FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period endedJune 30, 2006
or
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to _______
Commission file number 0-26200
BOSTON CAPITAL TAX CREDIT FUND IV L.P.
(Exact name of registrant as specified in its charter)
Delaware | 04-3208648 |
(State or other jurisdiction | (I.R.S. Employer |
of incorporation or organization) | Identification No.) |
One Boston Place, Suite 2100, Boston, Massachusetts 02108
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617)624-8900
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes [ ] No [ X ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act.
Large accelerated filer[ ] Accelerated filer[ ] Non-accelerated filer[ X ]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes [ ] No [ X ]
BOSTON CAPITAL TAX CREDIT FUND IV L.P.
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 2006
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION | ||||
Pages | ||||
Item 1. Financial Statements | ||||
Balance Sheets | 3-30 | |||
Statements of Operations | 31-58 | |||
Statements of Changes in Partners' |
| |||
Statements of Cash Flows | 74-129 | |||
Notes to Financial Statements | 130-163 | |||
Item 2. Management's Discussion and Analysis of Financial Condition and Results of |
| |||
Item 3. Quantitative and Qualitative Disclosure About Market Risk |
| |||
Item 4. Controls and Procedures |
| |||
PART II - OTHER INFORMATION | ||||
Item 1. Legal Proceedings | 232 | |||
Item 1A. Risk Factors | 232 | |||
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
| |||
Item 3. Defaults Upon Senior Securities | 232 | |||
Item 4. Submission of Matters to a Vote of Security Holders |
| |||
Item 5. Other Information | 232 | |||
Item 6. Exhibits and Reports on Form 8-K | 232 | |||
Signatures | 233 | |||
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
June 30, | March 31, | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS |
|
| |
OTHER ASSETS | |||
Cash and cash equivalents | 11,360,220 | 11,837,413 | |
Investments | 1,550,522 | 2,556,017 | |
Notes receivable | 1,985,774 | 2,714,233 | |
Acquisition costs net | 33,737,558 | 34,090,520 | |
Other assets | 2,039,949 | 2,044,932 | |
$352,480,053 | $360,501,908 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 31,436,666 | 30,288,894 | |
Capital contributions payable | 6,672,482 | 7,887,559 | |
38,162,530 | 38,238,414 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (4,023,044) | (3,943,585) | |
314,317,523 | 322,263,494 | ||
$352,480,053 | $360,501,908 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 20
June 30, | March 31, | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS |
|
| |
OTHER ASSETS | |||
Cash and cash equivalents | 293,731 | 802,957 | |
Investments | - | - | |
Notes receivable | - | - | |
Acquisition costs net | 72,337 | 73,230 | |
Other assets | 26,803 | 43,325 | |
$ 1,233,026 | $ 1,959,110 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 2,516,374 | 2,973,288 | |
Capital contributions payable | - | - | |
2,516,374 | 2,973,288 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (321,085) | (318,393) | |
(1,283,348) | (1,014,178) | ||
$ 1,233,026 | $ 1,959,110 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 21
June 30, | March 31, | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS |
|
| |
OTHER ASSETS | |||
Cash and cash equivalents | 62,459 | 60,403 | |
Investments | - | - | |
Notes receivable | 236,476 | 236,476 | |
Acquisition costs net | 39,566 | 40,054 | |
Other assets | 280,232 | 280,232 | |
$ 1,049,353 | $ 1,124,441 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 1,336,010 | 1,279,550 | |
Capital contributions payable | 236,479 | 236,479 | |
1,572,489 | 1,516,029 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (167,183) | (165,868) | |
(523,136) | (391,588) | ||
$ 1,049,353 | $ 1,124,441 | ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 22
June 30, | March 31, | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS |
|
| |
OTHER ASSETS | |||
Cash and cash equivalents | 180,175 | 170,119 | |
Investments | - | - | |
Notes receivable | - | - | |
Acquisition costs net | 124,331 | 125,866 | |
Other assets | 5,437 | 5,437 | |
$ 1,360,766 | $ 1,427,414 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 2,342,345 | 2,278,697 | |
Capital contributions payable | 20,270 | 20,270 | |
2,362,615 | 2,298,967 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (229,100) | (227,797) | |
(1,001,849) | (871,553) | ||
$ 1,360,766 | $ 1,427,414 | ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 23
June 30, | March 31, | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
|
| |
OTHER ASSETS | |||
Cash and cash equivalents | 82,781 | 84,479 | |
Investments | - | - | |
Notes receivable | - | - | |
Acquisition costs net | 184,897 | 187,180 | |
Other assets | 6,135 | 6,135 | |
$ 2,636,371 | $ 2,925,652 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 1,855,071 | 1,795,005 | |
Capital contributions payable | - | - | |
1,855,071 | 1,795,005 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (277,033) | (273,540) | |
781,300 | 1,130,647 | ||
$ 2,636,371 | $ 2,925,652 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 24
June 30, | March 31, | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS |
|
| |
0THER ASSETS | |||
Cash and cash equivalents | 172,492 | 172,640 | |
Investments | - | - | |
Notes receivable | - | - | |
Acquisition costs net | 206,643 | 209,194 | |
Other assets | 201,640 | 201,640 | |
$ 2,097,106 | $ 2,173,889 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 1,856,618 | 1,799,684 | |
Capital contributions payable | 9,999 | 9,999 | |
1,867,295 | 1,810,361 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (183,000) | (181,663) | |
229,811 | 363,528 | ||
$ 2,097,106 | $ 2,173,889 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 25
June 30, | March 31, | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
|
| |
OTHER ASSETS | |||
Cash and cash equivalents | 265,149 | 263,159 | |
Investments | - | - | |
Notes receivable | - | - | |
Acquisition costs net | 207,527 | 210,089 | |
Other assets | 40,320 | 40,320 | |
$ 7,718,726 | $ 7,821,253 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 1,674,579 | 1,606,410 | |
Capital contributions payable | 61,733 | 61,733 | |
1,737,290 | 1,669,121 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (197,630) | (195,923) | |
5,981,436 | 6,152,132 | ||
$ 7,718,726 | $ 7,821,253 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 26
June 30, | March 31, | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
|
| |
OTHER ASSETS | |||
Cash and cash equivalents | 287,847 | 285,372 | |
Investments | - | - | |
Notes receivable | 129,062 | 129,062 | |
Acquisition costs net | 367,659 | 371,885 | |
Other assets | 28,478 | 28,478 | |
$10,957,744 | $11,248,631 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 2,869,009 | 2,760,320 | |
Capital contributions payable | 29,490 | 29,490 | |
2,898,589 | 2,789,900 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (259,662) | (255,666) | |
8,059,155 | 8,458,731 | ||
$10,957,744 | $11,248,631 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 27
June 30, | March 31, | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
|
| |
OTHER ASSETS | |||
Cash and cash equivalents | 118,852 | 116,714 | |
Investments | - | - | |
Notes receivable | - | - | |
Acquisition costs net | 302,671 | 306,408 | |
Other assets | 104,014 | 104,014 | |
$ 9,620,518 | $ 9,849,577 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 2,064,524 | 1,985,723 | |
Capital contributions payable | 39,749 | 39,749 | |
2,104,273 | 2,025,472 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (131,285) | (128,206) | |
7,516,245 | 7,824,105 | ||
$ 9,620,518 | $ 9,849,577 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 28
June 30, | March 31, | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
|
| |
OTHER ASSETS | |||
Cash and cash equivalents | 512,957 | 433,154 | |
Investments | - | - | |
Notes receivable | - | - | |
Acquisition costs net | 66,837 | 67,662 | |
Other assets | 2,595 | 2,595 | |
$14,355,726 | $14,594,694 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 242,645 | 159,116 | |
Capital contributions payable | 40,968 | 40,968 | |
283,613 | 200,084 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (203,027) | (199,802) | |
14,072,113 | 14,394,610 | ||
$14,355,726 | $14,594,694 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 29
June 30, | March 31, | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
|
| |
OTHER ASSETS | |||
Cash and cash equivalents | 189,897 | 134,976 | |
Investments | 81,717 | 134,706 | |
Notes receivable | - | - | |
Acquisition costs net | 67,003 | 67,831 | |
Other assets | 573 | 573 | |
$10,184,225 | $10,481,016 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 1,346,232 | 1,261,737 | |
Capital contributions payable | 45,783 | 45,783 | |
1,392,015 | 1,307,520 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (250,725) | (246,912) | |
8,792,210 | 9,173,496 | ||
$10,184,225 | $10,481,016 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 30
June 30, | March 31, | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
|
| |
OTHER ASSETS | |||
Cash and cash equivalents | 417,888 | 412,161 | |
Investments | - | - | |
Notes receivable | - | - | |
Acquisition costs net | 430,038 | 435,347 | |
Other assets | - | - | |
$ 9,077,123 | $ 9,223,332 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 681,477 | 626,247 | |
Capital contributions payable | 127,396 | 127,396 | |
808,873 | 753,643 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (144,374) | (142,360) | |
8,268,250 | 8,469,689 | ||
$ 9,077,123 | $ 9,223,332 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 31
June 30, | March 31, | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
|
| |
OTHER ASSETS | |||
Cash and cash equivalents | 126,095 | 128,337 | |
Investments | - | - | |
Notes receivable | 570,454 | 570,454 | |
Acquisition costs net | - | - | |
Other assets | 134,137 | 134,137 | |
$13,382,406 | $13,732,953 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 761,760 | 662,400 | |
Capital contributions payable | 611,150 | 611,150 | |
1,372,910 | 1,273,550 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (259,164) | (254,665) | |
12,009,496 | 12,459,403 | ||
$13,382,406 | $13,732,953 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 32
June 30, | March 31, | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
|
| |
OTHER ASSETS | |||
Cash and cash equivalents | 396,150 | 386,782 | |
Investments | - | - | |
Notes receivable | 46,908 | 46,908 | |
Acquisition costs net | 615,673 | 623,273 | |
Other assets | 312,486 | 312,486 | |
$18,529,473 | $18,923,320 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 1,375,084 | 1,292,198 | |
Capital contributions payable | 484,756 | 484,756 | |
1,859,840 | 1,776,954 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (239,664) | (234,897) | |
16,669,633 | 17,146,366 | ||
$18,529,473 | $18,923,320 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 33
June 30, | March 31, | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
|
| |
OTHER ASSETS | |||
Cash and cash equivalents | 223,437 | 197,136 | |
Investments | - | - | |
Notes receivable | 21,806 | 32,300 | |
Acquisition costs net | 552,414 | 559,233 | |
Other assets | 125,000 | 125,000 | |
$11,026,549 | $11,223,093 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 858,785 | 815,294 | |
Capital contributions payable | 194,154 | 194,154 | |
1,052,939 | 1,009,448 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (126,044) | (123,644) | |
9,973,610 | 10,213,645 | ||
$11,026,549 | $11,223,093 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 34
June 30, | March 31, | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
|
| |
OTHER ASSETS | |||
Cash and cash equivalents | 123,071 | 124,985 | |
Investments | - | - | |
Notes receivable | - | - | |
Acquisition costs net | 877,922 | 888,761 | |
Other assets | - | - | |
$14,263,534 | $14,529,222 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 1,549,882 | 1,476,583 | |
Capital contributions payable | 8,244 | 8,244 | |
1,558,126 | 1,484,827 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (173,337) | (169,947) | |
12,705,408 | 13,044,395 | ||
$14,263,534 | $14,529,222 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 35
June 30, | March 31, | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
|
| |
OTHER ASSETS | |||
Cash and cash equivalents | 479,929 | 481,041 | |
Investments | - | - | |
Notes receivable | - | - | |
Acquisition costs net | 2,487,938 | 2,518,655 | |
Other assets | 14,109 | 14,109 | |
$17,048,537 | $17,302,028 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 668,992 | 611,902 | |
Capital contributions payable | 163,782 | 163,782 | |
832,774 | 775,684 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (119,867) | (116,761) | |
16,215,763 | 16,526,344 | ||
$17,048,537 | $17,302,028 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 36
June 30, | March 31, | ||||
ASSETS | |||||
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
|
| |||
OTHER ASSETS | |||||
Cash and cash equivalents | 78,348 | 79,450 | |||
Investments | - | - | |||
Notes receivable | - | - | |||
Acquisition costs net | 1,708,297 | 1,729,387 | |||
Other assets | 3,061 | 3,061 | |||
$11,239,828 | $11,370,072 | ||||
LIABILITIES | |||||
Accounts payable & accrued expenses |
|
| |||
Accounts payable affiliates | 1,034,042 | 993,893 | |||
Capital contributions payable | - | - | |||
1,034,042 | 993,893 | ||||
PARTNERS' EQUITY (DEFICIT) | |||||
Limited Partners | |||||
Units of limited partnership |
|
| |||
General Partner | (76,606) | (74,902) | |||
10,205,786 | 10,376,179 | ||||
$11,239,828 | $11,370,072 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 37
June 30, | March 31, | ||||
ASSETS | |||||
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
|
| |||
OTHER ASSETS | |||||
Cash and cash equivalents | 357,611 | 268,593 | |||
Investments | - | - | |||
Notes receivable | - | 67,239 | |||
Acquisition costs net | 1,912,396 | 1,934,893 | |||
Other assets | 81,235 | 81,235 | |||
$14,145,614 | $14,339,558 | ||||
LIABILITIES | |||||
Accounts payable & accrued expenses |
|
| |||
Accounts payable affiliates | 774,451 | 723,235 | |||
Capital contributions payable | 138,438 | 138,438 | |||
925,489 | 861,673 | ||||
PARTNERS' EQUITY (DEFICIT) | |||||
Limited Partners | |||||
Units of limited partnership |
|
| |||
General Partner | (83,362) | (80,784) | |||
13,220,125 | 13,477,885 | ||||
$14,145,614 | $14,339,558 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 38
June 30, | March 31, | ||||
ASSETS | |||||
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
|
| |||
OTHER ASSETS | |||||
Cash and cash equivalents | 199,897 | 193,474 | |||
Investments | - | - | |||
Notes receivable | - | - | |||
Acquisition costs net | 2,181,750 | 2,205,726 | |||
Other assets | 4,875 | 4,875 | |||
$15,175,104 | $15,269,288 | ||||
LIABILITIES | |||||
Accounts payable & accrued expenses |
|
| |||
Accounts payable affiliates | 825,973 | 784,873 | |||
Capital contributions payable | - | - | |||
825,973 | 784,873 | ||||
PARTNERS' EQUITY (DEFICIT) | |||||
Limited Partners | |||||
Units of limited partnership |
|
| |||
General Partner | (74,793) | (73,440) | |||
14,349,131 | 14,484,415 | ||||
$15,175,104 | $15,269,288 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 39
June 30, (Unaudited) | March 31, (Audited) | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
|
| |
OTHER ASSETS | |||
Cash and cash equivalents | 365,534 | 368,313 | |
Investments | - | - | |
Notes receivable | - | - | |
Acquisition costs net | 2,019,000 | 2,040,945 | |
Other assets | - | - | |
$13,671,625 | $13,882,557 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 817,119 | 782,919 | |
Capital contributions payable | - | - | |
$ 817,119 | 782,919 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (67,896) | (65,445) | |
12,854,506 | 13,099,638 | ||
$13,671,625 | $13,882,557 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 40
June 30, (Unaudited) | March 31, (Audited) | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
|
| |
OTHER ASSETS | |||
Cash and cash equivalents | 277,344 | 216,126 | |
Investments | - | - | |
Notes receivable | - | - | |
Acquisition costs net | 2,462,144 | 2,487,742 | |
Other assets | 9,873 | 37,381 | |
$17,176,017 | $17,382,563 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 1,244,878 | 1,194,877 | |
Capital contributions payable | 8,694 | 8,694 | |
1,290,305 | 1,240,304 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (66,085) | (63,520) | |
15,885,712 | 16,142,259 | ||
$17,176,017 | $17,382,563 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 41
June 30, (Unaudited) | March 31, (Audited) | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
|
| |
OTHER ASSETS | |||
Cash and cash equivalents | 677 | 83,998 | |
Investments | - | - | |
Notes receivable | - | - | |
Acquisition costs net | 2,686,116 | 2,714,999 | |
Other assets | 18,034 | 18,034 | |
$14,728,711 | $15,182,526 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 1,335,097 | 1,266,487 | |
Capital contributions payable | 165 | 80,566 | |
1,335,262 | 1,363,575 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (115,235) | (110,980) | |
13,393,449 | 13,818,951 | ||
$14,728,711 | $15,182,526 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 42
June 30, (Unaudited) | March 31, (Audited) | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
|
| |
OTHER ASSETS | |||
Cash and cash equivalents | 670,938 | 971,373 | |
Investments | - | - | |
Notes receivable | 494,442 | 494,442 | |
Acquisition costs net | 2,744,673 | 2,772,969 | |
Other assets | 67,969 | 67,969 | |
$19,272,378 | $19,504,153 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 609,995 | 547,004 | |
Capital contributions payable | 702,672 | 613,343 | |
1,312,667 | 1,160,347 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (61,341) | (57,500) | |
17,959,711 | 18,343,806 | ||
$19,272,378 | $19,504,153 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 43
June 30, (Unaudited) | March 31, (Audited) | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) | $19,904,083 | $19,990,185 | |
OTHER ASSETS | |||
Cash and cash equivalents | 867,256 | 189,255 | |
Investments | - | - | |
Notes receivable | 186,626 | 837,352 | |
Acquisition costs net | 3,585,856 | 3,622,795 | |
Other assets | 104,439 | 261,996 | |
$24,648,260 | $24,901,583 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 687,982 | 611,452 | |
Capital contributions payable | 490,522 | 399,811 | |
1,178,504 | 1,011,263 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (86,825) | (82,619) | |
23,469,756 | 23,890,320 | ||
$24,648,260 | $24,901,583 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 44
June 30, (Unaudited) | March 31, (Audited) | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) | $16,386,353 | $16,680,157 | |
OTHER ASSETS | |||
Cash and cash equivalents | 1,043,056 | 1,356,192 | |
Investments | 138,771 | 228,762 | |
Notes receivable | - | - | |
Acquisition costs net | 2,542,007 | 2,567,428 | |
Other assets | 196,604 | - | |
$20,306,791 | $20,832,539 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 71,176 | - | |
Capital contributions payable | 781,022 | 1,014,622 | |
852,198 | 1,014,622 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (42,902) | (39,269) | |
19,454,593 | 19,817,917 | ||
$20,306,791 | $20,832,539 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 45
June 30, (Unaudited) | March 31, (Audited) | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) | $26,404,518 | $26,768,832 | |
OTHER ASSETS | |||
Cash and cash equivalents | 1,450,700 | 1,167,018 | |
Investments | 634,937 | 1,046,688 | |
Notes receivable | 300,000 | 300,000 | |
Acquisition costs net | 3,051,125 | 3,081,642 | |
Other assets | 267,543 | 267,543 | |
$32,108,823 | $32,631,723 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 25,199 | - | |
Capital contributions payable | 1,360,047 | 1,437,480 | |
1,387,549 | 1,444,440 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (46,449) | (41,789) | |
30,721,274 | 31,187,283 | ||
$32,108,823 | $32,631,723 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS
Series 46
June 30, (Unaudited) | March 31, (Audited) | ||
ASSETS | |||
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) | $20,409,578 | $20,578,971 | |
OTHER ASSETS | |||
Cash and cash equivalents | 2,115,949 | 2,689,206 | |
Investments | 695,097 | 1,145,861 | |
Notes receivable | - | - | |
Acquisition costs net | 2,240,738 | 2,247,326 | |
Other assets | 4,357 | 4,357 | |
$25,465,719 | $26,665,721 | ||
LIABILITIES | |||
Accounts payable & accrued expenses |
|
| |
Accounts payable affiliates | 11,367 | - | |
Capital contributions payable | 1,116,969 | 2,120,652 | |
1,128,336 | 2,120,652 | ||
PARTNERS' EQUITY (DEFICIT) | |||
Limited Partners | |||
Units of limited partnership |
|
| |
General Partner | (19,370) | (17,293) | |
24,337,383 | 24,545,069 | ||
$25,465,719 | $26,665,721 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
|
|
| |||||||
Income | |||||||||
Interest income | $ 90,322 | $ 133,068 | |||||||
Other income | 6,319 | 6,174 | |||||||
96,641 | 139,242 | ||||||||
Share of loss from Operating |
|
| |||||||
Expenses | |||||||||
Professional fees | 45,668 | 55,719 | |||||||
Fund management fee (Note C) | 1,630,589 | 1,499,852 | |||||||
Amortization | 404,893 | 400,469 | |||||||
General and administrative expenses | 49,125 | 123,321 | |||||||
| 2,130,275 | 2,079,361 | |||||||
NET INCOME (LOSS) | $(7,945,971) | $(7,702,531) | |||||||
Net income (loss) allocated to limited |
|
| |||||||
Net income (loss) allocated to general | $ (79,459) | $ (77,026) | |||||||
Net income (loss) per BAC |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 20
|
|
| ||||||||
Income | ||||||||||
Interest income | $ 1,756 | $ 6,178 | ||||||||
Other income | - | - | ||||||||
1,756 | 6,178 | |||||||||
Share of income (loss) from Operating |
|
| ||||||||
Expenses | ||||||||||
Professional fees | 5,485 | 1,387 | ||||||||
Fund management fee (Note C) | 79,406 | 73,159 | ||||||||
Amortization | 893 | 893 | ||||||||
General and administrative expenses | 3,237 | 4,902 | ||||||||
| 89,021 | 80,341 | ||||||||
NET INCOME (LOSS) | $ (269,170) | $ 253,123 | ||||||||
Net income (loss) allocated to limited |
|
| ||||||||
Net income (loss) allocated to general | $ (2,692) | $ 2,531 | ||||||||
Net income (loss) per BAC |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 21
|
| ||
Income | |||
Interest income | $ 58 | $ 96 | |
Other income | - | - | |
58 | 96 | ||
Share of loss from Operating |
|
| |
Expenses | |||
Professional fees | 485 | 8,808 | |
Fund management fee (Note C) | 52,922 | 52,922 | |
Amortization | 488 | 488 | |
General and administrative expenses | 1,055 | 1,748 | |
| 54,950 | 63,966 | |
NET INCOME (LOSS) | $ (131,548) | $ (128,734) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general | $ (1,315) | $ (1,287) | |
Net income (loss) per BAC |
|
| |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 22
|
| ||
Income | |||
Interest income | $ 189 | $ 273 | |
Other income | 5,683 | 5,683 | |
5,872 | 5,956 | ||
Share of loss from Operating |
|
| |
Expenses | |||
Professional fees | 1,238 | 412 | |
Fund management fee (Note C) | 58,125 | 53,534 | |
Amortization | 1,535 | 1,535 | |
General and administrative expenses | 1,420 | 2,218 | |
62,318 | 57,699 | ||
NET INCOME (LOSS) | $ (130,296) | $ (314,392) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.05) | $ (.12) | |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 23
|
| ||
Income | |||
Interest income | $ 78 | $ 124 | |
Other income | - | - | |
78 | 124 | ||
Share of loss from Operating |
|
| |
Expenses | |||
Professional fees | 1,238 | 669 | |
Fund management fee (Note C) | 58,816 | 58,817 | |
Amortization | 2,283 | 2,283 | |
General and administrative expenses | 1,788 | 2,676 | |
64,125 | 64,445 | ||
NET INCOME (LOSS) | $ (349,347) | $ (527,930) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.10) | $ (.16) | |
The accompanying notes are an ntegral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 24
|
| ||
Income | |||
Interest income | $ 165 | $ 220 | |
Other income | - | 385 | |
165 | 605 | ||
Share of loss from Operating |
|
| |
Expenses | |||
Professional fees | 1,004 | 500 | |
Fund management fee (Note C) | 55,083 | 50,454 | |
Amortization | 2,551 | 2,551 | |
General and administrative expenses | 1,160 | 1,874 | |
59,798 | 55,379 | ||
NET INCOME (LOSS) | $ (133,717) | $ (135,797) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.06) | $ (.06) | |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 25
|
| ||
Income | |||
Interest income | $ 269 | $ 372 | |
Other income | - | - | |
269 | 372 | ||
Share of loss from Operating |
|
| |
Expenses | |||
Professional fees | 485 | 9,435 | |
Fund management fee (Note C) | 64,286 | 62,195 | |
Amortization | 3,805 | 3,805 | |
General and administrative expenses | 1,677 | 2,356 | |
70,253 | 77,791 | ||
NET INCOME (LOSS) | $ (170,696) | $ (189,914) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.06) | $ (.06) | |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 26
|
| ||
Income | |||
Interest income | $ 1,401 | $ 357 | |
Other income | - | 106 | |
1,401 | 463 | ||
Share of loss from Operating |
|
| |
Expenses | |||
Professional fees | 478 | 1,136 | |
Fund management fee (Note C) | 106,152 | 91,342 | |
Amortization | 4,226 | 4,226 | |
General and administrative expenses | 2,142 | 2,942 | |
112,998 | 99,646 | ||
NET INCOME (LOSS) | $ (399,576) | $ (312,850) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.10) | $ (.08) | |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 27
|
| ||
Income | |||
Interest income | $ 109 | $ 129 | |
Other income | - | - | |
109 | 129 | ||
Share of loss from Operating | (227,165) | (208,798) | |
Expenses | |||
Professional fees | 485 | 516 | |
Fund management fee (Note C) | 75,171 | 63,452 | |
Amortization | 3,914 | 3,914 | |
General and administrative expenses | 1,234 | 1,932 | |
80,804 | 69,814 | ||
NET INCOME (LOSS) | $ (307,860) | $ (278,483) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.12) | $ (.11) | |
The accompanying notes are an integral part of this statement
Boston Capital Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 28
|
| ||
Income | |||
Interest income | $ 439 | $ 450 | |
Other income | - | - | |
439 | 450 | ||
Share of loss from Operating |
|
| |
Expenses | |||
Professional fees | 714 | 1,137 | |
Fund management fee (Note C) | 48,529 | 42,666 | |
Amortization | 825 | 825 | |
General and administrative expenses | 1,924 | 2,657 | |
51,992 | 47,285 | ||
NET INCOME (LOSS) | $ (322,497) | $ (446,380) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.08) | $ (.11) | |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 29
|
| ||
Income | |||
Interest income | $ 2,572 | $ 1,401 | |
Other income | - | - | |
2,572 | 1,401 | ||
Share of loss from Operating |
|
| |
Expenses | |||
Professional fees | 714 | 810 | |
Fund management fee (Note C) | 83,245 | 81,976 | |
Amortization | 828 | 828 | |
General and administrative expenses | 2,376 | 3,573 | |
87,163 | 87,187 | ||
NET INCOME (LOSS) | $ (381,286) | $ (476,688) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.09) | $ (.12) | |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 30
|
| ||
Income | |||
Interest income | $ 1,857 | $ 292 | |
Other income | - | - | |
1,857 | 292 | ||
Share of loss from Operating |
|
| |
Expenses | |||
Professional fees | 2,350 | 9,256 | |
Fund management fee (Note C) | 48,580 | 49,892 | |
Amortization | 5,309 | 5,309 | |
General and administrative expenses | 1,315 | 1,910 | |
57,554 | 66,367 | ||
NET INCOME (LOSS) | $ (201,439) | $ (358,917) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.08) | $ (.13) | |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 31
|
| ||
Income | |||
Interest income | $ 108 | $ 132 | |
Other income | - | - | |
108 | 132 | ||
Share of loss from Operating |
|
| |
Expenses | |||
Professional fees | 485 | 509 | |
Fund management fee (Note C) | 99,360 | 93,451 | |
Amortization | - | - | |
General and administrative expenses | 1,865 | 2,676 | |
101,710 | 96,636 | ||
NET INCOME (LOSS) | $ (449,907) | $ (575,558) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.10) | $ (.13) | |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 32
|
| ||
Income | |||
Interest income | $ 354 | $ 428 | |
Other income | - | - | |
354 | 428 | ||
Share of loss from Operating |
| (362,491) | |
Expenses | |||
Professional fees | 1,815 | 851 | |
Fund management fee (Note C) | 69,885 | 77,885 | |
Amortization | 9,182 | 7,600 | |
General and administrative expenses | 2,172 | 2,912 | |
83,054 | 89,248 | ||
NET INCOME (LOSS) | $ (476,733) | $ (451,311) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.10) | $ (.09) | |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 33
|
| ||
Income | |||
Interest income | $ 932 | $ 191 | |
Other income | - | - | |
932 | 191 | ||
Share of loss from Operating |
|
| |
Expenses | |||
Professional fees | 1,273 | 524 | |
Fund management fee (Note C) | 26,071 | 43,491 | |
Amortization | 6,819 | 6,819 | |
General and administrative expenses | 1,272 | 1,827 | |
35,435 | 52,661 | ||
NET INCOME (LOSS) | $ (240,035) | $ (237,951) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.09) | $ (.09) | |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 34
|
| ||
Income | |||
Interest income | $ 119 | $ 196 | |
Other income | - | - | |
119 | 196 | ||
Share of loss from Operating |
|
| |
Expenses | |||
Professional fees | 485 | 463 | |
Fund management fee (Note C) | 73,299 | 73,298 | |
Amortization | 10,984 | 10,984 | |
General and administrative expenses | 1,548 | 2,301 | |
86,316 | 87,046 | ||
NET INCOME (LOSS) | $ (338,987) | $ (568,258) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.10) | $ (.16) | |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 35
|
| ||
Income | |||
Interest income | $ 877 | $ 612 | |
Other income | - | - | |
877 | 612 | ||
Share of loss from Operating |
|
| |
Expenses | |||
Professional fees | 485 | 451 | |
Fund management fee (Note C) | 57,090 | 44,795 | |
Amortization | 32,309 | 32,309 | |
General and administrative expenses | 1,504 | 2,225 | |
91,388 | 79,780 | ||
NET INCOME (LOSS) | $ (310,581) | $ (268,312) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.09) | $ (.08) | |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 36
|
| ||
Income | |||
Interest income | $ 47 | $ 76 | |
Other income | - | - | |
47 | 76 | ||
Share of loss from Operating |
| (127,187) | |
Expenses | |||
Professional fees | 485 | 604 | |
Fund management fee (Note C) | 39,861 | 28,531 | |
Amortization | 22,116 | 22,116 | |
General and administrative expenses | 952 | 1,572 | |
63,414 | 52,823 | ||
NET INCOME (LOSS) | $ (170,393) | $ (179,934) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.08) | $ (.09) | |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 37
|
| ||
Income | |||
Interest income | $ 268 | $ 391 | |
Other income | - | - | |
268 | 391 | ||
Share of loss from Operating |
| (147,815) | |
Expenses | |||
Professional fees | 1,277 | 410 | |
Fund management fee (Note C) | 43,216 | 40,698 | |
Amortization | 23,706 | 23,706 | |
General and administrative expenses | 632 | 1,455 | |
68,831 | 66,269 | ||
NET INCOME (LOSS) | $ (257,760) | $ (213,693) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.10) | $ (.08) | |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 38
|
| ||
Income | |||
Interest income | $ 923 | $ 196 | |
Other income | - | - | |
923 | 196 | ||
Share of loss from Operating |
|
| |
Expenses | |||
Professional fees | 485 | 627 | |
Fund management fee (Note C) | 33,900 | 38,525 | |
Amortization | 24,729 | 24,729 | |
General and administrative expenses | 1,215 | 1,783 | |
60,329 | 65,664 | ||
NET INCOME (LOSS) | $ (135,284) | $ (189,363) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.05) | $ (.07) | |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 39
|
| ||
Income | |||
Interest income | $ 342 | $ 195 | |
Other income | - | - | |
342 | 195 | ||
Share of loss from Operating |
|
| |
Expenses | |||
Professional fees | 2,098 | 614 | |
Fund management fee (Note C) | 34,200 | 29,829 | |
Amortization | 22,581 | 22,581 | |
General and administrative expenses | 1,023 | 1,381 | |
59,902 | 54,405 | ||
NET INCOME (LOSS) | $ (245,132) | $ (257,425) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.11) | $ (.11) | |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 40
|
| ||
Income | |||
Interest income | $ 1,323 | $ 40 | |
Other income | - | - | |
1,323 | 40 | ||
Share of loss from Operating |
|
| |
Expenses | |||
Professional fees | 2,653 | 741 | |
Fund management fee (Note C) | 35,753 | 28,162 | |
Amortization | 28,431 | 28,431 | |
General and administrative expenses | 1,235 | 1,792 | |
68,072 | 59,126 | ||
NET INCOME (LOSS) | $ (256,547) | $ (244,819) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.10) | $ (.09) | |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 41
|
| ||
Income | |||
Interest income | $ 62 | $ 178 | |
Other income | 636 | - | |
698 | 178 | ||
Share of loss from Operating |
|
| |
Expenses | |||
Professional fees | 2,177 | 646 | |
Fund management fee (Note C) | 51,936 | 53,268 | |
Amortization | 33,481 | 33,481 | |
General and administrative expenses | 1,593 | 1,940 | |
89,187 | 89,335 | ||
NET INCOME (LOSS) | $ (425,502) | $ (375,561) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.15) | $ (.13) | |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 42
|
| ||
Income | |||
Interest income | $ 5,762 | $ 2,048 | |
Other income | - | - | |
5,762 | 2,048 | ||
Share of loss from Operating |
|
| |
Expenses | |||
Professional fees | 12,652 | 638 | |
Fund management fee (Note C) | 61,489 | 39,548 | |
Amortization | 29,055 | 29,055 | |
General and administrative expenses | 2,352 | 2,398 | |
105,548 | 71,639 | ||
NET INCOME (LOSS) | $ (384,095) | $ (239,261) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.14) | $ (.09) | |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 43
|
| |||
Income | ||||
Interest income | $ 7,822 | $ 4,476 | ||
Other income | - | - | ||
7,822 | 4,476 | |||
Share of loss from Operating |
|
| ||
Expenses | ||||
Professional fees | 2,470 | 1,307 | ||
Fund management fee (Note C) | 74,530 | 58,601 | ||
Amortization | 41,717 | 41,219 | ||
General and administrative expenses | 1,821 | 5,344 | ||
120,538 | 106,471 | |||
NET INCOME (LOSS) | $ (420,564) | $ (461,640) | ||
Net income (loss) allocated to limited |
|
| ||
Net income (loss) allocated to general |
|
| ||
Net income (loss) per BAC | $ (.11) | $ (.13) | ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 44
|
| ||
Income | |||
Interest income | $ 11,296 | $ 38,476 | |
Other income | - | - | |
11,296 | 38,476 | ||
Share of loss from Operating |
|
| |
Expenses | |||
Professional fees | 485 | 6,354 | |
Fund management fee (Note C) | 52,976 | 49,523 | |
Amortization | 30,991 | 30,888 | |
General and administrative expenses | 1,934 | 23,651 | |
86,386 | 110,416 | ||
NET INCOME (LOSS) | $ (363,324) | $ (252,777) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.13) | $ (.09) | |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 45
|
| ||
Income | |||
Interest income | $ 20,314 | $ 34,648 | |
Other income | - | - | |
20,314 | 34,648 | ||
Share of loss from Operating | (358,610) |
| |
Expenses | |||
Professional fees | 1,182 | 3,974 | |
Fund management fee (Note C) | 85,673 | 75,207 | |
Amortization | 36,221 | 34,069 | |
General and administrative expenses | 4,637 | 22,476 | |
127,713 | 135,726 | ||
NET INCOME (LOSS) | $ (466,009) | $ (175,065) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.11) | $ (.04) | |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
Series 46
|
| ||
Income | |||
Interest income | $ 30,880 | $ 40,893 | |
Other income | - | - | |
30,880 | 40,893 | ||
Share of gain (loss) from Operating | (147,090) |
| |
Expenses | |||
Professional fees | 485 | 2,940 | |
Fund management fee (Note C) | 61,035 | 44,631 | |
Amortization | 25,914 | 25,825 | |
General and administrative expenses | 4,042 | 18,800 | |
91,476 | 92,196 | ||
NET INCOME (LOSS) | $ (207,686) | $ (94,641) | |
Net income (loss) allocated to limited |
|
| |
Net income (loss) allocated to general |
|
| |
Net income (loss) per BAC | $ (.07) | $ (.03) | |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Three Months Ended June 30, 2006
(Unaudited)
|
|
| |
|
|
| |
Distribution | - | - | - |
Net income (loss) | (7,866,512) | (79,459) | (7,945,971) |
Partners' capital |
|
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Three Months Ended June 30, 2006
(Unaudited)
|
|
| |
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (266,478) | (2,692) | (269,170) |
Partners' capital |
|
|
|
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (130,233) | (1,315) | (131,548) |
Partners' capital |
|
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Three Months Ended June 30, 2006
(Unaudited)
|
|
| |
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (128,993) | (1,303) | (130,296) |
Partners' capital |
|
|
|
Partners' capital |
|
|
|
| |||
Distribution | - | - | - |
Net income (loss) | (345,854) | (3,493) | (349,347) |
Partners' capital |
|
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Three Months Ended June 30, 2006
(Unaudited)
|
|
| |
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (132,380) | (1,337) | (133,717) |
Partners' capital |
|
|
|
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (168,989) | (1,707) | (170,696) |
Partners' capital |
|
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CHANGES IN PRTNERS' CAPITAL (DEFICIT)
Three Months Ended June 30, 2006
(Unaudited)
|
|
| |
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (395,580) | (3,996) | (399,576) |
Partners' capital |
|
|
|
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (304,781) | (3,079) | (307,860) |
Partners' capital |
|
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Three Months Ended June 30, 2006
(Unaudited)
|
|
| |
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (319,272) | (3,225) | (322,497) |
Partners' capital |
|
|
|
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (377,473) | (3,813) | (381,286) |
Partners' capital |
|
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Three Months Ended June 30, 2006
(Unaudited)
|
|
| |
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (199,425) | (2,014) | (201,439) |
Partners' capital |
|
|
|
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (445,408) | (4,499) | (449,907) |
Partners' capital |
|
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Three Months Ended June 30, 2006
(Unaudited)
|
|
| |
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (471,966) | (4,767) | (476,733) |
Partners' capital |
|
|
|
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (237,635) | (2,400) | (240,035) |
Partners' capital |
|
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Three Months Ended June 30, 2006
(Unaudited)
|
|
| |
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (335,597) | (3,390) | (338,987) |
Partners' capital |
|
|
|
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (307,475) | (3,106) | (310,581) |
Partners' capital |
|
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Three Months Ended June 30, 2006
(Unaudited)
|
|
| |
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (168,689) | (1,704) | (170,393) |
Partners' capital |
|
|
|
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (255,182) | (2,578) | (257,760) |
Partners' capital |
|
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Three Months Ended June 30, 2006
(Unaudited)
|
|
| |
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (133,931) | (1,353) | (135,284) |
Partners' capital |
|
|
|
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (242,681) | (2,451) | (245,132) |
Partners' capital |
|
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Three Months Ended June 30, 2006
(Unaudited)
|
|
| |
Series 40 | |||
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (253,982) | (2,565) | (256,547) |
Partners' capital |
|
|
|
Series 41 | |||
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (421,247) | (4,255) | (425,502) |
Partners' capital |
|
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Three Months Ended June 30, 2006
(Unaudited)
|
|
| |
Series 42 | |||
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (380,254) | (3,841) | (384,095) |
Partners' capital |
|
|
|
Series 43 | |||
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (416,358) | (4,206) | (420,564) |
Partners' capital |
|
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Three Months Ended June 30, 2006
(Unaudited)
|
|
| |
Series 44 | |||
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (359,691) | (3,633) | (363,324) |
Partners' capital |
|
|
|
Series 45 | |||
Partners' capital |
|
|
|
Distribution | - | - | |
Net income (loss) | (461,349) | (4,660) | (466,009) |
Partners' capital |
|
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Three Months Ended June 30, 2006
(Unaudited)
|
|
| |
Series 46 | |||
Partners' capital |
|
|
|
Distribution | - | - | - |
Net income (loss) | (205,609) | (2,077) | (207,686) |
Partners' capital |
|
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
2006 | 2005 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $(7,945,971) | $(7,702,531) | ||||||
Adjustments | ||||||||
Amortization | 404,893 | 400,469 | ||||||
Distributions from Operating |
|
| ||||||
Share of Loss from Operating |
|
| ||||||
Changes in assets and liabilities | ||||||||
(Decrease) Increase in accounts |
|
| ||||||
Decrease (Increase) in prepaid |
|
| ||||||
Decrease (Increase) in accounts |
|
| ||||||
(Decrease) Increase in accounts |
|
| ||||||
Net cash (used in) provided by |
|
| ||||||
Cash flows from investing activities: | ||||||||
Acquisition costs repaid (paid) for |
|
| ||||||
Capital contributions paid to |
|
| ||||||
Proceeds from sale of operating |
|
| ||||||
Advances to Operating Partnerships | 728,459 | (217,698) | ||||||
Investments | 1,005,495 | 3,876,688 | ||||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
2006 | 2005 | |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 11,837,413 | 18,346,447 | ||
Cash and cash equivalents, ending | $ 11,360,220 | $ 17,574,037 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 20
2006 | 2005 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ (269,170) | $ 253,123 | ||||||
Adjustments | ||||||||
Amortization | 893 | 893 | ||||||
Distributions from Operating |
|
| ||||||
Share of (Income) Loss from Operating Partnerships |
|
| ||||||
Changes in assets and liabilities | ||||||||
(Decrease) Increase in accounts |
|
| ||||||
Decrease (Increase) in accounts |
|
| ||||||
(Decrease) Increase in accounts |
|
| ||||||
Net cash (used in) provided by |
|
| ||||||
Cash flows from investing activities: | ||||||||
Acquisition costs repaid (paid) for |
|
| ||||||
Capital contributions paid to |
|
| ||||||
Proceeds from sale of operating |
|
| ||||||
Advances to Operating Partnerships | - | - | ||||||
Investments | - | (1,177,332) | ||||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 20
2006 | 2005 | |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 802,957 | 2,435,923 | ||
Cash and cash equivalents, ending | $ 293,731 | $ 1,633,894 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 21
2006 | 2005 | ||||
Cash flows from operating activities: | |||||
Net income (loss) | $ (131,548) | $ (128,734) | |||
Adjustments | |||||
Amortization | 488 | 488 | |||
Distributions from Operating |
|
| |||
Share of Loss from Operating |
|
| |||
Changes in assets and liabilities | |||||
(Decrease) Increase in accounts |
|
| |||
Decrease (Increase) in accounts |
|
| |||
(Decrease) Increase in accounts |
|
| |||
Net cash (used in) provided by |
|
| |||
Cash flows from investing activities: | |||||
Acquisition costs repaid (paid) for |
|
| |||
Capital contributions paid to |
|
| |||
Proceeds from sale of operating |
|
| |||
Advances to Operating Partnerships | - | - | |||
Investments | - | - | |||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 21
2006 | 2005 | |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 60,403 | 100,468 | ||
Cash and cash equivalents, ending | $ 62,459 | $ 93,546 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 22
2006 | 2005 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ (130,296) | $ (314,392) | |||||
Adjustments | |||||||
Amortization | 1,535 | 1,535 | |||||
Distributions from Operating |
|
| |||||
Share of Loss from Operating |
|
| |||||
Changes in assets and liabilities | |||||||
(Decrease) Increase in accounts |
|
| |||||
Decrease (Increase) in prepaid |
|
| |||||
Decrease (Increase) in accounts |
|
| |||||
(Decrease) Increase in accounts |
|
| |||||
Net cash (used in) provided by |
|
| |||||
Cash flows from investing activities: | |||||||
Acquisition costs repaid (paid) for |
|
| |||||
Capital contributions paid to |
|
| |||||
Proceeds from sale of operating |
|
| |||||
Advances to Operating Partnerships | - | - | |||||
Investments | - | - | |||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 22
2006 | 2005 | |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 170,119 | 272,446 | ||
Cash and cash equivalents, ending | $ 180,175 | $ 287,856 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 23
2006 | 2005 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ (349,347) | $ (527,930) | |||||
Adjustments | |||||||
Amortization | 2,283 | 2,283 | |||||
Distributions from Operating | - | - | |||||
Share of Loss from Operating |
|
| |||||
Changes in assets and liabilities | |||||||
(Decrease) Increase in accounts |
|
| |||||
Decrease (Increase) in prepaid |
|
| |||||
Decrease (Increase) in accounts |
|
| |||||
(Decrease) Increase in accounts |
|
| |||||
Net cash (used in) provided by |
|
| |||||
Cash flows from investing activities: | |||||||
Acquisition costs repaid (paid) for |
|
| |||||
Capital contributions paid to | - |
| |||||
Proceeds from sale of operating |
|
| |||||
Advances to Operating Partnerships | - | - | |||||
Investments | - | - | |||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 23
2006 | 2005 | |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 84,479 | 126,832 | ||
Cash and cash equivalents, ending | $ 82,781 | $ 124,861 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 24
2006 | 2005 | ||||
Cash flows from operating activities: | |||||
Net income (loss) | $ (133,717) | $ (135,797) | |||
Adjustments | |||||
Amortization | 2,551 | 2,551 | |||
Distributions from Operating |
|
| |||
Share of Loss from Operating |
|
| |||
Changes in assets and liabilities | |||||
(Decrease) Increase in accounts |
|
| |||
Decrease (Increase) in accounts |
|
| |||
(Decrease) Increase in accounts |
|
| |||
Net cash (used in) provided by |
|
| |||
Cash flows from investing activities: | |||||
Acquisition costs repaid (paid) for |
|
| |||
Capital contributions paid to |
|
| |||
Proceeds from sale of operating |
|
| |||
Advances to Operating Partnerships | - | - | |||
Investments | - | - | |||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 24
2006 | 2005 | |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 172,640 | 220,367 | ||
Cash and cash equivalents, ending | $ 172,492 | $ 225,828 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 25
2006 | 2005 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ (170,696) | $ (189,914) | |||||
Adjustments | |||||||
Amortization | 3,805 | 3,805 | |||||
Distributions from Operating | - | 15 | |||||
Share of Loss from Operating |
|
| |||||
Changes in assets and liabilities | |||||||
(Decrease) Increase in accounts |
|
| |||||
Decrease (Increase) in accounts |
|
| |||||
(Decrease) Increase in accounts |
|
| |||||
Net cash (used in) provided by |
|
| |||||
Cash flows from investing activities: | |||||||
Acquisition costs repaid (paid) for |
|
| |||||
Capital contributions paid to |
|
| |||||
Proceeds from sale of operating |
|
| |||||
Advances to Operating Partnerships | - | - | |||||
Investments | - | - | |||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 25
2006 | 2005 | |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 263,159 | 378,135 | ||
Cash and cash equivalents, ending | $ 265,149 | $ 372,705 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 26
2006 | 2005 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ (399,576) | $ (312,850) | |||||
Adjustments | |||||||
Amortization | 4,226 | 4,226 | |||||
Distributions from Operating |
|
| |||||
Share of Loss from Operating |
|
| |||||
Changes in assets and liabilities | |||||||
(Decrease) Increase in accounts |
|
| |||||
Decrease (Increase) in accounts |
|
| |||||
(Decrease) Increase in accounts |
|
| |||||
Net cash (used in) provided by |
|
| |||||
Cash flows from investing activities: | |||||||
Acquisition costs repaid (paid) for |
|
| |||||
Capital contributions paid to |
|
| |||||
Proceeds from sale of operating |
|
| |||||
Advances to Operating Partnerships | - | - | |||||
Investments | - | - | |||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 26
2006 | 2005 | |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 285,372 | 353,640 | ||
Cash and cash equivalents, ending | $ 287,847 | $ 403,678 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 27
2006 | 2005 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ (307,860) | $ (278,483) | |||||
Adjustments | |||||||
Amortization | 3,914 | 3,914 | |||||
Distributions from Operating | 118 | 7,175 | |||||
Share of Loss from Operating |
|
| |||||
Changes in assets and liabilities | |||||||
(Decrease) Increase in accounts |
|
| |||||
Decrease (Increase) in accounts |
|
| |||||
(Decrease) Increase in accounts |
|
| |||||
Net cash (used in) provided by |
|
| |||||
Cash flows from investing activities: | |||||||
Acquisition costs repaid (paid) for |
|
| |||||
Capital contributions paid to |
|
| |||||
Proceeds from sale of operating |
|
| |||||
Advances to Operating Partnerships | - | - | |||||
Investments | - | - | |||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 27
2006 | 2005 | ||
Continued | |||
Cash flows from financing activities: | |||
Sales and registration costs paid | - | - | |
Distribution | - | - | |
Net cash (used in) provided by |
|
| |
INCREASE (DECREASE) IN CASH AND |
|
| |
Cash and cash equivalents, beginning | 116,714 | 127,380 | |
Cash and cash equivalents, ending | $ 118,852 | $ 147,585 | |
Supplemental schedule of non-cash |
|
| |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 28
2006 | 2005 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ (322,497) | $ (446,380) | |||||
Adjustments | |||||||
Amortization | 825 | 825 | |||||
Distributions from Operating |
|
| |||||
Share of Loss from Operating |
|
| |||||
Changes in assets and liabilities | |||||||
(Decrease) Increase in accounts | - | - | |||||
Decrease (Increase) in accounts |
|
| |||||
(Decrease) Increase in accounts |
|
| |||||
Net cash (used in) provided by |
|
| |||||
Cash flows from investing activities: | |||||||
Acquisition costs repaid (paid) for |
|
| |||||
Capital contributions paid to |
|
| |||||
Proceeds from sale of operating |
|
| |||||
Advances to Operating Partnerships | - | - | |||||
Investments | - | - | |||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 28
2006 | 2005 | |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND | 79,803 | 207,513 | ||
Cash and cash equivalents, beginning | 433,154 | 428,256 | ||
Cash and cash equivalents, ending | $ 512,957 | $ 635,769 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 29
2006 | 2005 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ (381,286) | $ (476,688) | |||||
Adjustments | |||||||
Amortization | 828 | 828 | |||||
Distributions from Operating | 1,200 | - | |||||
Share of Loss from Operating |
|
| |||||
Changes in assets and liabilities | |||||||
(Decrease) Increase in accounts |
|
| |||||
Decrease (Increase) in accounts |
|
| |||||
(Decrease) Increase in accounts |
|
| |||||
Net cash (used in) provided by |
|
| |||||
Cash flows from investing activities: | |||||||
Acquisition costs repaid (paid) for |
|
| |||||
Capital contributions paid to |
|
| |||||
Proceeds from sale of operating |
|
| |||||
Advances to Operating Partnerships | - | - | |||||
Investments | 52,989 | - | |||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 29
2006 | 2005 | |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 134,976 | 253,902 | ||
Cash and cash equivalents, ending | $ 189,897 | $ 235,141 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 30
2006 | 2005 | |||||
Cash flows from operating activities: | ||||||
Net income (loss) | $ (201,439) | $ (358,917) | ||||
Adjustments | ||||||
Amortization | 5,309 | 5,309 | ||||
Distributions from Operating |
|
| ||||
Share of Loss from Operating |
|
| ||||
Changes in assets and liabilities | ||||||
(Decrease) Increase in accounts |
|
| ||||
Decrease (Increase) in accounts |
|
| ||||
(Decrease) Increase in accounts |
|
| ||||
Net cash (used in) provided by |
|
| ||||
Cash flows from investing activities: | ||||||
Acquisition costs repaid (paid) for |
|
| ||||
Capital contributions paid to |
|
| ||||
Proceeds from sale of operating |
|
| ||||
Advances to Operating Partnerships | - | - | ||||
Investments | - | - | ||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 30
2006 | 2005 | |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 412,161 | 300,371 | ||
Cash and cash equivalents, ending | $ 417,888 | $ 307,705 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 31
2006 | 2005 | |||||
Cash flows from operating activities: | ||||||
Net income (loss) | $ (449,907) | $ (575,558) | ||||
Adjustments | ||||||
Amortization | - | - | ||||
Distributions from Operating | - | 55 | ||||
Share of Loss from Operating | 348,305 | 479,054 | ||||
Changes in assets and liabilities | ||||||
(Decrease) Increase in accounts |
|
| ||||
Decrease (Increase) in accounts |
|
| ||||
(Decrease) Increase in accounts |
|
| ||||
Net cash (used in) provided by |
|
| ||||
Cash flows from investing activities: | ||||||
Acquisition costs repaid (paid) for |
|
| ||||
Capital contributions paid to |
|
| ||||
Proceeds from sale of operating |
|
| ||||
Advances to Operating Partnerships | - | - | ||||
Investments | - | - | ||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 31
2006 | 2005 | |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 128,337 | 134,942 | ||
Cash and cash equivalents, ending | $ 126,095 | $ 137,853 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 32
2006 | 2005 | |||||
Cash flows from operating activities: | ||||||
Net income (loss) | $ (476,733) | $ (451,311) | ||||
Adjustments | ||||||
Amortization | 9,182 | 7,600 | ||||
Distributions from Operating |
|
| ||||
Share of Loss from Operating |
|
| ||||
Changes in assets and liabilities | ||||||
(Decrease) Increase in accounts | - | - | ||||
Decrease (Increase) in accounts |
|
| ||||
(Decrease) Increase in accounts |
|
| ||||
Net cash (used in) provided by |
|
| ||||
Cash flows from investing activities: |
| |||||
Acquisition costs repaid (paid) for |
|
| ||||
Capital contributions paid to |
|
| ||||
Proceeds from sale of operating |
|
| ||||
Advances to Operating Partnerships | - | - | ||||
Investments | - | - | ||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 32
2006 | 2005 | |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 386,782 | 439,407 | ||
Cash and cash equivalents, ending | $ 396,150 | $ 441,073 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 33
2006 | 2005 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ (240,035) | $ (237,951) | ||||||
Adjustments | ||||||||
Amortization | 6,819 | 6,819 | ||||||
Distributions from Operating |
|
| ||||||
Share of Loss from Operating | 205,532 | 185,481 | ||||||
Changes in assets and liabilities | ||||||||
(Decrease) Increase in accounts |
|
| ||||||
Decrease (Increase) in accounts |
|
| ||||||
(Decrease) Increase in accounts |
|
| ||||||
Net cash (used in) provided by |
|
| ||||||
Cash flows from investing activities: | ||||||||
Acquisition costs repaid (paid) for |
|
| ||||||
Capital contributions paid to |
|
| ||||||
Proceeds from sale of operating |
|
| ||||||
Advances to Operating Partnerships | 10,494 | 8,177 | ||||||
Investments | - | - | ||||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 33
2006 | 2005 | |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 197,136 | 191,000 | ||
Cash and cash equivalents, ending | $ 223,437 | $ 197,017 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 34
2006 | 2005 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ (338,987) | $ (568,258) | |||||
Adjustments | |||||||
Amortization | 10,984 | 10,984 | |||||
Distributions from Operating |
|
| |||||
Share of Loss from Operating | 252,790 | 481,408 | |||||
Changes in assets and liabilities | |||||||
(Decrease) Increase in accounts |
|
| |||||
Decrease (Increase) in accounts | - | - | |||||
(Decrease) Increase in accounts |
|
| |||||
Net cash (used in) provided by |
|
| |||||
Cash flows from investing activities: | |||||||
Acquisition costs repaid (paid) for |
|
| |||||
Capital contributions paid to |
|
| |||||
Proceeds from sale of operating |
|
| |||||
Advances to Operating Partnerships | - | - | |||||
Investments | - | - | |||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 34
2006 | 2005 | |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 124,985 | 198,385 | ||
Cash and cash equivalents, ending | $ 123,071 | $ 195,818 | ||
Supplemental schedule of non-cash |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 35
2006 | 2005 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ (310,581) | $ (268,312) | |||||
Adjustments | |||||||
Amortization | 32,309 | 32,309 | |||||
Distributions from Operating |
|
| |||||
Share of Loss from Operating |
|
| |||||
Changes in assets and liabilities | |||||||
(Decrease) Increase in accounts |
|
| |||||
Decrease (Increase) in accounts |
|
| |||||
(Decrease) Increase in accounts |
|
| |||||
Net cash (used in) provided by |
|
| |||||
Cash flows from investing activities: | |||||||
Acquisition costs repaid (paid) for |
|
| |||||
Capital contributions paid to |
|
| |||||
Proceeds from sale of operating |
|
| |||||
Advances to Operating Partnerships | - | - | |||||
Investments | - | - | |||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 35
2006 | 2005 | |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 481,041 | 636,348 | ||
Cash and cash equivalents, ending | $ 479,929 | $ 646,579 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 36
2006 | 2005 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ (170,393) | $ (179,934) | |||||
Adjustments | |||||||
Amortization | 22,116 | 22,116 | |||||
Distributions from Operating |
|
| |||||
Share of Loss from Operating |
|
| |||||
Changes in assets and liabilities | |||||||
(Decrease) Increase in accounts |
|
| |||||
Decrease (Increase) in accounts |
|
| |||||
(Decrease) Increase in accounts |
|
| |||||
Net cash (used in) provided by |
|
| |||||
Cash flows from investing activities: | |||||||
Acquisition costs repaid (paid) for |
|
| |||||
Capital contributions paid to |
|
| |||||
Proceeds from sale of operating |
|
| |||||
Advances to Operating Partnerships | - | - | |||||
Investments | - | - | |||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 36
2006 | 2005 | |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 79,450 | 76,718 | ||
Cash and cash equivalents, ending | $ 78,348 | $ 89,149 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 37
|
| ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ (257,760) | $ (213,693) | |||||
Adjustments | |||||||
Amortization | 23,706 | 23,706 | |||||
Distributions from Operating |
|
| |||||
Share of Loss from Operating |
|
| |||||
Changes in assets and liabilities | |||||||
(Decrease) Increase in accounts |
|
| |||||
Decrease (Increase) in accounts |
|
| |||||
(Decrease) Increase in accounts |
|
| |||||
Net cash (used in) provided by |
|
| |||||
Cash flows from investing activities: | |||||||
Acquisition costs repaid (paid) for |
|
| |||||
Capital contributions paid to |
|
| |||||
Proceeds from sale of operating |
|
| |||||
Advances to Operating Partnerships | 67,239 | 17,022 | |||||
Investments | - | - | |||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 37
|
| |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 268,593 | 390,428 | ||
Cash and cash equivalents, ending | $ 357,611 | $ 418,989 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 38
|
| ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ (135,284) | $ (189,363) | |||||
Adjustments | |||||||
Amortization | 24,729 | 24,729 | |||||
Distributions from Operating |
|
| |||||
Share of Loss from Operating |
|
| |||||
Changes in assets and liabilities | |||||||
(Decrease) Increase in accounts |
|
| |||||
Decrease (Increase) in accounts |
|
| |||||
(Decrease) Increase in accounts |
|
| |||||
Net cash (used in) provided by |
|
| |||||
Cash flows from investing activities: | |||||||
Acquisition costs repaid (paid) for |
|
| |||||
Capital contributions paid to |
|
| |||||
Proceeds from sale of operating |
|
| |||||
Advances to Operating Partnerships | - | - | |||||
Investments | - | - | |||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 38
|
| |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 193,474 | 200,256 | ||
Cash and cash equivalents, ending | $ 199,897 | $ 201,330 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 39
|
| ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ (245,132) | $ (257,425) | |||||
Adjustments | |||||||
Amortization | 22,581 | 22,581 | |||||
Distributions from Operating |
|
| |||||
Share of Loss from Operating |
|
| |||||
Changes in assets and liabilities | |||||||
(Decrease) Increase in accounts |
|
| |||||
Decrease (Increase) in accounts |
|
| |||||
(Decrease) Increase in accounts |
|
| |||||
Net cash (used in) provided by |
|
| |||||
Cash flows from investing activities: | |||||||
Acquisition costs repaid (paid) for | |||||||
Capital contributions paid to |
|
| |||||
Proceeds from sale of operating |
|
| |||||
Advances to Operating Partnerships | - | - | |||||
Investments | - | - | |||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 39
|
| |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 368,313 | 198,542 | ||
Cash and cash equivalents, ending | $ 365,534 | $ 201,528 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 40
| 2005 | ||||||||
Cash flows from operating activities: | |||||||||
Net income (xloss) | $ (256,547) | $ (244,819) | |||||||
Adjustments | |||||||||
Amortization | 28,431 | 28,431 | |||||||
Distributions from Operating |
|
| |||||||
Share of Loss from Operating |
|
| |||||||
Changes in assets and liabilities | |||||||||
(Decrease) Increase in accounts |
|
| |||||||
Decrease (Increase) in accounts |
|
| |||||||
(Decrease) Increase in accounts | 50,001 | 50,453 | |||||||
Net cash (used in) provided by |
|
| |||||||
Cash flows from investing activities: | |||||||||
Acquisition costs repaid (paid) for |
| ||||||||
Capital contributions paid to |
|
| |||||||
Proceeds from sale of operating |
|
| |||||||
Advances to Operating Partnerships | - | - | |||||||
Investments | - | - | |||||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 40
|
| |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 216,126 | 30,695 | ||
Cash and cash equivalents, ending | $ 277,344 | $ 77,772 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 41
2006 | 2005 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ (425,502) | $ (375,561) | |||||
Adjustments | |||||||
Amortization | 33,481 | 33,481 | |||||
Distributions from Operating | |||||||
Share of Loss from Operating |
|
| |||||
Changes in assets and liabilities | |||||||
(Decrease) Increase in accounts |
|
| |||||
Decrease (Increase) in accounts |
|
| |||||
(Decrease) Increase in accounts |
|
| |||||
Net cash (used in) provided by |
|
| |||||
Cash flows from investing activities: | |||||||
Acquisition costs repaid (paid) for |
|
| |||||
Capital contributions paid to |
|
| |||||
Proceeds from sale of operating |
|
| |||||
Advances to Operating Partnerships | - | - | |||||
Investments | - | - | |||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 41
2006 | 2006 | |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 83,998 | 178,767 | ||
Cash and cash equivalents, ending | $ 677 | $ 192,688 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 42
|
| ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ (384,095) | $ (239,261) | |||||
Adjustments | |||||||
Amortization | 29,055 | 29,055 | |||||
Distributions from Operating |
|
| |||||
Share of Loss from Operating |
|
| |||||
Changes in assets and liabilities | |||||||
(Decrease) Increase in accounts |
|
| |||||
Decrease (Increase) in accounts |
|
| |||||
(Decrease) Increase in accounts |
|
| |||||
Net cash (used in) provided by |
|
| |||||
Cash flows from investing activities: | |||||||
Acquisition costs repaid (paid) for |
|
| |||||
Capital contributions paid to |
|
| |||||
Proceeds from sale of operating limited partnerships: |
|
| |||||
Advances to Operating Partnerships | - | - | |||||
Investments | - | - | |||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 42
|
| |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 971,373 | 943,069 | ||
Cash and cash equivalents, ending | $ 670,938 | $ 971,851 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 43
2006 | 2005 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ (420,564) | $ (461,640) | |||||
Adjustments | |||||||
Amortization | 41,717 | 41,219 | |||||
Distributions from Operating |
|
| |||||
Share of Loss from Operating |
|
| |||||
Changes in assets and liabilities | |||||||
(Decrease) Increase in accounts |
|
| |||||
Decrease (Increase) in accounts |
|
| |||||
(Decrease) Increase in accounts |
|
| |||||
Net cash (used in) provided by |
|
| |||||
Cash flows from investing activities: | |||||||
Acquisition costs repaid (paid) for |
|
| |||||
Capital contributions paid to |
|
| |||||
Proceeds from sale of operating |
|
| |||||
Advances to Operating Partnerships | 650,726 | - | |||||
Investments | - | 5,326 | |||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 43
|
| |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 189,255 | 332,509 | ||
Cash and cash equivalents, ending | $ 867,256 | $ 357,451 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 44
2006 | 2005 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ (363,324) | $ (252,777) | |||||
Adjustments | |||||||
Amortization | 30,991 | 30,888 | |||||
Distributions from Operating |
|
| |||||
Share of Loss from Operating |
|
| |||||
Changes in assets and liabilities | |||||||
(Decrease) Increase in accounts |
|
| |||||
Decrease (Increase) in accounts |
|
| |||||
(Decrease) Increase in accounts |
|
| |||||
Net cash (used in) provided by | (169,527) | 15,097 | |||||
Cash flows from investing activities: | |||||||
Acquisition costs repaid (paid) for |
|
| |||||
Capital contributions paid to |
|
| |||||
Proceeds from sale of operating |
|
| |||||
Advances to Operating Partnerships | - | - | |||||
Investments | 89,991 | (103,790) | |||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 44
|
| |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 1,356,192 | 1,764,709 | ||
Cash and cash equivalents, ending | $ 1,043,056 | $ 1,336,637 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 45
2006 | 2005 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ (466,009) | $ (175,065) | |||||
Adjustments | |||||||
Amortization | 36,221 | 34,069 | |||||
Distributions from Operating |
|
| |||||
Share of Loss from Operating |
|
| |||||
Changes in assets and liabilities | |||||||
(Decrease) Increase in accounts |
|
| |||||
Decrease (Increase) in accounts |
|
| |||||
(Decrease) Increase in accounts |
|
| |||||
Net cash (used in) provided by |
|
| |||||
Cash flows from investing activities: | |||||||
Acquisition costs repaid (paid) for |
|
| |||||
Capital contributions paid to |
|
| |||||
Proceeds from sale of operating |
|
| |||||
Advances to Operating Partnerships | - | (242,897) | |||||
Investments | 411,751 | 3,952,606 | |||||
Net cash (used in) provided by |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 45
2006 | 2005 | |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 1,167,018 | 2,145,548 | ||
Cash and cash equivalents, ending | $ 1,450,700 | $ 2,001,051 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 46
2006 | 2005 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ (207,686) | $ (94,641) | |||||
Adjustments | |||||||
Amortization | 25,914 | 25,825 | |||||
Distributions from Operating |
|
| |||||
Share of (Gain) Loss from Operating |
|
| |||||
Changes in assets and liabilities | |||||||
(Decrease) Increase in accounts |
|
| |||||
Decrease (Increase) in accounts |
|
| |||||
(Decrease) Increase in accounts |
|
| |||||
Net cash (used in) provided by |
|
| |||||
Cash flows from investing activities: | |||||||
Acquisition costs repaid (paid) for |
|
| |||||
Capital contributions paid to |
|
| |||||
Proceeds from sale of operating |
|
| |||||
Advances to Operating Partnerships | - | - | |||||
Investments | 450,764 | 1,217,488 | |||||
Net cash (used in) provided by | (549,942) | 116,409 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 46
2006 | 2005 | |||
Continued | ||||
Cash flows from financing activities: | ||||
Sales and registration costs paid | - | - | ||
Distribution | - | - | ||
Net cash (used in) provided by |
|
| ||
INCREASE (DECREASE) IN CASH AND |
|
| ||
Cash and cash equivalents, beginning | 2,689,206 | 5,487,404 | ||
Cash and cash equivalents, ending | $ 2,115,949 | $ 5,638,683 | ||
Supplemental schedule of non-cash |
|
| ||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE A - ORGANIZATION
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 partnerships which will acquire, develop, rehabilitate, operate and own newly constructed, existing or rehabilitated low-income apartment complexes ("Operating Partnerships"). Effective as of June 1, 2001 there was a restructuring and, as a result, the Fund's general partner was reorganized as follows. The general partner of the Fund continues to be Boston Capital Associates IV L.P., a Delaware limited partnership. The general partner of the general partner of the Fund is now BCA Associates Limited Partnership, a Massachusetts limited partnership, whose sole general partner is C&M Management, Inc., a Massachusetts corporation and whose limited partners are Herbert F. Collins and John P. Manning. Mr. Manning is the principal of Boston Capital Partners, Inc. The limited p artner of the general partner of the Fund is Capital Investment Holdings, a general partnership whose partners are various officers and employees of Boston Capital Partners, Inc. and its affiliates. The assignor limited partner is BCTC IV Assignor Corp., a Delaware corporation which is now wholly-owned by John P. Manning.
Pursuant to the Securities Act of 1933, the Fund filed a Form S-11 Registration Statement with the Securities and Exchange Commission, effective December 16, 1993, which covered the offering (the "Public Offering") of the Fund's beneficial assignee certificates ("BACs") representing assignments of units of the beneficial interest of the limited partnership interest of the assignor limited partner. The Fund registered 30,000,000 BACs at $10 per BAC for sale to the public in one or more series. One 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 in one or more series, became effective. On July 26, 2000, an amendment to Form S-11, whi ch registered an additional 7,500,000 BACs for sale to the public in one or more series, became effective. On July 24, 2001, an amendment to Form S-11, which registered an additional 7,000,000 BACs for sale to the public in one or more series, became effective. On July 24, 2002 an amendment to Form S- 11, which registered an additional 7,000,000 BACs for sale to the public, became effective. On July 1, 2003 an amendment to Form S- 11, which registered an additional 7,000,000 BACs for sale to the public, became effective.
Below is a summary of the BACs sold and total equity raised by series as of the date of this filing:
Series | Closing Date | BACs Sold | Equity Raised |
Series 20 | June 24, 1994 | 3,866,700 | $38,667,000 |
Series 21 | December 31, 1994 | 1,892,700 | $18,927,000 |
Series 22 | December 28, 1994 | 2,564,400 | $25,644,000 |
Series 23 | June 23, 1995 | 3,336,727 | $33,366,000 |
Series 24 | September 22, 1995 | 2,169,878 | $21,697,000 |
Series 25 | December 29, 1995 | 3,026,109 | $30,248,000 |
Series 26 | June 25, 1996 | 3,995,900 | $39,959,000 |
Series 27 | September 17, 1996 | 2,460,700 | $24,607,000 |
Series 28 | January 29, 1997 | 4,000,738 | $39,999,000 |
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2006
(Unaudited)
NOTE A - ORGANIZATION (continued)
Series | Closing Date | BACs Sold | Equity Raised |
Series 29 | June 10, 1997 | 3,991,800 | $39,918,000 |
Series 30 | September 10, 1997 | 2,651,000 | $26,490,750 |
Series 31 | January 18, 1998 | 4,417,857 | $44,057,750 |
Series 32 | June 23, 1998 | 4,754,198 | $47,431,000 |
Series 33 | September 21, 1998 | 2,636,533 | $26,362,000 |
Series 34 | February 11, 1999 | 3,529,319 | $35,273,000 |
Series 35 | June 28, 1999 | 3,300,463 | $33,004,630 |
Series 36 | September 28, 1999 | 2,106,837 | $21,068,375 |
Series 37 | January 28, 2000 | 2,512,500 | $25,125,000 |
Series 38 | July 31, 2000 | 2,543,100 | $25,431,000 |
Series 39 | January 31, 2001 | 2,292,152 | $22,921,000 |
Series 40 | July 31, 2001 | 2,630,256 | $26,629,250 |
Series 41 | January 31, 2002 | 2,891,626 | $28,916,260 |
Series 42 | July 31, 2002 | 2,744,262 | $27,442,620 |
Series 43 | December 31,2002 | 3,637,987 | $36,379,870 |
Series 44 | April 30, 2003 | 2,701,973 | $27,019,730 |
Series 45 | September 16, 2003 | 4,014,367 | $40,143,670 |
Series 46 | December 19, 2003 | 2,980,998 | $29,809,980 |
The Fund concluded its public offering of BACs in the Fund on December 19, 2003.
NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES
The condensed financial statements herein as of June 30, 2006 and for the three months then ended have been prepared by the Fund, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The Fund accounts for its investments in Operating Partnerships using the equity method, whereby the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. Costs incurred by the Fund in acquiring the investments in the Operating Partnerships are capitalized to the investment account.
The Fund's accounting and financial reporting policies are in conformity with generally accepted accounting principles and include adjustments in interim periods considered necessary for a fair presentation of the results of operations. Such adjustments are of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principals have been condensed or omitted pursuant to such rules and regulations. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Fund's Annual Report on Form 10-K.
Investment Securities
The Fund has determined that all of its investment securities are to be categorized as securities available for sale. Securities classified as available for sale are those debt securities that the Fund purchased that may be liquidated prior to the maturity date should the need arise.
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2006
(Unaudited)
NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES (continued)
These securities are carried at approximate fair market value. All of the investments held by the Fund are tax-exempt municipal bonds and Certificates of Deposit.
The amortized cost of securities available for sale as of June 30, 2006 by contractual maturity are as follows:
Amortized Cost | |
Due in one year or less | $1,550,522 |
Due after one year | - |
Total | $1,550,522 |
The fair market value of the securities is $1,550,522, as of June 30, 2006.
Amortization
The Fund began amortizing unallocated and deferred acquisition costs over 330 months as of June 1999. Accumulated amortization of acquisition costs by Series as of June 30, 2006 and 2005 is as follows:
2006 | 2005 | |
Series 20 | $ 25,898 | $ 22,326 |
Series 21 | 14,166 | 12,212 |
Series 22 | 44,514 | 38,374 |
Series 23 | 61,871 | 52,740 |
Series 24 | 73,983 | 63,779 |
Series 25 | 74,300 | 64,052 |
Series 26 | 124,792 | 107,889 |
Series 27 | 108,364 | 93,417 |
Series 28 | 23,926 | 20,626 |
Series 29 | 23,867 | 20,555 |
Series 30 | 153,844 | 132,606 |
Series 32 | 219,096 | 188,699 |
Series 33 | 196,857 | 169,577 |
Series 34 | 312,546 | 269,190 |
Series 35 | 887,059 | 764,193 |
Series 36 | 604,629 | 520,269 |
Series 37 | 559,131 | 469,146 |
Series 38 | 455,509 | 359,608 |
Series 39 | 395,001 | 307,221 |
Series 40 | 353,767 | 251,367 |
Series 41 | 489,903 | 374,369 |
Series 42 | 364,886 | 251,702 |
Series 43 | 472,137 | 325,543 |
Series 44 | 253,256 | 151,839 |
Series 45 | 284,016 | 166,259 |
Series 46 | 196,506 | 107,645 |
$6,773,824 | $5,305,203 |
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2006
(Unaudited)
NOTE C - RELATED PARTY TRANSACTIONS
The Fund has entered into several transactions with various affiliates of the general partner of the Fund, including Boston Capital Holdings Limited Partnership, Boston Capital Securites, Inc., and Boston Capital Asset Management L.P. as follows:
An annual fund management fee based on .5 percent of the aggregate cost of all apartment complexes owned by the Operating Partnerships has been accrued to Boston Capital Asset Management Limited Partnership. Since reporting fees collected by the series were added to reserves and not paid to Boston Capital Asset Management Limited Partner, the amounts accrued are not net of reporting fees received. The partnership management fees accrued for the quarters ended June 30, 2006 and 2005 are as follows:
2006 | 2005 | |
Series 20 | $ 84,438 | $ 61,884 |
Series 21 | 56,460 | 56,460 |
Series 22 | 63,648 | 63,648 |
Series 23 | 60,066 | 60,066 |
Series 24 | 56,934 | 56,460 |
Series 25 | 68,169 | 68,169 |
Series 26 | 108,689 | 108,689 |
Series 27 | 78,801 | 78,801 |
Series 28 | 83,529 | 83,529 |
Series 29 | 84,495 | 84,495 |
Series 30 | 55,230 | 55,230 |
Series 31 | 99,360 | 99,360 |
Series 32 | 82,886 | 82,886 |
Series 33 | 43,491 | 43,491 |
Series 34 | 73,299 | 73,299 |
Series 35 | 57,090 | 57,090 |
Series 36 | 40,149 | 40,149 |
Series 37 | 51,216 | 51,216 |
Series 38 | 41,100 | 41,100 |
Series 39 | 34,200 | 34,200 |
Series 40 | 50,001 | 50,001 |
Series 41 | 68,610 | 69,042 |
Series 42 | 62,991 | 60,839 |
Series 43 | 76,530 | 75,373 |
Series 44 | 71,176 | 52,887 |
Series 45 | 25,199 | - |
Series 46 | 11,367 | 53,231 |
$1,689,124 | $1,661,595 | |
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2006
(Unaudited)
NOTE C - RELATED PARTY TRANSACTIONS (continued)
The fund management fees paid for the quarters ended June 30, 2006 and 2005 are as follows:
2006 | 2005 | |
Series 20 | $200,023 | 30,177 |
Series 45 | 66,936 | 85,557 |
Series 46 | 49,668 | - |
$316,627 | $115,734 |
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS
During the three months ended June 30, 2006 the partnership received additional proceeds of $7,016 from one operating limited partnership in Series 20 which was disposed of in the prior year.
During the three months ended June 30, 2005 the partnership disposed of one of the operating limited partnerships in Series 20 and received proceeds from the operating limited partnership of $401,525.
The gain (loss) described below from the dispositions of properties is for financial statement purposes only. There are significant differences between the equity method of accounting and the tax reporting of income and losses from operating partnership investments. The largest difference is the ability for tax purposes, to deduct losses in excess of the partnership's investment in the operating partnership. As such, the amount of gain recognized for tax purposes may be significantly higher than the gain recorded in the financial statements.
At June 30, 2006 and 2005 the Fund has limited partnership interests in 517 and 512 Operating Partnerships, respectively, which own or are constructing apartment complexes.
The breakdown of Operating Partnerships within the Fund at June 30, 2006 and 2005 is as follows:
2006 | 2005 | |
Series 20 | 22 | 23 |
Series 21 | 14 | 14 |
Series 22 | 29 | 29 |
Series 23 | 22 | 22 |
Series 24 | 24 | 24 |
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 |
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
2006 | 2005 | |
16 | 16 | |
Series 41 | 22 | 23 |
Series 42 | 23 | 22 |
Series 43 | 23 | 22 |
Series 44 | 10 | 8 |
Series 45 | 31 | 30 |
Series 46 | 14 | 12 |
517 | 512 |
Under the terms of the Fund's investment in each Operating Partnership, the Fund is required to make capital contributions to the Operating Partnerships. These contributions are payable in installments over several years upon each Operating Partnership achieving specified levels of construction and/or operations. The contributions payable at June 30, 2006 and 2005 are as follows:
2006 | 2005 | |
Series 20 | $ - | $ 388,026 |
Series 21 | 236,479 | 457,642 |
Series 22 | 20,270 | 477,996 |
Series 23 | - | 117,796 |
Series 24 | 9,999 | 368,239 |
Series 25 | 61,733 | 768,198 |
Series 26 | 29,490 | 1,443,838 |
Series 27 | 39,749 | 39,749 |
Series 28 | 40,968 | 40,968 |
Series 29 | 45,783 | 66,718 |
Series 30 | 127,396 | 128,167 |
Series 31 | 611,150 | 682,058 |
Series 32 | 484,756 | 520,571 |
Series 33 | 194,154 | 202,285 |
Series 34 | 8,244 | 48,744 |
Series 35 | 163,782 | 603,740 |
Series 36 | - | 657,998 |
Series 37 | 138,438 | 155,363 |
Series 38 | - | - |
Series 39 | - | - |
Series 40 | 8,694 | 152,424 |
Series 41 | 165 | 480,554 |
Series 42 | 702,672 | 680,975 |
Series 43 | 490,522 | 766,427 |
Series 44 | 781,022 | 1,011,018 |
Series 45 | 1,360,047 | 7,163,299 |
Series 46 | 1,116,969 | 2,636,039 |
$6,672,482 | $20,058,832 |
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2006
(Unaudited)
NOTE D - INVESTMENT IN OPERATING PARTNERSHIPS - (continued)
The Fund's fiscal year ends March 31st for each year, while all the Operating Partnerships' fiscal years are the calendar year. Pursuant to the provisions of each Operating Partnership Agreement, financial results for each of the Operating Partnerships are provided to the Fund within 45 days after the close of each Operating Partnership's quarterly period. Accordingly, the current financial results available for the Operating Partnerships are for the three months ended March 31, 2006.
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 20
2006 | 2005 | |||
Revenues | ||||
Rental | $ 2,344,622 | $ 2,447,666 | ||
Interest and other | 136,180 | 132,823 | ||
2,480,802 | 2,580,489 | |||
Expenses | ||||
Interest | 663,508 | 706,114 | ||
Depreciation and amortization | 575,846 | 694,506 | ||
Operating expenses | 1,562,062 | 1,390,827 | ||
2,801,416 | 2,791,447 | |||
NET LOSS | $ (320,614) | $ (210,958) | ||
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. * |
|
| ||
|
|
| ||
* Amounts include $128,487 and $134,609 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 21
2006 | 2006 | |||
Revenues | ||||
Rental | $ 1,288,852 | $ 1,287,671 | ||
Interest and other | 43,586 | 32,609 | ||
1,332,438 | 1,320,280 | |||
Expenses | ||||
Interest | 493,195 | 450,550 | ||
Depreciation and amortization | 220,277 | 221,263 | ||
Operating expenses | 1,071,505 | 1,047,985 | ||
1,784,977 | 1,719,798 | |||
NET LOSS | $ (452,539) | $ (399,518) | ||
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. * |
|
| ||
|
|
| ||
* Amounts include $371,358 and $330,659 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.
The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 22
2006 | 2005 | |||
Revenues | ||||
Rental | $ 1,417,994 | $ 1,390,763 | ||
Interest and other | 70,895 | 67,011 | ||
1,488,889 | 1,457,774 | |||
Expenses | ||||
Interest | 324,049 | 338,053 | ||
Depreciation and amortization | 413,654 | 478,420 | ||
Operating expenses | 1,014,265 | 995,719 | ||
1,751,968 | 1,812,192 | |||
NET LOSS | $ (263,079) | $ (354,418) | ||
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. * |
|
| ||
|
|
| ||
* Amounts include $186,598 and $88,225 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.
The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 23
2006 | 2005 | |||
Revenues | ||||
Rental | $ 1,271,607 | $ 1,321,532 | ||
Interest and other | 42,240 | 68,324 | ||
1,313,847 | 1,389,856 | |||
Expenses | ||||
Interest | 336,344 | 389,664 | ||
Depreciation and amortization | 331,139 | 389,628 | ||
Operating expenses | 934,546 | 1,078,857 | ||
1,602,029 | 1,858,149 | |||
NET LOSS | $ (468,293) | |||
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. |
|
| ||
|
|
| ||
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 24
2006 | 2005 | |||
Revenues | ||||
Rental | $ 1,181,617 | $ 1,188,720 | ||
Interest and other | 25,312 | 25,464 | ||
1,206,929 | 1,214,184 | |||
Expenses | ||||
Interest | 236,868 | 251,532 | ||
Depreciation and amortization | 332,744 | 335,145 | ||
Operating expenses | 801,303 | 760,702 | ||
1,370,915 | 1,347,379 | |||
NET LOSS | $ (163,986) | $ (133,195) | ||
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. * |
|
| ||
|
|
| ||
* Amounts include $88,262 and $50,840 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.
The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 25
2006 | 2005 | |||
Revenues | ||||
Rental | $ 2,179,428 | $ 2,148,246 | ||
Interest and other | 65,838 | 40,603 | ||
2,245,266 | 2,188,849 | |||
Expenses | ||||
Interest | 573,815 | 487,131 | ||
Depreciation and amortization | 491,410 | 524,506 | ||
Operating expenses | 1,494,257 | 1,326,843 | ||
2,559,482 | 2,338,480 | |||
NET LOSS | $ (314,216) | $ (149,631) | ||
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. * |
|
| ||
|
|
| ||
|
* Amounts include $210,362 and $35,640 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.
The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 20060
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 26
2006 | 2005 | |||
Revenues | ||||
Rental | $ 2,601,935 | $ 2,461,106 | ||
Interest and other | 109,849 | 61,646 | ||
2,711,784 | 2,522,752 | |||
Expenses | ||||
Interest | 636,806 | 581,373 | ||
Depreciation and amortization | 657,820 | 734,422 | ||
Operating expenses | 1,772,514 | 1,513,458 | ||
3,067,140 | 2,829,253 | |||
NET LOSS | $ (355,356) | $ (306,501) | ||
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. * |
|
| ||
|
|
| ||
|
* Amounts include $63,822 and $89,769 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.
The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 27
2006 | 2005 | |||
Revenues | ||||
Rental | $ 1,794,048 | $ 1,714,073 | ||
Interest and other | 24,858 | 30,625 | ||
1,818,906 | 1,744,698 | |||
Expenses | ||||
Interest | 691,471 | 697,591 | ||
Depreciation and amortization | 435,408 | 435,600 | ||
Operating expenses | 982,101 | 866,976 | ||
2,108,980 | 2,000,167 | |||
NET LOSS | $ (290,074) | $ (255,469) | ||
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. * |
|
| ||
|
|
| ||
* Amounts include $60,008 and $44,116 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.
The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 28
2006 | 2005 | |||
Revenues | ||||
Rental | $ 1,690,728 | $ 1,541,941 | ||
Interest and other | 46,252 | 40,976 | ||
1,736,980 | 1,582,917 | |||
Expenses | ||||
Interest | 433,327 | 382,985 | ||
Depreciation and amortization | 552,578 | 576,484 | ||
Operating expenses | 1,028,576 | 1,031,199 | ||
2,014,481 | 1,990,668 | |||
NET LOSS | $ (277,501) | $ (407,751) | ||
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. * |
|
| ||
|
|
| ||
* Amounts include $3,882 and $4,128 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.
The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 29
2006 | 2005 | |||
Revenues | ||||
Rental | $ 1,622,430 | $ 1,978,500 | ||
Interest and other | 144,708 | 78,867 | ||
1,767,138 | 2,057,367 | |||
Expenses | ||||
Interest | 416,392 | 438,573 | ||
Depreciation and amortization | 635,122 | 697,726 | ||
Operating expenses | 1,029,946 | 1,360,282 | ||
2,081,460 | 2,496,581 | |||
NET LOSS | $ (314,322) | $ (439,214) | ||
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. * | $ (311,179) | $ (434,822) | ||
|
|
| ||
* Amounts include $14,484 and $43,920 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.
The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 30
2006 | 2005 | |||
Revenues | ||||
Rental | $ 1,277,617 | $ 1,244,060 | ||
Interest and other | 113,370 | 63,524 | ||
1,390,987 | 1,307,584 | |||
Expenses | ||||
Interest | 331,651 | 306,299 | ||
Depreciation and amortization | 351,370 | 333,836 | ||
Operating expenses | 998,908 | 963,249 | ||
1,681,929 | 1,603,384 | |||
NET LOSS | $ (290,942) | $ (295,800) | ||
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. |
|
| ||
|
|
| ||
* Amounts include $142,291 and $0 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.
The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 31
2006 | 2005 | |||
Revenues | ||||
Rental | $ 2,574,941 | $ 2,464,550 | ||
Interest and other | 112,284 | 95,275 | ||
2,687,225 | 2,559,825 | |||
Expenses | ||||
Interest | 587,592 | 516,172 | ||
Depreciation and amortization | 753,203 | 830,071 | ||
Operating expenses | 1,707,138 | 1,697,329 | ||
3,047,933 | 3,043,572 | |||
NET LOSS | $ (360,708) | $ (483,747) | ||
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. |
|
| ||
|
|
| ||
* Amounts include $8,941 and $0 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.
The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 32
2006 | 2005 | |||
Revenues | ||||
Rental | $ 1,284,768 | $ 1,283,644 | ||
Interest and other | 69,097 | 66,095 | ||
1,353,865 | 1,349,739 | |||
Expenses | ||||
Interest | 315,617 | 299,795 | ||
Depreciation and amortization | 591,954 | 519,307 | ||
Operating expenses | 853,119 | 932,421 | ||
1,760,690 | 1,751,523 | |||
NET LOSS | $ (406,825) | $ (401,784) | ||
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. * |
|
| ||
|
|
| ||
* Amounts include $8,724 and $35,275 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.
The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 33
2006 | 2005 | |||
Revenues | ||||
Rental | $ 734,079 | $ 674,892 | ||
Interest and other | 25,305 | 18,503 | ||
759,384 | 693,395 | |||
Expenses | ||||
Interest | 229,798 | 220,892 | ||
Depreciation and amortization | 265,302 | 243,975 | ||
Operating expenses | 471,892 | 415,882 | ||
966,992 | 880,749 | |||
NET LOSS | $ (207,608) | $ (187,354) | ||
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. |
|
| ||
|
|
| ||
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 34
2006 | 2005 | |||
Revenues | ||||
Rental | $ 1,444,751 | $ 1,288,714 | ||
Interest and other | 60,147 | 67,334 | ||
1,504,898 | 1,356,048 | |||
Expenses | ||||
Interest | 402,603 | 395,262 | ||
Depreciation and amortization | 516,017 | 553,867 | ||
Operating expenses | 841,621 | 893,190 | ||
1,760,241 | 1,842,319 | |||
NET LOSS | $ (255,343) | $ (486,271) | ||
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. | $ (252,790) | $ (481,408) | ||
|
|
| ||
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
Series 35
2006 | 2005 | ||
Revenues | |||
Rental | $ 1,092,898 | $ 1,061,052 | |
Interest and other | 39,305 | 117,630 | |
1,132,203 | 1,178,682 | ||
Expenses | |||
Interest | 302,718 | 276,387 | |
Depreciation and amortization | 364,158 | 382,791 | |
Operating expenses | 687,620 | 710,559 | |
1,354,496 | 1,369,737 | ||
NET LOSS | $ (222,293) | $ (191,055) | |
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. |
|
| |
|
|
| |
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 36
2006 | 2005 | ||
Revenues | |||
Rental | $ 806,412 | $ 789,261 | |
Interest and other | 24,922 | 18,504 | |
831,334 | 807,765 | ||
Expenses | |||
Interest | 243,562 | 243,789 | |
Depreciation and amortization | 264,587 | 267,222 | |
Operating expenses | 431,940 | 425,472 | |
940,089 | 936,483 | ||
NET LOSS | $ (108,755) | $ (128,718) | |
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. * |
|
| |
|
|
| |
|
* Amounts include $651 and $244 for 2006 and 2005, respectively, of income loss not recognized under the equity method of accounting.
The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 37
2006 | 2005 | ||
Revenues | |||
Rental | $ 1,103,489 | $ 1,085,835 | |
Interest and other | 15,145 | 62,864 | |
1,118,634 | 1,148,699 | ||
Expenses | |||
Interest | 274,464 | 315,679 | |
Depreciation and amortization | 423,246 | 347,069 | |
Operating expenses | 612,032 | 635,259 | |
1,309,742 | 1,298,007 | ||
NET LOSS | $ (191,108) | $ (149,308) | |
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. |
|
| |
|
|
| |
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 38
2006 | 2005 | ||
Revenues | |||
Rental | $ 841,383 | $ 772,539 | |
Interest and other | 41,470 | 26,311 | |
882,853 | 798,850 | ||
Expenses | |||
Interest | 214,158 | 206,522 | |
Depreciation and amortization | 297,190 | 244,765 | |
Operating expenses | 448,149 | 472,709 | |
959,497 | 923,996 | ||
NET LOSS | $ (76,644) | $ (125,146) | |
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. |
|
| |
|
|
| |
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 39
2006 | 2005 | ||
Revenues | |||
Rental | $ 627,640 | $ 518,595 | |
Interest and other | 39,573 | 50,462 | |
667,213 | 569,057 | ||
Expenses | |||
Interest | 162,969 | 163,816 | |
Depreciation and amortization | 271,656 | 186,918 | |
Operating expenses | 420,034 | 423,590 | |
854,659 | 774,324 | ||
NET LOSS | $ (187,446) | $ (205,267) | |
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. |
|
| |
Net loss allocated to other Partners |
|
| |
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 40
2006 | 2005 | ||
Revenues | |||
Rental | $ 912,602 | $ 872,195 | |
Interest and other | 27,218 | 37,521 | |
939,820 | 909,716 | ||
Expenses | |||
Interest | 237,497 | 245,253 | |
Depreciation and amortization | 346,792 | 364,694 | |
Operating expenses | 547,246 | 487,378 | |
1,131,535 | 1,097,325 | ||
NET LOSS | $ (191,715) | $ (187,609) | |
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. |
|
| |
|
|
| |
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 41
2006 | 2005 | ||
Revenues | |||
Rental | $ 1,273,314 | $ 1,262,274 | |
Interest and other | 54,418 | 53,610 | |
1,327,732 | 1,315,884 | ||
Expenses | |||
Interest | 535,424 | 496,629 | |
Depreciation and amortization | 486,867 | 497,657 | |
Operating expenses | 715,516 | 678,541 | |
1,737,807 | 1,672,827 | ||
NET LOSS | $ (410,075) | $ (356,943) | |
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. * |
|
| |
|
|
| |
* Amounts include $68,961 and $66,970 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.
The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 42
2006 | 2005 | ||
Revenues | |||
Rental | $ 1,333,357 | $ 1,384,885 | |
Interest and other | 43,338 | 45,855 | |
1,376,695 | 1,430,740 | ||
Expenses | |||
Interest | 375,502 | 437,089 | |
Depreciation and amortization | 449,043 | 476,449 | |
Operating expenses | 841,051 | 688,586 | |
1,665,596 | 1,602,124 | ||
NET LOSS | $ (288,901) | $ (171,384) | |
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. * |
|
| |
|
|
| |
* Amounts include $1,703 and $0 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.
The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 43
2006 | 2005 | ||
Revenues | |||
Rental | $ 1,562,705 | $ 1,486,687 | |
Interest and other | 45,191 | 86,424 | |
1,607,896 | 1,573,111 | ||
Expenses | |||
Interest | 382,774 | 412,333 | |
Depreciation and amortization | 595,882 | 624,051 | |
Operating expenses | 972,883 | 900,005 | |
1,951,539 | 1,936,389 | ||
NET LOSS | $ (343,643) | $ (363,278) | |
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. * |
|
| |
|
|
| |
* Amounts include $32,358 and $0 for 2006 and 2005, respectively, of loss not recognized under the equity method of accounting.
The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 44
2006 | 2005 | ||
Revenues | |||
Rental | $ 1,298,123 | $ 932,676 | |
Interest and other | 59,360 | 30,335 | |
1,357,483 | 963,011 | ||
Expenses | |||
Interest | 511,543 | 311,144 | |
Depreciation and amortization | 370,525 | 349,580 | |
Operating expenses | 766,560 | 484,951 | |
1,648,628 | 1,145,675 | ||
NET LOSS | $ (291,145) | $ (182,664) | |
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. |
|
| |
|
|
| |
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 45
2006 | 2005 | ||
Revenues | |||
Rental | $ 1,848,254 | $ 1,198,458 | |
Interest and other | 110,063 | 44,823 | |
1,958,317 | 1,243,281 | ||
Expenses | |||
Interest | 616,288 | 314,396 | |
Depreciation and amortization | 594,553 | 281,952 | |
Operating expenses | 1,109,708 | 721,667 | |
2,320,549 | 1,318,015 | ||
NET LOSS | $ (362,232) | $ (74,734) | |
Net loss allocated to Boston Capital Tax Credit Fund IV L.P. |
|
| |
|
|
| |
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months Ended March 31,
(Unaudited)
Series 46
2006 | 2005 | |||
Revenues | ||||
Rental | $ 993,966 | $ 800,073 | ||
Interest and other | 21,776 | 7,686 | ||
1,015,742 | 807,759 | |||
Expenses | ||||
Interest | 339,527 | 195,745 | ||
Depreciation and amortization | 280,174 | 179,665 | ||
Operating expenses | 544,616 | 476,125 | ||
1,164,317 | 851,535 | |||
NET GAIN (LOSS) | $ (148,575) | $ (43,776) | ||
Net gain (loss) allocated to Boston Capital Tax Credit Fund IV L.P. |
|
| ||
|
|
| ||
Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2006
(Unaudited)
NOTE D - INVESTMENT IN OPERATING PARTNERSHIPS-CONTINUED
When comparing the results of operations from the Operating Partnerships for the three months ended March 31, 2006 and 2005 numerous variances, some material in nature, exist. The variances, in most cases, are the result of a number of factors, including an increase in the number of Operating Partnerships owned, an increase in the number which have completed construction, and an increase in the number which have completed the lease-up phase.
NOTE E - TAXABLE LOSS
The Fund's taxable loss for the fiscal year ended December 31, 2006 is expected to differ from its loss for financial reporting purposes. This is primarily due to accounting differences in depreciation incurred by the Operating Partnerships and also differences between the equity method of accounting and the IRS accounting methods. No provision or benefit for income taxes has been included in these financial statements since taxable income or loss passes through to, and is reportable by, the partners and assignees individually.
Item 2. Management's Discussions and Analysis of Financial Condition and
Results of Operations
Liquidity
The Fund's primary source of funds is the proceeds of its Public Offering. Other sources of liquidity will include (i) interest earned on capital contributions held pending investment and on working capital and (ii) cash distributions from operations of the Operating Partnerships in which the Fund has and will invest. The Fund does not anticipate significant cash distributions from operations of the Operating Partnerships.
The Fund is currently accruing the fund management fee for 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, Series 44, and Series 46. Pursuant to the Partnership Agreement, there liabilities will be deferred until the Fund receives sales or refinancing proceeds from the Operating Partnerships, which will be used to satisfy there liabilities. The Fund's working capital and sources of liquidity coupled with affiliated party liability accruals allow sufficient levels of liquidity to meet the third party obligations of the Fund. The Fund is currently unaware of any trends which would create insufficient liquidity to meet future third party obligations.
Capital Resources
The Fund offered BACs in a Public Offering declared effective by the Securities and Exchange Commission on December 16, 1993. The Fund received $38,667,000, $18,927,000, $25,644,000, $33,366,000, $21,697,000, $30,248,000, $39,959,000, $24,607,000, $39,999,000, $39,918,000, $26,490,750, $44,057,750, $47,431,000, $26,362,000, $35,273,000, $33,004,630, $21,068,375, $25,125,000, $25,431,000, $22,921,000, $26,629,250, $28,916,260, $27,442,620, $27,442,620, $36,379,870, $27,019,730, $40,143,670 and $29,809,980 representing 3,866,700, 1,892,700, 2,564,400, 3,336,727, 2,169,878, 3,026,109, 3,995,900, 2,460,700, 4,000,738, 3,991,800, 2,651,000, 4,417,857, 4,754,198, 2,636,533, 3,529,319, 3,300,463, 2,106,837, 2,512,500, 2,543,100, 2,292,152, 2,630,257, 2,891,626, 2,744,262, 3,637,987, 2,701,973, 4,014,367 and 2,908,998 BACs from investors admitted as BAC Holders 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, Se ries 33, Series 34, Series 35, Series 36, Series 37, Series 38, Series 39, Series 40, Series 41, Series 42, Series 43, Series 44, Series 45 and Series 46, respectively, as of June 30, 2006.
Series 20
The Fund commenced offering BACs in Series 20 on January 21, 1994. Offers and sales of BACs in Series 20 were completed on June 24, 1994. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 24 Operating Partnerships in the amount of $27,693,970. Series 20 has since sold its interest in two of the Operating Partnerships.
Prior to the quarter ended June 30, 2006, Series 20 had released all payments of its capital contributions to the Operating Partnerships.
Series 21
The Fund commenced offering BACs in Series 21 on July 1, 1994. Offers and sales of BACs in Series 21 were completed on December 31, 1994. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 14 Operating Partnerships in the amount of $13,872,728.
During the quarter ended June 30, 2006, Series 21 did not record any releases of capital contributions. Series 21 has outstanding contributions payable to 1 Operating Partnership in the amount of $236,479 as of June 30, 2006, all of which has been loaned to the Operating Partnerships. The loans will be converted to capital when the Operating Partnership has achieved the conditions set forth in its partnership agreement.
Series 22
The Fund commenced offering BACs in Series 22 on October 10, 1994. Offers and sales of BACs in Series 22 were completed on December 28, 1994. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 29 Operating Partnerships in the amount of $18,758,748.
During the quarter ended June 30,2006, Series 22 did not record any releases of capital contributions. Series 22 has outstanding contributions payable to 2 Operating Partnerships in the amount of $20,270 as of June 30, 2006. The remaining contributions will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.
Series 23
The Fund commenced offering BACs in Series 23 on January 10, 1995. Offers and sales of BACs in Series 23 were completed on September 23, 1995. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 22 Operating Partnerships in the amount of $24,352,278.
Prior to the quarter ended June 30, 2006, Series 23 had released all payments of its capital contributions to the Operating Partnerships.
Series 24
The Fund commenced offering BACs in Series 24 on June 9, 1995. Offers and sales of BACs in Series 24 were completed on September 22, 1995. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 24 Operating Partnerships in the amount of $15,796,309.
During the quarter ended June 30,2006, Series 24 did not record any releases of capital contributions. Series 24 has outstanding contributions payable to 1 Operating Partnership in the amount of $9,999 as of June 30, 2006. The remaining contributions will be released when the Operating Partnership has achieved the conditions set forth in its partnership agreement.
Series 25
The Fund commenced offering BACs in Series 25 on December 31, 1995. Offers and sales of BACs in Series 25 were completed on December 29, 1995. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 22 Operating Partnerships in the amount of $22,324,540.
During the quarter ended June 30, 2006, Series 25 did not record any releases of capital contributions. Series 25 has outstanding contributions payable to 2 Operating Partnerships in the amount of $61,733 as of June 30, 2006. The remaining contributions will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.
Series 26
The Fund commenced offering BACs in Series 26 on January 18, 1996. Offers and sales of BACs in Series 26 were completed on June 25, 1996. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 45 Operating Partnerships in the amount of $29,401,215.
During the quarter ended June 30, 2006, Series 26 did not record any releases of capital contributions. Series 26 has outstanding contributions payable to 3 Operating Partnerships in the amount of $29,490, as of June 30, 2006. The remaining contributions will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.
Series 27
The Fund commenced offering BACs in Series 27 on June 24, 1996. Offers and sales of BACs in Series 27 were completed on September 17, 1996. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 16 Operating Partnerships in the amount of $17,881,573.
During the quarter ended June 30, 2006, Series 27 did not record any releases of capital contributions. Series 27 has outstanding contributions payable to 3 Operating Partnerships in the amount of $39,749 as of June 30, 2006. 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 respective partnership agreements.
Series 28
The Fund commenced offering BACs in Series 28 on December 31,1996. Offers and sales of BACs in Series 28 were completed on January 31, 1997. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 26 Operating Partnership in the amount of $29,281,983.
During the quarter ended June 30, 2006, Series 28 did not record any releases of capital contributions. Series 28 has outstanding contributions payable to 3 Operating Partnerships in the amount of $40,968 as of June 30, 2006. The remaining contributions will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.
Series 29
The Fund commenced offering BACs in Series 29 on February 10, 1997. Offers and sales of BACs in Series 29 were completed on June 10, 1997. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 22 Operating Partnerships in the amount of $29,137,872.
During the quarter ended June 30, 2006, Series 29 did not record any releases of capital contributions. Series 29 has outstanding contributions payable to 4 Operating Partnerships in the amount of $45,783 as of June 30, 2006. The remaining contributions will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.
Series 30
The Fund commenced offering BACs in Series 30 on June 23, 1997. Offers and sales of BACs in Series 30 were completed on September 10, 1997. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 20 Operating Partnerships in the amount of $19,497,869.
During the quarter ended June 30, 2006, Series 30 did not record any releases of capital contributions. Series 30 has outstanding contributions payable to 4 Operating Partnerships in the amount of $127,396 as of June 30, 2006. The remaining contributions will be released when Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.
Series 31
The Fund commenced offering BACs in Series 31 on September 11, 1997. Offers and sales of BACs in Series 31 were completed on January 18, 1998. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 27 Operating Partnerships in the amount of $32,569,100.
During the quarter ended June 30, 2006, Series 31 did not record any releases of capital contributions. Series 31 has outstanding contributions payable to 5 Operating Partnerships in the amount of $611,150 as of June 30, 2006. Of the amount outstanding, $544,766 has been advanced or loaned to some of the Operating Partnerships. In addition, $25,000 has been funded into an escrow account on behalf of another Operating Partnership. The advances and loans will be converted to capital and the remaining contributions of $66,384, as well as the escrowed funds, will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.
Series 32
The Fund commenced offering BACs in Series 32 on January 19, 1998. Offers and sales of BACs in Series 32 were completed on June 23, 1998. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 17 Operating Partnerships in the amount of $34,129,677. The series has also 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 various profits, losses, tax credits, cash flow, proceeds from capital transactions and capital account as defined in the individual Operating Agreements. The series utilized $1,092,847 of funds available to invest in Operating Partnerships for this investment.
During the quarter ended June 30, 2006, Series 32 did not record any releases of capital contributions. Series 32 has outstanding contributions payable to 5 Operating Partnerships in the amount of $484,756 as of June 30, 2006. Of the amount outstanding, $225,756 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 Operating Partnership. The loans will be converted to capital and the remaining contributions of $259,000, as well as the escrowed funds, will be released when Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.
Series 33
The Fund commenced offering BACs in Series 33 on June 22, 1998. Offers and sales of BACs in Series 33 were completed on September 21, 1998. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 10 Operating Partnerships in the amount of $19,594,100.
During the quarter ended June 30, 2006, Series 33 did not record any releases of capital contributions. Series 33 has outstanding contributions payable to 3 Operating Partnerships in the amount of $194,154 as of June 30, 2006. Of the amount outstanding, $21,806 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 $172,348, as well as the escrowed funds, will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.
Series 34
The Fund commenced offering BACs in Series 34 on September 22, 1998. Offers and sales of BACs in Series 34 were completed on February 11, 1999. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 14 Operating Partnerships in the amount of $25,738,978.
During the quarter ended June 30, 2006, Series 34 did not record any releases of capital contributions. Series 34 has outstanding contributions payable to 1 Operating Partnership in the amount of $8,244 as of June 30, 2006. The remaining contributions will be released when the Operating Partnershi has achieved the conditions set forth in its respective partnership agreement.
Series 35
The Fund commenced offering BACs in Series 35 on February 22, 1999. Offers and sales of BACs in Series 35 were completed on June 25, 1999. The Fund has committed
proceeds to pay initial and additional installments of capital contributions to 11 Operating Partnerships in the amount of $24,002,391.
During the quarter ended June 30, 2006, Series 35 did not record any releases of capital contributions. Series 35 has outstanding contributions payable to 1 Operating Partnership in the amount of $163,782 as of June 30, 2006. The remaining contributions will be released when the Operating Partnership has achieved the conditions set forth in its partnership agreement.
Series 36
The Fund commenced offering BACs in Series 36 on June 22, 1999. Offers and sales of BACs in Series 36 were completed on September 28, 1999. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 11 Operating Partnerships in the amount of $15,277,041.
Prior to the quarter ended June 30, 2006, Series 36 had released all payments of its capital contributions to the Operating Partnerships.
Series 37
The Fund commenced offering BACs in Series 37 on October 29, 1999. Offers and sales of BACs in Series 37 were completed on January 28, 1999. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 7 Operating Partnerships in the amount of $18,735,142.
During the quarter ended June 30, 2006, Series 37 did not record any releases of capital contributions. Series 37 has outstanding contributions payable to 1 Operating Partnership in the amount of $138,438 as of June 30, 2006. The remaining contributions will be released when the Operating Partnership has achieved the conditions set forth in its partnership agreement.
Series 38
The Fund commenced offering BACs in Series 38 on February 1, 2000. Offers and sales of BACs in Series 38 were completed on July 31, 2000. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 10 Operating Partnerships in the amount of $18,612,287. In addition the Fund committed and 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 operating apartment complexes.
Prior to the quarter ended June 30, 2006, Series 38 had released all payments of its capital contributions to the Operating Partnerships.
Series 39
The Fund commenced offering BACs in Series 39 on August 1, 2000. Offers and sales of BACs in Series 39 were completed on January 31, 2001. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 9 Operating Partnerships in the amount of $17,115,492 as of June 30, 2006. In addition, the Fund committed and 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.
Prior to the quarter ended June 30, 2006, Series 39 had released all payments of its capital contributions to the Operating Partnerships.
Series 40
The Fund commenced offering BACs in Series 40 on February 1, 2001. Offers and sales of BACs in Series 40 were completed on July 31, 2001. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 16 Operating Partnerships in the amount of $19,033,519 as of June 30, 2006. In addition, the Fund committed and used $578,755 of Series 40 net offering proceeds to acquire 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.
During the quarter ended June 30, 2006, Series 40 did not record any releases of capital contributions. Series 40 has outstanding contributions payable to 2 Operating Partnerships in the amount of $8,694 as of June 30, 2006. The remaining contributions will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.
Series 41
The Fund commenced offering BACs in Series 41 on August 1, 2001. Offers and sales of BACs in Series 41 were completed on January 31, 2002. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 23 Operating Partnerships in the amount of $21,278,631. In addition, the Fund committed and used $195,249 of Series 41 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. As of June 30, 2006 1 of the properties has been disposed of and 22 remain.
During the quarter ended June 30, 2006, Series 41 recorded capital contributions releases of $80,401. Series 41 has outstanding contributions payable to 1 Operating Partnership in the amount of $165 as of June 30, 2006. The remaining contributions will be released when the Operating Partnership has achieved the conditions set forth in its partnership agreement.
Series 42
The Fund commenced offering BACs in Series 42 on February 1, 2002. Offers and sales of BACs in Series 42 were completed on July 31, 2002. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 23 Operating Partnerships in the amount of $20,504,837.
During the quarter ended June 30, 2006, Series 42 recorded capital contributions releases of $292,695. Series 42 has outstanding contributions payable to 7 Operating Partnerships in the amount of $702,672 as of June 30, 2006. Of the amount outstanding, $183,295 has been advanced or loaned to the Operating Partnerships. The loans and advances will be converted to capital and the remaining contributions of $519,377 will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.
Series 43
The Fund commenced offering BACs in Series 43 on August 1, 2002. Offers and sales of BCAs in Series 43 were completed in December 31, 2002. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 23 Operating Partnerships in the amount of $26,293,091. The Fund also committed and used $805,160 of Series 43 net offering proceeds to acquire 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. In addition, the Fund committed and used $268,451 of net offering proceeds to acquire the general partner equity interest in all of the Operating Partnerships in Series 43.
During the quarter ended June 30, 2006, Series 43 recorded capital contribution releases of $136,066. Series 43 has outstanding contributions payable to 6 Operating Partnerships in the amount of $490,522 as of June 30, 2006. Of the amount outstanding, $250,302 has been advanced or loaned to the Operating Partnerships. The loans and advances will be converted to capital and the remaining contributions of $240,220 will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.
Series 44
The Fund commenced offering BACs in Series 44 on January 14, 2003. Offers and sales of BACs in Series 44 were completed in April 30, 2003. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 10 Operating Partnerships in the amount of $20,248,519. In addition, the Fund committed and used $164,164 of Series 44 net offering proceeds to acquire the general partner equity interest in all of the Operating Partnerships in Series 44.
During the quarter ended June 30, 2006, Series 44 recorded capital contribution releases of $233,600. Series 44 has outstanding contributions payable to 3 Operating Partnerships in the amount of $781,022 as of June 30, 2006. Of the amount outstanding, $196,604 has been advanced or loaned to the Operating Partnerships. The loans and advances will be converted to capital and the remaining contributions of $584,418 will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.
Series 45
The Fund commenced offering BACs in Series 45 on July 1, 2003. Offers and sales of BACs in Series 45 were completed on September 16, 2003. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 31 Operating Partnerships in the amount of $30,232,512. In addition, the Fund committed and used $302,862 of Series 45 net offering proceeds to acquire the general partner equity interest in all of the Operating Partnerships in Series 45.
During the quarter ended June 30, 2006, Series 45 recorded capital contribution releases of $77,433. Series 45 has outstanding contributions payable to 5 Operating Partnerships in the amount of $1,360,047 as of June 30, 2006. Of the amount outstanding, $567,543 has been advanced or loaned to the Operating Partnerships. The loans and advances will be converted to capital and the remaining contributions of $792,504 will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.
Series 46
The Fund commenced offering BACs in Series 46 on September 23, 2003. Offers and sales of BACs in Series 46 were completed on December 19, 2003. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 14 Operating Partnerships in the amount of $21,634,875. In addition, the Fund committed and used $228,691 of Series 46 net offering proceeds to acquire the general partner equity interest in all of the Operating Partnerships in Series 46.
During the quarter ended June 30, 2006, Series 46 recorded capital contribution releases of $985,191. Series 46 has outstanding contributions payable to 9 Operating Partnerships in the amount of $1,116,969 as of June 30, 2006. The remaining contributions will be released when the Operating Partnerships have achieved the conditions set forth in their respective partnership agreements.
Results of Operations
As of June 30, 2006 and 2005, the Fund held limited partnership interests in 517 and 512 Operating Partnerships, respectively. In each instance the apartment complex owned by the applicable Operating Partnership is eligible for the federal housing tax credit. Initial occupancy of a unit in each Apartment Complex which complied with the minimum set-aside test (i.e., initial occupancy by tenants with incomes equal to no more than a certain percentage of area median income) and the rent restriction test (i.e., gross rent charged tenants does not exceed 30% of the applicable income standards) is referred to as "Qualified Occupancy." Each of the Operating Partnerships and each of the respective apartment complexes are described more fully in the Prospectus or applicable report on Form 8-K. The general partner of the Fund believes that there is adequate casualty insurance on the properties.
The Fund's results of operations for future periods will vary significantly from those for the period ended June 30, 2006, as Series 46 continues to use the funds raised to invest in partnership interests of additional Operating Partnerships.
The Fund incurred a fund management fee to Boston Capital Asset Management Limited Partnership in an amount equal to .5 percent of the aggregate cost of the apartment complexes owned by the Operating Partnerships, less the amount of various asset management and reporting fees paid by the Operating Partnerships. The Fund management fees incurred for the quarter ended June 30, 2006 for 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, Series 44, Series 45 and Series 46 were $79,406, $52,922, $58,125, $58,816, $55,083, $64,286, $106,152, $75,171, $48,529, $83,245, $48,580, $99,360, $69,885, $26,071, $73,299, $57,090, $39,861, $43,216, $33,900, $34,200, $35,753, $51,936, $61,489, $74,530, $52,976, $85,673 and $61,035, respectively.
The Fund's investment objectives do not include receipt of significant cash distributions from the Operating Partnerships in which it has invested or intends to invest. The Fund's investments in Operating Partnerships have been and will be made principally with a view towards realization of federal housing tax credits for allocation to its partners and BAC holders.
Series 20
As of June 30, 2006 and 2005 the average Qualified Occupancy for the series was 100%. The series had a total of 22 properties at June 30, 2006, all of which were at 100% Qualified Occupancy.
For the period ended June 30, 2006 and 2005, Series 20 reflects net loss from Operating Partnerships of $(320,614) and $(210,958), respectively, which includes depreciation and amortization of $575,846 and $694,506, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Series 20 has invested in 4 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity, which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). The Operating Partnerships are Coushatta Seniors II Apartments, Floral Acres Apartments II, Harrisonburgh Seniors Apartments and Shady Lane Apartments. Coushatta Seniors II Apts, Floral Acres Apts, Harrisonburgh Seniors Apts and Shady Lane Apts sustained minor damage to shingles, roof vents, and sheetrock due to Hurricane Rita and Katrina. All repairs for Coushatta Seniors II Apts were completed on January 25, 2006 and were paid for out of operations. All repairs for Shady Lane Apts were completed on September 29, 2005 and were paid for out of operations. Damage to Harrisonburg Seniors was minor and repairs were completed on July 17, 2006. Repairs were paid for out of operations. Damage to Floral Acres Apts II is listed as being major. Missing shingles were replaced for $8,348 and missing vinyl siding was replaced for $2,500. Repairs were paid for out of the reserve account. 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 Reimer 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 some members of the Reimer 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 general 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 that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.
In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.
On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.
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.
In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.
With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. 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.
Murray Calhoun and the Investment General Partner and its affiliates have all 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. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.
In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.
The operating general partner of Breeze Cove Limited Partnership entered into an agreement to sell the property and the transaction closed in March 2006. As part of the purchase agreement, the buyer is required to maintain the property as affordable housing through the end of the tax credit compliance period, and to provide a recapture bond to avoid the recapture of the tax credits that have been taken. After payment of the outstanding mortgage balance of approximately $1,828,883, the proceeds to the investment limited partner were $512,415, all of which were allocated to Series 20. Of the total investment partnership proceeds received, $10,000 represents payment of outstanding reporting fees due to an affiliate of the investment partnership; approximately $14,501 represents reimbursement of expenses incurred related to the sale, which includes but is not limited to due diligence and legal; and $487,914 represents partial reimbursement for outstanding operating advances made by the investment partnershi p to the property. Annual losses generated by the Operating Partnership, which were applied against the investment limited partner's investment in the Operating Partnership in accordance with the equity method of accounting had previously reduced the investment in the Operating Partnership to zero. Advances made by the investment limited partner that were not repaid from the sale proceeds totalled $954,317 and have been recorded as a loss on the sale of the Operating Partnership as of March 31, 2006. An additional gain on the sale of the Investment Limited Partner Interest of $7,016 was realized in the quarter ended June 30, 2006.
East Douglas Apartments Limited Partnership (East Douglas Apartments) has historically operated at or just below breakeven due to a combination of the low rent structure allowed by the state tax credit monitoring agency, the Illinois Housing Development Authority (IHDA), and high debt. The property operated at just below breakeven in 2004 and generated $12,406 in 2005.
Physical occupancy averaged 94% in 2004 and 93% in 2005. In the second quarter of 2006, occupancy was 92% and the year to date occupancy is 93%. The most recent rental rates and utility allowances released by Illinois Housing Development Authority actually result in an approximate 1% decrease in rents and 3-5% increase in the utility allowance. The property has expended cash for the first half of 2006; however, the deficit is due to capital needs expenses that have may be reimbursed from the replacement and operating reserves. The mortgage, property taxes and insurance are all current.
The operating general partner is attempting to refinance the first mortgage with Illinois Housing Development Authority to replace the high interest first mortgage loan held by Arbor Commercial Mortgage. Due to the restrictions associated with the HOME loan, it is not possible to seek conventional financing to replace the current debt.
A physical needs assessment was completed in 2004 which enumerated many needed repairs, including tuck pointing, replacement or repair of the windows and deteriorating wooden trim. During the fourth quarter of 2005, the lender released funds from the operating deficit reserve in the amount of $61,426 which covered much of the cost of the repairs. The Tax Increment Financing, a program that provides financing to blighted areas through bond issuance, was set to expire in May of 2006, but was extended by the City Council through the end of the City's Enterprise Zone Redevelopment Plan in 2009.
Parkside Housing, LP (Parkside Apartments) is a 54 unit family apartment complex in Avondale, Arizona. In March 2005, the operating general partner entered into an agreement to sell the property and the transaction closed in the second quarter of 2005. As part of the purchase agreement, the buyer is required to maintain the property as affordable housing through the end of the tax credit compliance period, and to provide a recapture bond to avoid the recapture of the tax credits that have been taken. After payment of the outstanding mortgage balance of approximately $960,068, the proceeds to the investment limited partner were $441,525. Of the total investment limited partner proceeds received, $12,000 represented payment of outstanding reporting fees due to an affiliate of the investment limited partner. Of the remaining proceeds, the net distribution to investors was approximately $371,348. This represented a per BAC distribution of $.10. The total return to the investors was distributed based on the number of BAC held by each investor. The remaining proceeds of $58,177 was paid to BCAMLP or other related entities for fees and expenses related to the sale and partial reimbursement of amounts payable to affiliates. The breakdown of the amount paid to BCAMLP is as follows: $49,177 represented partial reimbursement for outstanding advances and asset management fees; and $9,000 represented reimbursement for expenses incurred related to the sale, which included legal and mailing costs. Annual losses generated by the Operating Partnership, which were applied against the investment limited partner's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero.Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the reimbursement of overhead and expenses incurred for overseeing and managing the disposition of the property, has been recorded in the amount of $401,525 as of June 30, 2005 and an addition $19,000 in March 31, 2006.
Clarksville Estates, L.P. is a 30-unit property located in Clarksville, Missouri. The property suffered from low occupancy and operated below breakeven through the second quarter of 2006. However, occupancy has recently started to improve and was 90% as of July 2006, with 27 of the 30 units occupied and the remaining three units in a rent-ready condition. Management improved their marketing efforts by holding a weekend open house which increased traffic to the property and yielded two approved applicants. The investment general partner will continue to work with management on maintaining improved occupancy and monitor operations closely until the property has stabilized. The mortgage, taxes, and insurance are all current.
Series 21
As of June 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 14 properties at June 30, 2006, all of which were at 100% Qualified Occupancy.
For the period ended June 30, 2006 and 2005, Series 21 reflects net loss from Operating Partnerships of $(452,539) and $(399,518), respectively, which includes depreciation and amortization of $220,277 and $221,263, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Atlantic City Housing Urban Renewal Associates, LP (Atlantic City Apartments) filed for protection under Chapter 11 of the Bankruptcy Code in June of 2001. The property remains in bankruptcy at this time. The central components of the Plan of Reorganization are as follows: the holders of the existing municipal bond debt will surrender that debt and receive, in replacement, a new issue at $0.60 per dollar of the existing principal balance ($2.31 million of new debt). Vision 2000 and Subsidized Properties LLC will acquire the operating general partnership's interest in the property. The present operating general partners/guarantors will withdraw in consideration of making a $400,000 payment to the operating partnership. The investment general partner will provide an unsecured $500,000 loan, at 1.7% interest, maturing at the end of the compliance period with a $1 buy-out option at that time.
The Plan of Reorganization was confirmed in September of 2003. The effective date, however, did not occur then, as is typical in most bankruptcy cases. Numerous issues arising among the large number of constituents with disparate interests resulted in a delay which has been prolonged to the present. During this period, the Plan proponent effectively took control of and managed the property through a management company that it engaged in late 2004. Despite significant improvements to the physical condition of the property, property expenses (especially security, maintenance and insurance) remained stubbornly high and the property was not able to generate cash flow as projected under the Plan.
As of June 2006, the property was 92% occupied. Occupancy dropped in the first half of 2006 when management attempted to apply more stringent application criteria to counter undesirable tenant behavior at the property. Revenue for the six months was $778,722 and bothnet operating incomeand cash flow were negative ($123,893). Cash flow equals net operating income because the partnership is not currently making debt payments.
As the above performance indicates, the property has not generated sufficient cash flow in recent years to service the debt contemplated under the Plan of Reorganization. Starting in the first quarter of 2006, the investment general partner began raising its concern that, given this performance, the Plan was no longer feasible. The concern was raised first with the proponent and later before the court. During this period, various disputes among the constituents (over legal fees and provisions of the new bond indenture) continued to prevent the parties from reaching a closing. In June 2006, HUD threatened to terminate the Housing Assistance Payment contract supporting the property if the closing did not occur within 30 days. HUD's action caused the property management company to resign. At the same time, the prospective indenture trustee withdrew (although the existing trustee expressed a willingness to take over that role again).
At a hearing in July 2006, the Judge acknowledged that the proponent's Plan was unlikely to become effective. The parties discussed immediate steps to ensure stability at the property. The parties agreed on the following strategy: Atlantic City Housing Authority would take over management of the property, obtain an appraisal and purchase the property from the bondholders for fair market value.
If this scenario unfolds, it is likely that the property will be sold via a section 363 sale under the bankrupcy code. If further problems develop, the case may be converted to a Chapter 7 liquidation. Under either scenario, the investment limited partner could lose the small amount of remaining tax credits and experience recapture of the accelerated credits in the latter part of 2006.
Centrum-Fairfax I, LP (Forest Glen at Sully Station, Phase I) is a 119 unit property located in Centrville, VA. The property continues to incur operating deficits due to low occupancy. The average occupancy through the fourth quarter of 2005 was 71%. In the first quarter of 2006 average occupancy was 43% and in the second quarter the physical occupancy increased to 61%. The operating general partner is in the process of reconfiguring the property to have only 83 units, which would reduce the number of 1 bedroom units from 100 to 29 while increasing the number of two bedroom units from 19 to 55. The conversion of the units has started in early June 2006 and it is anticipated to be complete by mid October 2006. The funding to complete the work will come from the Virginia Housing Authority in the amount of $580,000. The operating general partner continues to fund operating deficits and through the end of 2005 funded $837,502.
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 95% in 2005. Through the second quarter of 2006, the average occupancy was 93%. Operating expenses are below the investment general partner's state average. Although occupancy is high and expenses remain reasonable, low rental rates in the area prevented the property from achieving breakeven operations through the second quarter of 2006. The management company continues to market the available units by working closely with the housing authority, and by continuing various marketing efforts to attract qualified residents. The operating general partner continues to financially support the Operating 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 90% for the year 2005. Occupancy increased to an average of 92% in the second quarter 2006. Even though the occupancy improved and operating expenses are below the investment general partner's state average, low rental rates in the area prevented the property from achieving breakeven operations through the second quarter of 2006. 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 Operating Partnership. The mortgage, taxes, insurance and payables are current.
Lookout Ridge LP (Lookout Ridge Apts.) is a 30 unit development located in Covington, KY. The property is operating below breakeven due to high operating expenses and low occupancy, which relate to a lack of subsidy and unit turnover costs. Throughout the second quarter of 2006 the property has maintained 90% average occupancy. Part-time management and subcontracted maintenance services have assisted in the lowering of operating costs. The investment limited partner will continue to work with the operating general partner to identify ways in which to improve the overall operations of the property. In addition, management continues to work with Cincinnati Development to obtain financing to cover the cost of the necessary repairs to improve overall curb appeal of the property. The property's mortgage and real estate taxes are current. To date, the operating general partner has funded $296,613 in deficits. The property's compliance period ends in 2010.
Pinedale II, LP (Pinedale Apartments II) is a 60 unit, family property located in Menomonie, Wisconsin. The property operated with an average occupancy of 91% in 2005. Occupancy has been consistent with the prior year through the second quarter of 2006. The property's operating expenses are below the investment general partner's state average. Despite occupancy in the 90%s, low rental rates in the area prevented the property from achieving breakeven operations through the second quarter of 2006. 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 June 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 29 properties at June 30, 2006, all of which were at 100% Qualified Occupancy.
For the period ended June 30, 2006 and 2005, Series 22 reflects net loss from Operating Partnerships of $(263,079) and $(354,418), respectively, which includes depreciation and amortization of $413,654 and $478,420, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Elks Tower Apartments, LP (Elks Tower Apartments) is a 27 unit development located in Litchfield, IL. The property suffered a downturn in operations in 2004 with occupancy averaging 79%. In 2005 this trend reversed and occupancy finished the year averaging 89%. However, through the second quarter of 2006, the property expended $12,090 of cash and occupancy averaged 78%. The reasons for low occupancy include, job relocations, new competition to the area, and older residents leaving for health reasons. The operating general partner has made changes this year with increased marketing by advertising with new signs in the yard and surrounding area and newspaper advertisements that cover three counties. The operating general partner is also using tenant referral incentives to help increase the occupancy. Expenses through second quarter of 2006 are 14% lower compared to 2005. The operating general partner expects expenses to continue to decrease due to many one time maintenance expenses which occurred in 2 005. Taxes and the mortgage are current for this property.
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 90% for the year 2005. Occupancy increased to an average of 92% in the second quarter 2006. Even though the occupancy improved and operating expenses are below the investment general partner's state average, low rental rates in the area prevented the property from achieving breakeven operations through the second quarter of 2006. 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 Operating Partnership. The mortgage, taxes, insurance and payables are current.
Bayou Crossing, LP (Bayou Crossing Apartments) is a 290 unit property located in Hillsborough County, Florida. During the early part of 2005, management detected an increase in lease violations as well as an increase in non-payment of rent. Residents who were unable to meet their financial obligations and were violating management regulations were evicted. Additional expenses associated with the surge of evictions and unit turnover preparations have caused the property to experience an increase in maintenance and administrative costs. As of second quarter 2006, occupancy maintains an average of 90%. Management continues to enforce stringent resident screening policies to strength the quality of its resident base. Marketing efforts continue to generate traffic and it is management's intent to taper rental concessions by the end of 2006. The property's real estate taxes, insurance and mortgage payments are current. The operating deficit guarantee is unlimited until December 2011.
Roxbury Veterans Housing, LP (Highland House) is a 14-unit property located in Roxbury, Massachusetts. The operating general partner has been inconsistent in reporting occupancy and operational numbers to the investment general partner. In September of 2005 final copies of the 2003 and 2004 audited financial reports were received showing cash expended of ($37,795) and ($7,530), respectively. In August of 2006, a draft version of the 2005 audit showed cash expended of ($45,385) and that the first mortgage on the property was in default, triggering a default with the second mortgage. Management is working to correct the defaults. Reported occupancy for the second quarter of 2006 was 90%, a slight improvement from the average 2005 occupancy of 88%. The investment general partner has diligently discussed the importance of timely reporting with the managing agent. The operating general partner has a guarantee that is unlimited in time and amount and continues to fund all operating deficits as necessary.
Kimbark 1200 Associates, LP (Kimbark 1200 Apartments) is a 48-unit family development located in Longmont, CO. The property is suffering from low occupancy due to a weak rental market. In addition, the property has mostly three-bedrooms (42 of the 48) and these units have comparable rents to three-bedroom single-family rental homes, which are more desirable. The property is also located in a rough neighborhood, with an inferior school system, making it difficult to market to families with children. The site manager developed a good relationship with the local police who have initiated nighttime patrols. To attract applicants, management continues to offer rental concessions and resident referral fees. Banners and signage are being redesigned for increased visibility; a model unit is being prepared for showing to applicants; and advertising on the internet and adjacent towns has increased. In the second quarter of 2006, average occupancy was 89%, an increase over the prior quarter average of 76%. In A pril 2006, the Longmont Housing Authority expressed an interest in acquiring the operating general partner's interest. The Housing Authority, as a public non-profit entity, has more resources available to improve the property's operations, including rent subsidies and low-interest permanent financing. The Longmont Housing Authority is currently reviewing the operating general partners' proposal to sell their interest at the same time. The investment general partner is discussing with the permanent lender options for reducing the interest rate to improve cash flow. The investment general partner will work closely with the Operating General Partner in evaluating the conditions of the proposed transactions. The Operating General Partner continues to fund all operating deficits and accounts payable are current. All taxes, insurance and mortgage payments are current.
Edmond Properties, LP (Chapel Ridge of Edmond) is a 160-unit property located in Edmond, OK. Despite an average occupancy of 83% in 2005 the property was able to operate above breakeven. The average occupancy improved to 90% in the secord quarter of 2006 and the property continued to operated above breakeven. All taxes, insurance and mortgage payments are current. The investment general partner will continue to monitor the property to ensure that occupancy stabilizes and the property continues to operate above breakeven.
Series 23
As of June 30, 2006 and 2005 the average Qualified Occupancy for the series was 100%. The series had a total of 22 properties at June 30, 2006, all of which were at 100% Qualified Occupancy.
For the period ended June 30, 2006 and 2005, Series 23 reflects net loss from Operating Partnerships of $(288,182) and $(468,293), respectively, which includes depreciation and amortization of $331,139 and $389,628, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Series 23 has invested in 2 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer 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 Reimer 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 some members of the Reimer 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 23 is not an investor. The investment general 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 that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.
In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.
On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.
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.
In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.
With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. 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.
Murray Calhoun and the Investment General Partner and its affiliates have all 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. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.
In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.
Bayou Crossing, LP (Bayou Crossing Apartments) is a 290 unit property located in Hillsborough County, Florida. During the early part of 2005, management detected an increase in lease violations as well as an increase in non-payment of rent. Residents who were unable to meet their financial obligations and were violating management regulations were evicted. Additional expenses associated with the surge of evictions and unit turnover preparations have caused the property to experience an increase in maintenance and administrative costs. As of the second quarter of 2006, occupancy maintains an average of 90%. Management continues to enforce stringent resident screening policies to strength the quality of its resident base. Marketing efforts continue to generate traffic and it is management's intent to taper rental concessions by the end of 2006. The property's real estate taxes, insurance and mortgage payments are current. The operating deficit guarantee is unlimited until December 2011.
Mid City Associates (Mid City Apartments) is a 58 unit, scattered site family property located in Jersey City, NJ. Through the second quarter of 2006 the property has an occupancy rate of 98%. The property is projected to have a positive cash flow in 2006, and through second quarter 2006 the property generated $25,486 of cash. A 3% rent increase was approved by the state agency when leases expire. In 2006 it is estimated about 75% of the units will gradually shift to the new rents. This will increase revenues about $15,000 in 2006. The mortgage and taxes are current
South Hills Apartments, LP (South Hills Apartments) is a 72 unit, family property located in Bellevue, Nebraska. The property operated with an average occupancy of 77% in 2005. The average occupancy decreased slightly to 74% through the second quarter of 2006. There are few qualified prospective residents that can afford the tax credit rents without obtaining rental assistance. Currently there is limited assistance as evidenced by a nine-month waiting list at the local housing authority. The operating general partner completed a site management change at the end of the fourth quarter 2005. They are currently offering a $100/month rent reduction for the first 12 months for all new tenants. It has recently come to the investment general partner's attention that unresolved tax credit compliance issues accumulated, including the receipt of 8823s. Over the past three years, there have been four different managers at the property. This inconsistency has contributed to the cash flow and compliance problems cur rently plaguing the property. Current tenant files are being audited for tax compliance standards. After reviewing prior year 8823s, management was able to correct the 2002, 2003 and 2004 issues. Nebraska Housing Authority has issued corrected 8823s for 2002 and 2004. Management is expecting that a corrected 8823 for the year 2003 will be issued shortly. Per an agreement with the operating general partner, the management company (an affiliate of the general partner) is deferring all fees until operations improve. The operating general partner continues to fund the operating deficits, as needed. The property's mortgage, taxes and insurance are all current.
Sacramento SRO, LP (La Pensione K Apartments), is a 129-unit single-room occupancy property, for special needs residents, located in Sacramento, CA. In 2004, the property operated below breakeven, despite strong occupancies, due to high operating expenses. In 2004, the management contract was renewed and restructured, allowing the management company to chargeback to the partnership various administrative expenses, including monthly accounting fees for bookkeeping. This resulted in an increase in administrative expenses. Also, some extraordinary expenses were recorded, such as bad debt for previous years, and tax lien payments. The tax lien was discovered upon follow-up with the operating general partner extraordinary penalties recorded in the audit. According to the city of Sacramento, this lien was for the period between tax exemption application and receipt of tax exemption status. The operating general partner thought the period was covered by the exemption. The amount of the tax lien is approx imately $95,190 ($63,249 for actual taxes due, the balance for penalties). The operating general partner is working with the city to get this tax lien overturned. The Operating General Partner has retained legal counsel to represent them with regards to this matter. There has been no resolution to date. In the meantime, the partnership continues to make payments in accordance with a payment plan as required by the city to avoid being declared in default. In 2005, the management company made efforts to reduce payroll and maintenance expenses. In the first quarter of 2006, this property operated at a surplus with average physical occupancy of 98%. Through the second quarter 2006, the property continues to operate well, with the average occupancy of 97%. The property's mortgage, taxes and insurance are all current.
Edmond Properties, LP (Chapel Ridge of Edmond) is a 160-unit property located in Edmond, OK. Despite an average occupancy of 83% in 2005, the property was able to operate above breakeven. The average occupancy improved to 90% in the secord quarter of 2006 and the property continued to operated above breakeven. All taxes, insurance and mortgage payments are current. The investment general partner will continue to monitor the property to ensure that occupancy stabilizes and the property continues to operate above breakeven.
Kimbark 1200 Associates, LP (Kimbark 1200 Apartments) is a 48-unit family development located in Longmont, CO. The property is suffering from low occupancy due to a weak rental market. In addition, the property has mostly three-bedrooms (42 of the 48) and these units have comparable rents to three-bedroom single-family rental homes, which are more desirable. The property is also located in a rough neighborhood, with an inferior school system, making it difficult to market to families with children. The site manager developed a good relationship with the local police who have initiated nighttime patrols. To attract applicants, management continues to offer rental concessions and resident referral fees. Banners and signage are being redesigned for increased visibility; a model unit is being prepared for showing to applicants; and advertising on the internet and adjacent towns has increased. In the second quarter of 2006, average occupancy was 89%, an increase over the prior quarter average of 76%. In A pril 2006, the Longmont Housing Authority expressed an interest in acquiring the operating general partner's interest. The Housing Authority, as a public non-profit entity, has more resources available to improve the property's operations, including rent subsidies and low-interest permanent financing. The Longmont Housing Authority is currently reviewing the operating general partners' proposal to sell their interest at the same time. The investment general partner is discussing with the permanent lender options for reducing the interest rate to improve cash flow. The investment general partner will work closely with the Operating General Partner in evaluating the conditions of the proposed transactions. The Operating General Partner continues to fund all operating deficits and accounts payable are current. All taxes, insurance and mortgage payments are current.
Series 24
As of June 30, 2006 and 2005 the average Qualified Occupancy for the series was 99.9%. The series had a total of 24 properties at June 30, 2006. Out of the total 23 were at 100% Qualified Occupancy.
For the period ended June 30, 2006 and 2005, Series 24 reflects net loss from Operating Partnerships of $(163,986) and $(133,195), respectively, which includes depreciation and amortization of $332,744 and $335,145, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Series 24 has invested in Zwolle Partnership, A LA Partnership in Commendam (the "Calhoun Partnership") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). Zwolle Partnership (Lakeway Apts) sustained major damage to shingles, roof vents and windows due to Hurricane Rita. Roofing has been repaired for $41,940 and a bid from Burches Glass was submitted to the insurance company for $2,797 for replacement of windows. USDA approved the release of reserve funds since insurance proceeds have not yet been received. Work is scheduled for August 2006. 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 credi t 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 Reimer 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 some members of the Reimer 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 general 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 that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.
In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.
On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.
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.
In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.
With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. 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.
Murray Calhoun and the Investment General Partner and its affiliates have all 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. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.
In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.
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. The property is operating below breakeven due to the vacancies and high operating expenses. Occupancy has remained flat, averaging 86% through the first six months of 2006. Operating expenses are running higher than budgeted as a result of operating general partner's program to re-stabilize the property. Expense levels were expected to normalize once the transition and re-stabilization was complete; however, re-stabilization is taking longer, and proving more difficult, than expected. The mortgage, taxes, insurance and required reserves are all cu rrent; however, the level of payables is high. The operating general partner has funded the operating deficits by deferring management fees, and infusions of cash. The investment general partner had a meeting with the operating general partner to further discuss the project's viability. The operating general partner restated their commitment to the property and expressed a willingness to continue funding deficits until the property stabilizes. They have a significant investment in the community in which the property is located, and all attempts to stabilize the property are geared for the long term. The operating general partner received a grant from the state which will be used for some exterior building improvements. The operating general partner met with the tax assessor to request some relief in property taxes. As of June 2006 the taxes will be reduced to and fixed at $600 per unit resulting in an annual savings of $27,567. They have attempted to negotiate with the lender for some debt service relie f, but have not been successful. In the short term, the operating general parter is advertising on Craig's list, holding open houses for homeless families, and exploring other programs to lease units throught various means, including Shelter Plus Care and a DHS program for the working poor. It is also offering incentives, one month free rent when signing a one year lease. The investment general partner will continue to monitor this Operating Partnership until property operations have stabilized.
Jeremy Associates, LP (Coopers Crossing Apartments) is a 93-unit family development located in Las Colinas, Texas. The average occupancy for this property in 2005 was 97%. Marketing and advertising campaigns have been successful at this property. Average occupancy through the second quarter of 2006 was 96%. Occupancy has been higher due to victims of Hurricane Katrina coming to reside at the property.
The property experiences high operating costs attributed to foundation and stress cracks identified in an engineer's report issued in 2003. The report revealed foundation movement in five buildings. Between 2001 and 2003 a total of $61,310 in foundation work was completed. In 2004 capital expenditures reflect monies for immediate repair to rebuild three stair towers and two landings related to foundation movement at total cost of $23,140; and metal perimeter fence repair on the west side of the community that re-braced due to ground movement and car damage at total cost of $5,290 were completed in March 2004. Other capital work consisted of carpet replacements, vinyl replacement, boiler repairs, a new heat exchanger and swimming pool repair work related to code changes. There was no foundation work completed in 2005. The overall estimate to complete the foundation work and address the interior issues as a result of the movement was estimated at $170,000. However, several emergency repairs were needed to rebuild three deteriorating stair towers, resulting from foundation movement. The operating general partner continues to monitor movement in the five buildings identified in the engineer's report and address the issues as they presented. In 2006, $111,300 in repairs were included in the budget to address the structural issues; however, to date the high operating expenses are not allowing for the cash to be available to make the improvements.
The investment general partner continues to visit the property and review the work completed to date. Discussions regarding the future improvements with the operating general partner are on going. The investment general partner will continue to work with the operating general partner through the completion of the improvements and the reduction of the operating expenses. The mortgage, trade payables, property taxes and insurance are current.
Los Lunas Apartments, LP (Hillridge Apartments), located in Los Lunas, NM, is a 38-unit property. The operating general partner felt the management company was not overseeing the property sufficiently and stepped in as the management agent in June 2005. Since the new management has taken over, operations have improved through the fourth quarter of 2005 with average occupancy of 87%. Due to the high vacancy rates in the first half of 2005, the property did not operate above breakeven for the year. From July through December 2005 the occupancy improved to an average of 91%. In the first quarter of 2006, average physical occupancy further improved to 96%. However, in the second quarter 2006, due to some eviction, average occupancy decreased to 87%. Physical occupancy is expected to stabilize activity in the third quarter 2006. The operating general partner renegotiated the laundry contract with the vendor and all of the machines were upgraded. The property also received funds from the vendor for re-signi ng the contract.
Century East IV, LP (Century East IV Apartments) is a 24 unit development located in Bismarck, ND. In 2005 the property operated with an average occupancy of 91% and was able to achieve breakeven operations. For the first half of 2006 the average occupancy dropped to 81% and, as a result, the property operated below breakeven. The property is located in a highly competitive area and in an attempt to maintain occupancy levels the operating general partner lowers rental rates whenever occupancy levels drop below 90%. The investment general partner will continue to work with the operating general partner to monitor operations and occupancy at the property. The operating general partner continues to fund all operating deficits, despite the expiration of their guarantee. There are no deferred maintenance items at this time. The mortgage, trade payables, property taxes, and insurance are current.
Century East V, LP (Century East V Apartments) is a 24 unit development located in Bismarck, ND. In 2005 the property operated with an average occupancy of 90% and but incurred a slight operating deficit. For the first half of 2006 the average occupancy was 91% and the property operated slightly above breakeven. The property is located in a highly competitive area and in an attempt to maintain occupancy levels the operating general partner lowers rental rates whenever occupancy levels drop below 90%. The investment general partner will continue to work with the operating general partner to monitor operations and occupancy at the property. The operating general partner continues to fund all operating deficits, despite the expiration of their guarantee. There are no deferred maintenance items at this time. The mortgage, trade payables, property taxes, and insurance are current.
North Hampton Place, LP (North Hampton Place Apartments) is a 36-unit family property located in Columbia, Missouri. In February 2006, there was a fire in
one unit that completely destroyed the unit. There were no injuries reported from the fire. The unit required a complete rehab with repairs totaling $25,000. The repairs were funded with proceeds from the insurance claim filed by management. As of May 2, 2006, all repairs were made and the unit was ready to be occupied. After higher than normal turnover in the first quarter of 2006, occupancy dropped to an average of 82% for the quarter. Management increased the frequency of their newspaper advertising and occupancy improved to average 91% for the second quarter of 2006. The mortgage, property taxes, and insurance are current.
Centenary Housing, LP. (Centenary Tower Apartments) is a 100 unit senior property located in St. Louis, MO. The partnership expended cash of $150 per unit in 2005, due to operating expenses which exceeded the state average by 25%. Through the second quarter of 2006, operating expenses have been reduced, but remain high, exceeding the state average by 17%. High operating expenses continue to be driven by administrative, maintenance and utilities expenses, and bad debt. The investment limited partner is working with management to control administrative and maintenance costs, to improve collections, and to promote energy efficiency. Decreased operating expenses have allowed the partnership to generate annualized cash of $150 per unit through the second quarter of 2006. All real estate tax, insurance and mortgage payments are current. The operating general partner's obligation to fund operating deficits in unlimited in time and amount.
New Hilltop Apartments, Phase II (Hilltop Apartments) is a 72-unit property located in Laurens, SC. Industrial decline in the area has led to a dwindling population base from which to draw qualified residents. Only 21 of the 72 units have rental assistance. As a result, the property has trouble competing with properties that receive full rental assistance. The contributing factors to the cash flow deficit include declining occupancy, insufficient rental rates and additional replacement reserve funding per the Rural Housing workout plan. The property averaged 81% during the first quarter of 2006. Management is attempting to market through local media and civic organizations. Mortgage, taxes, insurance and payables to non-related entities are current. The operating general partner's guarantee is unlimited in time and amount, with the compliance period for this property ending in 2009.
Series 25
As of June 30, 2006 and 2005 the average Qualified Occupancy for the series was 99.9%. The series had a total of 22 properties at June 30, 2006. Out of the total 21 were at 100% Qualified Occupancy.
For the period ended June 30, 2006 and 2005, Series 25 reflects net loss from Operating Partnerships of $(314,216) and $(149,631), respectively, which includes depreciation and amortization of $491,410 and $524,506, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Ohio Investors, LP (Bancroft Apartments) is a 93-unit property located in Dayton, Ohio. The property has suffered from an interest rate of 11.03%, which has resulted in a very high debt service. The rate has been locked; however, it is expiring in June of 2006. The operating general partner, aided by the investment general partner, is in the process of refinancing the loan to much more favorable terms. The new debt service will reduce the per annum debt by $94,881. The loan is scheduled to close in the third quarter of 2006. The property reflected an occupancy rate of 95%, with an operating deficit of ($20,596) in 2005. During the second quarter of 2006 the property reflected an occupancy rate of 92%, with a operating deficit of ($1,496). The operating general partner will continue to fund any deficits as needed. Once the lower debt service is in place from the refinance, the property should be able to breakeven by the end of 2006.
Sutton Place Apartments, LP (Sutton Place Apartments) is a 360 unit apartment complex located in Indianapolis, Indiana. In January of 2005, the partnership underwent a change in operating general partner, which was accompanied by a change in management. Despite average occupancy of 93% for the year, the property did not break even in 2005 due to high operating expenses. Operating expenses averaged $4,735 per unit in 2005, 14% above the state average. The new operating general partner and management company continue to work to leverage their considerable strengths in the Indianapolis market in order to lower operating expenses, which have declined through May of 2006 and are now 11% higher than the state average. Occupancy has averaged 92% through June 2006, slightly below the 93% average achieved in 2005. Operations through May of 2006 have yielded an annualized cash expenditure of $96 per unit due to operating expenses which remain high. Operating reports for June of 2006 have been requested from th e operating general partner and are presently being prepared. The operating general partner continues to fund operating deficits. The operating general partner's obligation to fund operating deficits is limited to $150,000 in subordinate loans outstanding at any one time.
M.R.H., LP (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 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, filed an appeal on June 30, 2003 and continued negotiations with the IRS Appeals Office.
On March 23, 2004, the Operating Partnership received a Notice of Final Partnership Administrative Adjustment denying the appeal of June 30, 2003. The operating partnership had the opportunity to challenge the denial and petition the tax court.
On June 22, 2004, the operating general partner and its counsel filed a petition in tax court for the tax years ending 2000 and 2001. The investment general partner and its counsel continued to monitor the court proceedings.
Final Closing Agreements were issued in October 2005. Under the agreement, the general partner reached a resolution with the IRS so the adjustments to the tax credits and depreciation expense will be made only for the tax years 2005 and 2006, avoiding amending tax returns already filed for the years 2000 and 2001.
On November 23, 2005 the United States Tax Court issued final agreements reporting no changes for the tax years ending 2000 and 2001. Additionally, on December 28, 2005 the Internal Revenue Service issued a Partial Agreement, Closing Agreement on Final Determination Covering Specific Matters for the years ending 2005 and 2006. Under this agreement the credits and depreciation expense adjustments applicable to 2000 and 2001 will be made in the years ending in 2005 and 2006 to avoid amending tax returns for the years 2000 and 2001. The M.R.H. lost approximately .18% $52,688 in tax credits and $16,436 in depreciation expense for each year 2005 and 2006. The 2000 and 2001 audits are closed.
Rose Square, LP (Rose Square Apartments) is an 11 unit property located in Connellsville, PA. The property was operating with deficits caused by low occupancy. The property operated above breakeven in 2005 due to increased occupancy and revenues, combined with operating expenses that are below the state average. The site manager has focused on maintaining communication with the housing agency and hosting neighborhood events, helping to increase interest in the property. As a result, average occupancy has increased to 97% through the second quarter of 2006 and the property is operating above breakeven.
Century East II Apartments, LP (Century East II Apartments) is a 24 unit property located in Bismarck, ND. During 2005 the property operated with an average occupancy of 87% and as a result operated below breakeven. Over the first half of 2006 occupancy improved to average 94% and the property operated above breakeven. The property is located in a highly competitive area and in an attempt to maintain occupancy levels the operating general partner lowers rental rates whenever occupancy levels drop below 90%. The investment general partner will continue to work with the operating general partner to monitor operations and occupancy at the property. The operating general partner continues to fund all operating deficits, despite the expiration of their guarantee. Although the property has had low occupancy, there are no deferred maintenance items at this time. The mortgage, trade payables, property taxes, and insurance are current.
Series 26
As of June 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 45 properties at June 30, 2006, all of which were at 100% Qualified Occupancy.
For the period ended June 30, 2006 and 2005, Series 26 reflects net loss from Operating Partnerships of $(355,356) and $(306,501), respectively, which includes depreciation and amortization of $657,820 and $734,422, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Series 26 has invested in 6 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity, which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). The operating partnerships are Beauregard Apartments Partnership, Brookhaven Apartments Partnership, Butler Estates, Cameron Apartments Partnership, Southwind Apartments and TR Bobb Apartments, A LDHA. Beauregard Apts, Brookhaven Apartments and TR Bobb sustained minor damage to shingles, roof vents, window screens and fences due to Hurricane Rita. All repairs for Beauregard Apts were completed in the first quarter of 2006 and were paid for out of operations. There were no reports of hurricane damage at Brookhaven Apartments. TR Bobb has repaired the shingles and bids to repair the fence have been approved and will be paid for out of reserves. The cost of the repairs will cost $8,128. Southwind Apts sustained major damage to shin gles, siding, decking and pilings missing from buildings due to Hurricane Rita. All repairs for Southwind Apts were completed in January 2006 and were covered by insurance proceeds totaling $24,150.48.
Cameron Apartments, a 40 apartment complex was completely destroyed by Hurricane Rita and all residents evacuated safely. The National Flood Insurance Program has underwritten the project a complete loss. Insurance proceeds totaling $1,575,000 have been received and are being held by Fannie Mae in an interest bearing account until the Investment General Partner gives approval for distribution of the funds. The Investment General Partner is working with the Louisiana Housing Finance Agency to obtain IRS approval for; (1) permission to move the complex to another site within the Gulf Opportunity Zone; (2) permit the Partnership to file a tax credit application to secure additional tax credits for the costs to rebuild; and (3) waiver of any and all tax credit recapture penalties. In addition, the Investment General Partner is analyzing various options to maximize the return to the Investment Partnership and avoid tax credit recapture. The affordable housing properties owned by the Calhoun Partnerships a re 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 Reimer 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 some members of the Reimer 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 26 is not an investor. The investment general 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 that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.
In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.
On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.
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.
In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.
With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. 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.
Murray Calhoun and the Investment General Partner and its affiliates have all 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. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.
In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.
Country Edge, LP (Country Edge Apts.) is a 48 unit property located in Fargo, North Dakota. During 2005 the property operated with an average occupancy of 88% and as a result operated below breakeven. Average occupancy for the first half of 2006 dropped to 70% and the property continued to operate at a deficit. The property's occupancy issues arose because of issues surrounding a large refugee population in the area. A number of refugees had rented apartments after meeting the resident selection criteria. However, a few of the residents had criminal backgrounds that were not exposed during the typical background check. Management has been evicting problem and non-paying residents; however, due to overbuilding in the Fargo, North Dakota area, units are remaining vacant. The operating general partner/management company continues to offer rent concessions and rate reductions as a rental incentive. Security has been stepped up at the property and Luthurian Social Services is counseling the existing pop ulation to help curb any issues. The investment general partner will continue to work with the operating general partner to stabilize occupancy. The operating general partner continues to fund all operating deficits, despite the expiration of their guarantee. Although the property has had low occupancy, there are no deferred maintenance items at this time. The mortgage, trade payables, property taxes, and insurance are current.
Grandview Apartments, LP (Grandview Apts.) is a 36 unit property located in Fargo, North Dakota. During 2005 the property operated with an average occupancy of 89% and as a result operated below breakeven. Average occupancy for the first half of 2006 dropped to 81% and the property continued to operate at a deficit. Overbuilding and a soft rental market in the Fargo, North Dakota area are causing high vacancy rates. The management company continues to offer rental concessions and rate reductions until occupancy has stabilized. Turnover at this property remains high. Concessions, rate reductions and fluctuating occupancy levels have contributed to the negative cash flow at the property. The investment general partner will continue to work with the operating general partner to stabilize the physical occupancy. 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.
Calgory Apartments II, LP (Calgory Apartments II) is a 24 unit development located in Bismarck, ND. During 2005 the property operated with an average occupancy of 85% and as a result operated below breakeven. Average occupancy for the first half of 2006 improved to 94% and the property was able to operate above breakeven. The property is located in a highly competitive area and in an attempt to maintain occupancy levels the operating general partner continues to lower rental rates whenever occupancy levels drop below 90%. The investment general partner will continue to work with the operating general partner to stabilize the physical occupancy. 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.
Grayson Manor, LP (Grayson Manor Apartments) is a 32 unit apartment development located in Independence, VA. In May 2005, the property suffered a
lightning strike and subsequent fire. The resulting damage forced the residents of 8 units from their apartments. Those living in 6 of the 8 units were allowed to return to their homes after the building's sprinkler system was re-activated, approximately one week later. The 2 remaining units and the attic area above them suffered substantial damage and the units were unoccupied while construction and repairs were being completed. As of September 2005, all construction and repair work was completed and the units were re-occupied. High operating expenses and overfunding of the replacement reserve prevented Grayson Manor from generating cash in 2005. Through second quarter of 2006, expenses were below budget, occupancy averaged 98%, and the property was generating cash.
Calgory Apartments III, LP (Calgory Apartment III) is a 24 unit development located in Bismarck, ND. Average occupancy for 2005 was 87%. The average occupancy for the first and second quarters of 2006 was 93%. Occupancy is on the rise as the second quarter 2006 averaged 100%. The property is located in a highly competitive area and in an attempt to maintain occupancy levels the operating general partner lowers rental rates whenever occupancy levels drop below 90%. The investment general partner will continue to work with the operating general partner to stabilize the physical occupancy. 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.
Jackson Bond, LP (Park Ridge Apartments) is a 136 unit property located in Jackson, TN. Vacancy and concession loss, as well as excessive bad debt, caused this property to operate below breakeven in 2005. The investment general partner visited the property in January 2006, and has since made recommendations to the operating general partner to improve the performance of the property. Occupancy averaged 83% through the second quarter of 2006. The investment general partner will continue to conduct monthly conference calls with management to ensure that the proper controls and procedures are in place. The operating general partner continues to fund operating deficits at the property. Since the property never converted to fixed rate financing, any operating deficits through the compliance period are guaranteed by the operating general partner's construction guaranty.
Lake Apartments IV Limited Partnership (Lake Apartments IV) is a 24-unit property located in Fargo, ND. During 2005 the property operated with an average occupancy of 87% but was able to operate above breakeven. Average occupancy for the first half of 2006 dropped to 75% and as a result the property operated at a deficit. The property is located in a highly competitive area and in an attempt to maintain occupancy levels the operating general partner lowers rental rates whenever occupancy levels drop below 90%. The investment general partner will continue to work with the operating general partner to monitor operations and occupancy at the property. The operating general partner continues to fund all operating deficits, despite the expiration of their guarantee. Although the property has had low occupancy, there are no deferred maintenance items at this time. The mortgage, trade payables, property taxes, and insurance are current.
Series 27
As of June 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 16 properties at June 30, 2006, all of which were at 100% Qualified Occupancy.
For the period ended June 30, 2006 and 2005, Series 27 reflects net loss from Operating Partnerships of $(290,074) and $(255,469), respectively, which includes depreciation and amortization of $435,408 and $435,600, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Series 27 has invested in Magnolia Place Apartments Partnership (the "Calhoun Partnership") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). Magnolia Place Apts sustained major flood damage as well as damage to flooring, appliances, decking, sheetrock, roof vents, shingles and siding due to Hurricane Katrina. Shortly after the storm, the Operating General Partner took immediate action to remove carpets and fixtures that might create an environment for mold. All but 12 apartments will require removal of both wall and ceiling drywall. Removal of drywall has been completed on the damaged apartments and wall installation began on January 9, 2006. Kitchen cabinets were installed during the months of February and March and have been completed as of March 31, 2006. All roofs have been replaced and all apartments have been treated for mold prevention. Insuran ce proceeds of $1,236,866 have been distributed to the operating general partner and have been deposited into a Magnolia Development Account with the lender controlling the distribution of funds. Estimated cost to repair the complex is $1,066,238. Any insurance proceeds remaining after repairs have been made will be distributed in accordance with the partnership agreement. The affordable housing property owned by the Calhoun Partnership is located in Mississippi and consist of 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 Reimer 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 some members of the Reimer 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 general 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 that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.
In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.
On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.
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.
In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.
With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. 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.
Murray Calhoun and the Investment General Partner and its affiliates have all 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. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.
In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.
Centrum Fairfax II, LP (Forest Glen at Sully Station Phase II) is a 119 unit senior complex located in Fairfax, VA which has historically experienced low occupancy. In 2004, average physical occupancy was 83%. Through the fourth quarter of 2005, the average occupancy was 77%. As of the first quarter of 2006, average occupancy increased to 89% and as of March 2006 physical occupancy was 97%. In the second quarter 2006, the property operated with physical occupancy of 95%. The operating general partner has requested the investment general partner's approval to convert one bedroom apartments to two bedroom apartments at the adjacent project (Centrum Fairfax I, Forest Glen at Sully Station Phase I). The operating general partner will be relocating the one bedroom residence from adjacent phase I to phase II which would improve the overall performance of the project. The operating general partner started the conversion process in the fourth quarter of 2005. The investment general partner is currently review ing their request to convert the units. The property is in excellent physical condition. The operating general partner's contractual obligation to fund operating deficits expired in the third quarter of 2003. Despite this expiration, the operating general partner has continued to fund deficits and has indicated a commitment to continue to do so through the compliance period. The mortgage, taxes, insurance and payables are current.
Holly Heights, LP (Holly Heights Apartments) is a 30 unit property located in Storm Lake, Iowa. The property continues to incur operating deficits due to high tenant turnover and low rental rates. This property operated with an average occupancy of 92% in 2005. Occupancy averaged 92% through the second quarter of 2006. The site manager stated there has been increased activity at the property due the increase in the military population at the area base. Despite the recent upswing in occupancy compared to 73% in 2004, there are still limited job opportunities in the area and, as a result, residents continue to move to other areas to find work. Also, management continues a strong campaign of evicting residents who do not pay their rent. In response to declining occupancy, the management agent intensified leasing efforts by offering concessions of one month free rent and other incentives, including lower rents, no security deposits and increased resident referral rewards. As a result of the lower than desi red occupancy, there is negative cash flow and high payables. In addition, the property suffers from a high interest rate on the permanent mortgage. Debt service at the subject property adversely affects the property's overall operations. Management has presented the loan to various lenders, but net operating income cannot support a new loan. The investment general partner will continue to closely monitor the property. The operating general partner continues to fund the operating deficits, as needed. The mortgage, taxes, and insurance are all current.
Angelou Court (Angelou Court Apts.) is a 23 unit co-op property located in Harlem, New York. The partnership continues to operate above breakeven due to occupancy consistently at or above 98% and rent increases in January 2005 and 2006. However, accounts payable, receivables, and operating expenses are high. Management has had some success in the second quarter with aggressive eviction proceedings. The operating general partner and management continue to explore options to reduce utility costs; including educating residents about conservation and seeking grants from utility companies. The investment general partner met with the operating general partner and management in March 2006 and found the property to be in excellent condition and Harlem is undergoing a great deal of urban revitalization. The property pays no property taxes as the result of their non-profit, tax-exempt status. The mortgage and insurance are current and the operating general partner is funding deficits.
Kiehl Partners (Park Crest Apartments) is a 216 unit property located in Sherwood, AR. In 2005, occupancy averaged 85% and the property expended $42,000. Low occupancy and a dramatic rise in administrative, bad debt and maintenance expenses were responsible for the cash deficit. At year-end, new on-site and regional staffs were hired and are focused on strengthening the resident base and improving collections. Occupancy has averaged 79% through the second quarter of 2006 and is not expected to improve until the third quarter, when management completes its evictions of non-paying and problem residents. The investment general partner will continue to conduct monthly conferences calls with management to ensure that the proper controls and procedures are in place. The operating general partner continues to fund operating deficits at the property. Since the property never converted to fixed rate financing, any operating deficits through the compliance period are guarantee d by the operating general partner's construction guaranty.
Series 28
As of June 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 26 properties at June 30, 2006, all of which were at 100% Qualified Occupancy.
For the period ended June 30, 2006 and 2005, Series 28 reflects net loss from Operating Partnerships of $(277,501) and $(407,751), respectively, which includes depreciation and amortization of $552,578 and $576,484, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Series 28 has invested in 6 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). Bienville III Apts, Cottonwood Apts, Jackson Place Apts and Maplewood Apts sustained minor damage to siding, shingles, roof vents and roofs due to Hurricane Rita. All repairs for Bienville III Apts were completed on October 24, 2005. All repairs for Cottonwood Apts were completed on December 10, 2005. All repairs for Jackson Place were completed on January 27, 2006. All repairs for Maplewood were completed on March 19, 2006. The repairs for all four properties damaged during Hurricane Rita were paid for out of operations. No insurance proceeds were received. The Operating Partnerships are Bienville III Apartments, Blanchard Partnership, Cottonwood Partnership, in Commendam, Evangeline Partnership, Jackson Place Apartments LP and M aplewood 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 Reimer 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 some members of the Reimer 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 general 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 that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.
In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.
On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.
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.
In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.
With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. 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.
Murray Calhoun and the Investment General Partner and its affiliates have all 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. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.
In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.
1374 Boston Road, LP (1374 Boston Road) is a 15-unit property located in Bronx, New York. The property continues to experience below breakeven operations due to low occupancy and high debt service payments. The partnership had an average occupancy of 82% in the second quarter of 2006, a slight increase over the first quarter average of 78%. Many of the vacant units are the result of evictions for non-payment of rent. The management company states they have a hard time filling these units due to the lack of credit worthy applicants. In 2003, the partnership recorded a $112,000 loan from the operating general partner to pay for a tax lien. This loan is being repaid at 7% interest. Further investigation showed that the tax lien was incurred during the construction period, and should have been funded by the operating general partner, without reimbursement, as part of his obligation to complete construction of the property per the partnership agreement and the development agreement. The investment gene ral partner's repeated requests to restructure the loan were not heeded. In September 2005, legal counsel for the investment general partner sent a letter demanding a removal of the loan from the partnership account and the return of all payments made on this loan. The operating general partner's response did not address the issue satisfactorily. Additionally, in December 2005, a title search on the partnership showed at least $60,000 in liens incurred by the operating general partner that was never reported to the investment general partner. The investment general partner is evaluating the impact of the removal of the operating general partner since these issues remain unresolved. Three non-profits in the Bronx/Harlem area have been contacted as potential replacement operating general partners. The investment general partner continues to monitor this property. The mortgage, property taxes and insurance are current.
Clubview Partners (Park Plaza 1 and 2) is a 128 unit property located in West Memphis, AR. The property operated below breakeven during the first and second quarters of 2005. Management succeeded in strengthening the property's resident base; consequently, occupancy improved and bad debt decreased substantially during the last four months of 2005. Buoyed by its year-end performance, the property broke even in 2005 and had an average occupancy of 90%. A visit to the site by the investment general partner in January 2006 confirmed an improvement in operations. Occupancy averaged 98% in the first quarter of 2006 allowing the property to generate cash. The property continued to perform well in the second quarter. Occupancy averaged 99% for the second quarter of 2006 and the property has generated approximately $48,400 in cash flow.
Jackson Place Apartments, L.P. (Jackson Place Apartments) is a 40 unit development located in Jackson, LA. The property operated at a deficit of $15,262 in 2005, when using required reserves. In the first quarter of 2006, the property's occupancy averaged 98%, an increase from 95% in 2005. The property has continued to sustain high occupancy through the second quarter 2006 averaging 98%. According to the second quarter financial reports, the property produced $1,633 in positive cash flow due to a decrease in operating expenses. Flat rental rates are still a cause for concern at Jackson Place and a rent increase would certainly have a positive benefit on the property's cash flow. In 2005, the property sustained minor shingle damage from Hurricane Rita. Repairs were completed in January of 2006 and costs were paid for from operations. The operating general partner has an operating deficit guarantee, which is unlimited in time and amount.
Maplewood Apartments Partnership, (Maplewood Apartments)is a 40 unit development located in Winnfield, LA. The property operated at a deficit of $32,671while maintaining a 91% occupancy rate in 2005. The loss was directly attributable to stagnant rents and excess expenditures in maintenance and administration costs. In the first quarter of 2006 occupancy increased to 92%, yet the property operated at a deficit of $4,811. Even though occupancy averaged 96% during the second quarter 2006 the property still operated with a deficit of ($375). Occupancy is showing improvement but an increase in rental rates seems to be much needed. Moving forward, occupancy needs to stabilize, a rental increase needs to be applied for and expenditures need to be controlled to mitigate any future losses. The operating general partner has an operating deficit guarantee, which is unlimited in time and amount.
Series 29
As of June 30, 2006 and 2005 the average Qualified Occupancy for the Series was 100%. The series had a total of 22 properties at June 30, 2006 all of which were 100% Qualified Occupancy.
For the period ended June 30, 2006 and 2005, Series 29 reflects net loss from Operating Partnerships of $(314,322) and $(439,214), respectively, which includes depreciation and amortization of $635,122 and $697,726, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Series 29 has invested in 3 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). Edgewood Apts sustained minor damage to shingles, siding and roof vents due to Hurricane Katrina. Missing shingles and vents were replaced. Soffit, fascia and vinyl siding will be repaired by the on-site maintenance employee and will be paid for out of operations. Westfield Apts sustained major damage to shingles, decking and water damage all due to Hurricane Rita. All repairs for Westfield Apts were completed on March 11, 2006 and were paid for through insurance proceeds totaling $116,047.68. The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 152 apartment units in 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 Reimer 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 some members of the Reimer 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 general 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 that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certifica tion and the amount of tax credit generated.
In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.
On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.
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.
In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.
With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. 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.
Murray Calhoun and the Investment General Partner and its affiliates have all 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. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.
In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.
Lombard Partners, LP (Lombard Heights Apts.) located in Springfield, Missouri, operated below breakeven in 2004. The main reason for its cash expenditure is
its low occupancy, which averaged 65% in 2005. The operating general partner felt that the property was operating below breakeven due to the performance of the management company. The operating general partner took over management of the property at the beginning of the first quarter of 2005. At that time, they evicted a number of non-paying residents and the re-leasing of the units has been slow, which has caused the property to continue to operate below breakeven throughout 2005. The operating general partner has funded all deficits. In the past the operating general partner has had difficulty reporting in a timely manner. The property continues to struggle with occupancy and was 63% occupied at the end of the first quarter of 2006 and 50% occupied at the end of the second quarter of 2006. The operating general partner has made several changes to improve the management and leasing of the property. In the past, they have employed a resident as the on-site manager and have not had a dedicated prope rty phone line. They have now set up a business line and have noticed that the telephone calls have been fairly steady. The property is bordered by three apartment communities and it is the only property that offers three bedroom units. The operating general partner has made contact with the managers of the adjacent communities who have indicated they will refer applicants looking for three bedroom units to Lombard Partners, LP. The investment general partner will be working closely with the new management company and the operating general partner to improve reporting for the property.
Bryson Apartments, Limited Partnership (Pecan Hill Apartments) is a 16-unit development located in Bryson, TX. The property operated at a deficit of ($5,323) in 2005. The property was able to increase its occupancy in the second quarter of 2006 to 100%, which is a significant increase from year end of 2005, which reflected 81%. This increase allowed the property to operate at a surplus of $1,774 in the second quarter of 2006. If occupancy can sustain at current levels, the property will begin to function as a more viable asset. The operating general partner continues to fund all deficits.
Forest Hill Apartments, L.P. (The Arbors) is an 85 unit, senior property located in Richmond, VA. In the first quarter of 2004, the property was severely damaged by a fire. There were no reported injuries as a result of the loss and all of the residents were successfully relocated. The fire marshal has been unable to definitively determine the cause of the fire. The operating general partner received an initial insurance payment totaling $500,000 and it was determined that the building should be razed due to the significant fire and water damage. After bidding the property repairs, the operating general partner determined that there were additional costs of approximately $1.4 million due to building code changes since its original construction in 1998. The operating general partner's primary underwriter, and their excess property insurance carrier, determined that the policy did not cover code changes of more then $10,000. The operating general partner appealed their initial determination regarding a dditional coverage and in February the appeal was denied. The operating general partner is looking for alternative sources to fund the re-construction of the property. The construction is anticipated to start in mid September. The operating general partner received an additional insurance payment totaling $3 million dollars, representing the insurance company's estimate to rebuild the community minus the code change upgrades in dispute. The insurance proceeds are currently being held by the lender. The lender approved the release of sufficient insurance proceeds of $148,000 to raze the property which occurred in the third quarter of 2004.
As of March 31, 2005, construction had not begun at the property as the operating general partner is not prepared to fund the current $1.8 million difference between replacement cost, including the code changes and the insurance proceeds allocated to the project to date. The insurance company, as noted above, has taken the position that the policy covers only $10,000 of the code changes. However the operating general partner believes their policy should cover up to $2.5 million dollars in code changes. The operating general partner has been diligently attempting to get a resolution to code change coverage and has provided the investment general partner with e-mails and documents supporting their efforts. The insurance company has continued to use stalling tactics, pushing the claim from one underwriter to another.
The investment general partner is working with legal counsel to determine its recourse should the operating general partner's claim be unsuccessful.
Due to the continued uncertainty regarding the rebuilding of Forest Hill Apartments, the investment partnership will not claim 2005 tax credits. The investment general partner will continue to monitor the potential risk of loss of future tax credits and potential recapture.
Kiehl Partners (Park Crest Apartments) is a 216 unit property located in Sherwood, AR. In 2005, occupancy averaged 85% and the property expended $42,000. Low occupancy and a dramatic rise in administrative, bad debt and maintenance expenses were responsible for the cash deficit. In November 2004, both the property manager and assistant property manager, who had effectively managed the property, resigned from their positions. At that time, new staff was hired and the property's performance steadily declined due to mismanagement by means of lack of collection control and deferred maintenance. Additionally, the site suffered from a lack of regional supervision from August 2005 until January 2006. At year-end, new on-site and regional staff has been hired. Further, training is being provided to ensure corporate policies and procedures are being implemented. The regional manager and on-site management are focused on strengthening the resident base and improving collections. Occupancy averaged 79% during the f irst quarter of 2006. Occupancy is not expected to improve until the third quarter of 2006, when management completes its evictions of non-paying and problem residents. The operating general partner continues to fund operating deficits at the property. Since the property never converted to fixed rate financing, any operating deficits through the compliance period are guaranteed by the general partner's construction guaranty.
Series 30
As of June 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 20 properties at June 30, 2006, all of which were at 100% Qualified Occupancy.
For the period ended June 30, 2006 and 2005, Series 30 reflects net loss from Operating Partnerships of $(290,942) and $(295,800), respectively, which includes depreciation and amortization of $351,370 and $333,836, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Bellwood Four, LP (Whistle Stop Apartments) is a 28 unit family complex in Gentry, AR. Occupancy through second quarter 2006 averaged 94%. In 2005 the property expended $32,000 of cash and averaged 91% occupancy. However, occupancy significantly improved to 100% in the fourth quarter of 2005 and the property generated cash in that quarter. In 2006, expenses are slightly lower the state averages and income increased 23% compared to 2005. The property is projected to generate a positive cash flow in 2006 and through June it generated $2,000 of cash. Taxes, mortgage, and insurance are all current for this property.
Mesa Grande, LP (Mesa Grande Apartments) is a 72 unit, family property located in Carlsbad, New Mexico. In April 2003, the mortgage lender issued a default notice and, after the operating general partner took no steps to remedy the situation, accelerated the note. In November 2003, the investment general partner replaced the management company. Throughout 2004, the investment general partner and the management agent made numerous requests for funding from the operating general partner, with no response. Due to the unresponsiveness, the Fund filed a civil action against the operating general partner with the intent to force them to honor their obligation and fund all operating deficits. In October 2004, the investment general partner replaced the operating general partner with an affiliate of the investment general partner.
In September 2004, the non-performing loan was sold to a new lender who issued an acceleration notice in October 2004. The investment general partner reviewed options to correct the loan default. Property operations had been suffering due to market conditions, but also from high payables and deferred maintenance which were a direct result of the negligence of the former operating general partner. The investment general partner filed a lawsuit against the former operating general partner to recover all operating deficits incurred as a result of its negligence. The investment general partner reviewed the cash needs of the property and met with the lender during the fourth quarter of 2004 to propose a work-out plan that included restructuring the debt to allow for a significant cash infusion for deferred maintenance and back taxes. The lender refused to restructure the debt and began the foreclosure process in December 2004.
Throughout 2005, the investment general partner made several attempts to resolve the debt, all of which were rejected by the lender. On November 16, 2005, the investment general partner received a Notice of Non-Compliance with Section 42 from the New Mexico Mortgage Finance Authority. The management company addressed as many of the cited issues as it could with funds available from the property, but was unable to make some roof and exterior repairs because the lender declined to release insurance proceeds it had received related to these repairs.
The lender suspended active efforts to foreclose its mortgage throughout most of 2005, but renewed its efforts in January 2006, by filing a Motion for Summary Judgment in the foreclosure action. The Partnership and New Mexico Mortgage Finance Authority agreed to stipulate to a judgment of foreclosure. The Stipulation was recorded and the property was sold at foreclosure sale in July 2006, with the lender bidding in the property for the amount of its debt claim. The lender has been in possession of the property since May 1, 2006. Recapture and interest resulting from this 2006 event are estimated to be $741,543 and $209,111 respectively.
Sunrise Homes, LP (Sunrise Homes and Broadway Place Apartments) consists of two family properties containing a total of 44 units, located in Hobbs, New Mexico. In April 2003, the mortgage lender issued a default notice and, after the operating general partner took no steps to remedy the situation, accelerated the note. In November 2003, the investment general partner replaced the management company. Throughout 2004, the investment general partner and the management agent made numerous requests for funding from the operating general partner, with no response. Due to the unresponsiveness, the Fund filed a civil action against the operating general partner with the intent to force them to honor their obligation and fund all operating deficits. In October 2004, the investment general partner replaced the operating general partner with an affiliate of the investment general partner.
In September 2004, the non-performing loan was sold to a new lender who issued an acceleration notice in October 2004. The investment general partner reviewed options to correct the loan default. Property operations had been suffering due to market conditions, but also from high payables and deferred maintenance which were a direct result of the negligence of the former operating general partner. The investment general partner filed a lawsuit against the former operating general partner to recover all operating deficits incurred as a result of its negligence. The investment general partner reviewed the cash needs of the property and met with the lender during the fourth quarter to propose a work-out plan that included restructuring the debt to allow for a significant cash infusion for deferred maintenance and back taxes. The lender refused to restructure the debt and began the foreclosure process in December 2004.
Throughout 2005, the investment general partner made several attempts to resolve the debt, all of which were rejected by the lender. On November 16 2005, the investment general partner received a Notice of Non-Compliance with Section 42 from New Mexico Mortgage Finance Authority. The management company addressed as many of the cited issues as it could with funds available from the property, but was unable to make some roof and exterior repairs because the lender declined to release insurance proceeds it had received related to these repairs.
The lender suspended active efforts to foreclose its mortgage throughout most of 2005, but renewed its efforts in January 2006, by filing a Motion for Summary Judgment in the foreclosure action. The partnership and New Mexico Mortgage Finance Authority agreed to stipulate to a judgment of foreclosure. The Stipulation was recorded and the property was sold at foreclosure sale in July 2006, with the lender bidding in the property for the amount of its debt claim. The lender has been in possession of the property since May 1, 2006. Recapture and interest resulting from this 2006 event are estimated to be $642,208 and $184,459 respectively.
JMC, LLC (Farwell Mills Apts.) is a 27 unit development located in Lisbon, ME. In 2005, the property expended $19,000 and occupancy averaged 89% in 2005. Occupancy has improved in 2006, averaging 93% through the second quarter; the property generated cash of approximately $5,200 as of June 2006. The investment general partner conducted a site evaluation of the property in July 2006. Although the condition of the property was good and the on-site management team is strong, the investment general partner believes corporate management's approach to application processing has hindered the property's ability to achieve occupancy in high 90's. Given the property's central location and demand in the market, it could sustain high occupancy if applications were processed in a timely manner. The investmest general partner will address these issues and will work with the operating general partner to improve his management company's policies and procedures. The operating general partner's operating deficit guarantee , capped at $400,000, expires in July 2013.
Linden Partners II (Western Trails Apartments II) is a 30 unit property located in Council Bluffs, IA. This property has had a steady increase in occupancy since 2004. Occupancy averaged 88% in 2004, 93% in 2005, and through second quarter 2006 averaged 98%. The operating general partner took over management of the property in 2005, which positively impacted the property operations and brought stability to the complex. Through the second quarter 2006, the property generated cash. With in-house management, the operating general partner anticipates a decrease in operating expenses and an increase in occupancy throughout 2006.
Nocona Apartments, LP (Nocona Apartments) is a 36-unit property located in Nocona, Texas. Historically, the property has been plagued with low occupancy due to a slowed local economy and a challenging rural location. 2005 was a year of improvement for the property. The property operated at a surplus of$2,230. In the second quarter of 2006, occupancy reflected 76%. The managing agent has expanded their marketing to include networking with local businesses and providing brochures at the local chamber of commerce in order to increase occupancy. The operating general partner has an unlimited guarantee in time and amount and continues to fund any shortfalls.
Madison Partners (Park Trace Apartments) is an 84 unit property located in Jackson, TN. In 2005, the property operated with an occupancy average of 94%. The property failed to break even due to low occupancy and high administrative and maintenance expenses during the first two quarters of 2005 resulting from mismanagement. In April 2005, a new property manager assumed responsibility of the property and it has since generated cash for the past four quarters. The investment general partner visited the property in January 2006 and confirmed improvement in operations and the strength of on-site management. Occupancy averaged 95% through the second quarter of 2006.
Millwood Park, LP (Millwood Park Apartments) is a 172 unit new construction family property located in Douglasville, Georgia. The property's occupancy has struggled in a highly competitive market, which is 21 miles outside of Atlanta. A double murder occurred in the property's parking lot, which led to high turnover. Occupancy was at a low of 65% in August 2005. The operating general partner responded with move-in specials and heavy advertising with local businesses and rental guides. Occupancy has improved significantly, averaging 90% for the first six months of 2006. Revenue over the same period has increased by 16%. Expenses in the first six months of 2006 have returned to 2004 levels. The operating general partner continues to honor an operating deficit guarantee that remains in effect until 2011. The mortgage, taxes and insurance are all current.
Series 31
As of June 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 27 properties at June 30, 2006, all of which were at 100% Qualified Occupancy.
For the period ended June 30, 2006 and 2005, Series 31 reflects net loss from Operating Partnerships of $(360,708) and $(483,747), respectively, which includes depreciation and amortization of $753,203 and $830,071, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Summerdale Partners LP, II (Summerdale Commons - Phase II) is a 108 unit property located in Atlanta, GA. In 2004, operations at the property declined as a result of decreased occupancy and greater than average operating expenses. In 2005, although operating expenses decreased from the prior year, the property continued to struggle with occupancy, bad debt, and high resident receivables. Physical occupancy through the second quarter of 2006 is averaging 81%, while economic occupancy is 77%. Current occupancy levels are not sufficient to allow the property to operate at breakeven. It has recently been brought to the attention of the operating general partners that the majority of the vacant units were not ready to rent. Many units required appliances, carpeting and various repairs. As a result, the site manager was fired and replaced. The operating general partner has maintained that the Public Housing units bring a stigma to the property, making it difficult to rent units. The operating general pa rtner has been in negotiations with the Housing Authority and is moving forward with opting out of the Public Housing Program. The formal request was submitted to HUD and they have thirty days to respond. As part of this process, the public housing residents will be issued resident-based vouchers. Additionally, as part of the proposed agreement with the Housing Authority, the operating general partner has requested the release of an operating reserve account currently held by the Housing Authority. The funds would be utilized to pay down existing payables, and to make necessary physical improvements to the property. The Housing Authority has tentatively agreed with this plan, but is requiring that the operating general partner submit a detailed "preservation" plan and submit a budget for all of the required repairs and capital improvements. The investment general partner has been working with the operating general partner in order to ensure steps are taken to increase occupancy, as well as impr ove rental collections. The investment general partner is monitoring the progress of the negotiations with the Housing Authority. The investment general partner has contracted with a consultant to work with the operating general partner in improving operations at the property. All mortgages, taxes, and insurance are current. Operating deficits are currently being funded by accruing payables. The partnership has an operating deficit reserve account and an operating guaranty in place by the operating general partner. The investment general partner will continue to closely monitor the efforts of the operating general partner until operations have stabilized.
Silver Creek Apartments, LP (Silver Creek Apartments) is a 112 unit property located in Flat Rock, MI. In 2005 the property operated below breakeven due to high operating and bad debt expenses at the property. Occupancy averaged 95%. The lawsuit between Matrix, the former management company, and the operating general partner has been resolved.
Average occupancy through the second quarter of 2006 was 93% and the property is operating above breakeven. Managements efforts of focusing on a better system of collecting past due rents is working. The investment general partner will continue to monitor improved operations for the next few months to ensure they are stable. The mortgage, property taxes, and insurance are current.
Canton Housing Four, LP (Canton Manor Apartments) is a 32 unit property located in Canton, Mississippi. In 2005 the property was unable to breakeven due to low occupancy and ineffective site management. Occupancy averaged 85% in 2005. As a direct result of management's efforts to advertise the property in local newspapers, offer attractive rental concessions and employ a full-time onsite manager, occupancy increased to an average of 96% through the second quarter of 2006. Management is continuing to focus its efforts on controlling the operating expenses and believes that, with increased occupancy levels, the property will be able to support its operations.
Riverbend Housing Associates (Riverbend Estates) is a 28 unit property located in Biddeford, ME. Vacancy loss has hindered the property's ability to break even; management has had difficulty finding residents who qualify for the property's 60% income level units. Occupancy has averaged 88% through the second quarter. Management has repeatedly targeted prospective tenants through outreach; however, interest continues to come from potential residents qualifying at the 30% income level. Consequently, management has begun to rent the 60% income level units to residents qualifying at lower income levels through the second quarter. Occupancy rose to 93% in the second quarter of 2006. In addition to the difficulty in attracting renters that qualify at the 60% income level, the investment general partner believes corporate management's approach to application processing has hindered the property's ability to achieve higher occupancy. The investment general partner will address this issue and work with the operati ng general partner to improve his management company's policies and procedures. The operating general partner will continue to defer fees due to an affiliated management company and maintenance company, to fund the deficit. The operating deficit guarantee is capped at $300,000 and expires on December 31, 2012.
Pilot Point Apartments, LP (Pilot Point Apartments) is a 40-unit property located in Pilot Point, TX. During 2005 the property operated below breakeven due to high operating expenses and an average occupancy of 88%. Average occupancy for the first two quarters of 2006 was 86%. Occupancy increased slightly in the second quarter and appears to be trending upward. The property continues to operate below breakeven due to continued high expenses and occupancy that remains below 90%. The local town where the property is located has a very poor economy. There are two other apartment complexes in the town that both experienced a drop in occupancy in 2006. The closest large employers are 30 to 40 miles away. In an effort to attract and retain residents, management offers a $50 cash award for all friends referred to the complex that rent an apartment. Advertising is in local newspapers and with the local housing authority. The investment general partner will continue to monitor the property to ensure that occupancy improves and stabilizes. All taxes, insurance and mortgage payments are current.
Series 32
As of June 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 17 properties at June 30, 2006, all of which were at 100% Qualified Occupancy
For the period ended June 30, 2006 and 2005, Series 32 reflects net loss from Operating Partnerships of $(406,825) and $(401,784), respectively, which includes depreciation and amortization of $591,954 and $519,307, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Series 32 has invested in 3 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). The operating partnerships are Pearlwood Apartments LP, Pecan Manor Apartments and Pineridge Apartments Partnership. Pearlwood Apts sustained minor damage to shingles and roof vents due to Hurricane Katrina. All repairs for Pearlwood Apts were completed on October 17, 2005 and were paid for out of operations. Pecan Manor sustained major damage to shingles, vents, fascia, sheetrock and wet flooring due to Hurricane Rita. Repairs have not yet been completed but the partnership has received insurance proceeds totaling $147,694.91. The investment general partner is working with the management company to try and ascertain when repairs will be completed. Pineridge Apts sustained major damage to shingles, roof vents, roofs, decking, flo oring and fences due to Hurricane Katrina. Repairs have been completed and the Investment General Partner is working with the management company to try and ascertain whether or not insurance proceeds were received. 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 notified the investment general partner that the Reimer 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 some members of the Reimer 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 general 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 that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.
In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.
On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.
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.
In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.
With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. 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.
Murray Calhoun and the Investment General Partner and its affiliates have all 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. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.
In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.
FFLM Associates is an Operating Partnership that owns 3 limited partner interests, one of which is Carriage Pointe Investors, LP. Carriage Pointe Investors LP (Carriage Pointe Apartments) is an 18 unit, two building property in Old Bridge, New Jersey. Historically this property suffered from negative cash flow, high accounts payable, and under-funded replacement reserves. Average occupancy through the second quarter of 2006 remained at 100%. The operating general partner was successful in 2004 in getting the lender to reduce the interest rate on the loan by 2%; however, debt service is still 49% of the property's total income. The operating general partner will continue to attempt to reduce the debt service. The property expended $12,968 of cash through the second quarter of 2006.
Indiana Development, LP (Clear Creek Apartments) is a 64-unit development, located in North Manchester, Indiana. The property has historically operated below breakeven as a result of low occupancy which was last reported at 73% as of June 2006. The property suffered cash losses of ($113,684) and ($53,329) for the years 2004 and 2005, respectively. First quarter of 2006 unaudited financials indicate a loss of ($25,968). The investment general partner's staff visited the property in June of 2005 to determine the cause of the low occupancy and poor performance of the property. It was determined that there was a lack of marketing, training and management leadership that was directly impacting operations. The physical property received high scores and the curb appeal was excellent. Directly following this meeting, the operating general partner requested permission to change management companies effective August 1, 2005. Tragically, the owner of the new management company was murdered during a car jacking in Detroit, Michigan one month after implementing the new firm. Due to the lack of leadership and experience, the new management company was unable to turn operations around as anticipated. The operating general partner decided to hire a large, experienced property management company to become effective April 1, 2006 with specific plans to lease up and train staff. The implementation of the plans did not occur as anticipated due to the high staff turnover upon the management change. The operating general partner's operating deficit guarantee, which was unlimited in amount, expired in June 2004. The operating general partner has stated that they will continue to fund any and all operating deficits.
Jackson Bond, LP (Park Ridge Apartments) is a 136 unit property located in Jackson, TN. Vacancy and concession loss, as well as excessive bad debt, caused this property to operate below breakeven in 2005. The investment general partner visited the property in January 2006, and has since made recommendations to the operating general partner to improve the performance of the property. Occupancy averaged 83% through the second quarter of 2006. The investment general partner will continue to conduct monthly conference calls with management to ensure that the proper controls and procedures are in place. The operating general partner continues to fund operating deficits at the property. Since the property never converted to fixed rate financing, any operating deficits through the compliance period are guaranteed by the operating general partner's construction guaranty.
Martinsville I Limited (Martinsville Apartments) is a 13-apartment project located in Shelbyville, KY. This property lost over $20,000 in 2005 and is expending over $7,000 through May 2006. The property suffered a fire in late 2005 which affected the occupancy and reduced the income. Occupancy declined to 77% in 2006. As of June 2006, all the units that were affected by the fire are rentable again and have been pre-leased. Expenses in 2005 increased 32% from 2004. Major increases in operating expenses were due to make-ready expenses for vacant units and a large increase in utilities. Working capital was unhealthy with high accounts payable due mostly to a third party management company. The investment general partner will continue to follow up on the payables and will monitor operating expenses at the property.
Parkside Plaza, L.P. (Parkside Plaza Apartments) is a 39-unit co-op property located in Harlem, New York. The property operated below breakeven in 2005 and in the first two quarters of 2006 due to low rental income, collections loss, and high expenses. The partnership received approval of a 10% rent increase effective January 2006 which added approximately $20,000 to the annual rent revenue. The investment general partner visited the property in March 2006 to view the properties and to meet with the operating general partner and management to discuss issues at the property. Management is working to reduce tenant delinquencies by aggressively filing late notices and pursuing evictions through the housing court and has had success in the second quarter in obtaining judgments against six non-paying households. In line with the cooperative documents, management is assessing unit maintenance charges to the residents. Other methods of improving collections, including posting payments received in common are as, improving relations with residents, and a proposal to assess property debt and collection charges to residents are also being reviewed and considered. In the fourth quarter 2005, the operating general partner discovered that $24,000 is owed to the partnership for overpayment of taxes on a tax exempt property. Management has requested a refund. Management continues to explore options to reduce utility costs, including tenant education on conservation and applications were filed in the first quarter to a non-profit agency for assistance and grants to cover increased utility expenses. The investment general partner continues to work with the operating general partner to improve operations. All mortgages and insurance payments are current. The property pays no property taxes as the result of a tax-exempt status.
Series 33
As of June 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 10 properties at June 30, 2006, all of which were at 100% Qualified Occupancy.
For the period ended June 30, 2006 and 2005, Series 33 reflects net loss from Operating Partnerships of $(207,608) and $(187,354), respectively, which includes depreciation and amortization of $265,302 and $243,975, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Series 33 has invested in Forest Park Apartments (the "Calhoun Partnership") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). The affordable housing property owned by the Calhoun Partnership is located in Louisiana and consists 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 Reimer 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 some members of the Reimer 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 general 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 that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.
In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.
On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.
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.
In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.
With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. 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.
Murray Calhoun and the Investment General Partner and its affiliates have all 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. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.
In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.
FFLM Associates is an Operating Partnership that owns 3 limited partner interests, one of which is Carriage Pointe Investors, LP. Carriage Pointe Investors LP (Carriage Pointe Apartments) is an 18 unit, two building property in Old Bridge, New Jersey. Historically this property suffered from negative cash flow, high accounts payable, and under-funded replacement reserves. Average occupancy through the second quarter of 2006 remained at 100%. The operating general partner was successful in 2004 in getting the lender to reduce the interest rate on the loan by 2%, however debt service is still 49% of the property's total income. The operating general partner will continue to attempt to reduce the debt service. The property expended $12,968 of cash through the second quarter of 2006.
Forest Park Apartments (Stonewall Retirement Village) is a 40 unit development located in Stonewall, LA. The property operated at a deficit of $20,283 in 2005 while maintaining an average occupancy rate of 98%. In the first quarter of 2006, the property's occupancy was 100%, yet the property operated at a deficit due to flat income rates and increasing operating expenses, including real estate taxes. During the second quarter the property continued to sustain 100% occupancy with a slight increase in revenue. Second quarter financial reports show positive cash flow of $547. Since stagnant rents give no room for any sudden increase in expenses, the property would greatly benefit from a rental rate increase. The operating general partner has an operating deficit guarantee that is unlimited in time and amount.
Stearns Assisted Housing Associates, L.P. (Stearns Assisted Housing), is a 20-unit property in Millinocket, ME providing congregate housing to seniors. In 2005, occupancy averaged 96% and the property expended $14,215 due to high maintenance and utility expenses. The site was originally a high school, and the high ceilings make the site difficult to heat. Through the second quarter of 2006, occupancy averaged 94% and the property expended approximately $20,000. Following the historical trend, seasonal utility and maintenance expenses began to normalize in the warmer spring months, and the property generated cash in May and June. The partnership will be able to recoup a large portion of the cash deficit in the third quarter of 2006 should occupancy remain stable. In 2005, the operating general partner advanced money to the partnership to fund the cash deficit. The operating general partner's operating deficit guaranty is unlimited in time and amount.
Bradford Group Partners of Jefferson County, LP (Bradford Park Apartments) is a 50 unit senior complex located in Jefferson City, TN. Occupancy at this property averaged 88% in 2005 and is up to 94% in the second quarter of 2006. The site manager has been successful in retaining current residents by offering different types of incentives, such as one month free rent and a $50 referral fee. The property is also being advertised in local newspapers, the Standard Banner and the Citizen Tribune. The taxes and insurance are being properly escrowed and the mortgage is current. The property is currently operating at break-even.
Series 34
As of June 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 14 properties at June 30, 2006, all of which were at 100% Qualified Occupancy.
For the period ended June 30, 2006 and 2005, Series 34 reflects net loss from Operating Partnerships of $(255,343) and $(486,271), respectively, which includes depreciation and amortization of $516,017 and $553,867, respectively. This is an interim period estimate; it is not indicative of the final year end results.
RHP 96-I, LP (Hillside Club I Apartments), is a 56-unit property located in Petosky, Michigan, which has operated below breakeven as a result of low occupancy, which was reported at 86% as of the second quarter of 2006. The property suffered cash losses of ($80,898) and ($50,619) for the years 2004 and 2005 respectively. Second quarter of 2006 unaudited financials indicate a loss of ($22,205). The investment general partner's staff visited the property in June 2005 to determine the cause of the diminished occupancy and poor performance of the development. It was determined that there was a lack of marketing, training and management leadership that was directly impacting operations. The physical property received high scores and the curb appeal was excellent. Directly following this meeting, the operating general partner requested permission to change management companies effective August 1, 2005. Tragically, the owner of the new management company was murdered during a carjacking in Detroit in Septemb er 2005. Due to the lack of leadership and experience, the new management company was unable to improve performance as anticipated. The operating general partner decided to hire a large, experienced property management company to become effective April 1, 2006 with specific plans to lease up and train staff. The implementation did not occur as anticipated due to high staff turnover upon the management change. Although the property's operating deficit guarantee expired in 2003, the operating general partner has stated that they will continue to fund any and all operating deficits.
Merchants Court, LP (Merchants Court Apartment) is a 192-unit property located in Dallas, GA. The property struggled with occupancy problems due to competitive homeownership programs. In early 2006, a new Wal-Mart Superstore opened nearby, increasing the applicant pool. As a result, second quarter 2006 occupancy increased to 97% from the first quarter 2006 average of 94%. Management is now focusing on increasing economic occupancy. Concessions are no longer being offered to new move-ins and the site staff is increasing their rent collection efforts to reduce delinquencies from an average of 12% of gross potential income in 2005 to 5% in 2006. Tenant retention is also a priority, and the site manager implemented a kids' club (a social club for the residents' children) and a one-day maintenance turnaround guarantee, and is planning various social events for the families. To encourage lease renewals, they are giving renewing residents coupons for free maintenance services to be performed by the on-sit e maintenance staff, such as carpet cleaning and window cleaning. Third-party accounts payable are slowly being paid down with operating cash. Mortgage and insurance payments are all current. The operating general partner confirmed that taxes will be paid by an affiliate as an advance, but due to funding difficulties, the tax payment remains outstanding. The operating general partner expects to have a better idea of payment timing in August 2006. As of June 2006, no tax lien has been filed on the property. The property is now generating sufficient cash that the tax and insurance escrow is being funded on a monthly basis for the 2007 tax payments. The investment general partner continues to monitor the status of the tax payments and the improving performance of this property on a weekly basis.
Millwood Park, LP (Millwood Park Apartments) is a 172 unit new construction family property located in Douglasville, Georgia. The property's occupancy has struggled in a highly competitive market, which is 21 miles outside of Atlanta. A double murder occurred in the property's parking lot, which led to high turnover. Occupancy was at a low of 65% in August 2005. The operating general partner responded with move-in specials and heavy advertising with local businesses and rental guides. Occupancy has improved significantly, averaging 90% for the first six months of 2006. Revenue over the same period has increased by 16%. Expenses in the first six months of 2006 have returned to 2004 levels. The operating general partner continues to honor an operating deficit guarantee that remains in effect until 2011. The mortgage, taxes and insurance are all current.
Series 35
As of June 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 11 properties at June 30, 2006, all of which were at 100% Qualified Occupancy.
For the period ended June 30, 2006 and 2005, Series 35 reflects net loss from Operating Partnerships of $(222,293) and $(191,055), respectively, which includes depreciation and amortization of $364,158 and $382,761, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Tennessee Partners XII, LP (Autumn Park) is a 104 unit property located in Dickson, Tennessee. In 2005, the property operated with a 94% occupancy average. In the first and second quarters of 2006, the investment general partner worked with the management company to enhance overall management by improving resident selection and collections. This approach cut bad debt by half as compared to the prior year's average; however, occupancy declined as many non-paying residents were evicted. Occupancy averaged 88% through the second quarter of 2006. Despite the decline in occupancy, the units were recovered quickly and occupancy was 94% in as of June 2006. As of July 2006, the community was 100% pre-leased. The investment general partner will continue to conduct monthly conference calls with management to ensure that the proper controls and procedures are enforced. The operating general partner continues to fund cash shortfalls at the property. Any operating deficits through the compliance period are guaranteed by the operating general partner's construction guaranty unless the partnership converts to fixed rate permanent financing. The operating general partner is very active in the tax credit business, and has ample incentive and resources to continue supporting deficits.
Columbia Wood, LP (Columbia Wood Townhomes) is a 120 unit property located in Newnan, GA. Through the second quarter of 2006, the partnership expended annualized cash of $1,050 per unit as a result of high operating expenses, concessions and bad debt. This expenditure represents a reduction of 20% from the 2005 levels. Operating expenses have risen from 2005 levels and exceed the state average by 10% through the second quarter of 2006. This rise in operating expenses has been off-set by a 12% rise in income per unit, which is the result of a significant increase in occupancy levels. Historically, occupancy has been a problem at this property due to competition from low priced town homes nearby and an immature Newnan, GA, affordable housing market. Occupancy averaged 86% in 2005, but has risen to 97% through the second quarter of 2006 as new jobs have brought additional qualified residents to the market. Despite recent increases in occupancy levels, management co ntinues to offer rental concessions to attract and retain residents. Due to the competitive nature of the market, it is anticipated that concessions will remain a fixture in the market for some time. Management continues to aggressively market the property through local media and promote community building activities, including summer breakfast and lunch programs for children and holiday parties. Additional focus placed on improving collections has helped management to maximize rental income. All real estate taxes, insurance and mortgage payments are current. The operating general partner's obligation to fund operating deficits is unlimited in amount until the time of rental achievement, which has not yet occurred.
Series 36
As of June 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 11 properties at June 30, 2006, all of which were at 100% Qualified Occupancy.
For the period ended June 30, 2006 and 2005, Series 36 reflects net loss from Operating Partnerships of $(108,755) and $(128,718), respectively, which includes depreciation and amortization of $264,587 and $267,222, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Series 36 has invested in 2 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). The operating partnerships are Willowbrook Apartments Partnership and Wingfield Apartments LP. Willowbrook Apts and Wingfield Apts sustained minor damage to shingles, roof vents, siding and carpets due to Hurricane Rita. Interior repairs for Willowbrook Apts have been completed. Roof repair was completed for $1,500, siding and soffit for $1,100. Repairs were completed on July 13, 2006. All repairs for Wingfield Apts were completed on May 3, 2006. Repairs for both, Willowbrook and Wingfield, will be paid for out of operations. No insurance proceeds were received. 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 hou sing 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.
In the summer of 2002, the US Attorney for the Western District of Louisiana notified the investment general partner that the Reimer 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 some members of the Reimer 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 general 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 that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.
In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.
On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.
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.
In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.
With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. 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.
Murray Calhoun and the Investment General Partner and its affiliates have all 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. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.
In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.
New Caney Housing II, LP (Garden Gates Apartments) is a 32 unit family property located in New Caney, TX. In 2005 the property operated at 71% occupancy due to increased competition and ineffective site management. The property is in a very competitive market with the competition offering significant specials to retain and increase occupancy rates. There were 250 new affordable units built in the radius of 2 miles from New Caney Housing II within the last year. There were four different managers during that time and some longer than desirable periods between managers. Also, the regional supervisor over the property did a less then effective job. As of December 2005, a new manager and a new regional manager were in place. They both focused on a stronger marketing effort and management has built an incentive based compensation package for the manager which focuses on reducing vacancies, while at the same time increasing collection percentages. In August of 2005, the Investment General Partner conducted a vi sit to New Caney II and concluded that the property was in need of substantial exterior capital improvements. In the fourth quarter of 2005 the repairs were completed and property's curb appeal has been greatly improved. Occupancy had rebounded in the fourth quarter of 2005 and increased to 89% through the second quarter of 2006. Operating expenses were in line with the Investment General Partner's prior year state average expense per unit. The Mortgage, taxes and insurance are all current. The management company is deferring all fees until operations improve. The capital improvements were funded from the replacement reserve.
Series 37
As of June 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 7 properties at June 30, 2006, all of which were at 100% Qualified Occupancy.
For the period ended June 30, 2006 and 2005, Series 37 reflects net loss from Operating Partnerships of $(191,108) and $(149,308), respectively, which includes depreciation and amortization of $423,246 and $347,069, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Columbia Wood, LP (Columbia Wood Townhomes) is a 120 unit property located in Newnan, GA. Through the second quarter of 2006, the partnership expended annualized cash of $1,050 per unit as a result of high operating expenses, concessions and bad debt. This expenditure represents a reduction of 20% from the 2005 levels. Operating expenses have risen from 2005 levels and exceed the state average by 10% through the second quarter of 2006. This rise in operating expenses has been off-set by a 12% rise in income per unit, which is the result of a significant increase in occupancy levels. Historically, occupancy has been a problem at this property due to competition from low priced town homes nearby and an immature Newnan, GA, affordable housing market. Occupancy averaged 86% in 2005, but has risen to 97% through the second quarter of 2006 as new jobs have brought additional qualified residents to the market. Despite recent increases in occupancy levels, management continues to offer rental concessions to attract and retain residents. Due to the competitive nature of the market, it is anticipated that concessions will remain a fixture in the market for some time. Management continues to aggressively market the property through local media and promote community building activities, including summer breakfast and lunch programs for children and holiday parties. Additional focus placed on improving collections has helped management to maximize rental income. All real estate taxes, insurance and mortgage payments are current. The operating general partner's obligation to fund operating deficits is unlimited in amount until the time of rental achievement, which has not yet occurred.
Stearns Assisted Housing Associates, L.P. (Stearns Assisted Housing), is a 20-unit property in Millinocket, ME providing congregate housing to seniors. In 2005, occupancy averaged 96% and the property expended $14,215 due to high maintenance and utility expenses. The site was originally a high school, and the high ceilings make the site difficult to heat. Through the second quarter of 2006, occupancy averaged 94% and the property expended approximately $20,000. Following the historical trend, seasonal utility and maintenance expenses began to normalize in the warmer spring months, and property generated cash in May and June. The partnership will be able to recoup a large portion of the cash deficit in the third quarter of 2006 should occupancy remain stable. In 2005, the operating general partner advanced money to the partnership to fund the cash deficit. The operating general gartner's operating deficit guaranty is unlimited in time and amount.
Series 38
As of June 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 10 properties at June 30, 2006, all of which were at 100% qualified occupancy.
For the period ended June 30, 2006 and 2005, Series 38 reflects net loss from Operating Partnerships of $(76,644) and $(125,146), respectively, which includes depreciation and amortization of $297,190 and $244,765, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Series 38 has invested in 2 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). The operating partnerships are Hammond Place Apartments Partnership and Willowbrook II Apartments Partnership. Willowbrook II Apts sustained minor damage to carpets, shingles, siding and roof bents due to Hurricane Rita. Carpets were cleaned, roof was repaired for $2,775 and siding & soffit was repaired for $2,500. Exterior repairs were completed on July 13, 2006. All repairs for Willowbrook II Apts will be paid for out of operations. Hammond Place Apts sustained major damage to shingles, roof vents, decking, trees, fences and flooring due to Hurricane Katrina. A tree was removed from apt. 20's roof, all structural damage and sheetrock was repaired, missing shingles and vents were replaced and all loose vents were secured. Th e chain link fence was repaired and vinyl siding and fascia metal repair is being replaced for $4,170. The operating general partner has completed all insurance claims and is in the process of collecting insurance proceeds. 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 that the Reimer 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 some members of the Reimer 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 general 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 that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.
In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.
On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.
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.
In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.
With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. 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.
Murray Calhoun and the Investment General Partner and its affiliates have all 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. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.
In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.
Series 39
As of June 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 9 properties at June 30, 2006, all of which were at 100% Qualified Occupancy.
For the period ended June 30, 2006 and 2005, Series 39 reflects net loss from Operating Partnerships of $(187,446) and $(205,267), respectively, which includes depreciation and amortization of $271,656 and $186,918, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Series 39 has invested in 2 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). The operating partnerships are Tally-Ho II Partnership and Timber Trails I Partnership. Timber Trails I Apts sustained minor shingle damage due to Hurricane Rita. The missing shingles were replaced on September 26, 2005 and were paid for out of operations. No insurance proceeds were collected. 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 Reimer 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 some members of the Reimer 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 39 is not an investor. The investment general 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 that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.
In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.
On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.
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.
In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.
With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. 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.
Murray Calhoun and the Investment General Partner and its affiliates have all 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. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.
In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.
Arbors at Ironwood, LP (Arbors at Ironwood), is an 88-unit family property located in Mishawaka, IN. In December, 2005 occupancy declined slightly to 91% and remained at that level through first quarter of 2006. However, operations improved in the second quarter with average occupancy increasing to 94%. The site manager continues to implement resident appreciation activities and marketing traffic is good due in part to positive word-of-mouth. The property continues to operate above breakeven and taxes, insurance, and mortgage payments are all current. Although property occupancy, operations and overall curb appeal have greatly improved, the investment general partner continues to work closely with the operating general partner and management company. Occupancy reports are received each week and monthly conference calls are held with Sterling Management staff to review progress. The property is expected to maintain, at least, above 90% occupancy and breakeven operations through 2006.
Series 40
As of June 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 16 properties at June 30, 2006, all of which at 100% Qualified Occupancy.
For the period ended June 30, 2006 and 2005, Series 40 reflects net loss from Operating Partnerships of $(191,715) and $(187,609), respectively, which includes depreciation and amortization of $346,792 and $364,694, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Series 40 has invested in 3 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). The operating partnerships are Center Place Apartments II LP and Oakland Partnership. Oakland Apts sustained minor shingle and sheetrock damage due to Hurricane Rita. All repairs were completed on January 14, 2006 and were paid for out of operations. No insurance proceeds were collected. 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 Reimer 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 some members of the Reimer 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 40 is not an investor. The investment general 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 that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.
In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.
On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.
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.
In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.
With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. 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.
Murray Calhoun and the Investment General Partner and its affiliates have all 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. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.
In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.
Arbors at Ironwood, LP (Arbors at Ironwood), is an 88-unit family property located in Mishawaka, IN. In December, 2005 occupancy declined slightly to 91% and remained at that level through first quarter of 2006. However, operations improved in the second quarter with average occupancy increasing to 94%. The site manager continues to implement resident appreciation activities and marketing traffic is good due in part to positive word-of-mouth. The property continues to operate above breakeven and taxes, insurance, and mortgage payments are all current. Although property occupancy, operations and overall curb appeal have greatly improved, the investment general partner continues to work closely with the operating general partner and management company. Occupancy reports are received each week and monthly conference calls are held with Sterling Management staff to review progress. The property is expected to maintain, at least, above 90% occupancy and breakeven operations through 2006.
Series 41
As of June 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 22 properties at June 30, 2006 all of which were at 100% Qualified Occupancy.
For the period ended June 30, 2006 and 2005, Series 41 reflects net loss from Operating Partnerships of $(410,075) and $(356,943), respectively, which includes depreciation and amortization of $486,867 and $497,657, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Series 41 has invested in 2 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). The operating partnerships are Bienville Partnership and Red Hill Apartments I Partnership. Bienville Apts and Red Hill Apts sustained minor damage to shingles, roof vents, windows, trees and siding due to Hurricane Rita. All repairs for Bienville Apts and Red Hill Apts were completed in the fourth Quarter of 2005 and will be paid for out of operations. No insurance proceeds were collected. 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 Reimer 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 some members of the Reimer 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 41 is not an investor. The investment general 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 that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.
In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.
On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.
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.
In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.
With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. 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.
Murray Calhoun and the Investment General Partner and its affiliates have all 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. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.
In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.
San Diego/Fox Hollow, LP (Hollywood Palms Apts.) and its limited partner, BCP/Fox Hollow LLC (Plaintiff) filed a lawsuit against the former operating general partner and its affiliates for breaches of various agreements. In December of 2004, a judgment was filed in the Superior Court of the State of California (San Diego County) awarding the Plaintiffs the amount of $3,507,426 plus post judgment interest at an annual rate of 10%. In addition, attorney's fees for the Plaintiff were awarded in the amount of $1,125,000 plus $123,697 in costs. The investment general partner is currently pursuing payment of the aforementioned judgments through a mediation process scheduled for this fall.
In the first quarter of 2005, six families were temporarily relocated for two weeks from one building as a precaution while repairs were undertaken to stabilize hillside soils due to the movement of a retaining wall. An affiliate of the investment general partner funded these emergency repairs and continues to do so on an as needed basis. The Partnership has asserted in court that the retaining wall was not constructed properly and has filed suit against the original general contractor of the property, who was replaced before completion of construction. As of the second quarter of 2006, the operating general partner is reviewing bids for the final stabilization work and the property continues to operate above breakeven.
The operating general partner of Breeze Cove Limited Partnership entered into an agreement to sell the property and the transaction closed in March 2006. As part of the purchase agreement, the buyer is required to maintain the property as affordable housing through the end of the tax credit compliance period, and to provide a recapture bond to avoid the recapture of the tax credits that have been taken. After payment of the outstanding mortgage balance of approximately $1,828,883, the proceeds to the investment limited partner were $512,415, all of which were allocated to Series 20. Annual losses generated by the Operating Partnership, which were applied against the investment limited partner's investment in the operating partnership in accordance with the equity method of accounting had previously reduced the ILP investment in the operating partnership to zero. Accordingly, no gain or loss on the sale of the investment limited partner interest has been recorded.
Brookstone Place II LDHA, LP (Brookstone Place II Apartments), is a 72 unit family property located in Port Huron, MI. The property has operated below expectations for several years due to regional economic weakness, the market's saturation with moderate income properties and the operating general partner's inability to identify and maintain consistent management at the site and regional levels. The site management and maintenance positions experienced significant turnover in 2005. Occupancy averaged 88% in 2005 and stood at 81% in December 2005.
In April 2006, the lender to the first phase of the project (Brookstone I) initiated foreclosure on that phase, creating a high level of uncertainty among the tenants of both phases. As a result, Brookstone II's occupancy has dropped to approximately 65% as of the second quarter of 2006.
In May 2006, the lender to Brookstone II indicated that it too intends to proceed with foreclosure and advertised a foreclosure sale for June 2006. The investment general partner's analysis indicated that the costs of maintaining the property outweighed the benefits of the remaining tax credits and determined to forfeit the property if the Lender refused to restructure the debt. However, immediately prior to the foreclosure sale, the lender voluntarily adjourned the scheduled sale. Discussions with the lender are ongoing. It appears that the parties have disparate views of the value of the property and that the lender may well proceed with foreclosure, which could result in the Fund's forfeiture of this property as early as third quarter of 2006.
Rural Housing Partners of Mendota, LP (Northline Terrace), is a 24 unit family property located in Mendota, IL. In 2005, the property had an average occupancy of 82%. Occupancy issues at the property stem from a lack of qualified applicants in the area. Through the second quarter 2006 occupancy has averaged 89%. The investment general partner will continue to work with the operating general partner to stabilize operations. The mortgage, property taxes, and insurance are current.
Cascade Commons, LP (Cascades Crossing) is a 320-unit affordable multifamily Development located in Sterling, Va., a suburb of Washington, D.C. The operating general partner requested the investment general partner's approval to refinance the existing mortgage, increasing debt from $14,985,000 to $23,000,000. The investment general partner, as part of the approval process, conceded a priority return of equity and a 50/50 cash flow split (after accounting for the incentive management fee), in exchange for a $5,000,000 priority return of equity paid upon the refinancing of the property, a 30% share of future cash flow, and a 30% share of future capital proceeds. In addition, exit language was negotiated into the Operating Partnership agreement to allow the investment general partner, at its discretion, to exit the partnership upon expiration of the compliance period. Upon completion of the refinance, the Operating Partnership paid its investment limited partners $5,429,737 in refinance proceeds and estim ated cash flow through 2004. Series 41 received $357,623 from the refinance, an amount that was determined based on its percentage ownership in the Operating Partnership. The balance of the proceeds were paid to the other investment limited partners, one of which is affiliated and one which is non-affiliated with the investment limited partner. The amount received by each investment limited partner was based on their percentage ownership in the operating partnership. Series 41 used $16,815 to make a partial payment of accrued asset management fees. Of the remaining proceeds, the net distribution to investors was approximately $139,000. This represented a per BAC distribution of $.05. The total return to the investor was distributed based on the number of BAC held by each investor. The remaining proceeds will be retained to improve the Series reserves, and in the event that the cash flow estimate was overstated, make a cash flow reimbursement back to the Operating Partnership.
Series 42
As of June 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 23 properties at June 30, 2006. Out of the total 22 were at 100% Qualified Occupancy. The series also had 1 property under construction at June 30, 2006.
For the period ended June 30, 2006 and 2005, Series 42 reflects net loss from Operating Partnerships of $(288,901) and $(171,384), respectively, which includes depreciation and amortization of $449,043 and $476,449, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Series 42 has invested in 2 Operating Partnerships (the "Calhoun Partnerships") in which the operating general partner initially was Reimer Calhoun, Jr. or an entity which was affiliated with or controlled by Reimer Calhoun (the "Reimer Calhoun Group"). The Operating Partnerships are Natchez Place II Partnership and Wingfield Apartments Partnership II. Natchez Apts sustained minor damage to shingles, roof vents, siding, and carpets due to Hurricane Rita. All repairs for Natchez Apts were completed on October 22, 2005 and were paid for out of operations. Wingfield Apts II sustained major damage to shingles, vents, siding and roof leaks. Roof damage was covered. The roofing bid submitted was not approved so the partnership has submitted a second roofing bid from Gulf Coast Builders for $36,249, which they are currently awaiting approval. The operating general partner has completed all insurance claims and is awaiting payment of the claims. The affordable housing properties owned b y 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. Wingfield Apartments Partnership II, located in Kinder, Louisiana, approximately 130 miles from Baton Rouge, the closest large city, has also suffered from an inability to meet projected rents in its rural marketplace, resulting in expended cash of ($35,000) in 2005. The management company is an affiliate of the General Partner who has held expenses to state averages.
In the summer of 2002, the US Attorney for the Western District of Louisiana notified the investment general partner that the Reimer 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 some members of the Reimer 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 42 is not an investor. The investment general 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 that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, improperly inflating the cost certif ication and the amount of tax credit generated.
In late March 2003, Reimer Calhoun pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the investment general partner obtained $1,282,202 from Reimer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.
On September 25, 2003, judgment in a criminal case was entered against Reimer Calhoun and TF Management, Inc. On Count 1, alleging wire fraud, Reimer Calhoun was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the investment general partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003. All monies received from the Calhoun settlement have been allocated back to the Operating Partnerships as of August 2005.
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.
In 2003, the Internal Revenue Service commenced an audit of the Calhoun Partnerships in order to finally determine the amount of overstated tax credits. The investment general partner has reached a resolution with the IRS, so that the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. Final Closing Agreements were entered into with the IRS for each of the partnerships on May 25, 2005. At this point, the investment partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the investment partnerships affected.
With respect to each of the Calhoun Partnerships either (a) Reimer Calhoun's controlling interest in the operating general partner has been assigned to Murray Calhoun the son of Reimer Calhoun or (b) in some cases the operating general partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Reimer Calhoun has no interest. 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.
Murray Calhoun and the Investment General Partner and its affiliates have all 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. The Rural Housing Service has also indicated that it will consent to the replacement of general partners noted above.
In addition, Murray Calhoun and the investment general partner and its affiliates have entered into agreements which (a) cause Murray Calhoun to guarantee performance of all of the obligations to limited partners previously guaranteed by Reimer Calhoun, (b) tighten up the consent rights of the investment general partner in connection with changing general partners, management agents and partnership accountants, and (c) clarify the rights of the investment general partner to remove a general partner in the future in the event of certain specified events.
San Diego/Fox Hollow, LP (Hollywood Palms Apts.) and its limited partner, BCP/Fox Hollow LLC (Plaintiff) filed a lawsuit against the former operating general partner and its affiliates for breaches of various agreements. In December of 2004, a judgment was filed in the Superior Court of the State of California (San Diego County) awarding the Plaintiffs the amount of $3,507,426 plus post judgment interest at an annual rate of 10%. In addition, attorney's fees for the Plaintiff were awarded in the amount of $1,125,000 plus $123,697 in costs. The investment general partner is currently pursuing payment of the aforementioned judgments through a mediation process scheduled for this fall.
In the first quarter of 2005, six families were temporarily relocated for two weeks from one building as a precaution while repairs were undertaken to stabilize hillside soils due to the movement of a retaining wall. An affiliate of the investment general partner funded these emergency repairs and continues to do so on an as needed basis. The Partnership has asserted in court that the retaining wall was not constructed properly and has filed suit against the original general contractor of the property, who was replaced before completion of construction. As of the second quarter of 2006, the operating general partner is reviewing bids for the final stabilization work and the property continues to operate above breakeven.
Dorchester Court Limited Dividend Housing Association, LP (Dorchester Court Apartments) is a 131 unit apartment complex located in Port Huron, MI. Seventy-five percent of the units are devoted to elderly housing. Due to construction delays and slow initial lease-up, the property experienced difficulty generating positive cash flow. One of the operating general partners was unable to contribute his share of the advances required under the operating deficit guarantee. In July 2005, the defaulting operating general partner was replaced with a new operating general partner. The new operating general partner has significant resources and experience in real estate and contributed approximately $190,000 in funds to the Operating Partnership to bring the mortgage and accounts payable current.
As of the second quarter of 2006, the complex was 95% occupied and average occupancy for 2006 was 93%. In order to attract new residents, management continued to market the property aggressively in local newspapers and reduced the required security deposit to $99 for new residents with good credit. Due to low rental rates, which are the product of a depressed local economy, the property is operating at a deficit. A reduction in the monthly insurance premium took effect in April 2006. With this reduction, the property generated cash for the months of April and May. If the property is able to maintain 95% occupancy and the current expense levels, it should continue to generate cash.
The operating general partner and the new management team continue to seek ways to differentiate the property from its competition and increase rental revenue. Due to negative cash flow, the operating general partner has not caused the partnership to fund the replacement reserve account, which currently has a $0 balance. The investment general partner will discuss with the operating general partner the need to fund the required reserve. The mortgage, taxes and insurance payments are all current. The operating general partner continues to advance funds to the partnership to meet operating deficits.
HS Housing, LP (Helios Station Apartments), is a 30 unit family property located in Lafayette, CO. On May 1, 2006 the investment general partner was informed that the housing authority issued an IRS Form 8823 for an unqualified unit due to student status. The operating general partner continues to work with the credit agency and management to correct the issue. Although the property generated $454 per unit in 2005, it suffered from declining occupancy and high operating expenses. Occupancy averaged 92% in 2005, but closed the year at 83% in December, while per unit operating expenses were 35% higher than the state average. Operations through the second quarter of 2006 yielded an annualized expenditure of $2,275 per unit, due to continued high operating expenses and low occupancy. Occupancy has averaged 83% through the second quarter of 2006. Over the same period, annualized operating expenses increased due to rising utilities and maintenance costs and closed the quarter 68% higher than the state av erage. The investment limited partner will work with management to improve resident recruitment and retention and to control operating expenses. All real estate taxes, insurance, and mortgage payments are current. The operating general partner's obligation to fund operating deficits is unlimited in time and amount.
Los Lunas Apartments, LP (Hillridge Apartments), located in Los Lunas, NM, is a 38-unit property. The operating general partner felt the management company was not overseeing the property sufficiently and stepped in as the management agent in June 2005. Since the new management has taken over, operations have improved through the fourth quarter of 2005 with average occupancy of 87%. Due to the high vacancy rates in the first half of 2005, the property did not operate above breakeven for the year. From July through December 2005 the occupancy improved to an average of 91%. In the first quarter of 2006, average physical occupancy further improved to 96%. However, in the second quarter 2006, due to some eviction, average occupancy decreased to 87%. Physical occupancy is expected to stabilize activity in the third quarter 2006. The operating general partner renegotiated the laundry contract with the vendor and all of the machines were upgraded. The property also received funds from the vendor for re-signi ng the contract.
Jeremy Associates, LP (Coopers Crossing Apartments) is a 93-unit family development located in Las Colinas, Texas. The average occupancy for this property in 2005 was 97%. Marketing and advertising campaigns have been successful at this property. Average occupancy through the second quarter of 2006 was 96%. Occupancy has been higher due to victims of Hurricane Katrina coming to reside at the property.
The property experiences high operating costs attributed to foundation and stress cracks identified in an engineer's report issued in 2003. The report revealed foundation movement in five buildings. Between 2001 and 2003 a total of $61,310 in foundation work was completed. In 2004 capital expenditures reflect monies for immediate repair to rebuild three stair towers and two landings related to foundation movement at total cost of $23,140; and metal perimeter fence repair on the west side of the community that re-braced due to ground movement and car damage at total cost of $5,290 were completed in March 2004. Other capital work consisted of carpet replacements, vinyl replacement, boiler repairs, a new heat exchanger and swimming pool repair work related to code changes. There was no foundation work completed in 2005. The overall estimate to complete the foundation work and address the interior issues as a result of the movement was estimated at $170,000. However, several emergency repairs were needed to rebuild three deteriorating stair towers, resulting from foundation movement. The operating general partner continues to monitor movement in the five buildings identified in the engineer's report and address the issues as they presented. In 2006, $111,300 in repairs were included in the budget to address the structural issues; however, to date the high operating expenses are not allowing for the cash to be available to make the improvements.
The investment general partner continues to visit the property and review the work completed to date. Discussions regarding the future improvements with the operating general partner are on-going. The investment general partner will continue to work with the operating general partner through the completion of the improvements and the reduction of the operating expenses.
Centenary Housing, LP. (Centenary Tower Apartments) is a 100 unit senior property located in St. Louis, MO. The partnership expended cash of $150 per unit in 2005, due to operating expenses which exceeded the state average by 25%. Through the second quarter of 2006, operating expenses have been reduced, but remain high, exceeding the state average by 17%. High operating expenses continue to be driven by administrative, maintenance and utilities expenses, and bad debt. The investment general partner is working with management to control administrative and maintenance costs, to improve collections, and to promote energy efficiency. Decreased operating expenses have allowed the partnership to generate annualized cash of $150 per unit through the second quarter of 2006. All real estate tax, insurance and mortgage payments are current. The operating general partner's obligation to fund operating deficits is unlimited in time and amount.
Series 43
As of June 30, 2006 and 2005, the average Qualified Occupancy for the series was 100%. The series had a total of 23 properties at June 30, 2006. Out of the total 22 were at 100% Qualified Occupancy. The series also had 1 property under construction at June 30, 2006.
For the period ended June 30, 2006 and 2005, Series 43 reflects net loss from Operating Partnerships of $(343,643) and $(363,278), respectively, which includes depreciation and amortization of $595,882 and $624,051, respectively. This is an interim period estimate; it is not indicative of the final year end results.
San Diego/Fox Hollow, LP (Hollywood Palms Apts.) and its limited partner, BCP/Fox Hollow LLC (Plaintiff) filed a lawsuit against the former operating general partner and its affiliates for breaches of various agreements. In December of 2004, a judgment was filed in the Superior Court of the State of California (San Diego County) awarding the Plaintiffs the amount of $3,507,426 plus post judgment interest at an annual rate of 10%. In addition, attorney's fees for the Plaintiff were awarded in the amount of $1,125,000 plus $123,697 in costs. The investment general partner is currently pursuing payment of the aforementioned judgments through a mediation process scheduled for this fall.
In the first quarter of 2005, six families were temporarily relocated for two weeks from one building as a precaution while repairs were undertaken to stabilize hillside soils due to the movement of a retaining wall. An affiliate of the investment general partner funded these emergency repairs and continues to do so on an as needed basis. The Partnership has asserted in court that the retaining wall was not constructed properly and has filed suit against the original general contractor of the property, who was replaced before completion of construction. As of the second quarter of 2006, the operating general partner is reviewing bids for the final stabilization work and the property continues to operate above breakeven.
Dorchester Court Limited Dividend Housing Association, LP (Dorchester Court Apartments) is a 131 unit apartment complex located in Port Huron, MI. Seventy-five percent of the units are devoted to elderly housing. Due to construction delays and slow initial lease-up, the property experienced difficulty generating positive cash flow. One of the operating general partners was unable to contribute his share of the advances required under the operating deficit guarantee. In July 2005, the defaulting operating general partner was replaced with a new operating general partner. The new operating general partner has significant resources and experience in real estate and contributed approximately $190,000 in funds to the Operating Partnership to bring the mortgage and accounts payable current.
As of the second quarter of 2006, the complex was 95% occupied and average occupancy for 2006 was 93%. In order to attract new residents, management continued to market the property aggressively in local newspapers and reduced the required security deposit to $99 for new residents with good credit. Due to low rental rates, which are the product of a depressed local economy, the property is operating at a deficit. A reduction in the monthly insurance premium took effect in April 2006. With this reduction, the property generated cash for the months of April and May. If the property is able to maintain 95% occupancy and the current expense levels, it should continue to generate cash.
The operating general partner and the new management team continue to seek ways to differentiate the property from its competition and increase rental revenue. Due to negative cash flow, the operating general partner has not caused the partnership to fund the replacement reserve account, which currently has a $0 balance. The investment general partner will discuss with the operating general partner the need to fund the required reserve. The mortgage, taxes and insurance payments are all current. The operating general partner continues to advance funds to the partnership to meet operating deficits.
Carpenter School I Elderly Apartments, L.P. (Carpenter School I Elderly Apartments) is a 38 unit property located in Natchez, MS. The operating partnership has operated below breakeven since 2004. A new regional manager for the operating general partner was hired in August 2005. The regional manager found that the property suffered from high tenant receivables and high maintenance costs. Upon further investigation into these issues in order to improve operation, they discovered falsification of records by the site manager and improper maintenance at the site resulting in high expenses. The two involved employees were arrested, indicted, and are scheduled for trial in the near future. The regional manager has instituted a number of policy changes in order to better control operations. In addition to changes in rent collection, supply purchases, and maintenance expenses, the operating general partner now performs background checks on prospective employees. Occupancy remains consistent with the previ ous year and has averaged 95% through the first quarter of 2006. Due to some deaths at the property, in the second quarter 2006, occupancy dropped to 85%. The regional manager believes that with the implemented changes the property will begin to operate at breakeven in the third quarter 2006. The investment general partner will continue to work with the operating general partner in an effort to bring operations above breakeven.
Parkside Plaza, L.P. (Parkside Plaza Apartments) is a 39-unit co-op property located in Harlem, New York. The property operated below breakeven in 2005 and in the first two quarters of 2006 due to low rental income, collections loss, and high expenses. The partnership received approval of a 10% rent increase effective January 2006 which added approximately $20,000 to the annual rent revenue. The investment general partner visited the property in March 2006 to view the property and to meet with the general partner and management to discuss issues at the property. Management is working to reduce tenant delinquencies by aggressively filing late notices and pursuing evictions through the housing court and has had success in the second quarter in obtaining judgments against six non-paying households. In line with the cooperative documents, management is assessing unit maintenance charges to the residents. Other methods of improving collections, including posting payments received in common areas, improvin g relations with residents, and a proposal to assess property debt and collection charges to residents, are also being reviewed and considered. In the fourth quarter 2005, the operating general partner discovered that $24,000 is owed to the partnership for overpayment of taxes on a tax exempt property. Management has requested a refund. Management continues to explore options to reduce utility costs, including tenant education on conservation and applications were filed in the first quarter to a non-profit agency for assistance and grants to cover increased utility expenses. The investment general partner continues to work with the operating general partner to improve operations. All mortgages and insurance payments are current. The property pays no property taxes as the result of a tax-exempt status.
Series 44
As of June 30, 2006 and 2005, the average Qualified Occupancy was 95.7% and 100%, respectively. The series had a total of 10 properties at June 30, 2006. Out of the total, 9 were at 100% Qualified Occupancy. The series also had 1 property in active lease up at June 30, 2006.
For the period ended June 30, 2006 and 2005, Series 44 reflects net loss from Operating Partnerships of $(291,145) and $(182,664), respectively, which includes depreciation and amortization of $370,525 and $349,580, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Series 45
As of June 30, 2006 and 2005, the average Qualified Occupancy was 100% and 97.5%, respectively. The series had a total of 31 properties at June 30, 2006, all of which were at 100% Qualified Occupancy.
For the period ended June 30, 2006 and 2005, Series 45 reflects net loss from Operating Partnerships of $(362,232) and $(74,734), respectively, which includes depreciation and amortization of $594,553 and $281,952 respectively. This is an interim period estimate; it is not indicative of the final year end results.
Brookstone Place II LDHA, LP (Brookstone Place II Apartments), is a 72 unit family property located in Port Huron, MI. The property has operated below expectations for several years due to regional economic weakness, the market's saturation with moderate income properties and the operating general partner's inability to identify and maintain consistent management at the site and regional levels. The site management and maintenance positions experienced significant turnover in 2005. Occupancy averaged 88% in 2005 and stood at 81% in December 2005.
During the fourth quarter of 2005, the operating general partner informed the investment general partner that it was unwilling to continue funding operating deficits. Starting in October 2005 and continuing to the present, the partnership became several months delinquent on its mortgage payments and was notified by the Lender of default.
In April 2006, the lender to the first phase of the project (Brookstone I) initiated foreclosure on that phase, creating a high level of uncertainty among the tenants of both phases. As a result, Brookstone II's occupancy has dropped to approximately 65% as of the second quarter of 2006.
In May 2006, the lender to Brookstone II indicated that it too intends to proceed with foreclosure and advertised a foreclosure sale for June 2006. The investment general partner's analysis indicated that the costs of maintaining the property outweighed the benefits of the remaining tax credits and determined to forfeit the property if the Lender refused to restructure the debt. However, immediately prior to the foreclosure sale, the lender voluntarily adjourned the scheduled sale. Discussions with the lender are ongoing. It appears that the parties have disparate views of the value of the property and that the lender may well proceed with foreclosure, which could result in the Fund's forfeiture of this property as early as third quarter of 2006.
Childress Apartments LTD, (Fairview Manor Apartments) is a 48 unit development located in Childress, TX. The property operated at a deficit of ($26,421) in 2005. In the second quarter of 2006, the property was able to increase its occupancy level to 90% from an average occupancy of 74% in 2005. This allowed the property to operate at a surplus of $13,316. If occupancy can sustain at current levels the property will begin to function as a more viable asset. The Operating General Partner continues to fund all deficits.
Harbet Avenue, LP (William B. Quarton Place) is a 28 unit family property located in Cedar Rapids, Iowa. The investment general partner has learned that during 2004 and through February 2005 inappropriate checks and wires were made to the operating general partner from the partnership's escrow and operating accounts. The total of the misappropriated funds has been determined to be $142,758. The operating general partner is a not-for-profit organization that was experiencing financial difficulties. The accounting manager was able to make the monetary transfers due to a lack of oversight from the interim director. The accounting manager was fired in March 2005. The operating general partner has hired a new executive director and implemented steps to ensure that this cannot happen in the future. In order to repay the funds back to the partnership, the Board of the not-for-profit has formed a Property Options Committee to review all of their assets for a potential sale. Proceeds from the sale of propert ies and from unrestricted donations will be targeted for the refunding of the partnership accounts. Through the end of 2005, $20,825 has been repaid to the partnership, leaving a balance of $121,934. Payments through June 2006 total $59,402 with the balance remaining of $62,532. The operating general partner will continue to repay approximately $2,000 monthly through returned management fees, facilitator charges, and cash contributions while exploring other options of funding this liability. Representatives of the investment general partner visited the site and met with the new Executive Director of the not-for-profit organization. The property shows well and is currently operating above breakeven. A default notice was sent to the operating general partner on September 1, 2005. The default notice was followed up by a demand letter sent to the operating general partner in July 2006. The investment general partner is working with attorneys to determine the best way to ensure the funds are restored to t he Partnership in a prompt manner.
Series 46
As of June 30, 2006 and 2005, the average Qualified Occupancy was 97.0% and 100%, respectively. The series had a total of 14 properties at June 30, 2006. Out of the total, 13 were at 100% Qualified Occupancy. The series also had 1 property in active lease up at June 30, 2006.
For the period ended June 30, 2006 and 2005, Series 46 reflects net loss from Operating Partnerships of $(148,575) and $(43,776), respectively, which includes depreciation and amortization of $280,174 and $179,665, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Panola Apartments (Panola Housing, Ltd) is a 32 unit development located in Carthage, Texas. The property operated at a deficit of ($26,152) in 2005. Occupancy has been strong averaging 98% in 2005 and 96% through the second quarter of 2006. Upon review of the second quarter unaudited financial information, it appears as though the property's performance will be similar to 2005 year end audited results. Operating expenses still appear to be above state averages and rental income does not show any apparent improvement. HUD provides Panola with rental assistance and therefore rents are also controlled by HUD. Since HUD has not allowed a rent increase, management will need to find ways to reduce operating expenses in order for the property to diminish the operating deficit heading into year end 2006. The general partner has an operating deficit guarantee that is unlimited in time and amount.
Principal 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 Fund to make various estimates and assumptions. A summary of significant accounting policies is provided in Note 1 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 the Fund's financial condition and results of operations. The Fund believes that there is a low probability that the use of different estimates or assumptions in making these judgments would result in materially different amounts being reported in the financial statements.
The Fund is required to assess potential impairments to its long-lived assets, which is primarily investments in limited partnerships. The Fund accounts for its investment in limited partnerships in accordance with the equity method of accounting since the Partnership does not control the operations of the Operating Partnerships.
If the book value of the Fund's investment in an Operating Partnership exceeds the estimated value derived by management, which generally consists of the remaining future low-income housing credits allocable to the Fund and the estimated residual value to the Fund, the Fund reduces its investment in the Operating Partnership and includes such reduction in equity in loss of investment of limited partnerships.
As of March 31, 2004, the Fund adopted FASB Interpretation No. 46 - Revised ("FIN46R"), "Consolidation of Variable Interest Entities." FIN 46R provides guidance on when a company should include the assets, liabilities, and activities of a variable interest entity ("VIE") in its financial statements and when it should disclose information about its relationship with a VIE. A VIE is a legal structure used to conduct activities or hold assets, which must be consolidated by a company if it is the primary beneficiary because it absorbs the majority of the entity's expected losses, the majority of the expected returns, or both.
Based on the guidance of FIN 46R, the Operating Partnerships in which the Fund invests meet the definition of a VIE. However, management does not consolidate the Fund's interests in these VIEs under FIN 46R, as it is not considered to be the primary beneficiary. The Fund currently records the amount of its investment in these partnerships as an asset on its balance sheet, recognizes its share of partnership income or losses in the statements of operations, and discloses how it accounts for material types of these investments in its financial statements.
The Fund's balance in investment in operating limited partnerships, plus the risk of recapture of tax credits previously recognized on these investments, represents its maximum exposure to loss. The Fund's exposure to loss on these partnerships is mitigated by the condition and financial performance of the underlying properties as well as the strength of the local general partners and their guarantee against credit recapture.
Item 3 | Quantitative and Qualitative Disclosure About Market Risk |
Not Applicable |
Item 4 | Controls & Procedures | |
(a) | Evaluation of Disclosure Controls and Procedures | |
As of the end of the period covered by this report, the Fund's general partner, under the supervision and with the participation of the Principal Executive Officer and Principal Financial Officer of C&M Management Inc., carried out an evaluation of the effectiveness of the Fund's "disclosure controls and procedures" as defined in the Securities Exchange Act of 1934 Rules 13a-15 and 15d-15. Based on that evaluation, the Fund's Principal Executive Officer and Principal Financial Officer have concluded that as of the end of the period covered by this report, the Fund's disclosure controls and procedures were adequate and effective in timely alerting them to material information relating to the Fund required to be included in the Fund's periodic SEC filings. | ||
(b) | Changes in Internal Controls | |
There were no changes in the Fund's internal control over financial reporting that occurred during the quarter ended June 30, 2005 that materially affected, or are reasonably likely to materially affect, the Fund's internal control over financial reporting. |
PART II - OTHER INFORMATION
Item 1. | Legal Proceedings | ||
None | |||
Item 1A. | Risk Factors | ||
Not Applicable | |||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | ||
None | |||
Item 3. | Defaults upon Senior Securities | ||
None | |||
Item 4. | Submission of Matters to a Vote of Security | ||
None | |||
Item 5. | Other Information | ||
None | |||
Item 6. | Exhibits | ||
31.a Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of John P. Manning, Principal Executive Officer, filed herewith | |||
31.b Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of Marc N. Teal, Principal Financial Officer, filed herewith | |||
32.a Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of John P. Manning, Principal Executive Officer, filed herewith | |||
32.b Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Marc N. Teal, Principal Financial Officer, filed herewith | |||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Boston Capital Tax Credit Fund IV L.P. | |||
By: | Boston Capital Associates IV L.P. | ||
By: | BCA Associates Limited Partnership | ||
By: | C&M Management, Inc. | ||
Date: January 23, 2007 | By: | /s/ 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: |
January 23, 2007 | /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 | ||
January 23, 2007 | /s/ Marc N. Teal Marc N. Teal | Sr. Vice President, Chief Financial Officer (Principal Accounting and Financial Officer) C&M Management Inc.; Sr. Vice President, Chief Financial Officer (Principal Accounting and Financial Officer) BCTC IV Assignor Corp. |