			$	10,209,447
Current year expense	$	2,916,355
Balance at close of period - 3/31/00			$	13,125,802
Current year expense	$	2,896,137
Balance at close of period - 3/31/01			$	16,021,939
Current year expense	$	2,866,482
Balance at close of period - 3/31/02			$	18,888,421
Current year expense	$	2,767,150
Balance at close of period - 3/31/03			$	21,655,571

F-291

Boston Capital Tax Credit Fund II Limited Partnership - Series 23
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2003

	Initial cost to company			Cost capitalized subsequent to acquisition	Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements	Land	Buildings and Improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
BARLEE PROPERTIES	765,304	64,000	1,641,754	9,345	64,000	1,651,099	1,715,099	443,379	11/95	07/95	5-30
BAYOU CROSSING	8,615,411	857,500	16,061,472	60,768	857,500	16,122,240	16,979,740	3,152,200	01/96	02/95	12-39
BIRCH RIDGE	2,800,000	178,000	0	5,680,205	178,000	5,680,205	5,858,205	1,064,802	03/96	01/95	5-40
BRODERICK HOUSING	2,003,329	275,037	4,540,011	93,141	275,037	4,633,152	4,908,189	854,562	06/96	08/95	7-27.5
COLONNA REDEVELOPMENT	1,219,072	374,310	3,470,813	19,650	374,310	3,490,463	3,864,773	739,018	05/94	05/95	7-40
CONCORDIA II	1,480,613	169,820	1,854,563	0	179,040	1,854,563	2,033,603	406,430	11/95	01/95	10-40
CONCORDIA III	1,469,851	0	0	1,895,814	172,090	1,895,814	2,067,904	400,148	12/95	02/95	7-27.5
CRYSTAL CITY  FESTUS	1,369,910	120,732	3,137,651	56,769	120,732	3,194,420	3,315,152	917,299	11/95	02/95	5-40
EDMOND PROP	3,768,496	160,000	0	7,037,006	160,000	7,037,006	7,197,006	1,549,695	03/96	11/94	5-40
HALLS FERRY APTS.	1,135,578	5,064	2,984,978	197,648	5,064	3,182,626	3,187,690	615,454	12/95	08/95	5-40
HURLEYVILLE	1,154,952	143,182	1,549,696	21,833	143,182	1,571,529	1,714,711	305,815	12/95	07/95	5-15
ITHACA I APTS.	639,712	37,945	808,775	11,363	37,945	820,138	858,083	187,932	07/95	11/95	7-27.5
KIMBARK 1200	1,960,989	495,120	3,102,192	72,433	495,120	3,174,625	3,669,745	576,161	12/95	09/95	5-40
MATHIS APTS.	900,794	25,819	1,176,999	34,988	25,819	1,211,987	1,237,806	237,171	01/95	01/95	5-40
MID CITY ASSOC	2,841,065	15,058	6,616,466	0	15,058	6,616,466	6,631,524	2,034,715	06/94	09/95	5-27.5
ORANGE GROVE	659,878	43,180	824,814	24,713	43,180	849,527	892,707	178,110	02/95	01/95	5-40
PHILMONT	1,481,857	40,000	1,885,476	40,565	40,000	1,926,041	1,966,041	585,092	05/95	05/95	5-40
SACRAMENTO SRO	2,451,101	0	0	5,381,314	133,000	5,381,314	5,514,314	934,781	12/96	09/95	7-39
SOUTH HILLS	1,827,280	131,000	1,261,754	2,637,639	131,000	3,899,393	4,030,393	763,960	02/96	06/95	5-40
ST. PETERS VILLA	1,748,012	425,974	0	3,488,776	425,974	3,488,776	3,914,750	996,992	03/96	07/95	5-27.5
VILLAGE WOODS	1,537,726	51,080	3,637,023	341,539	51,080	3,978,562	4,029,642	754,526	12/95	05/95	5-40
WOODLAND PROP	293,200	30,000	593,884	2,722	30,000	596,606	626,606	162,519	06/95	07/95	7-30
	42,124,130	3,642,821	55,148,321	27,108,231	3,957,131	82,256,552	86,213,683	17,860,761

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2002.

There were no carrying costs as of December 31, 2002.  The column has been omitted for presentation purposes.

F-292

Notes to Schedule III

Boston Capital Tax Credit Fund IV LP - Series 23

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/95				$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	58,791,142
Improvements, etc	0
Other	0
				$	58,791,142
Deductions during period:
Cost of real estate sold	$	0
Other	0
				$	0
Balance at close of period - 3/31/96				$	58,791,142
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	25,651,522
Improvements, etc	0
Other	0
				$	25,651,522
Deductions during period:
Cost of real estate sold	$	0
Other	(21,382		)
				$	(21,382	)
Balance at close of period - 3/31/97				$	84,421,282
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	874,764
Other	0
				$	874,764
Deductions during period:
Cost of real estate sold	$	0
Other	0
				$	0
Balance at close of period - 3/31/98				$	85,296,046

F-293

Balance at close of period - 3/31/98				$	85,296,046
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	800,197
Other	0
				$	800,197
Deductions during period:
Cost of real estate sold	$	0
Other	0
				$	0
Balance at close of period - 3/31/99				$	86,096,243
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	62,167
Other	0
				$	62,167
Deductions during period:
Cost of real estate sold	$	0
Other	0
				$	0
Balance at close of period - 3/31/00				$	86,158,410
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	24,036
Other	0
				$	24,036
Deductions during period:
Cost of real estate sold	$	0
Other	(222,349		)
				$	(222,349	)
Balance at close of period - 3/31/01				$	85,960,097

F-294

Balance at close of period - 3/31/01			$	85,960,097
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	197,306
Other	0
			$	197,306
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/02			$	86,157,403
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	56,280
Other	0
			$	56,280
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/03			$	86,213,683

F-295

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/95			$	0
Current year expense	$	693,729
Balance at close of period - 3/31/96			$	693,729
Current year expense	$	2,288,171
Balance at close of period - 3/31/97			$	2,981,900
Current year expense	$	2,505,105
Balance at close of period - 3/31/98			$	5,487,005
Current year expense	$	2,518,829
Balance at close of period - 3/31/99			$	8,005,834
Current year expense	$	2,486,449
Balance at close of period - 3/31/00			$	10,492,283
Current year expense	$	2,490,673
Balance at close of period - 3/31/01			$	12,982,956
Current year expense	$	2,454,712
Balance at close of period - 3/31/02			$	15,437,668
Current year expense	$	2,423,093
Balance at close of period - 3/31/03			$	17,860,761

F-296

Boston Capital Tax Credit Fund IV LP-Series 24
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2003

	Initial cost to company			Cost capitalized subsequent to acquisition		Gross amount at which carried at close of period						Life on which
Description	Encum-brances	Land	Buildings and improvements	Improvements		Land	Buildings and improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
AUTUMN RIDGE	1,525,327	125,347	0	1,764,294		125,347	1,764,294	1,889,641	411,922	01/97	07/96	5-27.5
BROOKS SUMMIT APTS.	1,106,420	44,000	0	1,459,753		44,000	1,459,753	1,503,753	375,150	11/97	12/95	5-27.5
BROWNSVILLE ASSOC	1,190,954	58,945	1,476,197	(256,822	)	58,945	1,219,375	1,278,320	259,027	0.09	09/95	5-40
CENTENARY HOUSING	2,435,000	57,760	3,697,046	51,374		57,760	3,748,420	3,806,180	785,802	12/97	05/97	5-27.5
CENTURY EAST IV APTS.	611,365	90,000	984,989	21,490		90,000	1,006,479	1,096,479	230,875	08/95	08/95	5-40
CENTURY EAST V APTS.	611,365	90,000	982,504	21,958		90,000	1,004,462	1,094,462	228,250	09/95	11/95	5-40
COMMERCE PKWY	1,781,058	242,000	1,579,251	2,773,238		242,000	4,352,489	4,594,489	1,222,548	04/97	09/95	5-27.5
COOLIDGE PINAL	1,121,443	40,000	1,363,991	4,222		40,000	1,368,213	1,408,213	261,900	04/96	04/96	5-27.5
EDENFIELD	1,251,535	10,280	1,709,535	37,190		10,280	1,746,725	1,757,005	480,374	12/96	01/96	28
ELM STREET	1,771,308	183,547	3,715,562	26,430		183,547	3,741,992	3,925,539	640,652	01/96	01/96	5-27.5
JEREMY ASSOC	3,485,836	522,890	6,954,516	456,622		522,890	7,411,138	7,934,028	1,553,255	12/95	06/96	5-40
LAKE I APTS.	592,831	85,000	1,012,730	27,836		85,000	1,040,566	1,125,566	243,164	07/95	08/95	5-40
LAURELWOOD PARK	2,279,621	230,000	5,379,607	6,801		230,000	5,386,408	5,616,408	1,304,094	10/96	02/96	5-27.5
LOS LUNAS	215,000	150,000	2,280,094	(38,848	)	150,000	2,241,246	2,391,246	575,754	06/96	08/96	5-27.5
NEW HILLTOP	1,669,914	54,366	2,145,934	7,574		52,591	2,153,508	2,206,099	612,790	11/95	11/95	5-40
NEW MADISON  PARK IV	7,480,131	541,624	11,606,586	263,533		541,624	11,870,119	12,411,743	2,958,481	03/97	05/96	5-27.5
NORTH HAMPTON PLACE	752,514	207,550	2,230,062	2,200		0	2,232,262	2,232,262	637,963	03/96	11/95	5-27.5
NORTHFIELD HOUSING	183,259	70,000	446,355	3,513		70,000	449,868	519,868	117,866	09/96	12/96	5-27.5
OVERTON ASSOC	1,216,411	130,000	1,529,213	34,215		130,000	1,563,428	1,693,428	254,884	09/96	06/96	5-40
PAHRUMP VALLEY	1,383,399	63,000	1,757,158	0		63,000	1,757,158	1,820,158	456,275	07/96	07/96	7-27.5
STANTON ASSOC	1,201,329	85,971	1,535,425	(260,151	)	85,971	1,275,274	1,361,245	263,907	09/95	09/95	5-40

F-297

	Initial cost to company			Cost capitalized subsequent to acquisition	Gross amount at which carried at close of period
Description	Encum- brances	Land	Buildings and improvements	Improvements	Land	Buildings and Improvements	Total	Accumulated depreciation	Date of construction	Date acquired	Life on which depreciation is computed
SG WYANDOTTE	3,245,714	950,000	0	6,616,598	950,000	6,616,598	7,566,598	1,545,339	02/97	04/96	5-27.5
WOODLAND ASSOCIATES	1,125,907	108,900	1,437,608	100,978	108,900	1,538,586	1,647,486	283,464	09/95	11/95	5-50
ZWOLLE APTS.	857,875	10,000	930,782	188,315	10,000	1,119,097	1,129,097	242,499	04/96	11/95	5-40
	39,095,516	4,151,180	54,755,145	13,312,313	3,941,855	68,067,458	72,009,313	15,946,235

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2002.

There were no carrying costs as of December 31, 2002.  The column has been omitted for presentation purposes.

F-298

Notes to Schedule III

Boston Capital Tax Credit Fund IV LP - Series 24

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/95				$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	15,269,744
Improvements, etc	0
Other	0
				$	15,269,744
Deductions during period:
Cost of real estate sold	$	0
Other	0
				$	0
Balance at close of period - 3/31/96				$	15,269,744
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	44,018,168
Improvements, etc	1,703,291
Other	0
				$	45,721,459
Deductions during period:
Cost of real estate sold	$	(4,136,393	)
Other	(550,346		)
				$	(4,686,739	)
Balance at close of period - 3/31/97				$	56,304,464
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	3,754,806
Improvements, etc	10,437,670
Other	0
				$	14,192,476
Deductions during period:
Cost of real estate sold	$	0
Other	0
				$	0
Balance at close of period - 3/31/98				$	70,496,940

F-299

Balance at close of period - 3/31/98			$	70,496,940
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	435,029
Other	0
			$	435,029
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/99			$	70,931,969
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	422,139
Other	0
			$	422,139
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/00			$	71,354,108
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	83,882
Other	0
			$	83,882
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/01			$	71,437,990

F-300

Balance at close of period - 3/31/01			$	71,437,990
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	269,565
Other	0
			$	269,565
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/02			$	71,707,555
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	301,758
Other	0
			$	301,758
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/03			$	72,009,313

F-301

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/95			$	0
Current year expense	$	176,661
Balance at close of period - 3/31/96			$	176,661
Current year expense	$	1,093,319
Balance at close of period - 3/31/97			$	1,269,980
Current year expense	$	2,321,086
Balance at close of period - 3/31/98			$	3,591,066
Current year expense	$	2,545,309
Balance at close of period - 3/31/99			$	6,136,375
Current year expense	$	2,475,802
Balance at close of period - 3/31/00			$	8,612,177
Current year expense	$	2,442,201
Balance at close of period - 3/31/01			$	11,054,378
Current year expense	$	2,435,488
Balance at close of period - 3/31/02			$	13,489,866
Current year expense	$	2,456,369
Balance at close of period - 3/31/03			$	15,946,235

F-302

Boston Capital Tax Credit Fund II Limited Partnership - Series 25
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2003

	Initial cost to company			Cost capitalized subsequent to acquisition		Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements		Land	Buildings and Improvements	Total	Accumulated depreciation	Date of construction	Date  acquired	depreciation is computed
352 LENOX AVE	513,285	6,250	167,568	1,654,227		6,250	1,821,795	1,828,045	360,175	09/97	10/96	5-27.5
CENTURY EAST II	522,284	70,000	888,314	34,948		70,000	923,262	993,262	192,014	06/96	08/96	5-27.5
DOGWOOD PARK	2,532,344	235,000	0	6,486,819		241,948	6,486,819	6,728,767	1,575,330	10/96	12/95	5-27.5
DUBLIN HOUSING  TWO	673,896	15,000	0	816,370		15,000	816,370	831,370	201,206	12/96	09/96	5-27.5
ETHEL HOUSING	806,612	18,600	1,058,460	112,088		18,600	1,170,548	1,189,148	197,628	12/96	06/96	5-27.5
HORSE CAVE	839,140	75,000	1,053,944	5,561		75,000	1,059,505	1,134,505	190,354	11/96	05/96	5-27.5
HURRICANE HILLS	1,232,903	150,000	416,357	3,243,817		248,816	3,660,174	3,908,990	547,547	04/97	09/96	5-27.5
LAURELWOOD  PARK	2,307,935	230,000	5,379,607	6,801		230,000	5,386,408	5,616,408	1,304,094	10/96	02/96	5-27.5
MAIN EVERETT	603,112	95,786	1,378,380	4,979		95,786	1,383,359	1,479,145	327,252	06/96	01/97	27.5
MAPLE HILL	998,687	182,000	1,560,386	(39,303	)	182,000	1,521,083	1,703,083	216,436	02/98	02/97	5-27.5
MOKEAPOKE	1,211,927	60,000	1,907,937	0		60,000	1,907,937	1,967,937	334,268	04/96	02/96	5-27.5
MRH LP	72,887	105,726	3,610,331	212,110		105,726	3,822,441	3,928,167	945,008	06/96	01/97	5-27.5
NEW MADISON	7,480,131	541,624	11,606,586	263,533		541,624	11,870,119	12,411,743	2,958,481	03/97	05/96	5-27.5
OHIO INVESTORS	1,837,828	31,650	2,354,099	187,816		31,650	2,541,915	2,573,565	716,934	09/95	02/96	5-27.5
OSBORNE HOUSING	416,061	50,667	1,099,730	58,504		50,667	1,158,234	1,208,901	253,419	12/96	06/96	27.5
ROSE SQUARE	386,504	106,942	615,913	19,521		106,942	635,434	742,376	93,641	02/97	10/96	5-27.5
SANDSTONE VILLAGE	1,175,986	96,047	0	2,608,751		96,047	2,608,751	2,704,798	635,008	08/96	11/95	5-27.5
SHANNON HOUSING	1,252,959	34,800	1,466,352	160,184		34,800	1,626,536	1,661,336	286,841	01/97	04/96	40.7
SMITH HOUSE	1,837,630	107,284	5,108,688	226,787		107,284	5,335,475	5,442,759	1,377,649	03/97	04/96	5-27..5
SG WAYNDOTTE	3,245,714	950,000	1,254,765	5,361,833		950,000	6,616,598	7,566,598	1,545,339	02/97	04/96	5-27.5
SUTTON PLACE	5,980,786	352,500	7,055,577	1,110,474		352,500	8,166,051	8,518,551	2,369,873	10/97	11/96	5-27.5
WEST POINT  HOUSING	1,078,206	75,000	1,188,623	475,635		75,000	1,664,258	1,739,258	285,068	04/96	09/96	40.7
	37,006,817	3,589,876	49,171,617	23,011,455		3,695,640	72,183,072	75,878,712	16,913,565

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2002.

There were no carrying costs as of December 31, 2002.  The column has been omitted for presentation purposes.

F-303

Notes to Schedule III

Boston Capital Tax Credit Fund IV LP - Series 25

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/95			$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	331,047
Improvements, etc	0
Other	0
			$	331,047
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/96			$	331,047
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	43,624,585
Improvements, etc	9,149,104
Other	0
			$	52,773,689
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/97			$	53,104,736
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	5,458,443
Improvements, etc	15,277,130
Other	0
			$	20,735,573
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/98			$	73,840,309

F-304

Balance at close of period - 3/31/98			$	73,840,309
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	651,749
Other	0
			$	651,749
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/99			$	74,492,058
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	282,521
Other	0
			$	282,521
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/00			$	74,774,579
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	572,576
Other	0
			$	572,576
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/01			$	75,347,155

F-305

Balance at close of period - 3/31/01			$	75,347,155
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	293,218
Other	0
			$	293,218
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/02			$	75,640,373
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	238,339
Other	0
			$	238,339
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/03			$	75,878,712

F-306

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/95			$	0
Current year expense	$	20,636
Balance at close of period - 3/31/96			$	20,636
Current year expense	$	1,056,849
Balance at close of period - 3/31/97			$	1,077,485
Current year expense	$	2,388,275
Balance at close of period - 3/31/98			$	3,465,760
Current year expense	$	2,657,320
Balance at close of period - 3/31/99			$	6,123,080
Current year expense	$	2,661,938
Balance at close of period - 3/31/00			$	8,785,018
Current year expense	$	2,765,041
Balance at close of period - 3/31/01			$	11,550,059
Current year expense	$	2,682,797
Balance at close of period - 3/31/02			$	14,232,856
Current year expense	$	2,680,709
Balance at close of period - 3/31/03			$	16,913,565

F-307

Boston Capital Tax Credit Fund IV LP-Series 26
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2003

	Initial cost to company			Cost capitalized subsequent to acquisition		Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements		Land	Buildings and improvements	Total	Accumulated depreciation	Date of  construction	Date acquired	depreciation is computed
200 EAST AVE LP	9,044,710	61,000	7,896,816	2,264,221		61,000	10,161,037	10,222,037	984,574	07/00	01/99	12-40
AVA LP	1,270,518	82,757	914,666	604,352		82,757	1,519,018	1,601,775	218,138	04/98	11/97	5-27.5
BEAUREGARD APTS	817,064	70,000	1,640,768	0		70,000	1,640,768	1,710,768	289,102	09/96	08/96	7-40
BECKWOOD MANOR ONE	1,032,590	20,000	1,335,215	2,420		20,000	1,337,635	1,357,635	344,587	10/96	08/96	5-27.5
BRADLEY PHASE I	1,778,168	290,000	3,476,912	4,136		290,000	3,481,048	3,771,048	491,907	12/97	02/97	20-40
BRADLEY PHASE II	1,060,133	190,000	2,405,548	(73,893	)	190,000	2,331,655	2,521,655	332,462	12/97	02/97	20-40
BROOKHAVEN APTS	1,027,761	52,272	1,800,921	0		52,272	1,800,921	1,853,193	290,030	01/97	02/97	7-40
BUTLER APTS	165,930	2,908	314,128	0		2,908	314,128	317,036	49,650	10/96	08/96	40
CALGORY APTS I	611,356	100,000	985,781	12,586		100,000	998,367	1,098,367	212,742	12/95	02/96	5-27.5
CALGORY APTS II	613,933	100,000	988,294	17,858		100,000	1,006,152	1,106,152	213,307	12/95	02/96	5-27.5
CALGORY APTS III	608,731	100,000	983,301	14,063		100,000	997,364	1,097,364	213,909	12/95	02/96	5-27.5
CAMERON HOUSING	748,420	74,000	1,736,306	0		74,000	1,736,306	1,810,306	313,377	10/96	08/96	40
COUNTRY EDGE	1,039,512	140,000	2,258,924	29,276		140,000	2,288,200	2,428,200	335,764	12/97	07/97	5-27.5
DECRO NORDOFF	1,962,631	555,000	3,240,184	150,300		555,000	3,390,484	3,945,484	690,894	07/97	09/96	5-27.5
EAST PARK II	552,350	35,000	1,120,448	18,474		35,000	1,138,922	1,173,922	226,855	08/96	08/96	5-27.5
EDGEWOOD ESTATES	606,296	27,000	759,092	13,710		27,000	772,802	799,802	137,621	11/96	06/97	7-40
EDGEWOOD PARK	1,500,000	125,000	2,943,474	24,019		125,000	2,967,493	3,092,493	651,970	01/97	05/96	5-27.5
ESCHER STREET	2,297,001	100,000	356,532	6,198,394		100,000	6,554,926	6,654,926	1,141,869	05/98	04/97	5-27.5
GRANDVIEW APTS	1,131,756	180,000	2,198,865	28,431		180,000	2,227,296	2,407,296	426,026	08/96	08/96	5-27.5
GRAYSON MANOR	1,046,397	80,000	1,733,403	(8,114	)	80,000	1,725,289	1,805,289	331,148	11/98	03/98	5-27.5
GVA LP	1,142,469	54,946	1,445,428	0		54,946	1,445,428	1,500,374	238,384	11/97	04/97	5-27.5
HANOVER TOWERS	4,586,221	580,000	7,092,714	(13,689	)	580,000	7,079,025	7,659,025	997,055	11/97	02/97	5-27.5
HOLLY HILLS	1,251,476	60,000	1,685,727	0		60,000	1,685,727	1,745,727	251,888	08/97	05/97	5-27.5

F-308

	Initial cost to company			Cost capitalized subsequent to acquisition	Gross amount at which carried at close of period						Life on which
Description	Encumbr- ances	Land	Buildings and improvements	Improvements	Land	Buildings and improvements	Total	Accumulated depreciation	Date of  construction	Date acquired	depreciation is computed
JACKSON BOND	5,000,000	536,323	952,071	6,825,030	536,323	7,777,101	8,313,424	1,107,176	12/99	11/98	5-27.5
LAKE IV APTS	623,821	85,000	1,016,090	14,347	85,000	1,030,437	1,115,437	219,158	12/95	02/96	5-27.5
LAKE V APTS	597,881	85,000	1,018,755	19,319	85,000	1,038,074	1,123,074	221,731	12/95	02/96	5-27.5
LIBERTY VILLAGE	1,731,599	43,085	2,165,569	17,346	44,000	2,182,915	2,226,915	490,209	05/97	01/97	5-27.5
LITTLE VALLEY ESTATES	1,141,423	44,000	1,453,331	103,278	44,000	1,556,609	1,600,609	250,677	04/97	01/97	5-27.5
MASON LP	922,794	14,000	1,195,375	36,457	14,000	1,231,832	1,245,832	325,841	01/96	02/96	5-27.5
MAXTON GREEN	958,818	30,500	1,264,803	1,496	30,500	1,266,299	1,296,799	320,304	12/96	09/96	5-27.5
MB APTS	1,080,227	350,000	2,321,961	0	350,000	2,321,961	2,671,961	485,504	06/97	03/96	5-27.5
MERIDIAN HOUSING	1,111,687	72,000	1,137,270	378,876	72,000	1,516,146	1,588,146	168,506	05/99	12/98	7-40
MOSBY FOREST	677,824	31,275	1,342,190	4,656	31,275	1,346,846	1,378,121	335,976	10/96	10/96	5-27.5
NEW DEVONSHILRE II	761,022	76,211	904,064	32,858	76,211	936,922	1,013,133	228,501	12/96	01/97	5-27.5
NEW DEVONSHIRE WEST	528,913	31,000	628,776	27,295	31,000	656,071	687,071	156,300	01/97	01/97	5-27.5
POWELL VALLEY	735,464	78,947	2,310,346	8,434	78,947	2,318,780	2,397,727	420,927	12/98	03/98	5-27.5
SG HAZELTINE	1,379,996	464,955	2,934,870	286,524	464,955	3,221,394	3,686,349	748,039	01/97	06/96	5-27.5
SOUTHWIND APTS	834,653	32,000	1,607,903	0	32,000	1,607,903	1,639,903	262,447	12/96	08/96	40
TR BOBB APTS	676,662	75,000	1,530,233	0	75,000	1,530,233	1,605,233	274,416	01/96	08/96	40
TIMMONSVILLE GREEN	1,062,564	41,000	1,427,096	12,085	41,000	1,439,181	1,480,181	352,990	02/97	10/96	5-27.5
TREMONT STATION	1,149,464	35,803	1,633,750	153,925	35,803	1,787,675	1,823,478	291,423	11/96	05/96	5-27.5
THE WILLOWS	798,420	13,000	1,067,939	(1)	13,000	1,067,938	1,080,938	204,201	05/96	05/96	5-27.5
VVA LP	1,148,517	21,861	935,951	562,887	21,861	1,498,838	1,520,699	216,201	10/98	04/97	7-40

F-309

	Initial cost to company			Cost capitalized subsequent to acquisition	Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements	Land	Buildings and improvements	Total	Accumulated depreciation	Date of Construction	Date acquired	depreciation is computed
WARRENSBURG HEIGHTS	1,105,339	23,370	1,397,872	11,556	23,370	1,409,428	1,432,798	376,911	11/96	12/96	5-27.5
WPVA LP	1,155,756	45,000	929,628	546,701	45,000	1,476,329	1,521,329	225,569	03/98	04/97	5-27.5
	61,078,267	5,309,213	80,489,290	18,329,613	5,310,128	98,818,903	104,129,031	17,066,266

Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 2002.

There we no carrying costs as of December 31, 2002. The Column has been omitted for presentation purposes.

F-310

Notes to Schedule III

Boston Capital Tax Credit Fund IV LP - Series 26

Balance at beginning of period - 4/1/96			$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	32,787,138
Improvements, etc	0
Other	0
			$	32,787,138
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/97			$	32,787,138
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	31,051,915
Improvements, etc	7,109,210
Other	0
			$	38,161,125
Deductions during period:
Cost of real estate sold	$	0
Other	0
			0
Balance at close of period - 3/31/98			$	70,948,263
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	6,900,360
Improvements, etc	7,109,210
Other	0
			$	15,122,103
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/99			$	86,070,366

F-311

Balance at close of period - 3/31/99			$	86,070,366
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	7,957,816
Improvements, etc	7,497,422
Other	0
			$	15,455,238
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/00			$	101,525,604
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	2,480,794
Other	0
			$	2,480,794
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/01			$	104,006,398
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	101,734
Other	0
			$	101,734
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/02			$	104,108,132

F-312

Balance at close of period - 3/31/02			$	104,108,132
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	20,899
Other	0
			$	20,899
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/02			$	104,129,031

F-313

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/96			$	0
Current year expense	$	361,387
Balance at close of period - 3/31/97			$	361,387
Current year expense	$	1,764,231
Balance at close of period - 3/31/98			$	2,125,618
Current year expense	$	2,289,241
Balance at close of period - 3/31/99			$	4,414,859
Current year expense	$	2,753,759
Balance at close of period - 3/31/00			$	7,168,618
Current year expense	$	3,295,505
Balance at close of period - 3/31/01			$	10,464,123
Current year expense	$	3,360,613
Balance at close of period - 3/31/02			$	13,824,736
Current year expense	$	3,241,530
Balance at close of period - 3/31/03			$	17,066,266

F-314

Boston Capital Tax Credit Fund IV LP - Series 27
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2002

	Initial cost to company			Cost capitalized subsequent to acquisition	Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements	Land	Buildings and Improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
AHAB PROJ #1	480,285	2,850	1,253,094	4,639	2,850	1,257,733	1,260,583	190,643	11/97	06/97	5-27.5
ANGELOU COURT	986,635	3	2,685,763	0	3	2,685,763	2,685,766	327,776	08/99	10/97	5-27.5
CASA ROSA	851,418	0	2,487,701	712,366	0	3,200,067	3,200,067	514,033	04/98	09/97	5-27.5
CANISTEO MANOR	889,480	46,553	1,567,499	5,325	46,553	1,572,824	1,619,377	309,689	04/98	04/98	5-27.5
CENTRUM FAIRFAX II	6,462,143	1,054,099	0	7,431,128	1,054,099	7,431,128	8,485,227	1,064,640	06/97	08/96	5-27.5
HARBOR LP	11,400,636	1,250,000	14,491,429	150,791	1,250,000	14,642,220	15,892,220	2,058,103	11/97	02/97	5-40
HARRISSONVILLE	1,252,626	102,637	3,021,382	1,305	102,637	3,022,687	3,125,324	706,889	12/96	01/98	5-27.5
HOLLY HEIGHTS	491,156	31,914	0	1,780,662	31,914	1,780,662	1,812,576	218,050	08/98	04/97	5-27.5
KIEHL PARTNERS	9,200,000	747,825	13,193,825	136,999	747,825	13,330,824	14,078,649	2,088,033	06/99	11/99	5-27.5
LAKE APTS II	593,060	80,000	930,841	23,640	80,000	954,481	1,034,481	177,954	12/95	01/97	5-27.5
MAGNOLIA PLACE LP	866,894	150,000	0	1,596,432	160,500	1,596,432	1,756,932	242,775	01/98	11/97	5-27.5
NORTHROCK  HOUSING	2,539,290	250,478	1,356,518	3,304,851	250,478	4,661,369	4,911,847	351,352	05/00	05/99	10-40
PEAR VILLAGE	495,710	50,000	512,155	545,102	50,000	1,057,257	1,107,257	231,029	02/97	08/96	5-27.5
RANDOLPH VILLAGE	5,695,044	1,168,500	0	9,192,092	1,168,500	9,192,092	10,360,592	1,361,905	08/97	09/96	5-27.5
SUNDAY SUN	866,579	156,600	1,638,376	0	156,600	1,638,376	1,794,976	386,467	12/96	10/96	5-27.5
WAYNE HOUSING	9,074,569	1,200,000	0	13,339,731	903,435	13,339,731	14,243,166	1,708,357	04/98	11/96	5-27.5
	52,145,525	6,291,459	43,138,583	38,225,063	6,005,394	81,363,646	87,369,040	11,937,695

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2002.

There were no carrying costs as of December 31, 2002.  The column has been omitted for presentation purposes.

F-315

Notes to Schedule III

Boston Capital Tax Credit Fund IV LP - Series 27

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/96			$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	5,779,730
Improvements, etc	0
Other	0
			$	5,779,730
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/97			$	5,779,730
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	20,677,829
Other	17,177,150
			$	37,854,979
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/98			$	43,634,709
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	4,738,071
Improvements, etc	17,179,919
Other	0
			$	21,917,990
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/99			$	65,552,699

F-316

Balance at close of period - 3/31/99			$	65,552,699
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	15,548,646
Improvements, etc	2,444,640
Other	0
			$	17,993,286
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/00			$	83,545,985
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	3,502,518
Other	0
			$	3,502,518
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/01			$	87,048,503
Additions during period:
Acquisitions through foreclosure	$
Other acquisitions
Improvements, etc	27,925
Other
			$	27,925
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/02			$	87,076,428

F-317

Balance at close of period - 3/31/02			$	87,076,428
Additions during period:
Acquisitions through foreclosure	$
Other acquisitions
Improvements, etc	292,612
Other
			$	292,612
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/03			$	87,369,040

F-318

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/96			$	0
Current year expense	$	10,734
Balance at close of period - 3/31/97			$	10,734
Current year expense	$	594,951
Balance at close of period - 3/31/98			$	605,685
Current year expense	$	1,573,377
Balance at close of period - 3/31/99			$	2,179,062
Current year expense	$	2,071,362
Balance at close of period - 3/31/00			$	4,250,424
Current year expense	$	2,690,062
Balance at close of period - 3/31/01			$	6,940,486
Current year expense	$	2,499,683
Balance at close of period - 3/31/02			$	9,440,169
Current year expense	$	2,497,526
Balance at close of period - 3/31/03			$	11,937,695

F-319

Boston Capital Tax Credit Fund IV LP-Series 28
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2003

	Initial cost to company			Cost capitalized subsequent to acquisition		Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements		Land	Buildings and improvements	Total	Accumulated depreciation	Date of construction	Date Acquired	depreciation is computed
1374 BOSTON POST ROAD	492,293	100,000	1,086,670	69,441		100,000	1,156,111	1,256,111	254,219	06/97	02/97	5-27.5
ASHBERRY MANOR	636,455	100,500	1,192,737	0		100,500	1,192,737	1,293,237	183,741	03/97	02/97	5-27.5
ATHENS PARTNERS	1,189,692	327,639	2,978,391	2,184,813		342,639	5,163,204	5,505,843	829,743	6/99	10/98	5-27.5
BIENVILLE, L.P.	955,724	20,300	1,194,688	45,729		20,300	1,240,417	1,260,717	198,799	02/97	02/97	7-40
BLANCHARD APTS	906,098	20,000	807,233	353,314		46,728	1,160,547	1,207,275	164,842	07/97	07/97	7-40
CHANDLER VILLAGE	901,986	32,000	1,249,842	0		32,000	1,249,842	1,281,842	257,546	07/97	04/97	5-30
COTTONWOOD	731,207	20,000	0	964,795		20,000	964,795	984,795	137,627	07/97	07/97	5-27.5
EVANGELINE APTS	966,118	20,000	1,364,939	0		20,000	1,364,939	1,384,939	223,469	01/98	11/97	7-40
EVERGREEN III	926,458	6,000	1,250,781	10,309		6,000	1,261,090	1,267,090	301,436	04/97	02/97	5-27.5
FAIRWAY II LP	1,031,364	48,000	1,277,751	11,953		48,000	1,289,704	1,337,704	214,631	03/97	12/96	7-40
FORT BEND	3,067,836	538,500	0	7,474,269		538,500	7,474,269	8,012,769	1,387,058	10/99	04/98	12-40
JACKSON PLACE	998,492	74,943	2,095,999	(57,061	)	74,943	2,038,938	2,113,881	317,955	10/97	07/97	5-27.5
MAPLEWOOD APTS	903,952	47,125	1,923,321	0		47,125	1,923,321	1,970,446	256,794	08/98	03/98	5-27.5
MILTON SENIOR LP	1,172,913	51,400	2,385,863	39,055		51,400	2,424,918	2,476,318	529,768	06/97	02/97	5-27.5
NEIGHBORHOOD RESTORATION VII	2,114,533	42,825	6,368,910	0		42,825	6,368,910	6,411,735	1,118,126	02/98	02/98	5-27.5
PIN OAK ELDERLY ASSOC.	8,926,368	832,000	7,701,570	7,633,573		2,024,000	15,335,143	17,359,143	2,490,852	01/96	11/97	5-27.5
RANDOLPH VILLAGE	5,695,044	1,168,500	9,187,147	4,945		1,168,500	9,192,092	10,360,592	1,361,905	08/97	12/97	5-27.5
RVKY,LP	1,333,380	65,582	1,315,622	373,066		65,582	1,688,688	1,754,270	262,049	04/98	11/97	5-27.5
SAND LANE MANOR	665,700	104,000	0	1,217,985		104,000	1,217,985	1,321,985	151,392	04/98	08/97	5-27.5
SENIOR SUITES CHICAGO	4,073,056	14,922	0	7,280,884		14,922	7,280,884	7,295,806	1,151,732	12/98	12/97	5-27.5

F-320

	Initial cost to company			Cost capitalized subsequent to acquisition	Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements	Land	Buildings and Improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
SUMNER HOUSE	1,110,066	62,370	3,451,950	0	62,370	3,451,950	3,514,320	500,997	07/98	01/98	5-27.5
TERRACEVIEW APTS	682,335	16,900	1,612,988	24,900	16,900	1,637,888	1,654,788	249,122	10/97	07/97	5-27.5
TILGHMAN SQ LP	769,657	60,314	1,108,725	6,366	60,314	1,115,091	1,175,405	229,927	10/97	11/97	5-27.5
WELLSTON VILLAGE	372,809	12,500	412,617	106,366	12,500	518,983	531,483	100,857	08/97	04/97	5-27.5
WEST MEMHIS (CLUBVIEW)	2,946,619	481,388	7,259,784	265,589	481,388	7,525,373	8,006,761	1,901,048	11/96	12/97	5-27.5
YALE VILLAGE	196,955	12,500	238,542	119,139	12,500	357,681	370,181	80,150	07/98	02/98	5-27.5
	43,767,110	4,280,208	57,466,070	28,129,430	5,513,936	85,595,500	91,109,436	14,855,785

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2002.

There were no carrying costs as of December 31, 2002.  The column has been omitted for presentation purposes.

F-321

Notes to Schedule III

Boston Capital Tax Credit Fund IV LP - Series 28

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/96			$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	647,230
Improvements, etc	0
Other	0
			$	647,230
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/97			$	647,230
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	45,106,975
Improvements, etc	0
Other	0
			$	45,106,975
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/98			$	45,754,205
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	15,992,073
Improvements, etc	19,183,519
Other	0
			$	35,175,592
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/99			$	80,929,797

F-322

Balance at close of period - 3/31/99			$	80,929,797
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	9,620,933
Improvements, etc	0
Other	0
			$	9,620,933
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/00			$	90,550,730
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	312,027
Other	0
			$	312,027
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/01			$	90,862,757
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	182,164
Other	0
			$	182,164
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/02			$	91,044,921

F-323

Balance at close of period - 3/31/02			$	91,044,921
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	64,515
Other	0
			$	64,515
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/02			$	91,109,436

F-324

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/96			$	0
Current year expense	$	8,223
Balance at close of period - 3/31/97			$	8,223
Current year expense	$	1,264,549
Balance at close of period - 3/31/98			$	1,272,772
Current year expense	$	1,834,970
Balance at close of period - 3/31/99			$	3,107,742
Current year expense	$	2,674,330
Balance at close of period - 3/31/00			$	5,782,072
Current year expense	$	3,196,013
Balance at close of period - 3/31/01			$	8,978,085
Current year expense	$	2,988,638
Balance at close of period - 3/31/02			$	11,966,723
Current year expense	$	2,889,062
Balance at close of period - 3/31/03			$	14,855,785

F-325

Boston Capital Tax Credit Fund II Limited Partnership - Series 29
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2003

	Initial cost to company			Cost capitalized subsequent to acquisition	Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements	Land	Buildings and Improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
BARRINGTON COVE	2,041,191	183,750	6,403,281	25,136	183,700	6,428,417	6,612,117	1,334,544	05/97	04/97	5-39
BRYSON APTS	378,621	10,728	269,886	258,916	10,728	528,802	539,530	98,186	01/98	08/97	5-27.5
COLLINS HOUSING	676,232	22,500	370,580	519,385	22,500	889,965	912,465	156,174	06/98	09/97	5-27.5
DOGWOOD RURAL ASSOC	1,362,344	56,332	1,616,052	478,806	56,332	2,094,858	2,151,190	282,819	05/99	10/98	5-27.5
EDGEWOOD EST	1,965,451	283,199	3,951,368	0	283,199	3,951,368	4,234,567	557,635	09/98	03/98	5-27.5
EMERALD TRACE	1,325,314	43,548	0	2,658,982	43,548	2,658,982	2,702,530	303,143	04/99	08/98	5-27.5
FORREST HILL APTS	2,871,026	191,250	0	5,516,703	221,250	5,516,703	5,737,953	595,321	11/98	07/97	5-27.5
GLENBROOK APTS	501,979	4,606	674,111	16,801	4,606	690,912	695,518	133,458	03/97	12/97	5-27.5
HARBOR POINTE	1,537,416	280,000	5,672,581	115,327	280,000	5,787,908	6,067,908	565,342	10/99	12/97	5-40
JACKSBORO APTS	594,156	31,893	268,583	496,747	31,893	765,330	797,223	148,304	01/98	12/97	5-27.5
JACKSON PARTNERS	5,640,000	300,067	6,039,223	3,627,536	315,352	9,666,759	9,982,111	1,876,265	06/98	12/96	5-27.5
KIEHL PARTNERS	9,200,000	747,825	9,410,576	3,920,248	747,825	13,330,824	14,078,649	2,088,033	06/99	02/98	5-27.5
LOMBARD PARTNERS	965,294	25,000	1,470,259	0	25,000	1,470,259	1,495,259	248,600	07/98	10/98	5-27.5
LUTKIN BAYOU ASSOC	818,994	25,000	878,839	74,606	25,000	953,445	978,445	155,985	06/97	11/97	5-27.5
THE LINCOLN HOTEL	797,847	0	1,454,115	110,273	0	1,564,388	1,564,388	277,334	07/97	02/97	5-27.5
NORTHFIELD APTS III	4,525,000	200,613	5,814,532	1,179,792	214,213	6,994,324	7,208,537	1,463,513	02/98	12/96	5-27.5
NORTHWAY DRIVE	1,551,817	280,849	1,480	4,794,044	280,849	4,795,524	5,076,373	623,719	03/98	04/97	5-45
OZARK ASSOC	454,684	13,750	511,269	38,096	13,750	549,365	563,115	93,220	07/97	10/97	5-27.5
PALMETTO PLACE	1,094,545	56,000	0	2,106,692	12,000	2,106,692	2,118,692	231,168	04/99	10/98	5-27.5
POPLARVILLE APTS	392,005	12,000	406,502	36,569	12,000	443,071	455,071	73,301	07/97	10/97	5-27.5
RHOME APTS	506,027	8,313	675,804	10,800	8,313	686,604	694,917	130,826	07/97	12/97	5-27.5
WESTFIELD APTS	790,627	49,748	1,773,153	0	49,748	1,773,153	1,822,901	254,534	08/98	11/97	5-27.5
	39,990,570	2,826,971	47,662,194	25,985,459	2,841,806	73,647,653	76,489,459	11,691,424

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2002.

There were no carrying costs as of December 31, 2002.  The column has been omitted for presentation purposes.

F-326

Notes to Schedule III

Boston Capital Tax Credit Fund IV LP - Series 29

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/97			$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	25,053,524
Improvements, etc	0
Other	0
			$	25,053,524
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/98			$	25,053,524
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	19,483,060
Improvements, etc	16,333,428
Other	0
			$	35,816,488
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/99			$	60,870,012
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	5,952,581
Improvements, etc	9,065,633
Other	0
			$	15,018,214
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/00			$	75,888,226

F-327

Balance at close of period - 3/31/00			$	75,888,226
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	191,162
Other	0
			$	191,162
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/01			$	76,079,388
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	180,150
Other	0
			$	180,150
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/02			$	76,259,538
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	229,921
Other	0
			$	229,921
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/03			$	76,489,459

F-328

Balance at beginning of period - 4/1/97			$	0
Current year expense	$	271,480
Balance at close of period - 3/31/98			$	271,480
Current year expense	$	1,330,842
Balance at close of period - 3/31/99			$	1,602,322
Current year expense	$	2,247,040
Balance at close of period - 3/31/00			$	3,849,362
Current year expense	$	2,630,360
Balance at close of period - 3/31/01			$	6,479,722
Current year expense	$	2,600,798
Balance at close of period - 3/31/02			$	9,080,520
Current year expense	$	2,610,904
Balance at close of period - 3/31/03			$	11,691,424

F-329

Boston Capital Tax Credit Fund IV LP - Series 30
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2002

	Initial cost to company			Cost capitalized subsequent to acquisition		Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements		Land	Buildings and Improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
BELLWOOD FOUR	699,934	45,000	676,598	704,456		45,000	1,381,054	1,426,054	264,451	05/98	09/97	5-27.5
BOWIE APTS	1,101,383	32,714	267,955	1,206,137		32,714	1,474,092	1,506,806	249,684	10/98	08/97	5-27.5
BYAM LP	1,036,125	185,000	2,261,674	(28,934	)	185,000	2,232,740	2,417,740	317,715	02/98	02/97	5-27.5
CVVA LP	1,542,500	60,000	1,250,961	686,809		60,000	1,937,770	1,997,770	336,111	10/99	03/98	5-27.5
EMERALD TRACE II	390,581	20,500	1,322,164	0		20,500	1,322,164	1,342,664	152,556	12/98	07/98	5-27.5
FVA LP	888,206	36,000	668,440	426,716		36,000	1,095,156	1,131,156	129,726	07/99	03/98	5-27.5
GRAHAM  APARTMENTS	1,504,641	45,563	366,387	1,491,064		45,563	1,857,451	1,903,014	350,881	09/98	08/97	5-27.5
HILLSIDE TERRACE	1,781,009	369,421	4,812,286	1,661,174		330,000	6,473,460	6,803,460	497,777	07/00	04/99	12/40
JEFFRIES ASSOC	1,461,053	62,000	1,662,694	459,614		62,000	2,122,308	2,184,308	257,795	05/99	10/98	5-27.5
JMC LIMITED LIABILITY	775,606	50,000	0	1,711,213		11,000	1,711,213	1,722,213	220,417	03/98	08/97	5-27.5
KGVA LP	1,864,956	112,000	1,697,834	654,888		112,000	2,352,722	2,464,722	330,437	02/99	03/98	5-27.5
LINDEN PARTERS	919,789	4,848	1,819,922	0		4,848	1,819,922	1,824,770	195,368	06/99	07/98	7-40
MADISON PTRS LP	1,615,999	314,510	788,736	4,615,084		322,023	5,403,820	5,725,843	925,958	03/99	11/97	5-27.5
MESA GRANDE	1,958,321	0	4,153,914	31,697		117,000	4,185,611	4,302,611	439,866	12/98	02/98	5-27.5
MILLWOOD	8,191,837	892,181	0	11,502,980		869,681	11,502,980	12,372,661	1,069,016	11/99	12/98	10-40
NOCONA APTS	817,388	15,651	207,520	904,532		15,651	1,112,052	1,127,703	173,364	12/98	08/97	5-27.5
PYRAMID ONE	653,773	100,000	1,445,832	1,125		100,000	1,446,957	1,546,957	197,192	11/99	04/99	5-27.5
SUNRISE HOMES	769,445	0	2,679,914	209,756		134,259	2,889,670	3,023,929	304,452	12/98	02/98	5-27.5
TRINITY LIFE GARDENS	1,276,805	65,575	2,309,061	923,964		60,000	3,233,025	3,293,025	519,585	12/99	04/99	5-27.5
WEST SWANZEY	611,750	94,900	2,010,096	54,761		94,900	2,064,857	2,159,757	306,052	02/98	07/97	5-27.5
	29,861,101	2,505,863	30,401,988	27,217,036		2,658,139	57,619,024	60,277,163	7,238,403

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2002.

There were no carrying costs as of December 31, 2002.  The column has been omitted for presentation purposes.

F-330

Notes to Schedule III

Boston Capital Tax Credit Fund IV LP - Series 30

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/97			$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	7,362,304
Improvements, etc	0
Other	0
			$	7,362,304
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/98			$	7,362,304
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	14,618,602
Improvements, etc	9,868,994
Other	0
			$	24,487,596
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/99			$	31,849,900
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	9,102,175
Improvements, etc	16,227,330
Other	0
			$	25,329,505
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/00			$	57,179,405

F-331

Balance at close of period - 3/31/00			$	57,179,405
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	2,489,235
Other	0
			$	2,489,235
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/01			$	59,668,640
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	536,047
Other	0
			$	536,047
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/02			$	60,204,687
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	72,476
Other	0
			$	72,476
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/03			$	60,277,163

F-332

Balance at beginning of period - 4/1/97			$	0
Current year expense	$	49,478
Balance at close of period - 3/31/98			$	49,478
Current year expense	$	463,672
Balance at close of period - 3/31/99			$	513,150
Current year expense	$	945,532
Balance at close of period - 3/31/00			$	1,458,682
Current year expense	$	1,631,321
Balance at close of period - 3/31/01			$	3,090,003
Current year expense	$	2,263,225
Balance at close of period - 3/31/02			$	5,353,228
Current year expense	$	1,885,175
Balance at close of period - 3/31/03			$	7,238,403

F-333

Boston Capital Tax Credit Fund IV LP-Series 31
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2003

	Initial cost to company			Cost capitalized subsequent to acquisition	Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements	Land	Buildings and improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
BRITTNEY SQUARE	615,951	247,000	1,280,705	0	247,000	1,280,705	1,527,705	149,913	07/98	07/98	5-27.5
CANTON HOUSING I	2,231,124	99,900	2,245,160	617,383	99,900	2,862,543	2,962,443	537,016	07/98	11/97	5-27.5
CANTON HOUSING II	1,128,638	66,920	1,023,746	297,129	66,920	1,320,875	1,387,795	255,362	07/98	11/97	5-27.5
CANTON HOUSING III	836,757	38,205	799,913	232,881	38,205	1,032,794	1,070,999	196,751	07/98	11/97	5-27.5
CANTON HOUSING IV	809,397	40,500	784,923	231,437	40,500	1,016,360	1,056,860	197,247	07/98	11/97	5-27.5
CLEVELAND PTRS	1,566,428	244,500	1,941,969	3,487,313	265,000	5,429,282	5,694,282	1,045,657	06/98	11/97	5-27.5
DOUBLE SPRINGS	384,455	157,000	960,378	505,494	157,000	1,465,872	1,622,872	168,763	03/99	09/98	5-27.5
EAGLE’S RIDGE TERRACE	1,807,880	63,200	508,815	1,886,795	63,200	2,395,610	2,458,810	322,143	05/98	12/97	5-27.5
ELLISVILLE LP	655,941	31,000	723,650	173,808	31,000	897,458	928,458	122,404	06/98	12/97	5-27.5
G.A.V.A. LP	716,501	35,500	616,645	274,109	35,500	890,754	926,254	113,042	02/99	03/98	5-27.5
HATTIESBURG LP	824,549	15,000	979,143	216,591	15,000	1,195,734	1,210,734	156,729	06/98	12/97	5-27.5
HENDERSON TERRACE	518,106	22,000	221,549	471,530	22,000	693,079	715,079	90,040	09/98	11/97	5-27.5
HERITAGE I	885,130	46,000	522,601	830,209	46,014	1,352,810	1,398,824	223,885	05/98	10/97	5-27.5
HURRICANE HILLS	770,408	121,171	3,086,025	12,332	121,171	3,098,357	3,219,528	423,673	08/98	09/97	5-27.5
LAKEVIEW LITTLE ELM	442,121	28,750	255,929	320,939	28,750	576,868	605,618	93,031	01/99	11/97	5-27.5
LEVEL CREEK	12,790,000	1,120,908	0	13,502,051	1,120,908	13,502,051	14,622,959	2,838,594	05/99	05/98	5-27.5
MESQUITE TRAILS	678,710	10,860	240,143	708,972	10,860	949,115	959,975	149,760	11/98	11/97	5-27.5
MONFORT HOUSING	3,662,717	436,143	2,661,689	1,587,100	436,143	4,248,789	4,684,932	594,050	10/98	09/97	5-27.5
N.M.V.A.  LP	858,810	44,114	679,817	401,449	44,114	1,081,266	1,125,380	133,408	04/99	03/98	5-27.5
PILOT POINT LP	762,219	65,570	339,377	602,440	65,570	941,817	1,007,387	154,225	02/99	11/97	5-27.5
RIVERBEND APTS	778,501	201,961	0	2,497,209	201,961	2,497,209	2,699,170	304,034	07/98	10/97	5-27.5

F-334

	Initial cost to company			Cost capitalized subsequent to acquisition	Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements	Land	Buildings and Improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
SAN ANGELO BENT TREE	2,645,902	294,023	0	6,596,124	300,841	6,596,124	6,896,965	725,832	07/99	12/97	5-27.5
SEAGRAVES APTS	450,241	25,200	537,944	2,061	25,200	540,005	565,205	44,860	05/00	09/00	5-27.5
SENCIT HAMPDEN	2,121,747	307,860	0	5,091,539	307,860	5,091,539	5,399,399	564,559	09/98	10/97	7-40
SILVER CREEK	3,326,722	175,000	0	9,019,724	175,000	9,019,724	9,194,724	1,082,816	08/99	03/98	5-27.5
SUMMERDALE PTRS	3,733,111	420,540	1,386,000	4,969,876	271,620	6,355,876	6,627,496	704,058	04/99	12/98	5-27.5
WINDSOR PARK PTRS	7,500,000	248,000	5,105,823	7,580,278	269,011	12,686,101	12,955,112	2,159,743	03/99	11/97	5-27.5
	53,502,066	4,606,825	26,901,945	62,116,772	4,506,248	89,018,717	93,524,965	13,551,595

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2002.

There were no carrying costs as of December 31, 2002.  The column has been omitted for presentation purposes.

F-335

Notes to Schedule III

Boston Capital Tax Credit Fund IV LP - Series 31

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/97			$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	20,789,823
Improvements, etc	0
Other	0
			$	20,789,823
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/98			$	20,789,823
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	10,155,803
Improvements, etc	23,622,080
Other	0
			$	33,777,883
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/99			$	54,567,706
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	37,773,041
Other	0
			$	37,773,041
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/00			$	92,340,747

F-336

Balance at close of period - 3/31/00			$	92,340,747
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	561,718
Improvements, etc	171,433
Other	0
			$	733,151
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/01			$	93,073,898
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	277,575
Other	0
			$	277,575
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/02			$	93,351,473
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	173,492
Other	0
			$	173,492
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/03			$	93,524,965

F-337

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/97			$	0
Current year expense	$	41,619
Balance at close of period - 3/31/98			$	41,619
Current year expense	$	973,901
Balance at close of period - 3/31/99			$	1,015,520
Current year expense	$	2,743,105
Balance at close of period - 3/31/00			$	3,758,625
Current year expense	$	3,363,318
Balance at close of period - 3/31/01			$	7,121,943
Current year expense	$	3,254,509
Balance at close of period - 3/31/02			$	10,376,452
Current year expense	$	3,175,143
Balance at close of period - 3/31/03			$	13,551,595

F-338

Boston Capital Tax Credit Fund IV LP - Series 32
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2003

	Initial cost to company			Cost capitalized subsequent to acquisition		Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements		Land	Buildings and Improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
200 EAST AVENUE	9,044,710	61,000	7,896,816	2,264,221		61,000	10,161,037	10,222,037	984,574	07/00	01/99	12-40
ATHENS PARTNERS	1,189,692	327,639	2,978,391	2,184,813		342,639	5,163,204	5,505,843	829,743	06/99	10/98	5/27.5
CHARDONNAY LP	73,891	5,200	586,804	33,748		5,200	620,552	625,752	138,644	01/97	01/98	5-27.5
COGIC VILLAGE	2,380,023	115,000	0	8,689,057		115,000	8,689,057	8,804,057	1,679,006	07/99	04/98	5-27.5
COURTSIDE	894,138	146,529	2,820,490	12,662		146,529	2,833,152	2,979,681	426,906	07/98	06/98	7-40
FFLM ASSOC	7,439,635	1,359,240	12,454,121	32,122		1,359,240	12,486,243	13,845,483	3,855,023	01/95	01/98	5-40
GRANDA ROSE	216,466	5,000	271,347	2,390		5,000	273,737	278,737	19,992	11/01	05/01	5-27.5
INDIANA DEV (CLEAR CREEK)	1,643,345	55,000	3,760,163	(109,376	)	55,000	3,650,787	3,705,787	433,379	09/99	07/98	5-27.5
JACKSON BOND	5,000,000	536,323	952,071	6,825,030		536,323	7,777,101	8,313,424	1,107,176	12/99	07/98	5-27.5
KEIST TOWNHOMES	3,589,850	622,558	0	12,155,646		622,558	12,155,646	12,778,204	1,008,644	12/99	11/98	10-40
MARTINSVILLE I	236,938	24,000	0	1,102,604		52,000	1,102,604	1,154,604	100,008	02/00	08/99	5-40
PARKSIDE PLAZA	1,283,045	0	0	4,110,581		0	4,110,581	4,110,581	288,007	05/01	07/99	5-27.5
PECAN MANOR	777,437	60,400	1,961,002	160,953		60,400	2,121,955	2,182,355	248,249	10/98	07/98	5-27.5
PEARL PARTNERS	8,000,000	599,461	2,248,687	9,290,999		615,788	11,539,686	12,155,474	1,679,187	12/99	06/98	5-27.5
PEARLWOOD LP	947,268	162,032	2,099,724	(300,770	)	162,032	1,798,954	1,960,986	333,940	05/98	02/98	5-27.5
PINE RIDGE	796,591	88,220	0	2,134,022		94,833	2,134,022	2,228,855	242,457	01/99	07/98	5-27.5
PYRAMID IV LP	912,529	99,500	368,780	3,418,489		99,500	3,787,269	3,886,769	415,765	05/00	05/98	5-27.5
	44,425,558	4,267,102	38,398,396	52,007,191		4,333,042	90,405,587	94,738,629	13,790,700

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2002.

There were no carrying costs as of December 31, 2002.  The column has been omitted for presentation purposes.

F-339

Notes to Schedule III
Boston Capital Tax Credit Fund IV LP - Series 32

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/98			$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	30,592,172
Improvements, etc	0
Other	0
			$	30,592,172
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/99			$	30,592,172
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	11,796,979
Improvements, etc	42,439,868
Other	0
			$	54,236,847
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/00			$	84,829,019
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	4,887,087
Other	0
			$	4,887,087
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/01			$	89,716,106

F-340

Balance at close of period - 3/31/01			$	89,716,106
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	276,347
Improvements, etc	4,688,499
Other	0
			$	4,964,846
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/02			$	94,680,952
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	57,677
Other	0
			$	57,677
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/03			$	94,738,629

F-341

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/98			$	0
Current year expense	$	1,855,693
Balance at close of period - 3/31/99			$	1,855,693
Current year expense	$	1,533,304
Balance at close of period - 3/31/00			$	3,388,997
Current year expense	$	3,367,095
Balance at close of period - 3/31/01			$	6,756,092
Current year expense	$	3,601,011
Balance at close of period - 3/31/02			$	10,357,103
Current year expense	$	3,433,597
Balance at close of period - 3/31/03			$	13,790,700

F-342

Boston Capital Tax Credit Fund IV LP - Series 33
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2003

	Initial cost to company			Cost capitalized subsequent to acquisition	Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements	Land	Buildings and Improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
BRADFORD GROUP	1,049,494	101,388	0	2,695,584	101,388	2,695,584	2,796,972	321,870	09/99	10/98	5-27.5
FFLM ASSOC.	7,439,635	1,359,240	12,454,121	32,122	1,359,240	12,486,243	13,845,483	3,855,023	01/95	01/98	5-40
FOREST PARK	879,266	175,500	0	2,156,764	175,500	2,156,764	2,332,264	254,991	01/99	07/98	5-27.5
HARBOUR POINTE	1,537,416	280,000	5,672,581	115,327	280,000	5,787,908	6,067,908	565,342	10/99	01/99	5-40
KIEST TOWNHOMES	3,589,850	622,558	0	12,155,646	622,558	12,155,646	12,778,204	1,008,644	12/99	08/98	10-40
MERCHANT’S COURT	5,980,841	0	0	13,295,023	1,069,682	13,295,023	14,364,705	1,508,688	12/99	10/98	10-40
NHC #5	3,060,514	387,045	0	6,363,027	387,045	6,363,027	6,750,072	1,215,165	07/99	03/98	5-27.5
NORTHROCK HOUSING	2,539,290	250,478	1,356,518	3,304,851	250,478	4,661,369	4,911,847	351,352	05/00	05/99	10-40
SOUTHAVEN	9,790,000	974,288	1,815,504	10,740,345	999,288	12,555,849	13,555,137	1,876,852	12/99	10/98	5-27.5
STEARNS ASSITED LIVING	435,500	1	0	2,934,502	1	2,934,502	2,934,503	143,840	3/01	12/99	5-27.5
	36,301,806	4,150,498	21,298,724	53,793,191	5,245,180	75,091,915	80,337,095	11,101,767

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2002.

There were no carrying costs as of December 31, 2002.  The column has been omitted for presentation purposes.

F-343

Notes to Schedule III
Boston Capital Tax Credit Fund IV LP - Series 33

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/98			$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	17,889,644
Improvements, etc	0
Other	0
			$	17,889,644
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/99			$	17,889,644
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	7,559,577
Improvements, etc	37,620,253
Other	0
			$	45,179,830
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/00			$	63,069,474
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	13,783,067
Other	0
			$	13,783,067
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/01			$	76,852,541

F-344

Balance at close of period - 3/31/01			$	76,852,541
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	3,396,126
Other	0
			$	3,396,126
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/02			$	80,248,667
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	88,428
Other	0
			$	88,428
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/03			$	80,337,095

F-345

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/98			$	0
Current year expense	$	1,694,284
Balance at close of period - 3/31/99			$	1,694,284
Current year expense	$	1,033,967
Balance at close of period - 3/31/00			$	2,728,251
Current year expense	$	2,717,698
Balance at close of period - 3/31/01			$	5,445,949
Current year expense	$	2,873,929
Balance at close of period - 3/31/02			$	8,319,878
Current year expense	$	2,781,889
Balance at close of period - 3/31/03			$	11,101,767

F-346

Boston Capital Tax Credit Fund IV LP - Series 34
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2003

	Initial cost to company			Cost capitalized subsequent to acquisition	Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements	Land	Buildings and Improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
ABBEY RIDGE	472,651	48,000	2,129,097	0	48,000	2,129,097	2,177,097	183,731	01/00	02/00	5-27.5
ALLISON APTS	871,667	208,000	0	1,733,194	208,000	1,733,194	1,941,194	206,221	01/99	11/98	5-27.5
BELMONT  AFFORDABLE  HOUSING	505,044	5,000	2,374,186	0	5,000	2,374,186	2,379,186	254,913	12/98	01/99	5-27.5
BOERNE CREEKSIDE	2,020,713	204,622	0	4,770,432	205,736	4,770,432	4,976,168	395,158	06/00	11/98	5-27.5
HIGHWAY 18 PARTNERS	10,550,000	766,286	7,424,418	5,615,532	797,823	13,039,950	13,837,773	1,565,088	06/00	10/99	5-27.5
HOWARD PARK	379,144	75,000	1,159,772	12,000	75,000	1,171,772	1,246,772	210,571	12/99	04/99	5-27.5
KERRVILLE MEADOWS	1,577,114	174,699	0	4,345,403	226,306	4,345,403	4,571,709	461,859	04/00	11/98	5-27.5
MERCHANT’S COURT	5,980,841	1,069,682	3,060,740	10,234,283	1,069,682	13,295,023	14,364,705	1,508,688	12/99	02/99	5-27.5
MILLWOOD PARK	8,191,837	892,181	0	11,502,980	869,681	11,502,980	12,372,661	1,069,016	11/99	12/98	10-40
MONTOUR FALLS VILLAGE	1,020,464	65,556	0	1,827,334	35,000	1,827,334	1,862,334	311,288	04/99	10/98	5-27.5
NORTHWOOD HOMES	783,030	96,000	1,953,479	0	96,000	1,953,479	2,049,479	214,443	06/99	04/99	5-27.5
RHP-96	1,670,656	142,576	0	3,647,061	142,576	3,647,061	3,789,637	372,389	12/99	10/98	5-27.5
SOUTHAVEN PTRS I	9,790,000	974,288	1,815,504	10,740,345	999,288	12,555,849	13,555,137	1,876,852	12/99	03/99	5-27.5
WASHINGTON COURTYARD	2,839,869	580,398	0	4,538,554	580,398	4,538,554	5,118,952	515,738	08/00	08/99	5-27.5
	46,653,030	5,302,288	19,917,196	58,967,118	5,358,490	78,884,314	84,242,804	9,145,955

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2002.

There were no carrying costs as of December 31, 2002.  The column has been omitted for presentation purposes.

F-347

Notes to Schedule III
Boston Capital Tax Credit Fund IV LP - Series 34

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/98			$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	4,477,426
Improvements, etc	0
Other	0
			$	4,477,426
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/99			$	4,477,426
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	14,434,539
Improvements, etc	36,399,836
Other	0
			$	50,834,375
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/00			$	55,311,801
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	28,731,541
Other	0
			$	28,731,541
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
			$	84,043,342

F-348

Balance at close of period - 3/31/01			$	84,043,342
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	77,421
Other	0
			$	77,421
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/02			$	84,120,763
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	122,041
Other	0
			$	122,041
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/03			$	84,242,804

F-349

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/98			$	0
Current year expense	$	0
Balance at close of period - 3/31/99			$	0
Current year expense	$	496,969
Balance at close of period - 3/31/00			$	496,969
Current year expense	$	2,631,105
Balance at close of period - 3/31/01			$	3,128,074
Current year expense	$	3,040,893
Balance at close of period - 3/31/02			$	6,168,967
Current year expense	$	2,976,988
Balance at close of period - 3/31/03			$	9,145,955

F-350

Boston Capital Tax Credit Fund IV LP - Series 35
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2003

	Initial cost to company			Cost capitalized subsequent to acquisition	Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements	Land	Buildings and Improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
ASHTON COVE	1,953,875	315,041	0	4,496,758	315,041	4,496,758	4,811,799	326,514	04/00	01/00	7-40
BRAZOSWOOD	1,985,833	83,741	0	5,529,182	162,413	5,529,182	5,691,595	429,127	07/00	07/99	5-27.5
COLUMBIA WOODS	5,516,794	605,453	0	10,570,351	630,361	10,570,351	11,200,712	423,265	06/02	10/00	5-40
CYPRESS POINTE	1,595,206	247,810	3,148,052	2,436,848	247,810	5,584,900	5,832,710	629,089	03/00	04/99	5-27.5
GARDEN GATE II  (NEW CANEY)	850,681	34,078	0	1,883,198	34,078	1,883,198	1,917,276	126,010	07/00	03/99	7-40
HILLSIDE TERRACE	1,781,009	369,421	4,812,286	1,661,174	330,000	6,473,460	6,803,460	497,777	07/00	04/99	12-40
MULVANE HOUSING	1,979,350	188,000	4,043,181	6,038	188,000	4,049,219	4,237,219	359,091	11/99	12/98	10-40
RIVERWALK APTS HOMES	413,880	44,380	1,699,925	2,976	44,380	1,702,901	1,747,281	251,000	07/99	12/98	5-27.5
TENNESSEE PARTNERS XII	5,000,000	390,100	6,182,403	31,095	390,100	6,213,498	6,603,598	867,983	12/99	04/99	5-27.5
WASHINGTON COURTYARD	2,839,869	580,398	0	4,538,554	580,398	4,538,554	5,118,952	515,738	08/00	08/99	5-27.5
WEDGEWOOD PARK	5,421,280	750,000	0	11,893,797	812,355	11,893,797	12,706,152	879,970	08/00	12/99	5-27.5
	29,337,777	3,608,422	19,885,847	43,049,971	3,734,936	62,935,818	66,670,754	5,305,564

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2002.

There were no carrying costs as of December 31, 2002.  The column has been omitted for presentation purposes.

F-351

Notes to Schedule III
Boston Capital Tax Credit Fund IV LP - Series 35

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/99			$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	22,888,816
Improvements, etc	0
Other	0
			$	22,888,816
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/00			$	22,888,816
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	605,453
Improvements, etc	32,788,341
Other	0
			$	33,393,794
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/01			$	56,282,610
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	10,256,693
Other	0
			$	10,256,693
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/02			$	66,539,303

F-352

Balance at close of period - 3/31/01			$	66,539,303
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	131,451
Other	0
			$	131,451
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/03			$	66,670,754

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/99			$	0
Current year expense	$	109,873
Balance at close of period - 3/31/00			$	109,873
Current year expense	$	1,272,940
Balance at close of period - 3/31/01			$	1,382,813
Current year expense	$	1,810,098
Balance at close of period - 3/31/02			$	3,192,911
Current year expense	$	2,112,653
Balance at close of period - 3/31/03			$	5,305,564

F-353

Boston Capital Tax Credit Fund IV LP - Series 36
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2003

	Initial cost to company			Cost capitalized subsequent to acquisition	Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements	Land	Buildings and Improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
ALOHA HOUSING	3,396,420	552,000	3,283,217	32,203	552,000	3,315,420	3,867,420	412,874	11/99	08/99	5-27.5
ANNADALE HOUSING	11,144,863	226,000	12,231,650	133,813	226,000	12,365,463	12,591,463	2,916,669	06/90	01/00	5-50
ASHTON RIDGE	2,646,471	300,500	9,547,932	250,558	300,500	9,798,490	10,098,990	1,306,179	12/00	02/00	5-27.5
NOWATA	1,256,757	35,000	859,081	733,408	30,000	1,592,489	1,622,489	176,196	02/00	08/99	5-30
PARIS PLACE	1,256,104	272,000	0	2,010,100	272,000	2,010,100	2,282,100	557,511	09/00	11/99	5-27.5
RIVERVIEW BEND	3,312,500	150,000	3,277,543	1,183,294	241,987	4,460,837	4,702,824	124,803	03/00	12/99	5-27.5
SR SUITES WASHINGTON HGTS	3,413,006	29,876	7,361,729	40,238	29,876	7,401,967	7,431,843	626,259	11/00	12/99	5-27.5
VALLEYVIEW EST	463,819	188,091	2,125,968	114,442	63,649	2,240,410	2,304,059	292,948	05/00	11/99	5-27.5
WEDGEWOOD PARK	5,421,280	750,000	0	11,893,797	812,355	11,893,797	12,706,152	879,970	08/00	12/99	5-27.5
WILLOWBROOK APTS	1,053,826	215,000	2,220,401	0	215,000	2,220,401	2,435,401	210,178	09/99	06/99	5-27.5
WINGFILED APTS	684,516	139,800	2,104,682	0	139,800	2,104,682	2,244,482	227,987	07/99	06/99	5-27.5
	34,049,562	2,858,267	43,012,203	16,391,853	2,883,167	59,404,056	62,287,223	7,731,574

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2002.

There were no carrying costs as of December 31, 2002.  The column has been omitted for presentation purposes.

F-354

Notes to Schedule III
Boston Capital Tax Credit Fund IV LP - Series 36

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/99			$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	13,858,724
Improvements, etc	0
Other	0
			$	13,858,724
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/00			$	13,858,724
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	22,306,082
Improvements, etc	25,593,908
Other	0
			$	47,899,990
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/01			$	61,758,714
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions
Improvements, etc	423,780
Other	0
			$	423,780
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/02			$	62,182,494

F-355

Balance at close of period - 3/31/02			$	62,181,494
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions
Improvements, etc	104,729
Other	0
			$	104,729
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/02			$	62,287,223

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/99			$	0
Current year expense	$	109,722
Balance at close of period - 3/31/00			$	109,722
Current year expense	$	3,420,983
Balance at close of period - 3/31/01			$	3,530,705
Current year expense	$	2,140,499
Balance at close of period - 3/31/02			$	5,671,204
Current year expense	$	2,060,370
Balance at close of period - 3/31/03			$	7,731,574

F-356

Boston Capital Tax Credit Fund IV LP - Series 37
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2003

	Initial cost to company			Cost capitalized subsequent to acquisition	Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements	Land	Buildings and Improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
ASHTON RIDGE	2,646,471	300,500	9,547,932	250,558	300,500	9,798,490	10,098,990	1,306,179	12/00	02/00	5-27.5
BALDWIN VILLAS	7,648,775	200,000	0	7,889,883	325,000	7,889,883	8,214,883	491,397	7/01	10/99	5-27.5
COLUMBIA WOODS	5,516,794	605,453	0	10,570,351	630,361	10,570,351	11,200,712	423,265	06/02	10/00	5-40
HIGHWAY 18	10,550,000	766,286	7,424,418	5,615,532	797,823	13,039,950	13,837,773	1,565,088	06/00	10/99	5-27.5
SR SUITES WASHINTGON HGTS	3,413,006	29,876	7,361,729	40,238	29,876	7,401,967	7,431,843	626,259	11/00	12/99	5-27.5
SILVER POND	4,503,931	340,000	3,518,005	2,522,908	340,000	6,040,913	6,380,913	321,703	12/01	06/00	40
STEARNS ASSISTED LIVING	435,500	1	0	2,934,502	1	2,934,502	2,934,503	143,840	3/01	12/99	5-27.5
	34,714,477	2,242,116	27,852,084	29,823,972	2,423,561	57,676,056	60,099,617	4,877,731

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2002.

There were no carrying costs as of December 31, 2002.  The column has been omitted for presentation purposes.

F-357

Notes to Schedule III
Boston Capital Tax Credit Fund IV LP - Series 37

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/99			$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	8,390,705
Improvements, etc	0
Other	0
			$	8,390,705
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/00			$	8,390,705
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	10,519,032
Improvements, etc	19,144,384
Other	0
			$	29,663,416
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/01			$	38,054,121
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	21,802,305
Other	0
			$	21,802,305
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/02			$	59,856,426

F-358

Balance at close of period - 3/31/02			$	59,856,426
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	243,191
Other	0
			$	243,191
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/03			$	60,099,617

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/99			$	0
Current year expense	$	0
Balance at close of period - 3/31/00			$	0
Current year expense	$	719,027
Balance at close of period - 3/31/01			$	719,027
Current year expense	$	1,847,312
Balance at close of period - 3/31/02			$	2,566,339
Current year expense	$	2,311,392
Balance at close of period - 3/31/03			$	4,877,731

F-359

Boston Capital Tax Credit Fund IV LP - Series 38
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2003

	Initial cost to company			Cost capitalized subsequent to acquisition		Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements		Land	Buildings and Improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
ALDINE WESTFIELD	2,124,578	334,472	0	8,894,479		347,330	8,894,479	9,241,809	421,269	07/01	04/00	5-27.5
ANDOVER HOUSING	2,635,662	150,000	4,645,760	356,952		150,000	5,002,712	5,152,712	312,393	12/00	05/00	10-40
ARBORS AT EAGLE CREST	1,778,353	305,872	0	8,377,643		290,000	8,377,643	8,667,643	741,765	10/01	12/00	5-27.5
BRISTOW PLACE	1,238,788	32,500	896,311	906,749		32,500	1,803,060	1,835,560	129,363	12/00	06/00	5-30
COLUMBIA CREEK	5,600,000	1,068,040	0	11,862,224		1,070,161	11,862,224	12,932,385	583,205	11/01	08/00	5-27.5
CUSHING PLACE	1,104,910	0	1,358,355	207,052		30,000	1,565,407	1,595,407	167,084	10/00	03/00	5-27.5
EDNA VANDERBILT	327,979	10,000	502,555	10,000		503,687	513,687	31,418	10/01	05/01	5-27.5
HAMMOND PLACE	494,484	94,026	2,164,107	0		94,026	2,164,107	2,258,133	164,562	04/00	03/00	5-27.5
HERITAGE II	910,854	60,130	1,171,322	(11,257	)	60,130	1,160,065	1,220,195	130,552	06/00	06/00	5-27.5
WILLOWBROOK II	972,135	168,860	2,093,435	0		168,860	2,093,435	2,262,295	166,955	10/01	03/00	5-27.5
	17,187,743	2,223,900	12,831,845	30,593,842		2,253,007	43,426,819	45,679,826	2,848,566

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2002.

There were no carrying costs as of December 31, 2002.  The column has been omitted for presentation purposes.

F-360

Notes to Schedule III
Boston Capital Tax Credit Fund IV LP - Series 38

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/00			$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	14,543,190
Improvements, etc	0
Other	0
			$	14,543,190
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/01			$	14,543,190
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	512,555
Improvements, etc	30,124,847
Other	0
			$	30,637,402
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/02			$	45,180,592
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	499,234
Other	0
			$	499,234
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/03			$	45,679,826

F-361

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/00			$	0
Current year expense	$	143,616
Balance at close of period - 3/31/01			$	143,616
Current year expense	$	1,011,977
Balance at close of period - 3/31/02			$	1,155,593
Current year expense	$	1,692,973
Balance at close of period - 3/31/03			$	2,848,566

F-362

Boston Capital Tax Credit Fund IV LP - Series 39
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2003

	Initial cost to company			Cost capitalized subsequent to acquisition		Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements		Land	Buildings and Improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
ARBORS AT EAGLE CREST	1,778,353	305,872	0	8,377,643		290,000	8,377,643	8,667,643	741,765	10/01	12/00	5-27.5
ARBORS AT IRONWOOD	1,815,392	121,057	0	5,643,937		110,000	5,643,937	5,753,937	520,342	09/01	07/00	5-27.5
AUSTIN ACRES	874,755	128,000	0	2,045,772		128,000	2,045,772	2,173,772	73,623	09/01	11/00	5-27.5
COLUMBIA CREEK	5,600,000	1,068,040	0	11,862,224		1,070,161	11,862,224	12,932,385	583,205	11/01	08/00	5-27.5
DAYSTAR	807,075	155,028	0	1,800,059		155,028	1,800,059	1,955,087	91,194	01/01	02/01	5-27.5
GOUVERNEUR SR	1,125,000	0	0	4,167,315		66,600	4,167,315	4,233,915	141,023	10/01	12/00	12-40
HILLVIEW	919,540	10,000	1,201,246	0		10,000	1,201,246	1,211,246	71,653	12/01	05/01	5-27.5
TALLY HO II	580,993	30,000	1,131,775	(67,711	)	30,000	1,064,064	1,094,064	61,455	12/01	06/01	5-27.5
TIMEVER TRAILS I	821,164	50,000	1,280,757	(21,668	)	50,000	1,259,089	1,309,089	65,550	07/01	06/01	5-27.5
	14,322,272	1,867,997	3,613,778	33,807,571		1,909,789	37,421,349	39,331,138	2,349,810

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2002.

There were no carrying costs as of December 31, 2002.  The column has been omitted for presentation purposes.

F-363

Notes to Schedule III
Boston Capital Tax Credit Fund IV LP - Series 39

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/00				$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	4,376,035
Improvements, etc	0
Other	0
				$	4,376,035
Deductions during period:
Cost of real estate sold	$	0
Other	0
Other				$	0
Balance at close of period - 3/31/01				$	4,376,035
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	3,703,778
Improvements, etc	29,690,055
Other	0
				$	33,393,833
Deductions during period:
Cost of real estate sold	$	0
Other	(2,598,038		)
				$	(2,598,038	)
Balance at close of period - 3/31/02				$	35,171,830
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	0
Improvements, etc	4,159,308
Other	0
				$	4,159,308
Deductions during period:
Cost of real estate sold	$	0
Other	0
				$	0
Balance at close of period - 3/31/03				$	39,331,138

F-364

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/00			$	0
Current year expense	$	11,017
Balance at close of period - 3/31/01			$	11,017
Current year expense	$	735,243
Balance at close of period - 3/31/02			$	746,260
Current year expense	$	1,603,550
Balance at close of period - 3/31/03			$	2,349,810

F-365

Boston Capital Tax Credit Fund IV LP - Series 40
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2003

	Initial cost to company			Cost capitalized subsequent to acquisition		Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements		Land	Buildings and Improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
ARBORS IRONWOOD II	903,000	115,000	2,665,008	12,820		115,000	2,677,828	2,792,828	207,976	11/01	02/01	5-27.5
AZLE FOUNTAINHEAD	1,245,222	52,400	782,639	1,108,076		52,400	1,890,715	1,943,115	68,951	05/02	10/01	5-27.5
BALDWIN VILLAS	7,648,775	325,000	7,838,615	51,268		325,000	7,889,883	8,214,883	491,397	07/01	07/01	5-27.5
CAPITAL FIVE	1,208,315	107,162	1,117,138	1,767,534		107,162	2,884,672	2,991,834	70,450	07/02	06/01	5-27.5
CARLISLE APTS	906,643	84,027	2,158,184	593		84,027	2,158,777	2,242,804	147,999	06/01	02/01	5-27.5
CENTER PLACE II	786,740	28,590	1,267,462	0		28,590	1,267,462	1,296,052	66,256	10/01	10/01	5-27.5
KC HOMES	3,857,866	275,100	4,764,685	35,285		275,100	4,799,970	5,075,070	233,046	11/01	08/01	5-27.5
LONDONTOWN HOMES	598,355	257,366	2,281,695	0		257,366	2,281,695	2,539,061	96,191	06/01	02/01	5-27.5
MA NO. 2	1,526,654	66,500	2,450,256	117,348		66,500	2,567,604	2,634,104	91,758	02/02	02/01	5-27.5
MEADOWSIDE ASSOC	1,576,004	0	0	3,287,878		51,725	3,287,878	3,339,603	101,522	12/01	05/01	5-27.5
NORTHROCK II	2,385,435	110,000	892,246	3,569,009		110,000	4,461,255	4,571,255	120,415	05/02	07/01	10-40
OAKLAND PSHP	1,249,560	40,000	2,017,047	(39,561	)	40,000	1,977,486	2,017,486	139,992	07/01	02/01	5-27.5
SEDGWICK SUNDANCE	915,000	5,000	2,176,106	0		5,000	2,176,106	2,181,106	73,239	10/01	09/01	5-27.5
SOUTHBROOK HOMES	545,460	240,000	2,272,500	0		240,000	2,272,500	2,512,500	72,766	11/01	04/01	5-27.5
SPRINGFIELD METRO	26,052,055	3,282,371	38,725,894	0		3,282,371	38,725,894	42,008,265	980,258	10/01	06/02	5-40
WESTERN GARDENS	1,297,391	40,800	2,086,305	(100,861	)	40,800	1,985,444	2,026,244	146,939	07/01	02/01	5-27.5
	52,702,475	5,029,316	73,495,780	9,809,389		5,081,041	83,305,169	88,386,210	3,109,155

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2002

There were no carrying costs as of December 31, 2002.  The column has been omitted for presentation purposes.

F-366

Notes to Schedule III
Boston Capital Tax Credit Fund IV LP - Series 40

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/01				$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	36,516,831
Improvements, etc	0
Other	0
				$	36,516,831
Deductions during period:
Cost of real estate sold	$	0
Other	0
				$	0
Balance at close of period - 3/31/02				$	36,516,831
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	42,008,265
Improvements, etc	10,001,536
Other	0
				$	52,009,801
Deductions during period:
Cost of real estate sold	$	0
Other	(140,422		)
				$	(140,422	)
Balance at close of period - 3/31/03				$	88,386,210

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/01			$	0
Current year expense	$	584,300
Balance at close of period - 3/31/02			$	584,300
Current year expense	$	2,524,855
Balance at close of period - 3/31/03			$	3,109,155

F-367

Boston Capital Tax Credit Fund IV LP - Series 41
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2003

	Initial cost to company			Cost capitalized subsequent to acquisition		Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements		Land	Buildings and Improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
BIENVILLE	815,086	16,500	1,309,576	0		16,500	1,309,576	1,326,076	86,827	11/01	12/01	5-27.5
BREEZEWOOD	1,000,454	42,500	0	1,667,004		42,500	1,667,004	1,709,504	31,133	06/02	10/01	5-27.5
BROOKSTONE APTS II	2,481,872	223,150	0	5,228,055		222,750	5,228,055	5,450,805	121,660	08/02	08/01	5-27.5
CEDAR GROVE	1,066,439	112,500	1,447,390	0		112,500	1,447,390	1,559,890	141,287	07/01	05/02	5-27.5
CRANBERRY COVE	1,001,136	134,400	1,475,984	0		134,400	1,475,984	1,610,384	68,781	01/02	05/02	5-27.5
DS HOUSING	1,716,000	330,720	1,652,898	0		330,720	1,652,898	1,983,618	23,608	U/C	07/02	30
HALFMOON BDC, LP	1,348,733	292,000	0	2,621,699		292,000	2,621,699	2,913,699	83,647	04/02	07/01	5-27.5
HARBOR POINT	1,672,163	440,000	0	5,361,554		440,126	5,361,554	5,801,680	40,734	10/02	08/01	5-27.5
HAWTHORNE	998,413	77,698	1,162,871	0		77,698	1,162,871	1,240,569	67,371	07/01	05/02	5-27.5
HOLLYWOOD PALMS	10,004,500	850,000	14,921,469	0		850,000	14,921,469	15,771,469	96,763	11/02	03/02	5-27.5
MADISON HOUSING II	1,586,355	35,000	3,953,209	0		35,000	3,953,209	3,988,209	129,979	05/02	09/01	10-40
MARWOOD SENIOR	12,377,110	2,011,263	12,393,753	0		2,011,263	12,393,753	14,405,016	139,281	08/02	07/01	10-40
MEADOWSIDE ASSOC	1,576,004	51,725	3,287,878	0		51,725	3,287,878	3,339,603	101,522	12/01	05/01	5-27.5
RED HILL APTS	839,469	24,600	1,344,222	(35,817	)	24,600	1,308,405	1,333,005	92,295	06/01	11/01	5-27.5
RH-FRANKIN	393,878	36,000	620,928	0		36,000	620,928	656,928	28,126	09/01	05/02	5-27.5
RH-FULTON	558,001	42,500	839,311	0		42,500	839,311	881,811	39,046	09/01	05/02	5-27.5
RF-MENDOTA	739,001	42,500	1,142,673	0		42,500	1,142,673	1,185,173	55,637	06/01	05/02	5-27.5
RH-MT CARROLL	417,278	24,500	611,397	0		24,500	611,397	635,897	28,394	09/01	05/02	5-27.5
SPRINGFIELD METRO	26,052,055	3,282,371	38,725,894	0		3,282,371	38,725,894	42,008,265	980,258	10/01	06/02	5-40
SUNSHINE APTS	892,495	160,000	2,067,906	0		160,000	2,067,906	2,227,906	25,204	08/02	03/02	5-27.5
	67,536,442	8,229,927	86,957,359	14,842,495		8,229,653	101,799,854	110,029,507	2,381,553

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2002

U/C-Property was under construction as of March 31, 2003

There were no carrying costs as of December 31, 2002.  The column has been omitted for presentation purposes.

F-368

Notes to Schedule III
Boston Capital Tax Credit Fund IV LP - Series 41

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/01				$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	7,680,757
Improvements, etc	0
Other	0
				$	7,680,757
Deductions during period:
Cost of real estate sold	$	0
Other	0
				$	0
Balance at close of period - 3/31/02				$	7,680,757
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	69,761,910
Improvements, etc	32,622,657
Other	0
				$	102,384,567
Deductions during period:
Cost of real estate sold	$	0
Other	(35,817		)
				$	(35,817	)
Balance at close of period - 3/31/03				$	110,029,507

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/01			$	0
Current year expense	$	104,810
Balance at close of period - 3/31/02			$	104,810
Current year expense	$	2,276,743
Balance at close of period - 3/31/03			$	2,381,553

F-369

Boston Capital Tax Credit Fund IV LP - Series 42
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2003

	Initial cost to company			Cost capitalized subsequent to acquisition	Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements	Land	Buildings and Improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
BREEZEWOOD II	756,490	42,500	0	0	42,500	0	42,500	0	3/03	04/02	N/A
CC HOUSING	1,190,000	64,162	1,360,312	0	64,162	1,360,312	1,424,474	21,827	U/C	07/02	30
CT HOUSING	3,019,000	195,275	3,211,525	0	195,275	3,211,525	3,406,800	46,779	U/C	07/02	30
CRITTENDEN COUNTY	1,053,936	96,688	2,016,683	0	96,688	2,016,683	2,113,371	28,170	10/02	06/02	5-27.5
DORCHESTER CT	1,521,613	528,000	0	0	528,000	0	528,000	0	U/C	04/02	N/A
GREAT BRIDGE-DOVER	1,678,496	180,000	0	0	180,000	0	180,000	0	12/02	04/02	N/A
HARBOR PT II	1,672,163	440,126	5,361,554	0	440,126	5,361,554	5,801,680	40,734	10/02	04/02	5-27.5
HOLLYWOOD PALMS	10,004,500	850,000	14,921,469	0	850,000	14,921,469	15,771,469	96,763	11/02	08/02	5-27.5
HS HOUSING	1,735,000	456,889	1,593,468	0	456,889	1,593,468	2,050,357	22,742	U/C	07/02	30
LYNELLE LANDING	1,613,096	340,000	3,438,633	0	340,000	3,438,633	3,778,633	41,699	9/02	03/02	5-27.5
NATCHEZ PLACE	843,071	35,864	1,507,640	0	35,864	1,507,640	1,543,504	104,658	11/01	08/02	5-27.5
PARKHURST PLACE	3,563,000	767,254	3,320,955	0	767,254	3,320,955	4,088,209	34,040	9/02	01/02	5-27.5
PW HOUSING	1,546,000	77,445	1,730,611	0	77,445	1,730,611	1,808,056	25,269	U/C	07/02	30
SM HOUSING	2,014,000	73,780	2,263,816	0	73,780	2,263,816	2,337,596	32,861	U/C	07/02	30
STARWBERRY LANE	1,987,305	63,212	2,992,381	0	63,212	2,992,381	3,055,593	93,729	8/02	03/02	5-27.5
TS HOUSING	1,671,000	366,794	1,629,068	0	366,794	1,629,068	1,995,862	23,339	U/C	07/02	30
WINGFEILD APTS II	612,434	148,936	2,242,481	0	148,936	2,242,481	2,391,417	70,813	11/01	08/02	5-27.5
	36,481,104	4,726,925	47,590,596	0	4,726,925	47,590,596	52,317,521	683,423

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2002.

U/C-Property was under construction as of March 31, 2003

There were no carrying costs as of December 31, 2002.  The column has been omitted for presentation purposes.

F-370

Notes to Schedule III
Boston Capital Tax Credit Fund IV LP - Series 42

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/02			$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	52,317,521
Improvements, etc	0
Other	0
			$	52,317,521
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/03			$	52,317,521

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/02			$	0
Current year expense	$	683,423
Balance at close of period - 3/31/03			$	683,423

F-371

Boston Capital Tax Credit Fund IV LP - Series 43
Schedule III - Real Estate and Accumulated Depreciation
March 31, 2003

	Initial cost to company			Cost capitalized subsequent to acquisition	Gross amount at which carried at close of period						Life on which
Description	Encum- brances	Land	Buildings and improvements	Improvements	Land	Buildings and Improvements	Total	Accumulated depreciation	Date of construction	Date acquired	depreciation is computed
AM HOUSING	5,169,000	1,010,088	4,887,737	0	1,010,088	4,887,737	5,897,825	69,152	U/C	09/02	5-27.5
AP HOUSING	2,492,000	723,530	2,147,588	0	723,530	2,147,588	2,871,118	30,768	U/C	09/02	5-27.5
CHARLEVOIX APTS	1,277,701	64,259	1,458,895	0	64,259	1,458,895	1,523,154	14,874	11/02	09/02	10-40
CLOVER LANE	500,916	36,194	834,077	0	36,194	834,077	870,271	11,416	10/02	09/02	10-40
DORCHESTER CT	1,521,613	528,000	0	0	528,000	0	528,000	0	U/C	09/02	N/A
HENDERSON FOUNTAINHEAD	743,643	25,000	999,547	0	25,000	999,547	1,024,547	26,529	U/C	09/02	5-27.5
HOLLYWOOD PALMS	10,004,500	850,000	14,921,469	0	850,000	14,921,469	15,771,469	96,763	11/02	12/02	5-27.5
KP HOUSING	1,533,000	177,147	1,608,794	0	177,147	1,608,794	1,785,941	23,446	U/C	09/02	5-27.5
LAKEWOOD APTS	846,675	36,332	1,248,636	0	36,332	1,248,636	1,284,968	15,259	10/02	09/02	10-40
LAWRENCEVILLE	13,800,000	1,632,824	0	0	1,632,824	0	1,632,824	0	01/03	12/02	N/A
PARKSIDE APTS-COLEMAN	1,002,017	65,119	650,632	0	65,119	650,632	715,751	6,777	12/02	09/02	10-40
RIVERVIEW APTS-BLISSFIELD	756,287	51,214	664,606	0	51,214	664,606	715,820	7,047	02/02	09/02	10-40
SG HOUSING	2,167,000	618,589	1,899,538	0	618,589	1,899,538	2,518,127	26,593	U/C	09/02	5-27.5
STOTTVILLE LP	625,823	36,375	0	0	36,375	0	36,375	0	U/C	09/02	N/A
VG HOSUING	2,026,000	426,685	2,150,765	0	426,685	2,150,765	2,577,450	30,620	U/C	09/02	5-27.5
	44,466,175	6,281,356	33,472,284	0	6,281,356	33,472,284	39,753,640	359,244

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2002.

U/C-Property was under construction as of March 31, 2003

There were no carrying costs as of December 31, 2002.  The column has been omitted for presentation purposes.

F-372

Notes to Schedule III
Boston Capital Tax Credit Fund IV LP - Series 43

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/02			$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions	39,753,640
Improvements, etc	0
Other	0
			$	39,753,640
Deductions during period:
Cost of real estate sold	$	0
Other	0
			$	0
Balance at close of period - 3/31/03			$	39,753,640

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/02			$	0
Current year expense	$	359,244
Balance at close of period - 3/31/03			$	359,244

F-373

EX-99.1

EXHIBIT 99.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Boston Capital Tax Credit Fund IV L.P. (the “Fund”) on Form 10-K for the period ended March 31, 2003 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John P. Manning, Director, Principal and Principal Executive Officer of C&M Management Inc., certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge, after due inquiry:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Fund.

	Boston Capital Tax Credit Fund IV L.P
		By:	Boston Capital Associates IV L.P.
			General Partner
		By:	BCA Associates Limited Partnership,
			General Partner
		By:	C&M Management Inc.,
			General Partner
Date:
July 15, 2003		By:	/s/ John P. Manning
			John P. Manning
			Director, President, Principal Executive Officer

EX-99.2

EXHIBIT 99.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Boston Capital Tax Credit Fund IV L.P. (the “Fund”) on Form 10-K for the period ended March 31, 2003 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Marc N. Teal, Sr. Vice President of C&M Management Inc. and Director of Accounting of Boston Capital Corporation, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge, after due inquiry:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Fund.

	Boston Capital Tax Credit Fund IV L.P.
		By:	Boston Capital Associates IV L.P.
			General Partner
		By:	BCA Associates Limited Partnership,
			General Partner
		By:	C&M Management Inc.,
			General Partner
Date:
July 15, 2003		By:	/s/ Marc N. Teal
			Marc N. Teal
			Sr. Vice President

EX-99.3

Exhibit 99.3

Independent Auditor’s Report

To the Partners

Bennetts Pointe Limited Partnership

I have audited the accompanying balance sheets of Bennetts Pointe Limited Partnership as of December 31, 2002 and 2001, and the related statements of operations, partners’ deficit and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. My responsibility is to express an opinion on these financial statements based on my audits.

I conducted 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 Bennetts Pointe Limited Partnership as of December 31, 2002 and 2001 the results of its operations, changes in partners’ deficit, and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, I have also issued my report dated February 15, 2003 on my consideration of Bennetts Pointe Limited Partnership’s internal control over financial reporting and on my tests of its compliance with certain provisions of laws and regulations.

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, 2002 and 2001, 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 auditing standards generally accepted in the United States of America. 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, 2002 and 2001, and the results of its operations, the changes in partners’ equity and cash flows1for-the years then ended in conformity with accounting principles generally accepted in the United States of America.

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.

2

INDEPENDENT AUDITOR’S REPORT

To the Partners

Lookout Ridge Limited Partnership

We have audited the accompanying balance sheet of Lookout Ridge Limited Partnership as of December 31, 2002, 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 audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Lookout Ridge Limited Partnership as of December 31, 2002, and the results of its operations, the changes in partners’ equity and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

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 audit of the basic financial statement and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

RANKIN, RANKIN & COMPANY

3

February 15, 2003

To the Partners of

Elk Tower Apartments Limited Partnership

We have audited the accompanying balance sheets of Elk Tower Apartments Limited Partnership as of December 31, 2002 and 2001, 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 Elk Tower Apartments Limited Partnership as of December 31, 2002 and 2001, 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 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.

4

INDEPENDENT AUDITORS’ REPORT

To the Partners of

Kimbark 1200 Associates, Limited Partnership

Longmont, Colorado

We have audited the accompanying balance sheet of Kimbark 1200 Associates, Limited Partnership. FHA Project No. 101-98011 as of December 31, 2002, and the related statements of operations, changes in partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 Kimbark 1200 Associates, Limited Partnership FHA Project No. 101-98011, as of December 31, 2002, and the results of its operations and the changes in its partners’ equity and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our reports dated February 10, 2003 on our consideration of Kimbark 1200 Associates, Limited Partnership internal control and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Those reports are an integral part of the audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

We conducted our audit to form an opinion on the basic financial statements of Kimbark 1200 Associates, Limited Partnership taken as a whole. The accompanying supplemental information (shown on pages thirteen through fifteen) is presented for purposes of additional analysis and is not a required part of the basic financial statements of Kimbark 1200 Associates, Limited 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.

5

Independent Auditors’ Report

To the Partners

Barlee Properties Limited Partnership

Barling, Arkansas

We have audited the accompanying balance sheets of Barlee Properties, An Arkansas Limited Partnership (the Partnership) as of December 31, 2002 and 2001, 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 auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Barlee Properties, An Arkansas Limited Partnership, as of December 31, 2002, an the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

6

INDEPENDENT AUDITORS’ REPORT

To the Partners of

Colonna Redevelopment Company L.P.:

We have audited the accompanying balance sheet of Colonna Redevelopment Company, L.P (the “Partnership”) as of December 31, 2002, and the related statements of operations, cash flows and partners’ equity 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 Colonna Redevelopment Company L.P. as of December 31, 2001, were audited by other auditors whose report dated May 13, 2002 expressed an unqualified opinion on those statements.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Colonna Redevelopment Company, L.P. as of December 31, 2002, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedule is presented for purposes of additional analysis and is not a required part of the financial statements. The information in this schedule 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.

7

INDEPENDENT AUDITORS’ REPORT

To the Partners

Brownsville Associates, Limited

We have audited the accompanying balance sheets of Brownsville Associates, Limited (a Tennessee limited partnership) d/b/a Brownsville Village Apartments, RHS Project No.: 48-038-621467876, as of December 31, 2002 and 2001, 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 auditing standards generally accepted in the United States of America 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 Brownsville Associates, Limited (a Tennessee limited partnership) d/b/a Brownsville Village Apartments, RHS Project No.: 48-038-621467876, as of December 31, 2002 and 2001, and the results of its operations, the changes in partners’ equity and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 23, 2003 on our consideration of Brownsville Associates, Limited’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 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 audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material r9pects in relation to the basic financial statements taken as a whole.

8

INDEPENDENT AUDITORS’ REPORT

To the Partners

Century East Apartments IV Limited Partnership

Bismarck, North Dakota

We have audited the accompanying balance sheets of Century East Apartments IV Limited Partnership, as of December 31, 2002 and 2001 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 auditing standards generally accepted in the United States of America. 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 Century East Apartments IV Limited Partnership as of December 31, 2002 and 2001 and the results of its operations, the changes in partners’ equity, and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 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.

9

INDEPENDENT AUDITORS’ REPORT

To the Partners

Century East Apartments V Limited Partnership

Bismarck, North Dakota

We have audited the accompanying balance sheets of Century East Apartments V Limited Partnership, as of December 31, 2002 and 2001 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 auditing standards generally accepted in the United States of America. 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 Century East Apartments V Limited Partnership as of December 31, 2002 and 2001 and the results of its operations, the changes in partners’ equity, and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the 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.

10

INDEPENDENT AUDITORS’ REPORT

To the Partners

Lake Apartments I Limited Partnership

Fargo, North Dakota

We have audited the accompanying balance sheets of Lake Apartments I Limited Partnership, as of December 31, 2002 and 2001 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 auditing standards generally accepted in the United States of America. 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 Lake Apartments I Limited Partnership as of December 31, 2002 and 2001 and the results of its operations, the changes in partners’ equity, and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 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.

11

INDEPENDENT AUDITORS’ REPORT

To the Partners

Lake Apartments I Limited Partnership

Fargo, North Dakota

We have audited the accompanying balance sheets of Lake Apartments I Limited Partnership, as of December 31, 2002 and 2001 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 auditing standards generally accepted in the United States of America. 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 Lake Apartments I Limited Partnership as of December 31, 2002 and 2001 and the results of its operations, the changes in partners’ equity, and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 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.

12

To the Partners

Pahrump Valley Investors

A Wyoming Limited Partnership

Pahrump, Nevada

Independent Auditors’ Report

We have audited the accompanying balance sheet of Pahrump Valley Investors, A Wyoming Limited Partnership, USDA, Rural Development Project Number 33-019-680204949, as of December 31, 2002, and the related statements of operations, changes in partners’ equity, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of Pahrump Valley Investors as of December 31, 2002, were audited by other auditors whose report, dated March 11, 2002 expressed an unqualified opinion on those statements.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 Pahrump Valley Investors, as of December 31, 2002, and the results of its operations, changes in partners’ equity, and cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 21, 2003 on our consideration of Pahrump Valley Investors’ internal control structure and a report dated January 21, 2003 on its compliance with laws and regulations. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental and other information is presented for purposes of additional analysis and is not a required part of the financial statements of Pahrump, Valley Investors. Such information has been subjected to auditing procedures applied in our 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.

13

INDEPENDENT AUDITORS’ REPORT

To the Partners

Stanton Associates, Limited

We have audited the accompanying balance sheets of Stanton Associates, Limited (a Tennessee limited partnership) d/b/a Stanton Village Apartments, RHS Project No.: 48-038-621542356, as of December 31, 2002 and 2001, 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 auditing standards generally accepted in the United States of America 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 Stanton Associates, Limited (a Tennessee limited partnership) d/b/a Stanton Village Apartments, RHS Project No.: 48-038-621542356, as of December 31, 2002 and 2001, and the results of its operations, the changes in partners’ equity and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 25, 2003 on our consideration of Stanton Associates, Limited’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 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 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.

14

INDEPENDENT AUDITORS’ REPORT

To the Partners

Century East Apartments II Limited Partnership

Bismarck, North Dakota

We have audited the accompanying balance sheets of Century East Apartments 11 Limited Partnership, as of December 31, 2002 and 2001 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 auditing standards generally accepted in the United States of America. 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 Century East Apartments 11 Limited Partnership as of December 31, 2002 and 2001 and the results of its operations, the changes in partners’ equity, and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the 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.

15

The Partners

Ethel Housing, L.P.

Ethel, Mississippi

We have audited the accompanying balance sheets of Ethel Housing, L.P., RD Case No. 28-0040640823417 as of December 31, 2002 and 2001, 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 auditing standards generally accepted in the United States of America 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 included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also included 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 provided a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Ethel Housing, L.P., as of December 31, 2002 and 2001, 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 and the Audit Program issued by the United States Department of Agriculture, Rural Development, we have also issued a report dated February 21, 2003, on its compliance with specific requirements applicable to major RD programs and nonmajor RD program transactions.

Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The supporting data included on pages 12 through 19 are presented for purposes of additional analysis and are not a required part of the financial statements of Ethel Housing, L.P. Such information, except for the current budget and proposed budget columns on pages 15 through 18, on which we express no opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

16

INDEPENDENT AUDITORS’ REPORT

To the partners

Hurricane Hills I LC

I have audited the accompanying balance sheets of Hurricane Hills LC as of December 31, 2002, and the related statements of operations, partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

I conducted my 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 examination, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 provided a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hurricane Hills I LC as of December 31, 2002, 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.

17

INDEPENDENT AUDITOR’S REPORT

To:	The Partners
	Main Everett Housing Limited Partnership

We have audited the accompanying balance sheets of Main Everett Housing Limited Partnership as of December 31, 2002 and 2001, 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 auditing standards generally accepted in the Unites States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit Includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentatl6n. 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 Main Everett Housing Limited Partnership as of December 31, 2002 and 2001, and the results of its operations, changes in partners’ equity, and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

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.

18

INDEPENDENT AUDITOR’S REPORT

To:	The Partners
	Osborne Housing Limited Partnership

We have audited the accompanying balance sheets of Osborne Housing Limited Partnership as of December 31, 2002 and 2001, 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 auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Osborne Housing Limited Partnership as of December 31, 2002 and 2001, and the results of its operations, changes in partners’ equity, and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

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.

Tobin & Company

Certified Public Accountants, PC

January 24, 2002

19

The Partners

Shannon Housing, L.P.

Shannon, Mississippi

We have audited the accompanying balance sheets of Shannon Housing, L.P., RD Case No. 28- 041064835658, as of December 31, 2002 and 2001, 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 included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also included 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 provided a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Shannon Housing, L.P., as of December 31, 2002 and 2001, 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 and the Audit Program issued by the United States Department of Agriculture, Rural Development, we have also issued a report dated March 15, 2003, on its compliance with specific requirements applicable to major RD programs and nonmajor RD program transactions.

Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The supporting data included on pages 12 through 19 are presented for purposes of additional analysis and are not a required part of the financial statements of Shannon Housing, L.P. Such information, except for the current budget and proposed budget columns on pages 15 through 18, on which we express no opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

20

The Partners

West Point Housing, L.P.

West Point, Mississippi

We have audited the accompanying balance sheets of West Point Housing, L.P., RD Case No. 28-013-0640834734, as of December 31, 2002, and 2001, 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 audit in accordance with auditing standards generally accepted in the United States of America 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 included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also included 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 provided a 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 Point Housing, L.P., as of December 31, 2002 and 2001, 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 and the Audit Program issued by the United States Department of Agriculture, Rural Development, we have also issued a report dated February 25, 2003, on its compliance with specific requirements applicable to major RD programs and nonmajor RD program transactions.

Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The supporting data included on pages 12 through 19 are presented for purposes of additional analysis and are not a required part of the financial statements of West Point Housing, L.P. Such information, except for the current budget and proposed budget columns on pages 15 through 18, on which we express no opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

21

INDEPENDENT AUDITORS’ REPORT

To the Partners

Calgory Apartments I Limited Partnership

Bismarck, North Dakota

We have audited the accompanying balance sheets of Calgory Apartments I Limited Partnership, as of December 31, 2002 and 2001 and the related statements of operations, partners’ equity cash flows for the years then ended. These 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 auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Calgory Apartments I Limited Partnership as of December 31, 2002 and 2001 and the results of its operations, the changes in partners’ equity, and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 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.

22

INDEPENDENT AUDITORS’ REPORT

To the Partners

Calgory Apartments II Limited Partnership

Bismarck, North Dakota

We have audited the accompanying balance sheets of Calgory Apartments II Limited Partnership, as of December 31, 2002 and 2001 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 auditing standards generally accepted in the United States of America. 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 Calgory Apartments II Limited Partnership as of December 31, 2002 and 2001 and the results of its operations, the changes in partners’ equity, and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

23

INDEPENDENT AUDITORS’ REPORT

To the Partners

Calgory Apartments III Limited Partnership

Bismarck, North Dakota

We have audited the accompanying balance sheets of Calgory Apartments III Limited Partnership, as of December 31, 2002 and 2001 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 auditing standards generally accepted in the United States of America. 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 Calgory III Limited Partnership as of December 31, 2002 and 2001 and the results of its operations, the changes in partners’ equity, and its cash flows for the years, then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 12 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

24

INDEPENDENT AUDITORS’ REPORT

To the Partners

Country Edge Apartments I Limited Partnership

Fargo, North Dakota

We have audited the accompanying balance sheets of Country Edge Apartments I Limited Partnership, as of December 31, 2002 and 2001 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 auditing standards generally accepted in the United States of America. 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 Country Edge Apartments I Limited Partnership as December 31, 2002 and 2001 and the results of its operations, the changes in partners’ equity, and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the 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.

25

INDEPENDENT AUDITORS’ REPORT

To the Partners

East Park Apartments II Limited Partnership

Dilworth, Minnesota

We have audited the accompanying balance sheets of East Park Apartments II Limited Partnership, as of December 31, 2002 and 2001 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 auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of East Park Apartments II Limited Partnership as of December 31, 2002 and 2001 and the results of its operations, the changes in partners’ equity, and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the 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.

26

INDEPENDENT AUDITORS’ REPORT

To the Partners

Grandview Limited Partnership Fargo, North Dakota

We have audited the accompanying balance sheets of Grandview Apartments Limited Partners as of December 31, 2002 and 2001 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 auditing standards generally accepted in the United States of America. 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 Grandview Limited Partnership, as of December, 31, 2002 and 2001 and the results of operations, changes in partners’ equity and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the 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.

27

INDEPENDENT AUDITOR’S REPORT

To the Partners

Grayson Manor Limited Partnership

We have audited the accompanying balance sheet of Grayson Manor Limited Partnership as of December 31, 2002, and the related statements of operations, and cash flows and changes in owners’ equity for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States 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 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 Grayson Manor Limited Partnership as of December 31, 2002, and the results of its operations, changes in partners’ equity, and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States.

In accordance with Government Auditing Standards, we have also issued our report dated February 7, 2003 on our consideration of Grayson Manor Limited Partnership’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations.

28

INDEPENDENT AUDITORS’ REPORT

To the Partners

Lake Apartments IV Limited Partnership

Fargo, North Dakota

We have audited the accompanying balance sheets of Lake Apartments IV Limited Partnership, as of December 31, 2002 and 2001 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 audits in accordance with auditing standards generally accepted in the United States of America. 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 Lake Apartments IV Limited Partnership as of December 31, 2002 and 2001 and the results of its operations, changes in partners’ equity, and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

29

INDEPENDENT AUDITORS’ REPORT

To the Partners

Lake Apartments V Limited Partnership

Fargo, North Dakota

We have audited the accompanying balance sheets of Lake Apartments V Limited Partnership, as of December 31, 2002 and 2001 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 auditing standards generally accepted in the United States of America. 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 Lake Apartments V Limited Partnership as of December 31, 2002 and 2001 and the results of its operations, the changes in partners’ equity, and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the 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.

30

Independent Auditor’s Report

To the Partners

Powell Valley Limited Partnership

I have audited the accompanying balance sheets of Powell Valley Limited Partnership as of December 31, 2002 and 2001, 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, all material respects, the financial position of Powell Valley Limited Partnership as of December 31, 2002 and 2001, 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.

In accordance with Government Auditing Standards, I have also issued my report dated February 15, 2003 on my consideration of Powell Valley Limited Partnership’s internal control over financial reporting and on my tests of its compliance with certain provisions of laws and regulations.

31

To the Partners

Angelou Associates, L.P.

New York, New York

We have audited the accompanying balance sheet of Angelou Associates, L.P. (a New York State limited partnership) as of December 31, 2002 and 2001, and the related statements of operations, cash flows, and partners’ capital, and the supplementary information included for the years then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Angelou Associates, L.P. as of December 31, 2002 and 2001, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplementary information 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.

Kahn Boyd Levychin,

Certified Public Accountants

February 20, 2003

32

To the Partners of CR Housing Associates, L.P.

I have audited the accompanying balance sheets of CR Housing Associates, L.P. (the “Partnership”) as of December 31, 2002 and 2001, 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 in accordance with generally accepted auditing standards in the United States of America. 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 CR Housing Associates, L.P. as of December 31, 2002 and 2001, and the results of it operations and its cash flows for the years then ended in conformity with generally accepted accounting principles in the United States of America.

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 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 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.

Jose R. Barreras, CPA

January 31, 2003

33

INDEPENDENT AUDITORS’ REPORT

To the Partners

Lake Apartments II Limited Partnership

Fargo, North Dakota

We have audited the accompanying balance sheets of Lake Apartments II Limited Partnership, as of December 31, 2002 and 2001 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 auditing standards generally accepted in the United States of America. 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 Lake Apartments 11 Limited Partnership as of December 31, 2002 and 2001 and the results of its operations, the changes in partners’ equity, and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the 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.

34

To the Partners

Terraceview Limited Partnership

We have audited the accompanying balance sheet of Terraceview Limited Partnership as of December 31, 2002 and 2001, and the related statements or 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 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 the 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 Terraceview Limited Partnership as of December 31, 2002 and 2001 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 audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 12 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

35

The Partners

Collins Housing, L.P.

Collins, Mississippi

We have audited the accompanying balance sheets of Collins Housing, L.P., RD Case No. 28-0160640864674, as of December 31, 2002 and 2001, 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 auditing standards generally accepted in the United States of America 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 included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also included 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 provided a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Collins Housing, L.P. as of December 31, 2002 and 2001, 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 and the Audit Program issued by the United States Department of Agriculture, Rural Development, we have also issued a report dated February 20, 2003, on its compliance with specific requirements applicable to major RD programs and nonmajor RD program transactions.

Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The supporting data included on pages 12 through 19 are presented for purposes of additional analysis and are not a required part of the financial statements of Collins Housing, L.P. Such information, except for the current budget and proposed budget columns on pages 15 through 18, on which we express no opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

36

Independent Auditors’ Report

To the Partners

Bowie Apartments, Ltd.

We have audited the accompanying balance sheets of Bowie Apartments, Ltd. (a limited partnership), RD Project No. 50-069-0752627345-01-7, as of December 31, 2002 and 2001, 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 auditing standards generally accepted in the United States of America 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 Bowie Apartments, Ltd., RD Project No. 50-069-0752627345-01-7, as of December 31, 2002 and 2001, and the related statements of operations, partners’ equity and cash flows for the years then ended in conformity with U.S. 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 1-16 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 audit procedures applied in the audit of the basic financial statements and in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated January 24, 2003 on our consideration of Bowie Apartments, Ltd’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. This report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

37

Independent Auditors’ Report

To the Partners

Graham Apartments, Ltd.

We have audited the accompanying balance sheets of Graham Apartments, Ltd. (a limited partnership), RD Project No. 51-52-752663159-01-1, as of December 31, 2002 and 2001, 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 auditing standards generally accepted in the United States of America and Government Auditing Standard, 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 Apartments, Ltd., RD Project No. 51-52-752663159-01-1, as of December 31, 2002 and 2001, and the related statements of operations, partners’ equity and cash flows for the years then ended in conformity with U.S. 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 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 audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standard, we have also issued a report dated February 11, 2003 on our consideration of Graham Apartments, Ltd’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. This report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

38

Independent Auditors’ Report

To the Partners

Nocona Apartments, Ltd.

We have audited the accompanying balance sheets of Nocona Apartment, Ltd. (a limited partnership), RD Project No: 50-069-0752685663-02-2 as of December 31, 2002 and 2001, 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 auditing standards generally accepted in the United States of America 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 Nocona Apartments, Ltd. RD Project No.: 50-069-0752685663-02-2 as of December 31, 2002 and 2001, and the related statements of operations, partners’ equity and cash flows for the years then ended in conformity with U.S. 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 1-16 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 audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated January 30, 2003 on our consideration of Nocona Apartments, Ltd.’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. This report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

39

INDEPENDENT AUDITORS’ REPORT

The Partners

Canton Housing One, L.P.

Jackson, Mississippi

We have audited the accompanying balance sheets of Canton Housing One, L.P., a Mississippi limited partnership, Rural Development Agency U. S. Department of Agriculture (“RD”) Project No. 28- 045-0640886062 01-8, as of December 31, 2002 and 2001, and the related statements of income (loss), 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 auditing standards generally accepted in the United States of America 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 Canton Housing One, L.P., RD Project No. 28-045-0640886062 01-8, as of December 31, 2002 and 2001, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated February 5, 2003, on our consideration of the Partnership’s internal control and a report dated February 5, 2003, on its compliance with specific requirements applicable to major RD programs.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying financial information included on pages 14 through 21 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the current budget and proposed budget columns in Part I and Il- and the information in Part IV included on pages 14 through 18 on which we express no opinion, 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.

40

INDEPENDENT AUDITORS’ REPORT

The Partners

Canton Housing Two, L.P.

Jackson, Mississippi

We have audited the accompanying balance sheet of Canton Housing Two, L.P., a Mississippi limited partnership, Rural Development Agency, U. S. Department of Agriculture (“RD”) Project No. 28-045-0640886061 01-5, as of December 31, 2002 and 2001, and the related statements of income (loss), 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 auditing standards generally accepted in the United States of America 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 Canton Housing Two, L.P., RD Project No. 28-045-0640886061 01-5, as of December 31, 2002 and 2001, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated February 5, 2003, on our consideration of the Partnership’s internal control and a report dated February 5, 2003, on its compliance with specific requirements applicable to major Rural Development programs.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying financial information included on pages 13 through 20 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the current budget and proposed budget columns in Part I and II and the information in Part IV included on pages 13 through 18, on which we express no opinion, 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.

41

INDEPENDENT AUDITORS’ REPORT

The Partners

Canton Housing Three, L.P.

Jackson, Mississippi

We have audited the accompanying balance sheets of Canton Housing Three, L.P., a Mississippi limited partnership, Rural Development Agency, U. S. Department of Agriculture (“RD”) Project No. 28-045- 0640886063 04-2, as of December 31, 2002 and 2001, and the related statements of income (loss), 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 audit in accordance with auditing standards generally accepted in the United States of America 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 Canton Housing Three, L.P., RD Project No. 28-045-0640886063 04-2, as of December 31, 2002 and 2001, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated February 5, 2003, on our consideration of the Partnership’s internal control and a report dated February 5, 2003, on its compliance with specific requirements applicable to major RD programs.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying financial information included on pages 13 through 20 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the current budget and proposed budget columns in Part I and II and the information in part IV included on pages 13 through 17, on which we express no opinion, 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.

42

INDEPENDENT AUDITORS’ REPORT

The Partners

Canton Housing Four, L.P.

Jackson, Mississippi

We have audited the accompanying balance sheets of Canton Housing Four, L.P., a Mississippi limited partnership, Rural Development Agency, U. S. Department of Agriculture (“RD”) Project No. 28-045-0640886064 02-0, as of December 31, 2002 and 2001, and the related statements of income (loss), 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 auditing standards generally accepted in the United States of America 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 Canton Housing Four, L.P., RD Project No. 28-045-0640886064-02-0, as of December 31, 2002 and 2001, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated February 5, 2003, on our consideration of the Partnership’s internal control and a report dated February 5, 2003, on its compliance with specific requirements applicable to major RD programs.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying financial information included on pages 13 through 20 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the current budget and proposed budget columns in Part I and II and the information in Part IV included on pages 13 through 18, on which we express no opinion, 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.

43

Independent Auditor’s Report

To the Partners of

Eagles Ridge Terrace, L. P.

Decatur, Texas

I have audited the accompanying balance sheets of Eagles Ridge Terrace, L P. as of December 31, 2002 and 2001, 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 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 Eagles Ridge Terrace, L. P. as of December 31, 2002 and 2001 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 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 basic financial statements taken as a whole.

44

Independent Auditor’s Report

To the Partners of

Henderson Terrace, L. P.

Bridgeport, Texas

I have audited the accompanying balance sheets of Henderson Terrace, L. P. as of December 31, 2002 and 2001 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 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 Henderson Terrace, L. P. as of December 31, 2002 and 2001 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 l- 16 and l- 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 my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

45

INDEPENDENT AUDITORS’ REPORT

To the partners

Hurricane Hills II LC

I have audited the accompanying balance sheets of Hurricane Hills II LC as of December 31, 2002, and the related partners’ equity 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.

I conducted my 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 examination, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 provided a reasonable basis for our opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hurricane Hills II LC as of December 31, 2002, 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.

46

Independent Auditor’s Report

To the Partners of

Lakeview Little Elm, L. P.

Little Elm, Texas

I have audited the accompanying balance sheets of Lakeview Little Elm, L. P. as of December 31, 2002 and 2001, 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 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 Lakeview Little Elm, L. P. as of December 31, 2002 and 2001 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 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 basic financial statements taken as a whole.

47

Independent Auditor’s Report

To the Partners of

Mesquite Trails, L. P.

Jacksboro, Texas

I have audited the accompanying balance sheets of Mesquite Trails, L.P. as of December 31, 2002 and 2001, 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 audit.

I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

I believe that my audits provide a reasonable basis for my opinion, In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Mesquite Trails, L, P. as of December 31, 2002 and 2001 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 l-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 basic financial statements taken as a whole.

48

Independent Auditor’s Report

To the Partners of

Pilot Point Apartments, L. P.

Pilot Point, Texas

I have audited the accompanying balance sheets of Pilot Point Apartments, L. P. as of December 31, 2002 and 2001, 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 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 Pilot Point Apartments, L. P. as of December 31, 2002 and 2001 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 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 basic financial statements taken as a whole.

49

Independent Auditor’s Report

To the Partners of

Seagraves Apartments, L.P.

Ferris, Texas

I have audited the accompanying balance sheets of Seagraves Apartments, L.P. as of December 31, 2002 and 2001, and the accompanying statements of operations, partners’ capital and cash flows for the years then ended. These statements are the responsibility of the partnership’s management. My responsibility is to express an opinion on the 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 Seagraves Apartments, L,P. as of December 31, 2002 and 2001 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 1-16 and 1-17 is presented for purposes of additional analysis and is not a required part of 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.

50

Independent Auditor’s Report

To the Partners of

Granada Rose, L.P.

Edna, Texas

I have audited the accompanying balance sheets of Granada Rose, L.P. as of December 31 2002 and 2001, and the accompanying statements of operations, partners’ capital and cash flows for the years then ended. These statements are the responsibility of the partnership’s management. My responsibility is to express an opinion on the 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 Granada Rose, L.P. as of December 31, 2002 and 2001 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 1-16 and 1-17 is presented for purposes of additional analysis and is not a required part of 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.

51

To the Partners

Parkside Plaza Associates, L. P.

New York, New York

We have audited the accompanying balance sheets of Parkside Plaza Associates, L.P. (a New York State limited partnership) as of December 31, 2002 and 2001, and the related statements of operations, cash flows, and partners’ capital, and the supplementary information included for the years then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Parkside Plaza Associates, L.P. as of December 31, 2002 and 2001 and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplementary information 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.

Kahn Boyd Levychin,

Certified Public Accountants

February 8, 2003

52

INDEPENDENT AUDITOR’S REPORT

To the Partners	Oregon Housing and
Aloha Housing Limited Partnership	Community Services Department
	Salem, Oregon

We have audited the accompanying Balance Sheets of Aloha Housing Limited Partnership (a limited partnership), as of December 31, 2002 and 2001 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 with Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform our 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 Aloha Housing Limited Partnership as of December 31, 2002 and 2001, 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 accompanying schedules of supplementary information required by the Oregon Housing and Community Services Department 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 procedures applied in our 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.

53

To the Partners of

Edna Vanderbilt, L.P.

Edna, Texas

I have audited the accompanying balance sheet of Edna Vanderbilt, L.P. as of December 31, 2002 and 2001, and the accompanying statements of operations, partners’ capital and cash flows for the years then ended. These statements are the responsibility of the partnership’s management. My responsibility is to express an opinion on the 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 Edna Vanderbilt L.P. as of December 31, 2002 and 2001 and the results of its operations, changes in partners’ capital and cash flows for the years then ended in 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 1-16 and 1-17 is presented for purposes of additional analysis and is not a required part of 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.

54

Independent Auditor’s Report

To the Partners of

Azle Fountainhead, L.P.

Azle, Texas

I have audited the accompanying balance sheets of December 31, 2002 and 2001, and the related statement of operations, partners’ capital and cash flows for years then ended.  These financial statements are the responsibility of the partnership’s management. My responsibility is to express an opinion on these financial statements based on my audits.

I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

I believe that my audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Azle Fountainhead, L.P. as of December 31, 2002 and 2001 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 basic financial statements taken as a whole.

55

INDEPENDENT AUDITORS’ REPORT

General Partner

Cedar Grove Apartments Phase I, Ltd.

Shepherdsville, Kentucky 40165

We have audited the accompanying balance sheets of Cedar Grove Apartments Phase I, Ltd., (a Kentucky limited partnership, as of December 31, 2002 and 2001, statements of operations, partners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our, audits.

We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the’ amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provides, reasonable basis for our opinion.

In accordance with Government Auditing Standards we have also issued our report dated February 17, 2003, on our consideration of Cedar Grove Apartments Phase 1, Ltd. internal control, and reports (dated February 17, 2003 on its compliance with specific requirements applicable to Rural Housing Service and to Fair Housing and Non-discrimination. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplementary information on pages 11-18 is presented for purposes of additional analysis and is not a required part of the basic financial statements of Cedar Grove Apartments Phase I, Ltd. 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.

56

Independent Auditors’ Report

To the Partners

Dorchester Court LDHA, Limited Partnership

We have audited the accompanying balance sheet of Dorchester Court LDHA, Limited Partnership, as of December 31, 2002. This financial statement is the responsibility of the Partnership’s management. Our responsibility is to express an opinion on this financial statement based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the balance sheet is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the balance sheet. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall balance sheet presentation. We believe that our audit of the balance sheet provides a reasonable basis for our opinion.

In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of Dorchester Court LDHA Limited Partnership as of December 31, 2002, in conformity with accounting principles generally accepted in United States of America.

57

To the Members of

Strawberry Lane, LLC

We have audited the accompanying balance sheet of Strawberry Lane, LLC as, of December 31, 2002, and the related statements of operations, changes in members’ capital and cash flows for the year then ended. These financial statements are the responsibility of the management of Strawberry Lane, LLC. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with U.S. 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 Strawberry Lane, LLC as of December 31, 2002, and the results of its operations and its cash flows for the year then ended in conformity with U.S. generally accepted accounting principles.

In accordance with Government Auditing Standards and the Consolidated Audit Guide for Audits of HUD Programs issued by the U.S. Department of Housing and Urban Development, we have also issued a report dated February 12, 2003, on our consideration of the entity’s internal control and report dated February 12, 2003, on its compliance with specific requirements applicable to its major HUD program and specific requirements applicable to Fair Housing and Non-Discrimination.

Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information is presented for the purpose of additional analysis and is not a required part of the basic financial statements of Strawberry Lane, LLC.  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.

58

Independent Auditors’ Report

To the Partners

Dorchester Court LDHA, Limited Partnership

We have audited the accompanying balance sheet of Dorchester Court LDHA, Limited Partnership, as of December 31, 2002. This financial statement is the responsibility of the Partnership’s management. Our responsibility is to express an opinion on this financial statement based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the balance sheet is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the balance sheet. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall balance sheet presentation. We believe that our audit of the balance sheet provides a reasonable basis for our opinion.

In our opinion, the balance sheet referred to above presents fairly, in ail material respects, the financial position of Dorchester Court LDHA Limited Partnership as of December 31, 2002, in conformity with accounting principles generally accepted in the United States of America.

59

To the Partners of

Henderson Fountainhead, L.P.

Seven Points, Texas

I have audited the accompanying balance sheet of Henderson Fountainhead, L.P. as of December 31, 2002 , and the accompanying statements of operations, partners’ capital and cash flows for the year then ended. These statements are the responsibility of the partnership’s management. My responsibility is to express an opinion on the 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 Henderson Fountainhead, L.P. as of December 31, 2002 and the results of its operations, changes in partners’ capital and cash flows for the year then ended in conformity with generally accepted accounting principles.

My audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 1-16 and 1-17 is presented for purposes of additional analysis and is not a required part of 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.

60

Independent Auditor’s Report

To the Partners

Bennetts Pointe Limited Partnership

I have audited the accompanying balance sheets of Bennetts Pointe Limited Partnership as of December 31, 2001 and 2000, and the related statements of operations, partners’ deficit and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. My responsibility is to express an opinion on these financial statements based on my audits.

I conducted 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 Bennetts Pointe Limited Partnership as of December 31, 2001 and 2000, and the results of its operations, changes in partners’ deficit, and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, I have also issued my report dated February 15, 2002 on my consideration of Bennetts Pointe Limited Partnership’s internal control over financial reporting and on my tests of its compliance with certain provisions of’ laws and regulations.

February 15, 2002

61

INDEPENDENT AUDITOR’S REPORT

To the Partners

Clarksville Estates

DBA Clarksville Estates

Clarkton, MO 63837

We have audited the accompanying balance sheet of Clarksville Estates (a limited partnership) DBA Clarksville Estates as of December 31, 2001 and the related statements of income, cash flow, and partners’ equity for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Clarksville Estates (a limited partnership) DBA Clarksville Estates as of December 31, 2001 and the results of its operations and its cash flow for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Our audit was performed for the purpose of forming an opinion on the basic financial statements of Clarksville Estates taken as a whole. The supplementary data included on pages 12-13 is not necessary for a fair presentation of the financial statements, but is presented for purposes of additional analysis. This supplementary data has been subjected to the same tests and other procedures applied in the audits of the statements mentioned above, and in our opinion, is fairly presented in all material respects in relation to the financial statements taken as a whole.

62

In accordance with Government Auditing Standards, we have also issued our report dated February 1, 2002, on our consideration of Clarksville Estates internal control over financial reporting and our tests of its compliance with certain provisions of laws and regulations. The report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

63

Independent Auditors’ Report

To the partners of

East Douglas Apartments Limited Partnership (An Illinois Limited Partnership)

We have audited the accompanying balance sheets of East Douglas Apartments Limited (IHDA Development Number HFI/HTF-354), as of December 31, 2001 and 2000, and the related statements of operations, cash flows and changes in partners’ equity for the years then ended. These 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 auditing standards generally accepted in the United States of America, 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 Hosing Developments. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of East Douglas Apartments Limited Partnership as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, the Illinois Housing Development Authority’s Financial Reporting and Audit Guidelines for Mortgagors of Multifamily Housing Developments and the Consolidated Audit Guide for Audits of HUD Programs issued by the U.S. Department of Housing and Urban Development, we have also issued a report dated January 29, 2002, on our consideration of the Partnership’s internal controls, compliance with specific requirements applicable to major IHDA-assisted programs and specific requirements applicable to affirmative fair housing.

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.

January 29, 2002

Carmel, Indiana

64

INDEPENDENT AUDITOR’S REPORT

To the Partners

FLORAL ACRES APARTMENTS II

We have audited the accompanying balance sheets of FLORAL ACRES APARTMENTS II, RHS PROJECT NO. 22-026-721172913 as of December 31, 2001 and 2000 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 auditing standards generally accepted in the United States of America 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 FLORAL ACRES APARTMENTS II as of December 31, 2001 and 2000 and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

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.

65

In accordance with Government Auditing Standards, we have also issued a report dated February 18, 2002 on our consideration of FLORAL ACRES APARTMENTS II’s internal control and a report dated February 18, 2002 on its compliance with laws and regulations applicable to the financial statements.

Metairie, Louisiana

February 18, 2002

66

INDEPENDENT AUDITOR’S REPORT

To the Partners

HARRISONBURG SENIORS APARTMENTS

We have audited the accompanying balance sheets of HARRISONBURG SENIORS APARTMENTS, RHS PROJECT NO. 22-013-721199864 as of December 31, 2001 and 2000 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 auditing standards generally accepted in the United States of America 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 HARRISONBURG SENIORS APARTMENTS as of December 31, 2001 and 2000 and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

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.

67

In accordance with Government Auditing Standards, we have also issued a report dated January 29, 2002 on our consideration of HARRISONBURG SENIORS APARTMENTS’s internal control and a report dated January 29, 2002 on its compliance with laws and regulations applicable to the financial statements.

Metairie, Louisiana

January 29, 2002

68

INDEPENDENT AUDITOR’S REPORT

To the Partners

SHADY LANE SENIORS APARTMENTS

We have audited the accompanying balance sheets of SHADY LANE SENIORS APARTMENTS, RHS PROJECT NO. 22-064-721100471 as of December 31, 2001 and 2000 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 auditing standards generally accepted in the United States of America 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 SHADY LANE SENIORS APARTMENTS as of December 31, 2001 and 2000 and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

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 17 through 25, 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.

69

In accordance with Government Auditing Standards, we have also issued a report dated February 18, 2002 on our consideration of SHADY LANE SENIORS APARTMENTS’s internal control and a report dated February 18, 2002 on its compliance with laws and regulations applicable to the financial statements.

Metairie, Louisiana

February 18, 2002

70

Independent Auditors’ Report

To the Partners of

Better Homes for Havelock Limited Partnership

(A North Carolina Limited Partnership)

We have audited the accompanying balance sheets of Better Homes for Havelock Limited Partnership (a North Carolina Limited Partnership) as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America 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 Better Homes for Havelock Limited Partnership as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 24, 2002, on our consideration of the Partnership’s internal controls and a report dated January 24, 2001, on its compliance with laws and regulations.

71

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 audits 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.

January 24, 2002

Carmel, Indiana

72

Independent Auditor’s Report

To the Partners

Liveoak Village Limited Partnership

Charlotte, North Carolina

We have audited the accompanying balance sheets of Liveoak Village Limited Partnership (an Alabama limited partnership) as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America 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 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 Liveoak Village Limited Partnership as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2002, 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.

73

Our audits were 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 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.

74

INDEPENDENT AUDITOR’S REPORT

To the Partners

Lookout Ridge Limited Partnership

We have audited the accompanying balance sheet of Lookout Ridge Limited Partnership as of December 31, 2001, 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 audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of mate­rial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Lookout Ridge Limited Partnership as of December 31, 2001, and the results of its operations, the changes in partners’ equity and cash flows for the year then ended in conformity with accounting principles generally ac­cepted in the United States of America.

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 audit of the basic financial statement and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Ft. Wright, Kentucky

February 22, 2002

75

Independent Auditor’s Report

To the Partners

Pinedale II Limited Partnership

We have audited the accompanying balance sheets of Pinedale II Limited Partnership as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Pinedale II Limited Partnership, as of December 31, 2001 and 2000, and the results of its operations, changes in partners’ equity, and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 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 11, 2002

76

Independent Auditor’s Report

To the Partners

Pumphouse Crossing II Limited Partnership

We have audited the accompanying balance sheets of Pumphouse Crossing II Limited Partnership as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Pumphouse Crossing II Limited Partnership, as of December 31, 2001 and 2000, and the results of its operations, changes in partners’ equity, and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 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 15, 2002

77

Independent Auditor’s Report

To the Partners

Black River Run Limited Partnership

We have audited the accompanying balance sheets of Black River Run Limited Partnership as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Black River Run Limited Partnership, as of December 31, 2001 and 2000, and the results of its operations, changes in partners’ equity, and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 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 11, 2002

78

INDEPENDENT AUDITORS’ REPORT

February 15, 2002

To the Partners

Elk Tower Apartments Limited Partnership

We have audited the accompanying balance sheets of Elk Tower Apartments Limited Partnership as of December 31, 2001 and 2000, and the related starts 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 whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial starts. An audit also includes 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 Elk Tower Apartments Limited Partnership as of December 31, 2001 and 2000, 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 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 starts and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

79

INDEPENDENT AUDITOR’S REPORT

To the Partners

Philadelphia Housing II, Limited Partnership

Philadelphia, Mississippi

We have audited the accompanying balance sheets of Philadelphia Housing II, Limited Partnership (a Mississippi limited partnership), RHS Project No. 28-050-640808922 as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America 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 Philadelphia Housing II, Limited Partnership as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purposes 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. We have prepared the Multiple Family Housing Borrower Balance Sheet (RHS Form RD 1930-8) and the Multiple Family Housing Project Budget (RHS Form RD 1930-7). 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 24, 2002

80

Independent’s Auditor’s Report

To the Partner’s of

Roxbury Veterans Housing Limited Partnership

I have audited the accompany statement of financial position of Roxbury Veterans Housing Limited Partnership( a Massachusetts Limited Partnership) as of December 31, 2001, and the related statements of operations, changes in partners’ equity, and cash flows for the year then ended, These financial statements are the responsibility of the Partnership’s management 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 we plan and perform the audit to obtain reasonable assurance about whether the financials statements are free of material misstatement. An audit includes examining, on a test bash, evidence supporting the amounts and disclosures in the financial statements. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion.

In my opinion, the financial statements referred to above presents fairly, in all material respects, the financial position of Roxbury Veterans Housing Limited Partnership as of December 31, 200 I, and the results of its operations, changes in partners’ equity, and cash flows and cash flows for the year ended in conformity with accounting principles generally accepted in the United States.

My audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying schedule of operating expenses 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 state in all material respects in relation to the basic financial statements taken as a whole. The financial statements for the year ended June 30, 2000 were audited by other accountants, and they expressed an unqualified opinion on them in their report dated June 15, 2001.

81

To the partners of

Swedesboro Housing Limited Partnership

443 Congress Street, 7th Floor

Portland, Maine 04101

We have audited the accompanying Balance sheet of  SWEDESBORO HOUSING LIMITED PARTNERSHIP, as of December 31, 2001 and the related Statements of  Income and Partners’ Capital and Statement of 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 SWEDESBORO HOUSING LIMITED PARTNERSHIP as of December 31, 2000 were audited by other auditors whose report dated January 9, 2001 expressed an unqualified opinion on these statements.

We conducted out audit in accordance with auditing standards generally accepted in the United States of America 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  SWEDESBORO HOUSING LIMITED PARTNERSHIP at December 31, 2001 and  the results of its operations and its cash flow for the year then ended, in conformity with accounting principles generally accepted in the United  States of America.

In accordance with Government Auditing Standards, we have also issued a report dated April 29, 2002, on our consideration of SWEDESBORO HOUSING LIMITED PARTNERSHIP internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

The supplementary information is presented in this report for purposes of additional analysis and, although not required for a fair presentation of financial position, results of operations and cash flows, was subjected to the audit procedures applied in the audit of the basic financial statements. In our opinion, the accompanying supplementary information is fairly stated in all material respects in conjunction with those statements.

April 29, 2002

Haddonfield, New Jersey

82

Independent Auditors’ Report

To the Partners

Barlee Properties,

An Arkansas Limited Partnership

Barling, Arkansas

We have audited the accompanying balance sheets of Barlee Properties, An Arkansas Limited Partnership, as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Barlee Properties, An Arkansas Limited Partnership, as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Lawrence, Schluterman & Schwartz, Ltd.

Certified Public Accountants

Fort Smith, Arkansas

February 28, 2002

83

Report of Independent Accountants

Partners

Colonna Redevelopment Company L.P.

Hempstead, New York

We have audited the accompanying balance sheets of Colonna Redevelopment Company L.P. (a New York limited partnership) (the “Partnership”) as of December 31, 2001 and 2000 and the related statements of operations, cash flows and partners’ equity for the years then ended. These 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 auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Colonna Redevelopment Company L.P. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

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.

May 13, 2002, except for Note 8,
as to which the date is        ,2002

84

INDEPENDENT AUDITOR’S REPORT

To the Partners

Halls Ferry Apartments, L.P.

We have audited the accompanying balance sheets of Halls Ferry Apartments, L.P. as of December 31, 2001 and 2000 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 auditing standards generally accepted in the United States of America.  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 oasis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Halls Ferry Apartments, L.P. as of December 31, 2001 and 2000, and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 15 and 16 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the 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.

Mechsner & Cp., L.L.C.

Certified Public Accountants

Springfield, Missouri

February 4, 2002

85

Independent Auditors’ Report

Partners

Ithaca I Limited Partnership

Ithaca, Michigan

We have audited the accompanying balance sheets of Ithaca I Limited Partnership Rural Housing Service Project No. 26-029-383113117 as of December 31, 2001 and 2000, and the related statements of income, partners’ equity and cash flows for the years ended. These 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 auditing standards generally accepted in the United States of America 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 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 Ithaca I Limited Partnership as of December 31, 2001 and 2000, and the results of its operations, changes in partner’s equity and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated February 19, 2002 on our consideration of Ithaca I Limited Partnership’s internal control over financial reporting and our tests of compliance with certain provisions of laws and regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information presented on pages 11 through 19 is presented for purposes of complying with the requirements of Rural Housing Service and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

CERTIFIED PUBLIC ACCOUNTANTS

February 19, 2002

86

INDEPENDENT AUDITORS’ REPORT

To the Partners of

Kimbark 1200 Associates, Limited Partnership

Longmont, Colorado

We have audited the accompanying balance sheet of Kimbark 1200 Associates, Limited Partnership, FHA Project No. 101-98011, as of December 31, 2001, and the related statement of operations, changes in partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards 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 Kimbark 1200 Associates, Limited Partnership FHA Project No. 101-98011, as of December 31, 2001, and the results of its operations and the changes in its partners’ equity 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 13, 2002 on our consideration of Kimbark 1200 Associates, Limited partnership, internal controls and reports dated February 13, 2002 on its compliance with specific requirements applicable to major HUD programs and Fair Housing and Non-Discrimination.

Denver, Colorado

February 13, 2002

87

INDEPENDENT AUDITOR’S REPORT

To the Partners

MATHIS APARTMENTS, LTD.

We have audited the accompanying balance sheets of MATHIS APARTMENTS, LTD., RHS PROJECT NO. 51-005-721010606 as of December 31, 2001 and 2000 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 auditing standards generally accepted in the United States of America 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 MATHIS APARTMENTS, LTD. as of December 31, 2001 and 2000 and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

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 13, 2002 on our consideration of MATHIS APARTMENTS, LTD.’s internal control and a report dated February 13, 2002 on its compliance with laws and regulations applicable to the financial statements.

Metairie, Louisiana

February 13, 2002

88

INDEPENDENT AUDITOR’S REPORT

To the Partners

ORANGE GROVE SENIORS APARTMENTS, LTD.

We have audited the accompanying balance sheets of ORANGE GROVE SENIORS APARTMENTS, LTD., RHS PROJECT NO. 50-025-742670408 as of December 31, 2001 and 2000 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 auditing standards generally accepted in the United States of America 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 ORANGE GROVE SENIORS APARTMENTS, LTD. as of December 31, 2001 and 2000 and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

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 17 through 25, 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.

89

In accordance with Government Auditing Standards, we have also issued a report dated February 18, 2002on our consideration of ORANGE GROVE SENIORS APARTMENTS, LTD.’s internal control and a report dated February 18, 2002 on its compliance with laws and regulations applicable to the financial statements.

Metairie, Louisiana

February 18, 2002

90

To The Partners

Sacramento SRO Limited Partnership

A California Limited Partnership

710 West Ivy

San Diego, CA 92101

Independent Auditor’s Report

We have audited the accompanying balance sheets of Sacramento SRO Limited Partnership, A California Limited Partnership, as of December 31, 2001 and 2000, and the related statements of operations and partners’ capital and statements 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 audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. 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 mounts and disclosures in the financial statements. An audit also includes 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 Sacramento SRO Limited Partnership, A California Limited Partnership as of December 31, 2001 and 2000, and the results of its operations and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

CONSIDINE & CONSIDINE

An Accountancy Corporation

January 31, 2002

91

INDEPENDENT AUDITORS’ REPORT

To the Partners

South Hills Apartments, L.P.

We have audited the accompanying balance sheets of south Hills Apartments, L.P. as of December 31, 2001 and 2000, 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 South Hills Apartments, L.P. as of December 31, 2001 and 2000, 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 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.

Goracke, Ritterbush & Piotrowski, L.L.P.

January 18, 2002

92

Independent Auditors’ Report

To the Partners:

Village Woods Estates, L.P.

We have audited the accompanying balance sheets of Village Woods Estates, L.P. as of December 31, 2001 and 2000, and the related statements of operations, changes in partners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Village Woods Estates, L.P. as of December 31, 2001 and 2000, and the results of its operations, changes in partners’ equity, and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

January 29, 2002

93

Independent Auditors’ Report

To the Partners

Woodland Hills Properties,

A Limited Partnership

Barling, Arkansas

We have audited the accompanying balance sheets of Woodland Hills Properties, A Limited Partnership, as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Woodland Hills Properties, A Limited Partnership, as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Lawrence, Schlutennan & Schwartz, Ltd.

Certified Public Accountants

Fort Smith, Arkansas

February 28, 2002

94

INDEPENDENT AUDITOR’S REPORT

To The Partners

Autumn Ridge Associates

Roanoke, Virginia

We have audited the accompanying balance sheet of Autumn Ridge Associates (A Virginia Limited Partnership) as of December 31, 2001 and 2000 and the related statement of operations and partners’ equity (deficit) and cash flow for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 Autumn Ridge Associates as of December 31, 2001 and 2000, and the results of its operation and its cash flow for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 14 through 17 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 audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

February 14, 2002

95

To the Partners

Brownsville Associates, Limited

We have audited the accompanying balance sheets of Brownsville Associates, Limited (a Tennessee limited partnership) d/b/a Brownsville Village Apartments, RHS Project No.: 48-038-621467876, as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America 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 Brownsville Associates, Limited (a Tennessee limited partnership) d/b/a Brownsville Village Apartments, RHS Project No.: 48-038-621467876, as of December 31, 2001 and 2000, and the results of its operations, the changes in partners’ equity and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 30, 2002 on our consideration of Brownsville Associates, Limited’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 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 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.

96

Independent Auditors’ Report

To The Partners

Centenary Housing Limited Partnership

St. Louis, Missouri

We have audited the accompanying balance sheet of Centenary Housing Limited Partnership (Centenary Towers Apartments, Project No. 085-35239-PM-SR-PR-WAH-L8) as of December 31, 2001, and the related statements of profit and loss, partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 Centenary Housing Limited Partnership as of December 31, 2001, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards and the Consolidated Audit Guide for Audits of HUD Programs issued by the U.S. Department of Housing and Urban Development, we have also issued a report dated January 16, 2002 on our consideration of Centenary Housing Limited Partnership’s internal control and reports dated January 16, 2002 on its compliance with specific requirements applicable to major HUD programs and specific requirements applicable to Fair Housing and Non-Discrimination. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

97

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 16 to 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 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 16, 2002

98

INDEPENDENT ACCOUNTANTS’ REPORT

To the Partners

New Hilltop Apartments, A Limited Partnership

Columbia, South Carolina

We have audited the accompanying balance sheets of New Hilltop Apartments, A Limited Partnership (A South Carolina Limited Partnership), as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America 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 New Hilltop Apartments, A Limited Partnership, as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

99

In accordance with Government Auditing Standards, we have also issued a report dated January 24, 2002 on our consideration of New Hilltop Apartments, A Limited Partnership’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

January 24, 2002

100

Independent Auditors’ Report

Partners

Shadowcreek Apartments

Elko, Nevada

We have audited the accompanying balance sheets of Shadowcreek Apartments (the Project), Rural Development Case No. 33-002-0880283493, as of December 31, 2001 and 2000 and the related statements of operations, changes in partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the 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 auditing standards generally accepted in the United States of America 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 the Project as of December 31, 2001 and 2000 and the results of its operations, changes in partners’ equity, and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 10 through 12 is presented for the purpose of additional analysis and is not a required part of the basic financial statements of the Project for the year ended December 31, 2001. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly presented in all material respects in relation to the financial statements taken as a whole.

101

In accordance with Government Auditing Standards, we have issued a report dated January 23, 2002, on our consideration of the Project’s internal control over financial reporting and over tests of its compliance with laws, regulations, contracts and grants. This report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Kaysville, Utah

January 23, 2002

102

To the Partners

Stanton Associates, Limited

We have audited the accompanying balance sheets of Stanton Associates, Limited (a Tennessee limited partnership) d/b/a Stanton Village Apartments, RHS Project No.: 48-038-621542356, as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America 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 Stanton Associates;, Limited (a Tennessee limited partnership) d/b/a Stanton Village Apartments, RHS Project No.: 48-038-621542356, as of December 31, 2001 and 2000, and the results of its operations, the changes in partners’ equity and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 30, 2002 on our consideration of Stanton Associates, Limited’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants.

103

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 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.

Columbia, Tennessee

January 30, 2002

104

INDEPENDENT AUDITOR’S REPORT

To the Partners

Pahrump Valley Investors

(A Wyoming Limited Partnership)

Cheyenne, WY

I have audited the accompanying balance sheets of Pahrump Valley Investors (A Wyoming Limited Partnership), USDA Rural Development Case No. 33-019-680204949, as of December 31, 2001 and 2000, and the related statements of income, partners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnerships 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 audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. 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 Pahrump Valley Investors (A Wyoming Limited Partnership) as of December 31, 2001 and 2000, 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, I have also issued a report dated March 11, 2002 on my consideration of Pahrump Valley Investors’ internal control structure and a report dated March 11, 2002 on its compliance with laws and regulations.

Stockton, California

March 11, 2002

105

Independent Auditors’ Report

To the Partners

Woodlands Apartments

Elko, Nevada

We have audited the accompanying balance sheets of Woodlands Apartments (the Project), Rural Development Case No. 33-004-0880314570, as of December 31, 2001 and 2000 and the related statements of operations, changes in Partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the 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 auditing standards generally accepted in the United States of America 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 the Project as of December 31, 2001 and 2000 and the results of its operations, changes in partners equity, and cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have issued a report dated January 23, 2002, on our consideration of the Woodlands Apartments’ internal control over financial reporting and over tests of its compliance with laws, regulations, contracts and grants. This report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 11 through 13, is presented for the purpose of additional analysis and is not a required part of the basic financial statements of the Project for the year ended December 31, 2001. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly presented in all material respects in relation to the financial statements taken as a whole.

Kaysville, Utah

January 23, 2002

106

INDEPENDENT AUDITOR’S REPORT

To the Partners

ZWOLLE PARTNERSHIP

We have audited the accompanying balance sheets of ZWOLLE PARTNERSHIP, RHS PROJECT NO. 22-043-721260425 as of December 31, 2001 and 2000 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 auditing standards generally accepted in the United States of America 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 ZWOLLE PARTNERSHIP as of December 31, 2001 and 2000 and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

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.

107

In accordance with Government Auditing Standards, we have also issued a report dated February 18, 2002 on our consideration of ZWOLLE PARTNERSHIP’s internal control and a report dated February 18, 2002 on its compliance with laws and regulations applicable to the financial statements.

Metairie, Louisiana

February 18, 2002

108

INDEPENDENT AUDITORS’ REPORT

To the Partners

352 Lenox Associates, L.P.

We have audited the accompanying balance sheet of 352 Lenox Associates, L.P. as of December 31, 2001, and the related statements of operations, changes in partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 352 Lenox Associates, L.P. as of December 31, 2001, and the results of its operations, the changes in partners’ equity and cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

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 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 audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

February 13, 2002

109

The Partners

Ethel Housing, L.P.

Ethel, Mississippi

We have audited the accompanying balance sheets of Ethel Housing, L.P., RD Case No. 28-0040640823417 as of December 31, 2001, and 2000, 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 auditing standards generally accepted in the United States of America 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 included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also included 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 provided a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Ethel Housing, L.P., as of December 31, 2001 and 2000, 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 and the Audit Program issued by the United States Department of Agriculture, Rural Development, we have also issued a report dated February 22, 2002, on its compliance with specific requirements applicable to major RD programs and nonmajor RD program transactions.

Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The supporting data included on pages 12 through 19 are presented for purposes of additional analysis and are not a required part of the financial statements of Ethel Housing, L.P. Such information, except for the current budget and proposed budget columns on pages 15 through 18, on which we express no opinion, is fairly stated in ail material respects in relation to the financial statements taken as a whole.

February 22, 2002

110

INDEPENDENT AUDITORS’ REPORT

To the partners

Hurricane Hills I LC

I have audited the accompanying balance sheets of Hurricane Hills LC as of December 31, 2001, and the related statements of operations, partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

I conducted my 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 examination, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 provided a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hurricane Hills I LC as of December 31, 2001, 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.

111

INDEPENDENT AUDITOR’S REPORT

To:	The Partners
	Main Everett Housing Limited Partnership

We have audited the accompanying balance sheets of Main Everett Housing Limited Partnership as of December 31, 2001 and 2000, 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Main Everett Housing Limited Partnership as of December 31, 2001 and 2000, 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 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.

Tobin & Company, CPA’s

January 18, 2002

112

To the Partners

M.R.H., L.P.

We have audited the accompanying balance sheets of M.R.H., L.P. as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America. 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 M.R.H., L.P. as of December 31, 2001 and 2000, and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

January 25, 2002

113

INDEPENDENT AUDITORS’ REPORT

To the Partners

Washington Arms Apartments

(A Limited Partnership)

Dayton, Ohio

We have audited the accompanying balance sheet of HUD Project #046-NI093 of Washington Arms Apartments (a limited partnership) as of December 31, 2001 and the related statements of profit and loss, changes in deficiency in partners’ capital and cash flows for the year ended December 31, 2001. 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 auditing standards generally accepted in the United States of America, Government Auditing Standards issued by the Comptroller General of the United States, and Consolidated Audit Guide for Audits of HUD Programs (the “Guide”) issued by the U. S. Department of Housing and Urban Development, Office of Inspector General in August 1997. Those standards and the Guide require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 HUD project #046-NI093 as of December 31, 2001 and the results of its operations and its cash flows and its changes in deficiency in partners’ capital for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 23, 2002 on our consideration of Washington Arms Apartments’ internal controls and a report dated January 23, 2002 on its compliance with laws and regulations. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The additional information included in the report shown on pages 12-16 is presented for the purposes of additional analysis and is not a required part of the financial statements of HUD Project #046-NI093. 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.

Waite, Schultz & Associates, Ltd.

Certified Public Accountants

Cincinnati, Ohio

January 23, 2002

114

INDEPENDENT AUDITOR’S REPORT

To:	The Partners
	Osborne Housing Limited Partnership

We have audited the accompanying balance sheets of Osborne Housing Limited Partnership as of December 31, 2001 and 2000, 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Osborne Housing Limited Partnership as of December 31, 2001 and 2000, 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 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.

Tobin & Company, CPA’s

January 18, 2001

115

To the Partners

Sandstone Village Limited Partnership

Great Falls, Montana

INDEPENDENT AUDITORS’ REPORT

We have audited the accompanying balance sheets of Sandstone Village Limited Partnership as of December 31, 2001 and 2000 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 auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Sandstone Village Limited Partnership as of December 31, 2001 and 2000, and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in thc 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.

Great Falls, Montana

February 8, 2002

116

The Partners

Shannon Housing, L.P.

Shannon, Mississippi

We have audited the accompanying balance sheets of Shannon Housing, L.P., RD Case No. 28-041064835658, as of December 31, 2001, and 2000, 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 included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also included 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 provided a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Shannon Housing, L.P., as of December 31, 2001 and 2000, 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 and the Audit Program issued by the United States Department of Agriculture, Rural Development, we have also issued a report dated March 16, 2002, on its compliance with specific requirements applicable to major RD programs and nonmajor RD program transactions.

Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The supporting data included on pages 12 through 19 are presented for purposes of additional analysis and are not a required part of the financial statements of Shannon Housing, L.P. Such information, except for the current budget and proposed budget columns on pages 15 through 18, on which we express no opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

March 16, 2002

117

INDEPENDENT AUDITORS’ REPORT

To the Partners of

Sutton Place Apartments

(A Limited Partnership)

Cincinnati, Ohio

We have audited the accompanying balance sheet of HUD Project #073-55035, 073-55037, 073-55038, 073-55061 and 073-55062 of Sutton Place Apartments (a limited partnership) as of December 31, 2001, and the related statements of profit and loss, changes in deficiency in partners’ capital 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 auditing standards generally accepted in the United States of America, Government Auditing Standards issued by the Comptroller General of the United States, and Consolidated Audit Guide for Audits of HUD Programs (the “Guide”) issued by the U. S. Department of Housing and Urban Development, Office of Inspector General in August 1997. Those standards and the Guide require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 HUD Project #073-55035, 073-55037, 073-55038, 073-55061 and 073-55062 as of December 31, 2001 and the results of its operations and its cash flows and its changes in deficiency in partners’ capital for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 23, 2002 on our consideration of Sutton Place Apartments’ internal control and a report dated January 23, 2002 on its compliance with laws and regulations.

We were engaged to conduct an audit for the purpose of forming an opinion on the financial statements taken as a whole. The additional information included in the report shown on pages 13-19 is presented for the purposes of additional analysis and is not a required part of the financial statements of HUD Project #073-55035, 073-55037, 073-55038, 073-55061 and 073-55062. 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.

Waite, Schultz & Associates, Ltd.

Certified Public Accountants

Cincinnati, Ohio

January 23, 2002

118

The Partners

West Point Housing, L.P.

West Point, Mississippi

We have audited the accompanying balance sheets of West Point Housing, L.P., RD Case No. 28-013-0640834734, as of December 31, 2001, and 2000, 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 audit in accordance with auditing standards generally accepted in the United States of America 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 included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also included 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 provided a 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 Point Housing, L.P., as of December 31, 2001 and 2000, 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 and the Audit Program issued by the United States Department of Agriculture, Rural Development, we have also issued a report dated February 25, 2002, on its compliance with specific requirements applicable to major RD programs and nonmajor RD program transactions.

Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The supporting data included on pages 12 through 19 are presented for purposes of additional analysis and are not a required part of the financial statements of West Point Housing, L.P. Such information, except for the current budget and proposed budget columns on pages 15 through 18, on which we express no opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

February 25, 2002

119

INDEPENDENT AUDITOR’S REPORT

To the Partners

200 East Avenue Associates, L.P.

We have audited the accompanying balance sheet of 200 East Avenue Associates, L.P. (a limited partnership) as of December 31,2001 and 2000 and the related statements of operations and 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 auditing standards generally accepted in the United States of America. 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 200 East Avenue Associates, L.P. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Salmin, Celona, Wehrle & Flaherty, LLP

February 11, 2002

120

Independent Auditor’s Report

To the Partners

A.V.A. Limited Partnership

Charlotte, North Carolina

We have audited the accompanying balance sheets of A.V.A. Limited Partnership (a Virginia limited partnership) as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America 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 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 A.V.A. Limited Partnership as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2002, 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.

121

Our audits were 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 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 31, 2002

122

INDEPENDENT AUDITOR’S REPORT

To the Partners

Beckwood Manor One Limited Partnership

We have audited the accompanying balance sheets of Beckwood Manor One Limited Partnership, RD Project No. 03-025-710677259 (the Partnership), as of December 31, 2001 and 2000 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 auditing standards generally accepted in the United States of America 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 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 One Limited Partnership as of December 31, 2001 and 2000, and its results of operations, changes in partners’ equity (deficit), and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated January 26, 2002 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. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

LITTLE, SHANEYFELT, MARSHALL, ROMINE & CO.

JANUARY 26, 2002

123

To the Partners

G.V.A. Limited Partnership

Charlotte, North Carolina

We have audited the accompanying balance sheets of G.V.A. Limited Partnership (a Virginia limited partnership) as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America 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 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 G.V.A. Limited Partnership as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2002, 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 audits were 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 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 31, 2002

124

Independent Auditor’s Report

To the Partners

Grayson Manor Limited Partnership

I have audited the accompanying balance sheets of Grayson Manor Limited Partnership as of December 31, 2001 and 2000, 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 Grayson Manor Limited Partnership as of December 31, 2001 and 2000, 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.

In accordance with Government Auditing Standards, I have also issued my report dated February 15, 2002 on my consideration of Grayson Manor Limited Partnership’s internal control over financial reporting and on my tests of its compliance with certain provisions of laws and regulations.

February 15, 2002

125

INDEPENDENT AUDITORS’ REPORT

To the Partners of

SG – Hazeltine, L.P.

(A California Limited Partnership)

Fresno, California

We have audited the accompanying balance sheet of SO – Hazeltine, L.P., a California Limited Partnership, (the “Partnership”), as of December 31, 2001, and the related statements of operations, partners’ equity (deficit), and cash flows for the year then ended. These financial statements are the responsibility of he Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statement referred to above present fairly, in all material respects, the financial position of the Partnership as of December 31, 2001 and the results of its operations, changes in partners’ equity (deficit) and cash flows for the year then ended in conformity with generally accepted accounting principles.

126

To The Partners

M.B. Apartments Associates, Ltd.

We have audited the accompanying balance sheets of M.B. Apartments Associates, Ltd. (A Limited Partnership) as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 M.B. Apartments Associates, Ltd. (A Limited Partnership) as of December 31, 2001 and 2000, and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

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 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.

127

INDEPENDENT AUDITOR’S REPORT

To the Partners

Meridian Housing, L.P.

Meridian, Mississippi

We have audited the accompanying balance sheets of Meridian Housing, L.P. (a Mississippi limited partnership), RHS Project No. 28-038-0640893892 as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Meridian Housing, L.P. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

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. We have prepared the Multiple Family Housing Borrower Balance Sheet (RHS Form RD 1930-8) and the Multiple Family Housing Project Budget (RHS Form RD 1930-7). 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.

January 30, 2002

128

INDEPENDENT AUDITOR’S REPORT

To the Partners

New Devonshire II Limited Partnership

(An Ohio Limited Partnership)

London, Ohio

We have audited the accompanying balance sheets of New Devonshire II Limited Partnership (an Ohio Limited Partnership), RD Project No. 41-049-311449843, as of December 31, 2001 and 2000, 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 management of New Devonshire II Limited Partnership. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the auditing standards generally accepted in the United States of America, 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 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 New Devonshire II Limited Partnership as of December 31, 2001 and 2000, and the results of its operations, the changes in partners’ deficit and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated February 15, 2002, on our consideration of New Devonshire II Limited Partnership’s internal control and a report dated February 15, 2002, on its compliance with laws and regulations.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying information included in the report (shown on pages 11 to 18) is presented for the purpose of additional analysis and is not a required part of the basic financial statements of New Devonshire II Limited 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 financial statements taken as a whole.

Beachwood, Ohio

February 15, 2002

129

INDEPENDENT AUDITOR’S REPORT

To the partners

New Devonshire West Limited partnership

(an Ohio Limited Partnership)

West Jefferson, Ohio

We have audited the accompanying balance sheets of New Devonshire West Limited Partnership (an Ohio Limited Partnership), RD Project No. 41-049-3l 1449844, as of December 31, 2001 and 2000, 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 management of New Devonshire West Limited Partnership. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the auditing standards generally accepted in the Unites States of America 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 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 New Devonshire West Limited Partnership as of December 31, 2001 and 2000, and the results of its operations, the changes in partners’ equity (deficit) and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated February 15, 2002, on our consideration of New Devonshire West Limited Partnership’s internal control and a report dated February 15, 2002, on its compliance with laws and regulations.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying information included in the report (shown on pages 11 to 18) is presented for the purpose of additional analysis and is not a required part of the basic financial statements of New Devonshire West Limited 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 financial statements taken as a whole.

Beachwood, Ohio

February 15, 2002

130

Independent Auditor’s Report

To the Partners

Powell Valley Limited Partnership

I have audited the accompanying balance sheets of Powell Valley Limited Partnership as of December 31, 2001 and 2000, 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’ Powell Valley Limited Partnership as of December 31, 2001 and 2000, and the results of its operations, changes in partners’ equity and its cash flows for the years then ended il, conformity with, generally accepted accounting principles.

In accordance with Government Auditing Standards, I have also issued my report dated February 15, 2002 on my consideration of Powell Valley Limited Partnership’s internal control over financial reporting and on my tests of its compliance with certain provisions of laws and regulations.

February 15, 2002

131

Independent Auditor’s Report

To the Partners

V. V. A. Limited Partnership

Charlotte, North Carolina

We have audited the accompanying balance sheets of V.V.A. Limited Partnership (a Virginia limited partnership) as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America arm 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 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 thc 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 V. V. A. Limited Partnership as of December 31, 2001 and 2000 and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2002, 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 audits were 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 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 31, 2002

132

Independent Auditor’s Report

To the Partners

W. P. V. A. Limited Partnership

Charlotte, North Carolina

We have audited the accompanying balance sheets of W. P. V. A. Limited Partnership (a Virginia limited partnership) as of December 31, 2001 and 2000, 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 all opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America 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 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 W. P. V. A. Limited Partnership as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2002, 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 audits were 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 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 31, 2002

133

For the Partners

Angelou Associates, L. P,

New York, New York

We have audited the accompanying balance sheets of Angelou Associates, L. P. (a New York State limited partnership) as of December 31, 2001 and 2000, and the related statements of operations, cash flows, and partners’ capital, and the supplementary information included for the years then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Angelou Associates, L. P. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplementary information 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.

January 22, 2002

134

Report of Independent Accountant

To the Partners of CR Housing Associates, L.P.

I have audited the accompanying balance sheets of CR Housing Associates, L.P. (the “Partnership”) as of December 31, 2001 and 2000, 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 in accordance with generally accepted auditing standards in the United States of America. 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 CR Housing Associates, L.P. as of December 31, 2001 and 2000, and the results of it operations and its cash flows for the years then ended in conformity with generally accepted accounting principles in the United States of America.

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 10 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

135

INDEPENDENT AUDITORS’ REPORT

To the Partners

Holly Heights Apartments, L.P.

We have audited the accompanying balance sheets of Holly Heights Apartments, L.P. as of December 31, 2001 and 2000, 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 Holly Heights Apartments, L.P. as of December 31, 2001 and 2000, 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 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.

Goracke, Riggerbush & Piotrowski, L.L.P.

January 18, 2002

136

INDEPENDENT AUDITORS’ REPORT

TO THE PARTNERS OF 1374 BOSTON ROAD LIMITED PARTNERSHIP

We have audited the accompanying balance sheet of 1374 BOSTON ROAD LIMITED PARTNERSHIP as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 1374 BOSTON ROAD LIMITED PARTNERSHIP as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

February 28, 2002

137

INDEPENDENT AUDITOR’S REPORT

To the Partners

BIENVILLE III APARTMENTS

We have audited the accompanying balance sheets of BIENVILLE III APARTMENTS, RHS PROJECT NO.: 22-007-721280566 as of December 31, 2001 and 2000 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 auditing standards generally accepted in the United States of America 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 BIENVILLE III APARTMENTS as of December 31, 2001 and 2000 and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

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 18, 2002 on our consideration of BIENVILLE III APARTMENTS’s internal control and a report dated February 18, 2002 on its compliance with laws and regulations applicable to the financial statements.

Metairie, Louisiana

February 18, 2002

138

INDEPENDENT AUDITOR’S REPORT

To the Partners

BLANCHARD II APARTMENTS

We have audited the accompanying balance sheets of BLANCHARD II APARTMENTS, RHS PROJECT NC). 22-009-721313034 as of December 31, 2001 and 2000 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 auditing standards generally accepted in the United States of America 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 BLANCHARD II APARTMENTS as of December 31, 2001 and 2000 and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

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 19, 2002 on our consideration of BLANCHARD II APARTMENTS’s internal control and a report dated February 19, 2002 on its compliance with laws and regulations applicable to the financial statements.

Metairie, Louisiana

February 19, 2002

139

INDEPENDENT AUDITOR’S REPORT

To the Partners

COTTONWOOD APARTMENTS I

We have audited the accompanying balance sheets of COTTONWOOD APARTMENTS I, RHS PROJECT NO. 22-005-721313387 as of December 31, 2001 and 2000 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 auditing standards generally accepted in the United States of America 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 COTTONWOOD APARTMENTS I as of December 31, 2001 and 2000 and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

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 January 31, 2002 on our consideration of COTTONWOOD APARTMENTS I’s internal control and a report dated January 31, 2002 on its compliance with laws and regulations applicable to the financial statements.

Metairie, Louisiana

January 31, 2002

140

Partners

Fairway II Limited Dividend Housing Association

Limited Partnership

Marlette, Michigan

We have audited the accompanying balance sheet of Fairway II Limited Dividend Housing Association Limited Partnership, Rural Housing Service Project No. 26-074-383047638 as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America 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 Fairway II Limited Dividend Housing Association Limited Partnership as of December 31, 2001 and 2000, and the results of its operations, changes in partners’ equity and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated February 19, 2002 on our consideration of Fairway II Limited Dividend Housing Association Limited Partnership’s internal control over financial reporting and our tests of compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information presented on pages 11 through 19 is presented for purposes of complying with the requirements of Rural Housing Service and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

CERTIFIED PUBLIC ACCOUNTANTS

February 19, 2002

141

Independent Auditor’s Report

To the Partners of

Fort Bend NHC L.P.

(A Virginia Limited Partnership)

We have audited the accompanying balance sheet of Fort Bend NHC L.P. as of December 31, 2001, 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.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Fort Bend NHC L.P. as of December 31, 2001, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The 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.

February 2, 2002

Carmel, Indiana

142

INDEPENDENT AUDITOR’S REPORT

To the Partners

EVANGELINE PARTNERSHIP

We have audited the accompanying balance sheets of EVANGELINE PARTNERSHIP, RHS PROJECT NO. 22-027-721313386 as of December 31, 2001 and 2000 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 auditing standards generally accepted in the United States of America 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 EVANGELINE PARTNERSHIP as of December 31, 2001 and 2000 and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

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 17 through 25, 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 19, 2002 on our consideration of EVANGELINE PARTNERSHIP’s internal control and a report dated February 19, 2002 on its compliance with laws and regulations applicable to the financial statements.

Metairie, Louisiana

February 19, 2002

143

To the Partners

Neighborhood Restorations Limited Partnership VII

Dresher, Pennsylvania

We have audited the accompanying balance sheets of Neighborhood Restorations Limited Partnership VII (a Pennsylvania Limited Partnership) as of December 31, 2001 and 2000, and the related statement 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 auditing standards generally accepted in the United States of America. 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 Neighborhood Restorations Limited Partnership VII as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

144

Independent Auditor’s Report

To the Partners

R.V.K.Y. Limited Partnership

Charlotte, North Carolina

We have audited the accompanying balance sheets of R.V.K.Y. Limited Partnership (a Kentucky limited partnership) as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America 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 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 R.V.K.Y. Limited Partnership as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2002, 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 audits were 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 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.

145

To The Partners

Sumner House Limited Partnership

INDEPENDENT AUDITORS’ REPORT

We have audited the accompanying balance sheets of Sumner House Limited Partnership as of December 31, 2001 and 2000, and the related statements of operations and 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 auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Sumner House Limited Partnership as of December 31, 2001 and 2000, and the results of its operations and cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

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 8 and 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 is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Farmington, Connecticut

February 22, 2002

146

To the Partners

Terraceview Limited Partnership

We have audited the accompanying balance of Terraceview Limited Partnership as of December 31, 2001 and 2000, 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 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 the 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 Terraceview Limited Partnership as of December 31, 2001 and. 2000 and the results of its operations, changes in partners’ equity (deficit) and cash flows for the year then ended in conformity with generally accepted accounting principle.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 12 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Stangl & Jaskcowiak, Ltd

May 10, 2002

147

INDEPENDENT AUDITORS’ REPORT

To the Partners

Bryson Apartments, LTD.

We have audited the accompanying balance sheet of Bryson Apartments, Ltd. (a limited partnership), RD Project No.: 50-019-752658906-01-8 as of December 31, 2001 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.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 Bryson Apartments, Ltd. RD Project No.: 50-019-752658906-01-8 as of December 31, 2001, and the results of its operations, changes in partners’ equity and cash flows for the year then ended in conformity with U.S. 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 1-18 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 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 6, 2002 on our consideration of Bryson Apartments, Ltd. internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Wichita Falls, Texas

  February 6, 2002

148

The Partners

Collins Housing, L.P.

Collins, Mississippi

We have audited the accompanying balance sheets of Collins Housing, L.P., RD Case No. 28-0160640864674, as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America 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 included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also included 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 provided a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Collins Housing, L.P. as of December 31, 2001 and 2000, 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 and the Audit Program issued by the United States Department of Agriculture, Rural Development, we have also issued a report dated February 20, 2002, on its compliance with specific requirements applicable to major RD programs and nonmajor RD program transactions.

Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The supporting data included on pages 12 through 19 are presented for purposes of additional analysis and are not a required part of the financial statements of Collins Housing, L.P. Such information, except for the current budget and proposed budget columns on pages 15 through 18, on which we express no opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

February 20, 2002

149

INDEPENDENT AUDITORS’ REPORT

To the Partners

Glenbrook Apartments, Ltd.

We have audited the accompanying balance sheet of Glenbrook Apartments, Ltd. (a limited partnership), RD Project No.: 50-069-0752627351-01-4 as of December 31, 2001 and the related statements of operations, partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 Glenbrook Apartments, Ltd., RD Project No.: 50-069-0752627351-01-4 as of December 31, 2001, and the results of its operations, changes in partners’ equity and cash flows for the year then ended in conformity with U.S. 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 1-18 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated February 6, 2002 on our consideration of Glenbrook Apartments, Ltd.’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Wichita Falls, Texas

February 6, 2002

150

INDEPENDENT AUDITORS’ REPORT

To the Partners

Jacksboro Apartments, LTD.

We have audited the accompanying balance sheet of Jacksboro Apartments, Ltd. (a limited partnership) , RD Project No.: 50-0190-75-2-657-4-5’7 - 01 - 6 as of December 31, 2001 and the related statements of operations, partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 also includes 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 reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly in all material respects, the financial position of Jacksboro Apartments, Ltd. RD Project No.: 50-0190752657457-01-6 as of December 31, 2001, and the results of its operations, changes in partners’ equity and cash flows for the year then ended in conformity with U.S. 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 1-19 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 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 5, 2002 on our consideration of Jacksboro Apartments, Ltd.’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Wichita Falls, Texas

  February 5, 2002

151

To The Partners

Lincoln Hotel Partnership

A California Limited Partnership

710 West Ivy

San Diego, CA 92101

Independent Auditor’s Report

We have audited the accompanying balance sheets of Lincoln Hotel Partnership, A California Limited Partnership, as of December 31, 2001 and 2000, and the related statements of operations and partners’ capital and statements 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 audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. 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 a/so includes 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 Lincoln Hotel Partnership, A California Limited Partnership as of December 3l, 2001 and 2000, and the results of its operations and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

CONSIDINE & CONSIDINE

An Accountancy Corporation

January 31, 2002

152

To the Partners

Lutkin Bayou Apartments, LP

Drew, Mississippi

We have audited the accompanying balance sheets of Lutkin Bayou Apartments, LP (a Mississippi limited partnership), RHS Project No. 28-083-640863241 as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America 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 Lutkin Bayou Apartments, LP, as of December 31, 2001 and 2000 and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purposes 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. We have prepared the Multiple Family Housing Borrower Balance Sheet (RHS FORM RD 1980-8) and the Multiple Family Housing Project Budget (RHS FORM RD 1980-7). 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.

February 6, 2002

153

To The Partners

Northway Drive, Ltd.

Bryan, Texas

We have audited the accompanying balance sheets of Northway Drive. Ltd. – (A Texas Limited Partnership) as of December 31, 2001 and 2000, and the related statements of income, partners’ equity and cash flows for the years ended December 31, 2001 and 2000. These 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 balance sheet is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the balance sheet. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall balance sheet presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of Northway Drive, Ltd. - (A Texas Limited Partnership) as of December 31, 2001 and 2000, in conformity with Generally Accepted Accounting Principles.

154

INDEPENDENT AUDITORS’ REPORT

To the Partners

Rhome Apartments, Ltd.

We have audited the accompanying balance sheet of Rhome Apartments, Ltd. (a limited partnership), RD Project No: 51-049-0752627348-02-2 as of December 31, 2001 and the related statements of operations, partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 Rhome Apartments, Ltd., RD Project NO.: 51-049-0752627348 as of December 31, 2001, and the results of its operations, changes in partners’ equity and cash flows for the year then ended in conformity with U.S. 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 1-19 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 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 1, 2002 on our consideration of Rhome Apartments, Ltd.’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants.  That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Wichita Falls, Texas

February 1, 2002

155

INDEPENDENT AUDITOR’S REPORT

To the Partners

Bellwood Four Limited Partnership

We have audited the accompanying balance sheets of Bellwood Four Limited Partnership, (the Partnership), as of December 31, 2001 and 2000 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 auditing standards generally accepted in the United States of America 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 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 Bellwood Four Limited Partnership as of December 31, 2001 and 2000, and its results of operations, changes in partners’ equity (deficit), and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 4, 2002 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, That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

LITTLE, SHANEYFELT, MARSHALL, ROMINE & C0.

FEBRUARY 4, 2002

156

Independent Auditors’ Report

To the Partners

Bowie Apartments, Ltd.

We have audited the accompanying balance sheets of Bowie Apartments, Ltd. (a limited partnership), RD Project No. 50-069-0752627345-01-7, as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America 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 Bowie Apartments, Ltd., RD Project No. 50-069-0752627345-01-7, as of December 31, 2001 and 2000, and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with U.S. 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 I~20 and 1-21 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated January 30, 2002 on our consideration of Bowie Apartments, Ltd’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. This report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Wichita Falls,

Texas January 30, 2002

157

Independent Auditor’s Report

To the Partners

C.V.V.A. Limited Partnership

Charlotte, North Carolina

We have audited the accompanying balance sheets of C.V.V.A. Limited Partnership (a Virginia limited partnership) as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America 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 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 C.V.V.A. Limited Partnership as of December 31,2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2002, 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 audits were 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 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 31, 2002

158

Independent Auditors’ Report

To the Partners

Graham Apartments, Ltd.

We have audited the accompanying balance sheets of Graham Apartments, Ltd. (a limited partnership), RD Project No. 51-52-752663159-01-1, as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America 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 Apartments, Ltd., RD Project No. 51-52-752663159-01-1, as of December 31, 2001 and 2000, and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with U.S. 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 1-20 is presented for purposes of additional analysis and is not a required part of the basic financial state­ments. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated January 25, 2002 on our consideration of Graham Apartments, Ltd’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. This report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Wichita Falls, Texas

January 25, 2002

159

INDEPENDENT AUDITOR’S REPORT

To the Partners

Hillside Terrace Associates, L.P.

We have audited the accompanying balance sheet of Hillside Terrace Associates, L.P. (a limited partnership) as of December 31, 2001 and 2000 and the related statements of operations and 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 auditing standards generally accepted in the United States of America. 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 Hillside Terrace Associates, L.P. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Salmin, Celona, Wehrle & Flaherty, LLP

January 31, 2002

160

Independent Auditor’s Report

To the Partners

K.G.V.A. Limited Partnership

Charlotte, North Carolina

We have audited the accompanying balance sheets of K.G.V.A. Limited Partnership (a Virginia limited partnership) as of December 31, 2001 and 2000, 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 all opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America 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 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 K.G.V.A. Limited Partnership as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2002, 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 audits were 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 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 31,2002

161

To the Members

Linden Partners II, LLC

We have audited the accompanying balance sheets of Linden Partners 11, LIC (a Nebraska Limited Liability Company) as of December 3 I, 2001 and 2000, and the related statements of operations, members’ 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 auditing standards generally accepted it the United States of America. 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 a all material respects, the financial position of Linden Partners II, LLC as of December 31, 2001 and 2000, and the results of its operations, and changes in members’ equity (deficit) and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

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.

Omaha, Nebraska

February I 1,2002

162

Independent Auditor’s Report

To the Partners

Mesa Grande Apartments, Limited Partnership

Irvine, California

I have audited the accompanying balance sheet of Mesa Grande Apartments, Limited Partnership as of December 31, 2001, and the related statements of operations, changes in partners’ capital, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with auditing standards generally accepted in the United States of America. 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 Mesa Grande Apartments, Limited Partnership at December 31, 2001, and the results of its operations and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

February 4, 2002

163

Independent Auditors’ Report

To the Partners

Nocona Apartments, Ltd.

We have audited the accompanying balance sheets of Nocona Apartments, Ltd. (a limited partnership), RD Project No: 50-069-0752685663-02-2 as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America 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 Nocona Apartments, Ltd. RD Project No.: 50-069-0752685663-02-2 as of December 31, 2001 and 2000, and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with U.S. 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 1-20 and 1-21 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated January 30, 2002 on our consideration of Nocona Apartments, Ltd.’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations contracts and grants. This report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Wichita Falls, Texas

January 30, 2002

164

INDEPENDENT AUDITOR’S REPORT

To the Partners

Pyramid One Limited Partnership

We have audited the accompanying balance sheets of Pyramid One Limited Partnership, {the Partnership), as of December 31, 2001 and 2000 and the related statements of profit (loss), changes in partners’ equity (deficit) cash flows for the years then ended. These 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 auditing standards generally accepted in the United States of America 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 audits to obtain reasonable assurance about whether the financial statement8 are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. All audit also includes 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 all material respects, the financial position of Pyramid One Limited Partnership as of December 31, 2001 and 2000, and its results of operations, changes in partners’ equity {deficit), and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 20, 2002 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. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Little, Shaneyfelt, Marshall, Romine & Co.

February 20, 2002

165

Independent Auditor’s Report

To the Partners

Sunrise Homes Apartments, Limited Partnership

Irvine, California

I have audited the accompanying balance sheet of Sunrise Homes Apartments, Limited Partnership as of December 31, 2001, and the related statements of operations, changes in partners’ capital, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with auditing standards generally accepted in the United States of America. 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 nay 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 Sunrise Homes Apartments, Limited Partnership at December 31, 2001, and the results of its operations and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

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 audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

February 4, 2002

166

INDEPENDENT AUDITORS’ REPORT

The Partners

Canton Housing One, L.P.

Jackson, Mississippi

We have audited the accompanying balance sheets of Canton Housing One, L.P., a Mississippi limited partnership, FmHA Project No. 28-045-0640886062 01-8, as of December 31, 2001 and 2000, and the related statements of income (loss), 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 auditing standards generally accepted in the United States of America 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 tree of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Canton Housing One, L.P., FmHA Project No. 28-045-0640886062 01-8, as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated February 26, 2002, on our consideration of the Partnership’s internal control and a report dated February 26, 2002, on its compliance with specific requirements applicable to major FmHA programs.

167

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying financial information included on pages 14 through 21 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the current budget and proposed budget columns in Part I and II and the information in Part IV included on pages 14 through 18 on which we express no opinion, has been subjected to the auditing procedures applied in the audits of file 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.

EUBANK & BETTS, PLLC

Jackson, Mississippi

February 26, 2002

168

INDEPENDENT AUDITORS’ REPORT

The Partners

Canton Housing Two, L.P,

Jackson, Mississippi

We have audited the accompanying balance sheet of Canton Housing Two, L.P., a Mississippi limited partnership, FmHA Project No. 28-045-0640886061 01-5, as of December 31, 2001 and 2000, and the related statements of income (loss), 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 auditing standards generally accepted in the United States of America 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 Canton Housing Two, L.P., FmHA Project No. 28-045-0640886061 01-5, as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated February 26, 2002, on our consideration of the Partnership’s internal control and a report dated February 26, 2002, on its compliance with specific requirements applicable to major FmHA programs.

169

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying financial information included on pages 13 through 20 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the current budget and proposed budget columns in Part I and II and the information in Part IV included on pages 13 through 18, on which we express no opinion, 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.

EUBANK & BETTS, PLLC

Jackson, Mississippi

February 26, 2002

170

INDEPENDENT AUDITORS’ REPORT

The Partners

Canton Housing Three, L.P.

Jackson, Mississippi

We have audited the accompanying balance sheets of Canton Housing Three, L.P., a Mississippi limited partnership, FmHA Project No. 28-045-0640886063 04-2, as of December 31, 2001 and 2000, and the related statements of income (loss), 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 audit in accordance with auditing standards generally accepted in the United States of America 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 Canton Housing Three, L.P., FmHA Project No. 28-045-0640886063 04-2, as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated February 26, 2002, on our consideration of the Partnership’s internal control and a report dated February 26, 2002, on its compliance with specific requirements applicable to major FmHA programs.

171

Our audits were made for the purpose of forming an opinion on file basic financial statements taken as a whole. The accompanying financial information included on pages 12 through 19 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for file current budget and proposed budget columns in Part I and II and the information in part IV included on pages 12 through 16, on which we express no opinion, 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.

EUBANK & BETTS, PLLC

Jackson, Mississippi

February 26, 2002

172

INDEPENDENT AUDITORS’ REPORT

The Partners

Canton Housing Four, L.P.

Jackson, Mississippi

We have audited the accompanying balance sheets of Canton Housing Four, L.P., a Mississippi limited partnership, FmHA Project No. 28-045-0640886064 02-0, as of December 31, 2001 and 2000, and the related statements of income (loss), 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 auditing standards generally accepted in the United States of America 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 Canton Housing Four, L.P., FmHA Project No. 28-045-0640886064-02-0, as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated February 26, 2002, on our consideration of the Partnership’s internal control and a report dated February 26, 2002, on its compliance with specific requirements applicable to major FmHA programs.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying financial information included on pages 13 through 20 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the current budget and proposed budget columns in Part I and II and the information in Part IV included on pages 13 through 18, on which we express no opinion, 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.

EUBANK & BETTS, PLLC

Jackson, Mississippi

February 26, 2002

173

To the Partners

Ellisville Housing, L.P.

West Point, Mississippi

We have audited the accompanying balance sheets of Ellisville Housing, L.P. (a Mississippi limited partnership), RHS Project No. 28-034-0640864667 as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America 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 Ellisville Housing, L.P. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

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. We have prepared the Multiple Family Housing Borrower Balance Sheet (RHS Form RD 1930-8) and the Multiple Family Housing Project Budget (RHS Form RD 1930-7). 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.

February 18, 2002

174

INDEPENDENT AUDITOR’S REPORT

To the Partners

Hattiesburg Housing, LP

Jackson, Mississippi

We have audited the accompanying balance sheets of Hattiesburg Housing, LP (a Mississippi limited partnership), RHS Project No. 28-018-640864668 as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America 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 Hattiesburg Housing, LP as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

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. We have prepared the Multiple Family Housing Borrower Balance Sheet (RHS FORM RD 1930-8) and the Multiple Family Housing Project Budget (RHS FORM RD 1930-7). 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.

February 14, 2002

175

INDEPENDENT AUDITORS’ REPORT

To the partners

Hurricane Hills II LC

I have audited the accompanying balance sheets of Hurricane Hills II LC as of December 31, 2001, and the related partners’ equity 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.

I conducted my 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 examination, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 provided a reasonable basis for our opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hurricane Hills II LC as of December 31, 2001, 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.

176

Independent Auditor’s Report

To the Partners

N. M. V. A. Limited Partnership

Charlotte, North Carolina

We have audited the accompanying balance sheets of N. M. V. A. Limited Partnership (a Virginia limited partnership) as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America 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 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 N. M. V. A. Limited Partnership as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2002, 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 audits were 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 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 31, 2002

177

INDEPENDENT AUDITOR’S REPORT

Partners

Sencit Hampden Associates, L.P.

We have audited the accompanying balance sheets of SENCIT HAMPDEN ASSOCIATES, L.P., ROTH VILLAGE TOWNHOMES as of December 31, 2001 and 2000, 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 auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Sencit Hampden Associates, L.P. as of December 31, 2001 and 2000, and the results of its operations, changes in partners’ equity and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

January 25, 2002

Elkins Park, Pennsylvania

178

INDEPENDENT AUDITOR’S REPORT

To the Partners

Silver Creek/MHT Limited Dividend Housing

Association Limited Partnership

We have audited the accompanying balance sheet of Silver Creek/MHT Limited Dividend Housing Association Limited Partnership (a Michigan limited partnership) as of December 31, 2001, and the related statements of income, partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Silver Creek/MHT Limited Dividend Housing Association Limited Partnership as of December 31, 2001, and the results of its operations, changes in partners’ equity and cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 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 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, 2002

179

Independent Auditor’s Report

February 1,2002

To the Partners

Indiana Development Limited Partnership

Novi, Michigan

We have audited the accompanying balance sheets of Indiana Development Limited Partnership as of December 31, 2001 and 2000 and the related statements of operation, partner capital and cash flows for the years then ended. These financial statements are the responsibility of Indiana Development Limited Partnership’s management. Our responsibility is to express an opinion on the financial statement based upon our audit.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. These standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the 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 Indiana Development Limited Partnership as of December 31,2001 and 2000 and the results of its operations and its cash flow for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 14, 15 and 16 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as whole.

180

INDEPENDENT AUDITOR’S REPORT

To the Partners of

Martinsville-I, Ltd.

I have audited the accompanying balance sheets of Martinsville-I, Ltd. (a Kentucky limited partnership) as of December 31, 2001 and 2000 and the related statements of operations, changes in partners’ capital and cash flows for the years then ended. The 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 amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Partnership’s general partner and contracted management agent, 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 Martinsville-I, Ltd. at December 31, 2001 and 2000, and its operations, changes in partners’ capital and cash flows for the years then ended in conformity with generally accepted accounting principles.

February 8, 2002

181

Auditors’ report

To the Partners

Parkside Plaza Associates, L. P.

New York, New York

We have audited the accompanying balance sheets of Parkside Plaza Associates, L. P.

(a New York State limited partnership) as of December 31, 2001 and 2000, and the related statements of operations, cash flows, and partners’ capital, and the supplementary information included for the years then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Parkside Plaza Associates, L. P. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplementary information 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.

Kahn Boyd Levychin,

Certified Public Accountants

January 22, 2002

182

INDEPENDENT AUDITOR’S REPORT

To the Partners

Pyramid Four Limited Partnership

We have audited the accompanying balance sheets of Pyramid Four Limited Partnership, (the Partnership), as of December 81, 2001 and 2000 and the related statements of profit (loss), changes in partners’ equity (deficit) and cash flows fop the years then ended. These 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 auditing standards generally accepted in the United States of America 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 Pyramid Four Limited Partnership as of December 31, 2001 and 2000, and its results of operations, changes in partners’ equity (deficit), and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated January 29, 2002 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. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

LITTLE, SHANEYFELT, MARSHALL, ROMINE & CO.

JANUARY 29, 2002

183

MCFARLAND AND GANN, P.C.

CERTIFIED PUBLIC ACCOUNTANTS

INDEPENDENT AUDITOR’S REPORT

To the Partners

Bradford Group Partners of Jefferson County, L.P.

893 Forgety Road

Jefferson City, Tennessee

We have audited the accompanying balance sheet of Bradford Group Partners of Jefferson County, L.P. (a limited partnership) as of December 31, 2001, and the related statements of income (loss), partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Bradford Group Partners of Jefferson County, L.P. as of December 31, 2001, and the results of its operations, changes in partners’ equity and cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

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 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.

McFarland and Gann, P.C.

March 15, 2002

184

INDEPENDENT AUDITOR’S REPORT

To the Partners

Harbor Pointe/MHT Limited Dividend Housing

Association Limited Partnership

We have audited the accompanying balance sheet of Harbor Pointe/MHT Limited Dividend Housing Association Limited Partnership (a Michigan limited partnership) as of December 31, 2001, and the related statements of income, partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Harbor Pointe/MHT Limited Dividend Housing Association Limited Partnership as of December 31, 2001, and the results of its operations, changes in partners’ equity and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 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 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 22, 2002

185

Independent Auditors’ Report

To the Partners of

NHC Partnership 5, L.P.

(A Virginia Limited Partnership)

We have audited the accompanying balance sheet of NHC Partnership 5, L.P. as of December 31, 2001, 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.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 NHC Partnership 5, L.P. as of December 31, 2001, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

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.

February 2, 2002

Carmel, Indiana

186

INDEPENDENT AUDITORS’ REPORT

To the Partners

Belmont Affordable Housing II, L.P.

Springfield, Pennsylvania

We have audited the accompanying balance sheets of Belmont Affordable Housing II, L.P. (a Pennsylvania Limited Partnership) as of December 31, 2001 and 2000, and the related statements of operations and other comprehensive loss, 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 auditing standards generally accepted in the United States of America. 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 Belmont Affordable Housing II, L.P. as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with U.S generally accepted accounting principles.

Bala Cynwyd, Pennsylvania

January 23, 2002

187

To the Partners

Howard Park, Ltd.

We have audited the accompanying balance sheet of Howard Park Ltd. as of December 31, 2001 and the related statements of income, partners’ equity and cash flow for the year then ended. These financial statements are the responsibility of the Howard Park, Ltd. management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of Howard Park, Ltd. as of December 31, 2000, were audited by other auditors whose report dated March 9, 2001, expressed an unqualified opinion on those statements.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Howard Park, Ltd. as of December 31, 2001, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The schedule of administrative, utilities, maintenance, taxes, insurance and interest expense on page 10 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

February 22, 2002

188

Independent Auditor’s Report

February 1, 2002

Partners

RHP 96-1 Limited Partnership

Novi, Michigan

We have audited the accompanying balance sheets of RHP 96-1 Limited Partnership as of December 31, 2001 and 2000 and the related statements of operations, partner capital and cash flows for the years then ended. These financial statements are the responsibility of RHP 96-1 Limited Partnership’s management. Our responsibility is to express an opinion on the financial statement based upon our audit.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. These standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the 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 RHP 96-1 Limited Partnership as of December 31,2001 and 2000 and the results of its operations and its cash flow for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 12 and 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as whole.

189

INDEPENDENT AUDITOR’S REPORT

June 18, 2002

To the Partners

New Caney Housing II, Ltd.

We have audited the accompanying balance sheet of New Caney Housing II, Ltd. as of December 31, 2001 and 2000, and the related statements of operations, partners’ equity (deficit), and cash flow for the years ended December 31, 2001 and 2000. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based oil our audits.

We conducted our audits in accordance with accounting principles generally accepted in the United States of America. 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 accompanying financial statements referred to above present fairly, in all material respects, the financial position of New Caney Housing II, Ltd. as of December 31, 2001 and 2000, and the results of its operation and its cash flows for the year ending December 31, 2001 and 2000, in conformity with accounting principles generally accepted in the United States of America.

190

To the Partners

Riverwalk Apartment Homes, Phase II LLC

Madison, Wisconsin

We have audited the accompanying balance sheet of Riverwalk Apartment Homes, Phase II LLC as of December 31, 2001 and the related statements of operations, members’ equity and cash flows for the year then ended.  These financial statements are the responsibility of the company’s management.  Our responsibility is to express an opinion on these financial statements based on our audit.  The financial statements of Riverwalk Apartments Homes, Phase II LLC as of December 31, 2000 were audited by other auditors whose report dated January 16, 2001 expressed an unqualified opinion on those statements.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we Plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Riverwalk Apartment Homes, Phase II LLC as of December 31, 2001 and the results of its operations and cash flows for the year then ended—in conformity with accounting, principles generally accepted in the United States of America.

Madison, Wisconsin

January 9, 2002

191

To the Partners

Aloha Housing Limited Partnership

Oregon Housing and

Community Services Department

Salem, Oregon

We have audited the accompanying Balance Sheets of Aloha Housing Limited Partnership (a limited partnership), as of December 31, 2001 and 2000 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 with Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform our 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 Aloha Housing Limited Partnership, as of December 31, 2001 and 2000, 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 accompanying schedules of supplementary information required by the Oregon Housing and Community Services Department 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 procedures applied in our audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole

Portland, Oregon

January 30, 2002

192

Independent Auditors’ Report

To The Partners

Riverview Bend Limited Partnership

Crystal City, Missouri

We have audited the accompanying balance sheet of Riverview Bend Limited Partnership (Riverview Bend Apartments, Project No. 085-35329-PM-L8) as of December 31,2001, and the related statements of profit and loss, partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 Riverview Bend Limited Partnership as of December 31,2001, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards and the Consolidated Audit Guide for Audits of HUD Programs issued by the U.S. Department of Housing and Urban Development, we have also issued a report dated January 16, 2002 on our consideration of Riverview Bend Limited Partnership’s internal control and reports dated January 16, 2002 on its compliance with specific requirements applicable to major HUD programs and specific requirements applicable to Fair Housing and Non-­Discrimination. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

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 16 to 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 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 16, 2002

193

Independent Auditor’s Report

February 1,2002

Partners

Baldwin Villas Limited Dividend

Housing Association Limited Partnership

Novi, Michigan

We have audited the accompanying balance sheets of Baldwin Villas Limited Dividend Housing Association Limited Partnership as of December 31, 2001 and 2000 and the related statements of operations, partner capital and cash flows for the years then ended. These financial statements are the responsibility of Baldwin Villas Limited Dividend Housing Association Limited Partnership’s management. Our responsibility is to express an opinion on the financial statement based upon our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. These standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit 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 Baldwin Villas Limited Dividend Housing Association Limited Partnership as of December 31, 2001 and 2000 and the results of its operations and its cash flow for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 15 and 16 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the and/ting procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as whole.

194

INDEPENDENT AUDITOR’S REPORT

To the Partners

Gouverneur Senior Housing Associates, L.P.

We have audited the accompanying balance sheet of Gouverneur Senior Housing Associates, L.P, (a limited partnership) as of December 31, 2001 and 2000, and the related statements of operations and 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 audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we Plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Gouverneur Senior Housing Associates, L.P. as of December 31, 2001 and 2000 and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Salmin, Celona, Wehrle & Flaherty, LLP

February 15, 2002

195

To the Partners

TALLY HO APARTMENTS II PARTNERSHIP

We have audited the accompanying balance sheet of TALLY HO APARTMENTS II PARTNERSHIP, RHS PROJECT NO 22-035-721457920 as of December 31, 2001 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 audits.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 TALLY HO APARTMENTS II PARTNERSHIP as of December 31, 2001 and the results of its operations, changes in partners’ equity and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States  of America.

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 17 through 27, 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 March 12, 2002 on our consideration of TALLY HO APARTMENTS II PARTNERSHIP’s internal control and a report dated March 12, 2002 on its compliance with laws and regulations applicable to the financial statements.

Metairie, Louisiana

March 12, 2002

196

INDEPENDENT AUDITOR’S REPORT

To the Partners

TIMBER TRAILS I PARTNERSHIP

We have audited the accompanying balance sheet of TIMBER TRAILS I PARTNERSHIP, RHS PROJECT NO. 22-040-721457919 as of December 31, 2001 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 audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America 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 TIMBER TRAILS PARTNERSHIP as of December 31, 2001 and the results of its operations, changes in partners’ equity and cash flows for the year then ended, in conformity with accounting, principles generally accepted in the United States of America.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information presented on pages 17 through 27, 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 28, 2002 on our consideration of TIMBER TRAILS I PARTNERSHIP’s internal control and a report dated February 28, 2002 on its compliance with laws and regulations applicable to the financial statements.

Metairie, Louisiana

February 28, 2002

197

To the Partners

Capital Five Limited Partnership

We have audited the accompanying balance sheets of Capital Five Limited Partnership, (the Partnership), as of December 31, 2001 and the related statements of profit (loss), changes in partners’ equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 Capital Five Limited Partnership as of December 31, 2001, and its results of operations, changes in partners’ equity (deficit), and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 13, 2002 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, That report is an integral pant of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

LITTLE, SHANEYFELT, MARSHALL, ROMINE & CO,

FEBRUARY 13, 2002

198

INDEPENDENT AUDITOR’S REPORT

To the Partners

CENTER PLACE APARTMENTS II, LTD

We have audited the accompanying balance sheet of CENTER PLACE APARTMENTS II, LTD, RHS PRQJECT NO. 51-010-721481069 as of December 31, 2001 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 audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America 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 CENTER PLACE APARTMENTS II, LTD as of December 31, 2001 and the results of its operations, changes in partners’ equity and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

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 17 through 27, 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 March 14, 2002 on our consideration of CENTER PLACE APARTMENTS II, LTD’s internal control and a report dated March 14, 2002 on its compliance with laws and regulations applicable to the financial statements.

199

INDEPENDENT AUDITOR’S REPORT

To the Members

MA NO, 2 LLC

San Diego, California

We have audited the accompanying balance sheet of MA NO. 2 LLC, (a Nevada Limited Liability Company) as of December 31, 2001, and the related statement of income, changes in members’ equity, and cash flows from March 1, 2001 (date of recapitalization) through December 31, 2001. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with U.S. 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 MA NO. 2 LLC as of December 31, 2001 and the results of its operations and its cash flows from March 1, 2001 (date of recapitalization) to December 31, 2001, in conformity with U.S. generally accepted accounting principles.

Escondido, California

March 15, 2002

200

INDEPENDENT AUDITOR’S REPORT

To the Partners

OAKLAND PARTNERSHIP

We have audited the accompanying balance sheet of OAKLAND PARTNERSHIP, RHS PROJECT NO.  22-002-721457988 as of December 31, 2001 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 audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America 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 OAKLAND PARTNERSHIP as of December 31, 2001 and the results of its operations, changes in partners’ equity and cash flows for the year then ended in conformity with accounting principles generally accepted in the United  States

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 17 through 27, 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 March 25, 2002 on our consideration of OAKLAND PARTNERSHIP’s internal control and a report dated March 25, 2002 on its compliance with laws and regulations applicable to the financial statements.

201

To the Partners

WESTERN GARDEN PARTNERSHIP

We have audited the accompanying balance sheet of WESTERN GARDEN PARTNERSHIP, RHS PROJECT NO. 22-010-721457978 as of December 31, 2001 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 audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America 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 WESTERN GARDEN PARTNERSHIP as of December 31, 2001 and the results of its operations, changes in partners’ equity and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

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 17 through 27, 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 March 13, 2002 on our consideration of WESTERN GARDEN PARTNERSHIP’s internal control and a report dated March 13, 2002 on its compliance with laws and regulations applicable to the financial statements.

202

INDEPENDENT AUDITOR’S REPORT

To the Partners

Harbor Pointe II/MHT Limited Dividend Housing

Association Limited Partnership

We have audited the accompanying balance sheet of Harbor Pointe II/MHT Limited Dividend Housing Association Limited Partnership (a Michigan limited partnership) as December 31, 2001.  This financial statement is the responsibility of the Company’s management.  Our responsibility is to express an opinion on this financial statement based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America· Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of Harbor Pointe’ II/MHT Limited Dividend Housing Association Limited Partnership as December 31, 2001 in conformity with accounting principles generally accepted in the United States of America.

April 4, 2002

203

Independent Auditor’s Report

To The Partners

Bennetts Pointe Limited Partnership

I have audited the accompanying balance sheets of Bennetts Pointe Limited Partnership as of December 31, 2000 and 1999, and the related statements of operations, partners’ deficit and cash flows for the years then ended. These financial statements are the responsibility of tile 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 Bennetts Pointe Limited Partnership as of December 31, 2000 and 1999, and the results of its operations, changes in partners’ deficit, and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, I have also issued my report dated March 19, 2001 on my consideration of Bennetts Pointe Limited Partnership’s internal control over financial reporting and on my tests of its compliance with certain provisions of laws and regulations.

204

INDEPENDENT AUDITOR’S REPORT

To The Partners

College Greene Rental Associates, L.P.

We have audited the accompanying balance sheet of College Greene Rental Associates, L.P. (a Limited Partnership) as of’ December 31, 2000 and 1999,and the related statements of operations, changes in 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 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, 2000 and 1999, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

205

Independent Auditors’ Report

To the Partners of

East Douglas Apartments Limited Partnership (An Illinois Limited Partnership)

We have audited the accompanying balance sheet of East Douglas Apartments Limited Partnership (IHDA Development Number HFI/HTF-354), as of December 31, 2000, and the related statements of operations, cash flows and changes in partners’ equity 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 for the year ended December 31, 1999 were audited by other auditors whose report dated January 31, 2000 expressed an unqualified opinion on those statements.

We conducted our audit in accordance with generally accepted auditing standards, 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 Hosing 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 East Douglas Apartments Limited Partnership as of December 31, 2000, 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, the Illinois Housing Development Authority’s Financial Reporting and Audit Guidelines for Mortgagors of Multifamily Housing Developments and the Consolidated Audit Guide for Audits of HUD Programs issued by the U.S. Department of Housing and Urban Development, we have also issued a report dated March 14, 2001, on our consideration of the Partnership’s internal controls, compliance with specific requirements applicable to major IHDA-assisted programs, specific requirements applicable to affirmative fair housing, and specific requirements applicable to nonmajor IHDA-assisted program transactions.

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.

206

INDEPENDENT AUDITOR’S REPORT

To Tile Partners

Evergreen Hills Associates, L.P.

We have audited the accompanying balance sheet of Evergreen Hills Associates, L.P. (a limited partnership) as of December 31, 2000 and 1999, and the related statements of operations and 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 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, 2000 and 1999, and the results of its operations and its cash flows for the year then ended in conformity with generally acccptcd accounting principles.

207

INDEPENDENT AUDITOR’S REPORT

To the Partners

FLORAL ACRES APARTMENTS II

We have audited the accompanying balance sheets of FLORAL ACRES APARTMENTS II, RHS PROJECT NO. 22-026-721172913 as of December 31, 2000 and 1999 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 FLORAL ACRES APARTMENTS II as of December 31, 2000 and 1999 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 17 through 25, 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 6, 2001 on our consideration of FLORAL ACRES APARTMENTS II’s internal control and a report dated February 6, 2001 on its compliance with laws and regulations applicable to the financial statements.

208

INDEPENDENT AUDITOR’S REPORT

To the Partners

HARRISONBURG SENIORS APARTMENTS

We have audited the accompanying balance sheets of HARRISONBURG SENIORS APARTMENTS, RHS PROJECT NO. 22-013-721199864 as of December 31, 2000 and 1999 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 HARRISONBURG SENIORS APARTMENTS as of December 31, 2000 and 1999 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 6, 2001 on our consideration of HARRISONBURG SENIORS APARTMENTS’s internal control and a report dated February 6, 2001 on its compliance with laws and regulations applicable to the financial statements.

209

INDEPENDENT AUDITOR’S REPORT

To the Partners

SHADY LANE SENIORS APARTMENTS

We have audited the accompanying balance sheets of SHADY LANE SENIORS APARTMENTS, RHS PROJECT NO. 22-064-72i 100471 as of December 31, 2000 and 1999 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 SHADY LANE SENIORS APARTMENTS as of December 31, 2000 and 1999 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 17 through 25, 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 9, 2001 on our consideration of SHADY LANE SENIORS APARTMENTS’s internal control and a report dated February 9, 2001 on its compliance with laws and regulations applicable to the financial statements.

210

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, 2000 and 1999, 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, 2000 and 1999, 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 it; 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.

211

Independent Auditors’ Report

To the Partners of

Better Homes for Havelock Limited Partnership (A North Carolina Limited Partnership)

We have audited the accompanying balance sheets of Better Homes for Havelock Limited Partnership (a North Carolina Limited Partnership) as of December 31, 2000 and 1999, 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 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 Better Homes for Havelock Limited Partnership as of December 31, 2000 and 1999, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued a report dated January 26, 2001, on our consideration of the Partnership’s internal controls and a report dated January 24, 2001, on its compliance with laws and regulations.

The accompanying purposes of additional financial statements auditing procedures statements and, in respects in relation supplementary information is presented for analysis and is not a required part of the basic.  Such information has been subjected to the applied in the audits of the basic financial our opinion, is fairly stated in all material to the financial statements taken as a whole.

212

Independent Auditor’s Report

To the Partners

Black River Run Limited Partnership

We have audited the accompanying balance sheets of Black River Run Limited Partnership as of December 31, 2000 and 1999, 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 Black River Run Limited Partnership, as of December 31, 2000 and 1999, 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.

213

Independent Auditor’s Report

To the Partners

Liveoak Village Limited Partnership

Charlotte, North Carolina

We have audited tile accompanying balance sheets of Liveoak Village Limited Partnership (all Alabama limited partnership) as of December 31, 2000 and 1999, 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 thc standards applicable to financial audits contained in Government Auditing Standards issued by thc 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 Liveoak Village Limited Partnership as of December 31, 2000 and 1999, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards’, we have also issued our report dated January 31, 2001, 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 audits were 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 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.

214

INDEPENDENT AUDITOR’S REPORT

To the Partners

Lookout Ridge Limited Partnership

We have audited the accompanying balance sheet of Lookout Ridge Limited Partnership as of December 31, 2000, and the related statements of operations, partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these fi­nancial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assur­ance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lookout Ridge Limited Partnership as of December 31, 2000, and the results of its operations, the changes in partners’ equity and cash flows for the year then ended in conformity with generally accepted accounting princi­ples.

Our audit was made for the purpose of forming an opinion on the basic financial state­ments taken as a whole. The supplemental information 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 audit of the basic financial statement and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

215

Independent Auditor’s Report

To the Partners

Pinedale II Limited Partnership

We have audited the accompanying balance sheets of Pinedale II Limited Partnership as of December 31, 2000 and 1999, 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 Pinedale II Limited Partnership, as of December 31, 2000 and 1999, 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.

216

Independent Auditor’s Report

To the Partners

Pumphouse Crossing II Limited Partnership

We have audited the accompanying balance sheets of Pumphouse Crossing II Limited Partnership as of December 31, 2000 and 1999, 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 Pumphouse Crossing II Limited Partnership, as of December 31, 2000 and 1999, 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.

217

INDEPENDENT AUDITORS’ REPORT

To the Partners

Elk Tower Apartments Limited Partnership

We have audited the accompanying balance sheets of Elk Tower Apartments Limited Partnership as of December 31, 2000 and 1999, and the related statements of operations, partners’ equity (deficit) and cash flaws for the years then ended. These 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 Elk Tower Apartments Limited Partnership as of December 31, 2000 and 1999, 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 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.

218

INDEPENDENT AUDITORS’ REPORT

To the Partners of

Kimbark 1200 Associates, Limited Partnership

Longmont, Colorado

We have audited the accompanying balance sheet of Kimbark 1200 Associates, Limited Partnership, FHA Project No. 101-98011, as of December 31, 2000, and the related statement of operations, changes in partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards 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 Kimbark 1200 Associates, Limited Partnership FHA Project No. 101-98011, as of December 31, 2000, and the results of its operations and the changes in its partners’ equity 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 2, 2001 on our consideration of Kimbark 1200 Associates, Limited partnership, internal controls and reports dated February 2, 2001 on its compliance with specific requirements applicable to major HUD programs and Fair Housing and Non-Discrimination.

219

INDEPENDENT AUDITOR’S REPORT

To the Partners

Lost Tree Limited Partnership

I have audited the accompanying balance sheets of Lost Tree Limited Partnership as of December 31, 2000 and 1999, and the related statements of operations, partners’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. My responsibility is to express an opinion on these financial statements based on my audits.

I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the 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 Lost Tree Limited Partnership as of December 31, 2000 and 1999, and the results of its operations, changes in partners’ equity (deficit) and cash flows for the years then ended in conformity with generally accepted accounting principles.

My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 14 and 15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basis financial statements taken as a whole.

220

INDEPENDENT AUDITOR’S REPORT

To the Partners

Philadelphia Housing II, Limited Partnership

Philadelphia, Mississippi

We have audited the accompanying balance sheets of Philadelphia Housing II, Limited Partnership (a Mississippi limited partnership), RHS Project No. 28-050-640808922 as of December 31, 2000 and 1999, 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 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 Philadelphia Housing II, Limited Partnership, 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 purposes 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. We have prepared the Multiple Family Housing Borrower Balance Sheet (RHS Form RD 1930-8) and the Multiple Family Housing Project Budget (RHS Form RD 1930-7). 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.

221

Independent Auditor’s Report

To the Partners of

Roxbury Veterans Housing Limited Partnership

We have audited the accompanying balance sheet of Roxbury Veterans Housing Limited Partnership (a Massachusetts Limited Partnership) as of December 31, 2000, and the related statements of operations, changes in partners’ equity, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in 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 Roxbary Veterans Housing Limited Partnership as of December 31, 2000, and the results of its operations, changes in partners’ equity, and cash flows for the year ended in conformity with accounting principles generally accepted in the United States.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying schedule of operating expenses 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.

222

Independent Auditors’ Report

To the Partners

Barlee Properties,

An Arkansas Limited Partnership

Barling, Arkansas

We have audited the accompanying balance sheet of Barlee Properties, An Arkansas Limited partnership, as of December 31, 2000, and the related statement of operations, changes in partners’ capital and cash flows for the year then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of Barlee Properties, An Arkansas Limited partnership as of December 31, 1999, were audited by other auditors whose report dated January 27, 2000, expressed an unqualified opinion on those statements.

We conducted our audit in accordance with generally accepted auditing standards. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation, We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the 2000 financial statements referred to above present fairly, in all material respects, the financial position of Barlee Properties, An Arkansas Limited Partnership, as of December 31, 2000, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles.

223

Report of Independent Accountants

Partners

Colonna Redevelopment Company L.P.

Hempstead, New York

We have audited the accompanying balance sheets of Colonna Redevelopment Company L.P. (a New York Limited Partnership) (the “Partnership”) as of December 31, 2000 and 1999 and the related statements of operations, cash flows and partners’ equity for the years then ended. These 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 Colonna Redevelopment Company L.P. as of December 31, 2000 and 1999, 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 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.

224

INDEPENDENT AUDITOR’ S REPORT

To the Partners

Halls Ferry Apartments, L.P.

I have audited the accompanying balance sheets of Halls Ferry Apartments, L.P. as of December 31, 2000 and 1999 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 arid 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 Halls Ferry Apartments, L.P. as of December 31, 2000 and 1999, 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.

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 and 16 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the 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.

225

Independent Auditors’ Report

Partners

Ithaca I Limited Partnership

Ithaca, Michigan

We have audited the accompanying balance sheet of Ithaca I Limited Partnership Rural Housing Service Project No. 26-029-383119117 as of December 31, 2000 and 1999, and the related statements of income, partners’ equity and cash flows for the years ended. These 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 auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Rural Housing Service Audit Program. 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 Ithaca I Limited Partnership as of December 31, 2000 and 1999, and the results of its operations, changes in partner’s 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 9, 2001 on our consideration of Ithaca I Limited Partnership’s internal control over financial reporting and our tests of compliance with certain provisions of laws and regulations, contracts and grants.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information presented on pages 11 through 19 is presented for purposes of complying with the requirements of Rural Housing Service 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.

226

INDEPENDENT AUDITOR’S REPORT

To the Partners

MATHIS APARTMENTS, LTD.

We have audited the accompanying balance sheets of MATHIS APARTMENTS, LTD., RHS PROJECT NO. 51-005-721010606 as of December 31, 2000 and 1999 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 MATHIS APARTMENTS, LTD. as of December 31, 2000 and 1999 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 16, 2001 on our consideration of MATHIS APARTMENTS, LTD.’s internal control and a report dated February 16, 2001 on its compliance with laws and regulations applicable to the financial statements.

227

INDEPENDENT AUDITOR’S REPORT

To the Partners

ORANGE GROVE SENIORS APARTMENTS, LTD.

We have audited the accompanying balance sheets of ORANGE GROVE SENIORS APARTMENTS, LTD, RHS PROJECT NO. 50-025-742670408 as of December 31, 2000 and 1999 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 ORANGE GROVE SENIORS APARTMENTS, LTD. as of December 31, 2000 and 1999 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 9, 2001 on our consideration of ORANGE GROVE SENIORS APARTMENTS, LTD.’s internal control and a report dated February 9, 2001 on its compliance with laws and regulations applicable to the financial statements.

228

To The Partners

Sacramento SRO Limited Partnership

A California Limited Partnership

600 West Broadway, #1070

San Diego, CA 92101

Independent Auditor’s Report

We have audited the accompanying balance sheets of Sacramento SRO Limited Partnership, as of December 31, 2000 and 1999 and the related statements of operations and partners’ capital and statements 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 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 Sacramento SRO Limited Partnership, as of December 31, 2000 and 1999, and the results of their operations and cash flows for the years then ended in conformity with generally accepted accounting principles.

229

INDEPENDENT AUDITORS’ REPORT

To the Partners

South Hills Apartments, L.P.

We have audited the accompanying balance sheets of South Hills Apartments, L.P. as of December 31, 2000 and 1999, 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 south Hills Apartments, L.P. as of December 31, 2000 and 1999, 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 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.

230

Independent Auditors’ Report

To the Partners:

Village Woods Estates, L.P.

We have audited the accompanying balance sheets of Village Woods Estates, L.P. as of December 31, 2000 and 1999, 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 Company’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 ail material respects, the financial position of Village Woods Estates, L.P. as of December 31, 2000 and 1999, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

231

Independent Auditors’ Report

To the Partners

Woodland Hills Properties,

A Limited Partnership

Barling, Arkansas

We have audited the accompanying balance sheet of Woodland Hills Properties, A Limited Partnership, as of December 31, 2000, and the related statement of operations, changes in partners’ capital and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of Woodland Hills Properties, A Limited Partnership, as of December 31, 1999, were audited by other auditors whose report dated January 31, 2000, 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 2000 financial statements referred to above present fairly, in all material respects, the financial position of Woodland Hills Properties, A Limited Partnership, as of December 31, 2000, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles.

232

INDEPENDENT AUDITOR’S REPORT

To The Partners

Autumn Ridge Associates

Roanoke, Virginia:

We have audited the accompanying balance sheet of Autumn Ridge Associates (A Virginia Limited Partnership) as of December 31, 2000 and 1999 and the related statement of operations and partners’ equity (deficit) and cash flow for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards 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 Autumn Ridge Associates as of December 31, 2000 and 1999, and the results of its operation and its cash flow 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 pages 14 through 17 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 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.

233

INDEPENDENT AUDITORS’ REPORT

To the Partners

Brownsville Associates, Limited

We have audited the accompanying balance sheets of Brownsville Associates, Limited (a Tennessee limited partnership) d/b/a Brownsville Village Apartments, RHS Project No.: 48-038-621467876, as of December 31, 2000 and 1999, 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 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 Brownsville Associates, Limited (a Tennessee limited partnership) d/b/a Brownsville Village Apartments, RHS Project No.: 48-038-621467876, as of December 31, 2000 and 1999, and the results of its operations, the changes in 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 9, 2001 on our consideration of Brownsville Associates, Limited’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 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 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.

234

Independent Auditors’ Report

To The Partners

Centenary Housing Limited Partnership

St. Louis, Missouri

We have audited the accompanying balance sheet of Centenary Housing Limited Partnership (Centenary Towers Apartments, Project No. 085-35239-PM-SR-PR-WAH-L8) as of December 31, 2000, and the related statements of profit and loss, partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Centenary Housing Limited Partnership as of December 31, 2000, 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 conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplementary information shown on pages 16 to 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 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.

In accordance with Government Auditing Standards and the Consolidated Audit Guide for Audits of HUD Programs issued by the U.S. Department of Housing and Urban Development, we have also issued a report dated January 23, 2001 on our consideration of Centenary Housing Limited Partnership’s internal control and reports dated January 23, 2001 on its compliance with specific requirements applicable to major HUD programs and specific requirements applicable to Fair Housing and Non-Discrimination. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

235

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 3l, 2000 and 1999, 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 auditing standards generally accepted in 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 Jeremy Associates Limited Partnership as of December 31, 2000 and 1999 and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States.

236

INDEPENDENT ACCOUNTANTS’ REPORT

To the Partners

New Hilltop Apartments, A Limited Partnership

Columbia, South Carolina

We have audited the accompanying balance sheets of New Hilltop Apartments, A Limited Partnership (A South Carolina Limited Partnership), as of December 31, 2000 and 1999, 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 New Hilltop Apartments, A Limited Partnership, as of December 31, 2000 and 1999, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles.

237

Independent Auditors’ Report

Partners

Shadowcreek Apartments

Elko, Nevada

We have audited the accompanying balance sheets of Shadowcreek Apartments (Project), Rural Development Case No. 33-002-0880283493, as of December 31, 2000 and 1999 and the related statements of operations, changes in partners equity and cash flows for the years then ended. These financial statements are the responsibility of the 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 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 the Project as of December 31, 2000 and 1999 and the results of its operations, changes in partners equity and cash flows for the years then ended. In contbrmity with general accepted accounting principles.

Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental information on pages l0 through 13 is presented for the purpose of additional analysis and is not a required part of the basic financial statements of the Project for the year ended December 31, 2000. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly presented in all material respects in relation to the financial statements taken as a whole.

In accordance with Government Auditing Standards, we have issued a report dated January 24, 2001, on our consideration of the Project’s internal control over financial reporting and over tests of its compliance with laws, regulations, contracts and grants. This report is an integral part of an audit performed in accordance with Government Auditing S’tandards and should be read in conjunction with this report in considering the results of our audit.

238

INDEPENDENT AUDITOR’ S REPORT

To the Partners

Pahrump Valley Investors

(A Wyoming Limited Partnership)

Cheyenne, WY

I have audited the accompanying balance sheets of Pahrump Valley Investors (A Wyoming Limited Partnership), USDA Rural Development Case No. 33-019-680204949, as of December 31, 2000 and 1999, 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. 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 audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. 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 Pahrump Valley Investors (A Wyoming Limited Partnership) as of December 31, 2000 and 1999, 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, I have also issued a report dated March 16, 2001 on my consideration of Pahrump valley Investors’ internal control structure and a report dated March 16, 2001 on its compliance with laws and regulations.

239

INDEPENDENT AUDITORS’ REPORT

To the Partners

Stanton Associates, Limited

We have audited the accompanying balance sheets of Stanton Associates, Limited (a Tennessee limited partnership) d/b/a Stanton Village Apartments, RHS Project No.: 48-038-621542356, as of December 31, 2000 and 1999, 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 Stanton Associates, Limited (a Tennessee limited partnership) d/b/a Stanton Village Apartments, RHS Project No.: 48-038-621542356, as of December 31, 2000 and 1999, and the results of its operations, the changes in 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 17, 2001 on our consideration of Stanton Associates, Limited’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 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 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.

240

Independent Auditors’ Report

To the Partners

Woodlands Apartments

Elko, Nevada

We have audited the accompanying balance sheets of Woodlands Apartments (the Project), Rural Development Case No. 33-004-0880314570, as of December 31, 2000 and 1999 and the related statements of operations, changes in Partners’ equity and cash flows for the years then ended, These financial statements are the responsibility of the 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 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 the Project as of December 3l, 2000 and 1999 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 conducted for the purpose of forming an opinion on the basic financial statements taken as a whole, The supplemental information on pages 10 through 13, is presented for the purpose of additional analysis and is not a required part of the basic financial statements of the Project for the year ended December 31, 2000. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly presented in all material respects in relation to the financial statements takenas a whole.

In accordance with Government Auditing Standards, we have issued a report dated January 24, 2001, on our consideration of the Woodlands Apartments’ internal control over financial reporting and over tests of its compliance with laws, regulations, contracts and grants. This report is an integral part of an audit performed in accordance with Government Auditing Standards’ and should be read in conjunction with this report in considering the results of our audit.

241

INDEPENDENT AUDITOR’S REPORT

To the Partners

ZWOLLE PARTNERSHIP

We have audited the accompanying balance sheets of ZWOLLE PARTNERSHIP, RHS PROJECT NO. 22-043-721260425 as of December 31, 2000 and 1999 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 ZWOLLE PARTNERSHIP as of December 31, 2000 and 1999 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 9, 2001 on our consideration of ZWOLLE PARTNERSHIP’s internal control and a report dated February 9, 2001 on its compliance with laws and regulations applicable to the financial statements,

242

INDEPENDENT AUDITORS’ REPORT

To the Partners

352 Lenox Associates, L.P.

We have audited the accompanying balance sheet of 352 Lenox Associates, L.P. as of  December 31,2000, and the related statements of operations, changes in partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of the partnerships management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 352 Lenox Associates, L.P. as of December 31, 2000, and the results of its operations, the changes in partners’ equity and cash flows for the year ended December 31, 2000, in conformity with accounting principles generally accepted in the United States of America.

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 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 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.

243

The Partners

Ethel Housing, L.P.

Ethel, Mississippi

We have audited the accompanying balance sheets of Ethel Housing, L.P., RD Case No. 28-0040640823417 as of December 31, 2000 and 1999, 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 included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also included 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 provided a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Ethel Housing, L.P., as of December 31, 2000 and 1999, 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 and the Audit Program issued by the United States Department of Agriculture, Rural Development, we have also issued a report dated March 21, 2001, on its compliance with specific requirements applicable to major RD programs and nonmajor RD program transactions.

Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The supporting data included on pages 12 through 19 are presented for purposes of additional analysis and are not a required part of the financial statements of Ethel Housing, L.P. Such information, except for the current budget and proposed budget columns on pages 15 through 18, on which we express no opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

244

INDEPENDENT AUDITORS’ REPORT

To the partners

Hurricane Hills I LC

I have audited the accompanying balance sheets of Hurricane Hills LC as of December 31, 2000, and the related statements of operations, partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

I conducted my 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 examination, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 provided a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hurricane Hills I LC as of December 31, 2000, 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.

245

INDEPENDENT AUDITOR’S REPORT

To: The Partners

Main Everett Housing Limited Partnership

We have audited the accompanying balance sheets of Main Everett Housing Limited Partnership as of December 31, 2000 and 1999, 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Main Everett Housing Limited Partnership as of December 31, 2000 and 1999, 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 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.

246

To the Partners

M.R.H., L.P.

We have audited the accompanying balance sheets of M.R.H., L.P. as of December 31, 2000 and 1999, 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 M.R.H., L.P. as of December 31, 2000 and 1999, 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 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.

247

INDEPENDENT AUDITORS’ REPORT

To the Partners

Washington Arms Apartments

(A Limited Partnership)

Dayton, Ohio

We have audited the accompanying balance sheet of HUD Project #046-NI093 of Washington Arms Apartments (a limited partnership) as of December 31, 2000, and the related statements of profit and loss, changes in deficiency in partners’ capital and cash flows for the year ended December 31, 2000. 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, Government Auditing Standards issued by the Comptroller General of the United States, and Consolidated Audit Guide for Audits of HUD Programs (the “Guide”) issued by the U. S. Department of Housing and Urban Development, Office of Inspector General in August 1997. Those standards and the Guide require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 HUD Project #046-NI093 as of December 31, 2000 and the results of its operations and its cash flows and its changes in deficiency in partners’ capital for the year then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued a report dated January 24, 2001 on our consideration of Washington Arms Apartments’ internal controls and a report dated January 24, 2001 on its compliance with laws and regulations. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The additional information included in the report shown on pages 12-16 is presented for the purposes of additional analysis and is not a required part of the financial statements of HUD Project #046-NI093. 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.

248

INDEPENDENT AUDITOR’S REPORT

To: The Partners

Osborne Housing Limited Partnership

We have audited the accompanying balance sheets of Osborne Housing Limited Partnership as of December 31, 2000 and 1999, 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Osborne Housing Limited Partnership as of December 31, 2000 and 1999, 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 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.

249

To the Partners

Sandstone Village Limited Partnership

Great Falls, Montana

INDEPENDENT AUDITORS’ REPORT

We have audited the accompanying balance sheets of Sandstone Village Limited Partnership as of December 31, 2000 and 1999 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 Sandstone Village Limited Partnership as of December 31, 2000 and 1999, 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 thc basic financial statements taken as a whole. The supplemental information on page 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

250

The Partners

Shannon Housing, L.P,

Shannon, Mississippi

We have audited the accompanying balance sheets of Shannon Housing, L.P., RD Case No. 28-041064835658, as of December 31 2000, and 1999, 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 included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also included 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 provided a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Shannon Housing, L.P., as of December 31, 2000 and 1999, 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 and the Audit Program issued by the United States Department of Agriculture, Rural Development, we have also issued a report dated March 21, 2001, on its compliance with specific requirements applicable to major RD programs and nonmajor RD program transactions.

Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The supporting data included on pages 12 through 19 are presented for purposes of additional analysis and are not a required part of the financial statements of Shannon Housing, L.P. Such information, except for the current budget and proposed budget columns on pages 15 through 18, on which we express no opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

251

INDEPENDENT AUDITORS’ REPORT

To the Partners of

Sutton Place Apartments

(A Limited Partnership)

Cincinnati, Ohio

We have audited the accompanying balance sheet of HUD Project #073-55035, 073-55037, 073-55038, 073-55061 and 073-55062 of Sutton Place Apartments (a limited partnership) as of December 31, 2000, and the related statements of profit and loss, changes in deficiency in partners’ capital 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, Government Auditing Standards issued by the Comptroller General of the United States, and Consolidated Audit Guide for Audits of HUD Programs (the “Guide”) issued by the U. S. Department of Housing and Urban Development, office of Inspector General in August 1997. Those standards and the Guide require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 HUD    Project #073-55035, 073-55037, 073-55038, 073-55061 and 073-55062 as of December 31, 2000 and the results of its operations and its cash flows and its changes in deficiency in partners’ capital for the year then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued a report dated January 24, 2001 on our consideration of Sutton Place Apartments’ internal control and a report dated January 24, 2001 on its compliance with laws and regulations.

We were engaged to conduct an audit for the purpose of forming an opinion on the financial statements taken as a whole. The additional information included in the report shown on pages 13-19 is presented for the purposes of additional analysis and is not a required part of the financial statements of HUD Project #073-55035, 073-55037, 073-55038, 073-55061 and 073-55062. 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.

252

The Partners

West Point Housing, L.P.

West Point, Mississippi

We have audited the accompanying balance sheets of West Point Housing, L.P., RD Case No. 28-013-0640834734, as of December 31,2000, and 1999, 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 included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also included 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 provided a 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 Point Housing, L.P., as of December 31, 2000 and 1999, 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 and the Audit Program issued by the United States Department of Agriculture, Rural Development, we have also issued a report dated March 21,2001, on its compliance with specific requirements applicable to major RD programs and nonmajor RD program transactions.

Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The supporting data included on pages 12 through 10 are presented for purposes of additional analysis and are not a required part of the financial statements of West Point Housing, L.P. Such information, except for the current budget and proposed budget columns on pages 15 through 18, on which we express no opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

253

INDEPENDENT AUDITOR’S REPORT

To The Partners

200 East Avenue Associates, L.P.

We have audited the accompanying balance sheet of 200 East Avenue Associates, L.P. (a limited partnership) as of December 31, 2000 and 1999 and the related statements of operations and 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 opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of 200 East Avenue Associates, L.P. as of December 31, 2000 and 1999, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

254

To the Partners

A.V.A. Limited Partnership

Charlotte, North Carolina

We have audited the accompanying balance sheets of A.V.A. Limited Partnership (a Virginia limited partnership) as of December 31, 2000 and 1999, 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 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 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 A.V.A. Limited Partnership as of December 31, 2000 and 1999, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2001, 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 audits were 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 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.

255

To the Partners

Beckwood Manor One Limited Partnership

We have audited the accompanying balance sheets of Beckwood Manor One Limited Partnership, RD Project No. 03-025-710677259 (the Partnership), as of December 31, 2000 and 1999 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 U.S. 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 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 One Limited Partnership as of December 31, 2000 and 1999, and its results of operations, changes in partners’ equity (deficit), and cash flows for the years then ended in conformity with U.S. generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our report dated February 14, 2001 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. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

256

INDEPENDENT AUDITOR’S REPORT

To the Partners

Decro Nordhoff, L.P.

We have audited the accompanying balance sheets of Decro Nordhoff, L.P. as of December 31, 2000 and 1999, 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 Decro Nordhoff, L.P. as of December 31, 2000 and 1999, 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 and 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

257

INDEPENDENT AUDITORS’ REPORT

To the Partners

Escher SRO Project, L.P.

(HUD Project No. NJ-39-K087-020-2)

We have audited the accompanying balance sheets of Escher SRO Project, L.P. (HUD Project No. NJ-39-K087-020-2) as of December 31, 2000 and 1999, 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 auditing standards generally accepted in the United States of America 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 Escher SRO Project, L.P. (HUD Project No. NJ-39-K087-020-2) as of December 31, 2000 and 1999, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 26, 2001 on our consideration of Escher SRO Project, L.P.’s internal controls and a report dated January 26, 2001 on its compliance with specific requirements applicable to major HUD programs.

258

Independent Auditor’s Report

To the Partners

G. V. A. Limited Partnership

Charlotte, North Carolina

We have audited the accompanying balance sheets of G. V. A. Limited Partnership (a Virginia limited partnership) as of December 31, 2000 and 1999, 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 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 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 G. V. A. Limited Partnership as of December 31, 2000 and 1999, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2001, 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 audits were 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 audits of thc 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.

259

Independent Auditor’s Report

To the Partners

Grayson Manor Limited Partnership

I have audited the accompanying balance sheets of Grayson Manor Limited Partnership as of December 31,2000 and 1999, 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 thc financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. 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 Grayson Manor Limited Partnership as of December 31,2000 and 1999, 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.

In accordance with Government Auditing Standards, I have also issued my report dated March 19,2001 on my consideration of Grayson Manor Limited Partnership’s internal control over financial reporting and on my tests of its compliance with certain provisions of laws and regulations.

260

Independent Accountants’ Report

To The Partners

M.B. Apartments Associates, Ltd.

We have audited the accompanying balance sheets of M.B. Apartments Associates, Ltd. (A Limited Partnership) as of December 31, 2000 and 1999, 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 M.B. Apartments Associates, Ltd. (A Limited Partnership) as of December 31,2000 and 1999, 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 the purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

261

To the Partners

Meridian Housing, L.P.

Meridian, Mississippi

We have audited the accompanying balance sheet of Meridian Housing, L.P. (a Mississippi limited partnership), RHS Project No. 28-038-0640893892 as of December 31, 2000, and the related statements of operations, partners’ capital (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 Meridian Housing, L.P. as of December 31, 1999, were audited by other auditors whose report dated February 9, 2000 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 Meridian Housing, L.P., 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 is presented for purposes of additional analysis and is not a required part of the basic financial statements. We have prepared the Multiple Family Housing Borrower Balance Sheet (RHS Form RD 1930-8) and the Multiple Family Housing Project Budget (RHS Form RD 1930-7). 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.

262

INDEPENDENT AUDITOR’S REPORT

To the Partners

New Devonshire II Limited Partnership

(an Ohio Limited Partnership)

London, Ohio

We have audited the accompanying balance sheets of New Devonshire II Limited Partnership (an Ohio Limited Partnership), RD Project No. 41-049-311449843, as of December 31, 2000 and 1999, and the related statements of operations, changes m partners’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the management of New Devonshire II Limited Partnership. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing standards, 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 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 New Devonshire II Limited Partnership as of December 31. 2000 and 1999, and the results of its operations, the changes in partners’ deficit and cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued a report dated February 16, 2001, on our consideration of New Devonshire II Limited Partnership’s internal control and a report dated February 16, 2001, on its compliance with laws and regulations.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying information included in the report (shown on pages l 1 to 18) is presented for the purpose of additional analysis and is not a required part of the basic financial statements of New Devonshire II Limited 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 financial statements taken as a whole.

263

INDEPENDENT AUDITOR’S REPORT

To the Partners

New Devonshire West Limited Partnership

(an Ohio Limited Partnership)

West Jefferson. Ohio

We have audited the accompanying balance sheets of New Devonshire West Limited Partnership (an Ohio Limited Partnership), RD Project No. 41-049-311449844. as of December 3 l, 2000 and 1999, 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 management of New Devonshire West Limited Partnership. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing standards. 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 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 New Devonshire West Limited Partnership as of December 31, 2000 and 1999, and the results of its operations, the changes in partners’ equity (deficit) and cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards we have also issued a report dated February 16, 2001, on our consideration of New Devonshire West Limited Partnership’s internal control and a report dated February 16, 2001, on its compliance with laws and regulations.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying information included in the report (shown on pages 11 to 18) is presented for the purpose of additional analysis and is not a required part of the basic financial statements of New Devonshire West Limited 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 financial statements taken as a whole.

264

Independent Auditor’s Report

To the Partners

Powell Valley Limited Partnership

I have audited the accompanying balance sheets of Powell Valley Limited Partnership as of December 3 l, 2000 and 1999, 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 Powell Valley Limited Partnership as of December 31,2000 and 1999, 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.

In accordance with Government Auditing Standards, I have also issued my report dated March 19, 2001 on my consideration of Powell Valley Limited Partnership’s internal control over financial reporting and on my tests of its compliance with certain provisions of laws and regulations.

265

Independent Auditor’s Report

To the Partners

V. V. A. Limited Partnership

Charlotte, North Carolina

We have audited the accompanying balance sheets of V. V. A. Limited Partnership (a Virginia limited partnership) as of December 31, 2000 and 1999, 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 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 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 V. V. A. Limited Partnership as of December 31, 2000 and 1999 and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2001, 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 audits were 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 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.

266

Independent Auditor’s Report

To the Partners

W. P. V. A. Limited Partnership

Charlotte, North Carolina

We have audited the accompanying balance sheets of W. P. V. A. Limited Partnership (a Virginia limited partnership) as of December 31, 2000 and 1999, 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 the standards applicable to financial audits contained in Government Auditing Standards issued by thc 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 ali material respects, the financial position of W. P. V. A. Limited Partnership as of December 31, 2000 and 1999, and tile results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2001, 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 audits were 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 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.

267

INDEPENDENT AUDITOR’S REPORT

To the Partners

AHAB Project One, L.P.

I have audited the accompanying balance sheets of AHAB Project One, L.P. as of December 31, 2000 and 1999, and the related statements of operations, partners’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. My responsibility is to express an opinion on these financial statements based on my audits.

I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the 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 AHAB Project One, L.P. as of December 31, 2000 and 1999, and the results of its operations, changes in partners’ equity (deficit) and cash flows for the years then ended in conformity with generally accepted accounting principles.

My audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 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 my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

268

To the Partners

Angelou Associates, L. P.

New York, New York

We have audited the accompanying balance sheet of Angelou Associates, L. P- (a New York State limited partnership) as of December 31, 2000, and the related statements of operations, cash flows, and partners’ capital, and the supplementary information included for the year then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express art opinion on these financial statements based on our audit. The financial statements of Angelou Associates, L. P. as of December 31, 1999, were audited by other auditors whose report dated March 1, 2000, expressed an unqualified opinion on those 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 Angelou Associates, L. P. as of December 31, 2000, 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 accompanying supplementary information 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.

269

Report of Independent Accountant

To the Partners of CR Housing Associates, L.P.

I have audited the accompanying balance sheets of CR HOUSING ASSOCIATES, L.P. (the “Partnership”) as of December 31, 2000 and 1999, 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 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 ail material respects, the financial position of CR HOUSING ASSOCIATES, L.P. as of December 31, 2000 and 1999, and the results of it operations and its 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 10 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

270

INDEPENDENT AUDITORS’ REPORT

To the Partners

Holly Heights Apartments, L.P.

We have audited the accompanying balance sheets of Holly Heights Apartments, L.P. as of December 31, 2000 and 1999, 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 Holly Heights Apartments, L.P. as of December 31, 2000 and 1999, 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 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.

271

INDEPENDENTAUDITORS’REPORT

TO THE PARTNERS OF 1374 BOSTON ROAD LIMITED PARTNERSHIP

We have audited the accompanying balance sheet of 1374 BOSTON ROAD LIMITED PARTNERSHIP as of December 31, 2000, and the related statements of operations, changes in partners’ capital and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 1374 BOSTON ROAD LIMITED PARTNERSHIP as of December 31, 2000, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

272

INDEPENDENT AUDITOR’S REPORT

To the Partners

BIENVILLE II APARTMENTS

We have audited the accompanying balance sheets of BIENVILLE II APARTMENTS, RHS PROJECT NO.: 22-007-721280566 as of December 31, 2000 and 1999 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 ail material respects, the financial position of BIENVILLE II APARTMENTS as of December 31, 2000 and 1999 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 12, 2001 on our consideration of BIENVILLE II APARTMENTS’s internal control and a report dated February 12, 2001 on its compliance with laws and regulations applicable to the financial statements.

273

INDEPENDENT AUDITOR’S REPORT

To the Partners

BLANCHARD II APARTMENTS

We have audited the accompanying balance sheets of BLANCHARD II APARTMENTS, RHS PROJECT NO. 22-009-721313034 as of December 31, 2000 and 1999 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 BLANCHARD II APARTMENTS as of December 31, 2000 and 1999 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 12, 2001 on our consideration of BLANCHARD II APARTMENTS’s internal control and a report dated February 12, 2001 on its compliance with laws and regulations applicable to the financial statements.

274

INDEPENDENT AUDITOR’S REPORT

To the Partners

COTTONWOOD APARTMENTS I

We have audited the accompanying balance sheets of COTTONWOOD APARTMENTS I, RHS PROJECT NO. 22-005-721313387 as of December 31, 2000 and 1999 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 COTTONWOOD APARTMENTS I as of December31, 2000 and 1999 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 10, 2001 on our consideration of COTTONWOOD APARTMENTS I’s internal control and a report dated February 10, 2001 on its compliance with laws and regulations applicable to the financial statements.

275

INDEPENDENT AUDITOR’S REPORT

To the Partners

EVANGELINE PARTNERSHIP

We have audited the accompanying balance sheets of EVANGELINE PARTNERSHIP, RHS PROJECT NO. 22-027-721313386 as of December 31, 2000 and 1999 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 EVANGELINE PARTNERSHIP as of December31, 2000 and 1999 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 i8 through 26, 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 20, 2001 on our consideration of EVANGELINE PARTNERSHIP’s internal control and a report dated February 20, 2001 on its compliance with laws and regulations applicable to the financial statements.

276

Independent Auditors’ Report

Partners

Fairway II Limited Dividend Housing Association

Limited Partnership

Marlette, Michigan

We have audited the accompanying balance sheet of Fairway II Limited Dividend Housing Association Limited Partnership, Rural Housing Service Project No. 26-074-0383047638 as of December 31, 2000 and 1999, 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 auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Department of Agriculture, Rural Housing Service 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 Fairway II Limited Dividend Housing Association Limited Partnership as of December 31, 2000 and 1999, 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.

In accordance with Government Auditing Standards, we have also issued a report dated February 9, 2001 on our consideration of Fairway II Limited Dividend Housing Association Limited Partnership’s internal control over financial reporting and our tests of compliance with certain provisions of laws, regulations, contracts and grants.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information presented on pages 11 through 19 is presented for purposes of complying with the requirements of Rural Housing Service 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.

277

Independent Auditors’ Report

To the Partners of

Fort Bend NHC L.P.

(A Virginia Limited Partnership)

We have audited the accompanying balance sheet of Fort Bend NHC L.P. as of December 31, 2000, 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.

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 Fort Bend NHC L.P. as of December 31, 2000, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles.

278

INDEPENDENT AUDITORS’ REPORT

To the Partners

Neighborhood Restorations Limited Partnership VII

Dresher, Pennsylvania

We have audited the accompanying balance sheets of Neighborhood Restorations Limited Partnership VII (a Pennsylvania Limited Partnership) as of December 31,2000 and 1999, and the related statement 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 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 Neighborhood Restorations Limited Partnership VII as of December 31, 2000 and 1999, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

279

Independent Auditor’s Report

To the Partners

R.V.K.Y. Limited Partnership

Charlotte, North Carolina

We have audited the accompanying balance sheets of R.V.K.Y. Limited Partnership (a Kentucky limited partnership) as of December 31, 2000 and 1999, 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 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 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 R.V.K.Y. Limited Partnership as of December 31, 2000 and 1999, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2001, 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 audits were 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 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.

280

To The Partners

Sumner House Limited Partnership

INDEPENDENT AUDITORS’ REPORT

We have audited the accompanying balance sheets of Sumner House Limited Partnership as of December 31, 2000 and 1999, and the related statements of operations and 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 Sumner House Limited Partnership as of December 31, 2000 and 1999, and the results of its operations and cash flows for the years then ended, in conformity with generally accepted accounting principles.

Our audits were made for the purpose of forming all opinion on the basic financial statements taken as a whole. The supplemental 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 auditing procedures applied in the audits of the basic financial statements and is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

281

To the Partners

Terraceview Limited Partnership

We have audited the accompanying balance sheet of Terraceview Limited Partnership as of December 31, 2000 and 1999, 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 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 the 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 Terraceveiw Limited Partnership as of December 31, 2000 and 1999 and the results of its operations, changes in partners’ equity (deficit) and cash flows for the year then ended in conformity with generally accepted accounting principles.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on page 12 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

282

The Partners

Collins Housing, L.P.

Collins, Mississippi

We have audited the accompanying balance sheets of Collins Housing, L.P., RD Case No. 28-0160640864674, as of December 31 2000, and 1999, 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 included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also included 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 provided a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Collins Housing, L.P. as of December 31, 2000 and 1999, 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 and the Audit Program issued by the United States Department of Agriculture, Rural Development, we have also issued a report dated March 21, 2001, on its compliance with specific requirements applicable to major RD programs and nonmajor RD program transactions.

Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The supporting data included on pages 12 through 19 are presented for purposes of additional analysis and are not a required part of the financial statements of Collins Housing, L.P. Such information, except for the current budget and proposed budget columns on pages 15 through 18, on which we express no opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

283

INDEPENDENT AUDITOR’S REPORT

To the Partners

Harbor Pointe/MHT Limited Dividend Housing

Association Limited Partnership

We have audited the accompanying balance sheet of Harbor Pointe/MHT Limited Dividend Housing Association Limited Partnership (a Michigan limited partnership) as of December 31, 2000, and the related statements of income, partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Harbor Pointe/MHT Limited Dividend Housing Association Limited Partnership as of December 31, 2000, 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 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 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.

284

To The Partners

Lincoln Hotel Partnership

A California Limited Partnership

600 West Broadway, #1070

San Diego, CA 92101

Independent Auditor’s Report

We have audited the accompanying balance sheets of Lincoln Hotel Partnership, a California Limited Partnership, as of December 31, 2000 and 1999 and the related statements of operations and partners’ capital and statements of cash flews for the years then ended. These 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 Lincoln Hotel Partnership, a California Limited Partnership, as of December 31, 2000 and 1999, and the results of operations and cash flows for the years then ended in conformity with generally accepted accounting principles.

285

INDEPENDENT AUDITOR’S REPORT

To the Partners

Lutkin Bayou Apartments, LP

Drew Mississippi

We have audited the accompanying balance sheets of Lutkin Bayou Apartments, LP (a Mississippi limited partnership), RHS Project No. 28-083-640863241 as of December 31, 2000 and 1999, 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 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 Lutkin Bayou Apartments, LP, 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 purposes 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. We have prepared the Multiple Family Housing Borrower Balance Sheet (RHS FORM RD 1980-8) and the Multiple Family Housing Project Budget (RHS FORM RD 1980-7). 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.

286

To The Partners

Northway Drive, Ltd.

Bryan, Texas

We have audited the accompanying balance sheets of Northway Drive, Ltd. - (A Texas Limited Partnership) as of December 31, 2000 and 1999, and the related statements of income, partners’ equity and cash flows for the years ended December 31, 2000 and 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 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 balance sheet is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the balance sheet. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall balance sheet presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of Northway Drive, Ltd. - (A Texas Limited Partnership) as of December 31, 2000 and 1999, in conformity with Generally Accepted Accounting Principles

287

INDEPENDENT AUDITOR’ S REPORT

To the Partners

Bellwood Four Limited Partnership

We have audited the accompanying balance sheets of Bellwood Four Limited Partnership, (the Partnership), as of December 31, 2000 and 1999 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 U.S. 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 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 Bellwood Four Limited Partnership as of December 31, 2000 and 1999, and its results of operations, changes in partners’ equity (deficit), and cash flows for the years then ended in conformity with U.S. generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our report dated February 16, 2001 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. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

288

Independent Auditors’ Report

To the Partners

Bowie Apartments, Ltd.

We have audited the accompanying balance sheets of Bowie Apartments, Ltd. (a limited partnership), RD Project No. 50-069-0752627345-01-7, as of December 31, 2000 and 1999, and the related statements of operations, partners’ equity and cash flows for the years ended December 31, 2000 and 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 audit.

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 Bowie Apartments, Ltd., RD Project No. 50-069-0752627345-01-7, as of December 31, 2000 and 1999, 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 1-19 and 1-20 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated February 9, 2001 on our consideration of Bowie Apartments, Ltd’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. This report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

289

To the Partners

C.V.V.A. Limited Partnership

Charlotte, North Carolina

We have audited the accompanying balance sheets of C.V.V.A. Limited Partnership (a Virginia limited partnership) as of December 31, 2000 and 1999, 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 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 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 C.V.V.A. Limited Partnership as of December 31, 2000 and 1999, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2001, 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 audits were 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 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.

290

Independent Auditors’ Report

To the Partners

Graham Aoartments, Ltd.

We have audited the accompanying balance sheets of Graham Apartments, Ltd. (a limited partnership), RD Project No. 51-52-752663159-01-1, as of December 31, 2000 and 1999, 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 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 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 Graham Apartments, Ltd., RD Project No. 51-52-752663159-01-1, as of December 31, 2000 and 1999, 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 1-20 is presented for purposes of additional analysis and is not a required part of the basic financial state­ments. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated February 23, 2001 on our consideration of Graham Apartments, Ltd’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. This report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

291

INDEPENDENT AUDITOR’S REPORT

To The Partners

Hillside Terrace Associates, L.P.

We have audited the accompanying balance sheet of Hillside Terrace Associates, L.P. (a Limited Partnership) as of December 31, 2000 and 1999 and the related statements of operations and 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 opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hillside Terrace Associates, L.P. as of December 31, 2000 and 1999, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

292

Independent Auditor’s Report

To the Partners

K. G. V. A. Limited Partnership

Charlotte, North Carolina

We have audited the accompanying balance sheets of K. G. V. A. Limited Partnership (a Virginia limited partnership) as of December 31, 2000 and 1999, 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 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 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 K. G. V. A. Limited Partnership as of December 31, 2000 and 1999, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2001, 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 audits were 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 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.

293

INDEPENDENT AUDITORS’ REPORT

To the Members

Linden Partners II, LLC

We have audited the accompanying balance sheets of Linden Partners II, LLC (a Nebraska Limited Liability Company) as of December 31, 2000 and 1999, and the related statements of operations, members’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Linden Partners II, LLC as of December 3l, 2000 and 1999, and the results of its operations, and changes in members’ 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 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.

294

Independent Auditor’s Report

To the Partners

Mesa Grande Apartments, Limited Partnership

Irvine, California

I have audited the accompanying balance sheet of Mesa Grande Apartments, Limited Partnership as of December 31, 2000, and the related statements of operations, changes in partners’ capital, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. 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 amount and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. 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 Mesa Grande Apartments, Limited Partnership at December 31, 2000, and thc results of its operations and cash flows for the year then ended in conformity with generally accepted accounting principles.

295

Independent Auditor’s Report

To the Partners

Sunrise Homes Apartments, Limited Partnership

Irving, California

I have audited thc accompanying balance sheet of Sunrise Homes Apartments, Limited Partnership as of December 31, 2000, and the related statements of Operations, changes in partners’ capital, and cash flows for thc year then ended. These financial statements are the responsibility of the Partnership’s management. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with generally accepted auditing standards. Those standards required 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 tire 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 Sunrise Homes Apartments, Limited Partnership at December 31, 2000, and thc remits of its operations and cash flows for the year then ended in conformity with generally accepted accounting principles.

296

INDEPENDENT AUDITOR’S REPORT

To the Partners

Pyramid One Limited Partnership

We have audited the accompanying balance sheet of Pyramid One Limited Partnership, (the Partnership), as of December 31, 2000 and the related statements of profit (loss), changes in partners’ equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with U.S. 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 Pyramid One Limited Partnership as of December 31, 2000, and its results of operations, changes in partners’ equity (deficit), and cash flows for the year then ended in conformity with U.S. generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our report dated March 2, 2001 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. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

297

Independent Auditors’ Report

To the Partners

Nocona Apartments, Ltd.

We have audited the accompanying balance sheets of Nocona Apartments, Ltd. (a limited partnership), RD Project No: 50-069-0752685663-02-2 as of December 31, 2000 and 1999, 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 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 Nocona Apartments, Ltd. RD Project No.: 50-069-0752685663-02-2 as of December 31, 2000 and 1999, 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 1-20 and 1-21 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated February 5, 2001 on our consideration of Nocona Apartments, Ltd.’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. This report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

298

INDEPENDENT AUDITORS’ REPORT

The Partners

Canton Housing One, L.P.

Jackson, Mississippi

We have audited the accompanying balance sheets of Canton Housing One, L.P., a Mississippi limited partnership, FmHA Project No. 28-045-0640886062 01-8, as of December 31, 2000 and 1999, and the related statements of income (loss), partners’ capital, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Canton Housing One, L.P., FmHA Project No. 28-045-0640886062 01-8, as of December 31, 2000 and 1999, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated February 6, 2001, on our consideration of the Partnership’s internal control and a report dated February 6, 2001, on its compliance with specific requirements applicable to major FmHA programs.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying financial information included on pages 14 through 19 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for file current budget and proposed budget columns in Part I and II and file information in Part IV included on pages 14 through 17 on which we express no opinion, has been subjected to the auditing procedures applied in file 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.

299

INDEPENDENT AUDITORS’ REPORT

Thc Partners

Canton Housing Two, L.P.

Jackson, Mississippi

We have audited the accompanying balance sheet of Canton Housing Two, L.P., a Mississippi limited partnership, FmHA Project No. 28-045-0640886061 01-5, as of December 31, 2000 and 1999, and the related statements of income (loss), 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 Standard 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 alt material respects, the financial position of Canton Housing Two, L.P., FmHA Project No. 28-045-0640886061 01-5, as of December 31, 2000 and 1999, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated February 7, 2001, on our consideration of the Partnership’s internal control and a report dated February 7, 2001, on its compliance with specific requirements applicable to major FmHA programs.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying financial information included on pages 13 through 20 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the current budget and proposed budget columns in Part I and II and the information in Part IV included on pages 13 through 17, on which we express no opinion, 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.

300

INDEPENDENT AUDITORS’ REPORT

The Partners

Canton Housing Three, L.P.

Jackson, Mississippi

We have audited the accompanying balance sheets of Canton Housing Three, L.P., a Mississippi limited partnership, FmHA Project No. 28-045-0640886063 04-2, as of December 31, 2000 and 1999, and the related statements of income (loss), panners’ 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 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 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 Canton Housing Three, L.P., FmHA Project No. 28-045-0640886063 04-2, as of December 31, 2000 and 1999, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated February 9, 2001 on our consideration of the Partnership’s internal control and a report dated February 9, 2001, on its compliance with specific requirements applicable to major FmHA programs.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying financial information included on pages 12 through 19 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the current budget and proposed budget columns in Part I and II and the information in part IV included on pages 12 through 16, on which we express no opinion, 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.

301

INDEPENDENT AUDITORS’ REPORT

The Partners

Canton Housing Four, L.P.

Jackson, Mississippi

We have audited the accompanying balance sheets of Canton Housing Four, L.P., a Mississippi limited partnership, FmHA Project No. 28-045-0640886064 02-0, as of December 31, 2000 and 1999, and the related statements of income (loss), partners’ capital, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Canton Housing Four, L.P., FmHA Project No. 28-045-0640886064-02-0, as of December 31, 2000 and 1999, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated February 9, 2001, on our consideration of the Partnership’s internal control and a report dated February 9, 2001, on its compliance with specific requirements applicable to major FmHA programs.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying financial information included on pages 12 through 19 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the current budget and proposed budget columns in Part I and II and the information in Part IV included on pages 12 through 19, on which we express no opinion, 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.

302

INDEPENDENT AUDITOR’S REPORT

To the Partners

Ellisville Housing, L.P.

West Point, Mississippi

We have audited the accompanying balance sheets of Ellisville Housing, L.P. (a Mississippi limited partnership), RHS Project No. 28-034-0640864667 as of December 31, 2000 and 1999, 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 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 ail material respects, the financial position of Ellisville Housing, L.P., and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. We have prepared the Multiple Family Housing Borrower Balance Sheet (RHS Form RD 1930-8) and the Multiple Family Housing Project Budget (RHS Form RD 1930-7). 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.

303

Independent Auditor’s Report

To the Partners of

Eagles Ridge Terrace, L. P.

Decatur, Texas

I have audited the accompanying balance sheets of Eagles Ridge Terrace, L. P. as of December 31, 2000 and 1999, 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 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 Eagles Ridge Terrace, L. P. as of December 31, 2000 and 1999 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 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 basic financial statements taken as a whole.

304

INDEPENDENT AUDITOR’S REPORT

To the Partners

Hattiesburg Housing, LP

Jackson, Mississippi

We have audited the accompanying balance sheets of Hattiesburg Housing, LP (a Mississippi limited partnership), RHS Project No. 28-018-640864668 as of December 31, 2000 and 1999, and the related statements of operations, partners’ capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hattiesburg Housing, LP, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. We have prepared the Multiple Family Housing Borrower Balance Sheet (RHS FORM RD 1930-8) and the Multiple Family Housing Project Budget (RHS FORM RD 1930-7). 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.

305

Independent Auditor’s Report

To tile Partners of

Henderson Terrace, L. P.

Bridgeport, Texas

I have audited the accompanying balance sheets of Henderson Terrace, L. P. as of December 31, 2000 and 1999, and the related statements of operations, partners’ capital and cash flows for the years then ended. These financial statements are the responsibility o[‘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’ Henderson Terrace, L. P. as of December 3 l. 2000 and 1999 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 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 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.

306

INDEPENDENT AUDITORS’ REPORT

To the partners

Hurricane Hills II LC

I have audited the accompanying balance sheets of Hurricane Hills II LC as of December 31, 2000, and the related partners’ equity 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.

I conducted my 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 examination, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 provided a reasonable basis for our opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hurricane Hills II LC as of December 31, 2000, and the results cf its operations, changes in Partners’ equity and cash flows for the years then ended in conformity with generally accepted accounting principles.

307

Independent Auditor’s Report

To the Partners of

Lakeview Little Elm, L. P.

Little Elm. Texas

I have audited the accompanying balance sheets of Lakeview Little Elm, L. P. as of December 31, 2000 and 1999, 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 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, gal 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 tbr my opinion.

In my opinion, the financial statements referred to above present fairly, in ail material respects, the financial position of Lakeview Little Elm, L. P as of December 3 l, 2000 and 1999 and the results of its operations, changes in partners’ capital and cash flow’s 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 basic financial statements taken as whole.

308

Independent Auditor’s Report

To the Partners of

Mesquite Trails, L. P.

Jacksboro, Texas

I have audited the accompanying balance sheets of Mesquite Trails. L.P. as of December 31, 2000 and 1999. 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 audit.

I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly’, in all material respects, the financial position of Mesquite Trails, L. P. as of December 3l, 2000 and 1999 and the results of its operations, changes in partners’ capital and casti 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 basic financial statements taken as a whole.

309

Independent Auditor’s Report

To the Partners

N. M. V. A. Limited Partnership

Charlotte, North Carolina

We have audited the accompanying balance sheets of N. M. V. A. Limited Partnership (a Virginia limited partnership) as of December 31, 2000 and 1999, 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 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 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 N. M. V. A. Limited Partnership as of December 31, 2000 and 1999, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2001, 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 audits were 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 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.

310

Independent Auditor’s Report

To the Partners of

Pilot Point Apartments, L. P.

Pilot Point, Texas

I have audited the accompanying balance sheets of Pilot Point Apartments. L. P as of’ December 31, 2000 and 1999 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 in accordance with generally accepted auditing standards Those standards require that l 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 Pilot Point Apartments, L.P. as of December 31, 2000 and 1999 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 l-16 and l-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 basic financial statements taken as a whole.

311

Independent Auditor’s Report

To the Partners of

Seagraves Apartments, L.P.

Ferris, Texas

I have audited the accompanying balance sheet of Seagraves Apartments, L.P. as of December 31, 2000, and the accompanying statements of operations, partners’ capital and cash flows for the year then ended. Those statements are the responsibility of the partnership’s management. My responsibility is to express an opinion on the financial statements based on my audit.

I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence, supporting the amounts and disclosures in the financial statements. 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 Seagraves Apmartments, L.P. as of December 31, 2000 and the results of its operations, changes in partners’ capital and cash flows for the year then ended in conformity with generally accepted accounting principles.

My audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages I-16 and I-17 is presented for purposes of additional analysis and is not a required part of 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,

312

INDEPENDENT AUDITOR’S REPORT

Partners

Sencit Hampden Associates, L.P.

We have audited the accompanying balance sheets of SENCIT HAMPDEN ASSOCIATES, L.P., ROTH VILLAGE TOWNHOMES, PHFA Project No. 0-546, as of December 31, 2000 and 1999, 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Sencit Hampden Associates, L.P. as of December 31, 2000 and 1999, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

313

INDEPENDENT AUDITOR’S REPORT

To the Partners

Silver Creek/MHT Limited Dividend Housing

Association Limited Partnership

We have audited the accompanying balance sheet of Silver Creek/MHT Limited Dividend Housing Association Limited Partnership (a Michigan limited partnership) as of December 31, 2000, and the related statements of income, partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Silver Creek/MHT Limited Dividend Housing Association Limited Partnership as of December 31, 2000, 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 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 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.

314

Independent Auditor’s Report

To the Partners

Indiana Development Limited Partnership

Novi, Michigan

We have audited the accompanying balance sheets of Indiana Development Limited Partnership as of December 31, 2000 and 1999 and the related statements of operation, partner capital and cash flows for the years then ended. These financial statements are the responsibility of Indiana Development Limited Partnership’s management. Our responsibility is to express an opinion on the financial statement based upon our audit.

We conducted our audits in accordance with generally accepted auditing standards. These standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the 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 Indiana Development Limited Partnership as of December 31, 2000 and 1999 and the results of its operations and its cash flow for the years then ended in conformity with generally accepted accounting principles.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 12, 13 and 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as whole.

315

INDEPENDENT AUDITOR’S REPORT

To the Partners of Martinsville-I, Ltd.

I have audited the accompanying balance sheet of Martinsville-I, Ltd. (a Kentucky limited partnership) as of December 31, 2000 and the related statements of operations, changes in partners’ capital and cash flows for the year then ended. The 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 amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Partnership’s general partner and contracted management agent, 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 Martinsville-I, Ltd. at December 31, 2000, and its operations, changes in partners’ capital and cash flows for the year then ended in conformity with generally accepted accounting principles.

316

Auditors’ report

To the Partners

Parkside Plaza Associates, L. P.

New York, New York

We have audited the accompanying balance sheet of Parkside Plaza Associates, L. P. (a New York State limited partnership) as of December 31, 2000. This financial statement is the responsibility of the Company’s management. Our responsibility is to express an opinion on this financial statements based on our audit. The balance sheet of  Parkside Plaza Associates, L.P. was audited by other auditors whose report dated February 3, 2000, expressed an unqualified opinion on that balance sheet.

We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the balance sheet is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the balance sheet. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall balance sheet presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of Parkside Plaza Associates, L. P. as of December 31, 2000 and is in conformity with generally accepted accounting principles.

317

INDEPENDENT AUDITOR’S REPORT

To the Partners

Pyramid Four Limited Partnership

We have audited the accompanying balance sheet of Pyramid Four Limited Partnership, (the Partnership), as of December 31, 2000 and the related statements of profit (loss), changes in partners’ equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with U.S. 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 Pyramid Four Limited Partnership as of December 31, 2000, and its results of operations, changes in partners’ equity (deficit), and cash flows for the year then ended in conformity with U.S. generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our report dated February 19, 2001 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. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

318

INDEPENDENT AUDITOR’S REPORT

To the Partners

Bradford Group Partners of Jefferson County, L.P.

We have audited the accompanying balance sheet of Bradford Group Partners of Jefferson County, L.P. (a limited partnership) as of December 31, 2000, and the related statements of income (loss), partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimate^s 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 Bradford Group Partners of Jefferson County, L.P. as of December 31, 2000, and the results of its operations, changes in partners’ equity and cash flows for the year then ended, in conformity with generally accepted accounting principles.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information 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.

319

Independent Auditors’ Report

To the Partners of

NHC Partnership 5, L.P.

(A Virginia Limited Partnership)

We have audited the accompanying balance sheet of NHC Partnership 5, L.P. as of December 31, 2000, 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.

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 NHC Partnership 5, L.P. as of December 31, 2000, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles.

320

INDEPENDENT AUDITORS’ REPORT

To the Partners

Belmont Affordable Housing II, L.P.

Springfield, Pennsylvania

We have audited the accompanying balance sheets of Belmont Affordable Housing II, L.P. (a Pennsylvania Limited Partnership) as of December 31, 2000 and 1999, and the related statements of operations and other comprehensive loss, 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 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 Belmont Affordable Housing II, L.P. as of December 31, 2000 and 1999, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

321

Independent Auditor’s Report

Partners

RHP 96-1 Limited Partnership

Novi, Michigan

We have audited the accompanying balance sheets of RHP 96-1 Limited Partnership as of December 31, 2000 and 1999 and the related statements of operations, partner capital and cash flows for the years then ended. These financial statements are the responsibility of RHP 96-1 Limited Partnership’s management. Our responsibility is to express an opinion on the financial statement based upon our audit.

We conducted our audits in accordance with generally accepted auditing standards. These standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in tile 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 RHP 96-1 Limited Partnership as of December 31, 2000 and 1999 and the results of its operations and its cash flow for the years then ended in conformity with generally accepted accounting principles.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 12 and 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as whole.

322

INDEPENDENT AUDITOR’S REPORT

To the Partners

New Caney Housing II, Ltd.

We have audited the accompanying balance sheet of New Caney Housing II, Ltd. as of December 31, 2000 and 1999, and the related statements of operations, partners’ equity (deficit), and cash flow for the years ended December 31, 2000 and 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 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 accompanying financial statements referred to above present fairly, in all material respects, the financial position of New Caney Housing II, Ltd. as of December 31, 2000 and 1999, and the results of its operation and its cash flows for the year ending December 31, 2000 and 1999, in conformity with generally-accepted accounting principles.

323

Ladies and Gentlemen:

We have audited and reported on the financial statements of Aloha Housing Limited Partnership in which Boston Capital Tax Credit Fund IV, L.P. (Series 36) is an investor limited partner, for the year ended December 31, 2000 and have issued our report thereon. Ill connection therewith, we represent the following:

1.	That we are aware that the financial statements of Aloha Housing Limited Partnership which we have audited will be included in the financial statements on which you will report, and that our report therewith will be referred to in your report;
2.	That we are independent of each partnership under the requirements of the Securities Exchange Commission; and
3.	That we are independent of each partnership under the requirements of the American Institute of Certified Public Accountants.

Thank you for your time. Please contact me if you have any questions.

324

Independent Auditors’ Report

To The Partners

Riverview Bend Limited Partnership

Crystal City, Missouri

We have audited the accompanying balance sheet of Riverview Bend Limited Partnership (Riverview Bend Apartments, Project No. 085-35329-PM-L8) as of December 31, 2000, and the related statements of profit and loss, partners’ equity and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Riverview Bend Limited Partnership as of December 31, 2000, 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 conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplementary information shown on pages 17 to 20 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 financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

In accordance with Government Auditing Standards and the Consolidated Audit Guide for Audits of HUD Programs issued by the U.S. Department of Housing and Urban Development, we have also issued a report dated January 23, 2001 on our consideration of Riverview Bend Limited Partnership’s internal control and reports dated January 23, 2001 on its compliance with specific requirements applicable to major HUD programs and specific requirements applicable to Fair Housing and Non­-Discrimination. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

325

Independent Auditors’ Report

Partners

Senior Suites Chicago Washington Heights

Limited Partnership

Chicago, Illinois

We have audited the accompanying balance sheet of Senior Suites Chicago Washington Heights Limited Partnership (an Illinois Limited Partnership) as of December 31, 2000, and the related statements of operations, changes in partners’ capital and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 Senior Suites Chicago Washington Heights Limited Partnership as of December 31, 2000, 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 conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The schedule of other operating expenses on page 9 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 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.

We conducted our audits in accordance with generally accepted auditing standards. These standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit 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 Baldwin Villas Limited Dividend Housing Association Limited Partnership as of December 31, 2000 and 1999 and the results of its operations and its cash flow for the years then ended in conformity with generally accepted accounting principles.

326

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pagcl3 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 whole.

327

Independent Auditor’s Report

February 1, 2001

Partners

Baldwin Villas Limited Dividend

Housing Association Limited Partnership

Novi, Michigan

We have audited the accompanying balance sheets of Baldwin Villas Limited Dividend Housing Association Limited Partnership as of December 31, 2000 and 1999 and the related statements of operations, partner capital and cash flows for the years then ended. These financial statements are the responsibility of Baldwin Villas Limited Dividend Housing Association Limited Partnership’s management. Our responsibility is to express an opinion on the financial statement based upon our audits.

We conducted our audits in accordance with generally accepted auditing standards. These standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit 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 Baldwin Villas Limited Dividend Housing Association Limited Partnership as of December 31, 2000 and 1999 and the results of its operations and its cash flow 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 l3 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 whole.

328