-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BGOpJSvurzwGcw3j38hsowX+VsZpVjzMfHBQm1NzrGipUa/CJ3QBbbWE8vwcuUyM /Cuvqs0w+CdNlO+c1N01YQ== 0000950148-96-001815.txt : 19960820 0000950148-96-001815.hdr.sgml : 19960820 ACCESSION NUMBER: 0000950148-96-001815 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960819 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: HOUSING PROGRAMS LTD CENTRAL INDEX KEY: 0000750304 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 953906167 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-13808 FILM NUMBER: 96617484 BUSINESS ADDRESS: STREET 1: 9090 WILSHIRE BLVD STREET 2: STE 201 CITY: BEVERLY HILLS STATE: CA ZIP: 90211 BUSINESS PHONE: 310-278-2191 MAIL ADDRESS: STREET 1: 9090 WILSHIRE BLVD STREET 2: SUITE 201 CITY: BEVERLY HILLS STATE: CA ZIP: 90211 FORMER COMPANY: FORMER CONFORMED NAME: REAL ESTATE ASSOCIATES LTD VIII DATE OF NAME CHANGE: 19840823 10-Q 1 FORM 10-Q ENDED JUNE 30, 1996 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 FOR QUARTER ENDED JUNE 30, 1996 COMMISSION FILE NUMBER 2-92352 HOUSING PROGRAMS LIMITED A CALIFORNIA LIMITED PARTNERSHIP I.R.S. EMPLOYER IDENTIFICATION NO. 95-3906167 9090 Wilshire Blvd., Suite 201 Beverly Hills, Calif. 90211 Registrant's Telephone Number, Including Area Code (310) 278-2191 Securities Registered Pursuant to Section 12(b) or 12(g) of the Act NONE Indicate by check mark whether the registrant (1) has filed all reports required to be filed with the Commission by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ___ ___ 2 HOUSING PROGRAMS LIMITED (A CALIFORNIA LIMITED PARTNERSHIP) INDEX TO FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 1996 PART I. FINANCIAL INFORMATION Item 1. Financial Statements Balance Sheets, June 30, 1996 and December 31, 1995 . . . . . 1 Statements of Operations, Six and Three Months Ended June 30, 1996 and 1995 . . . 2 Statement of Partners' Equity (Deficiency), Six Months Ended June 30, 1996 . . . . . . . . . . . . 3 Statements of Cash Flow, Six Months Ended June 30, 1996 and 1995 . . . . . . . . 4 Notes to Financial Statements . . . . . . . . . . . . . . . . 5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation . . . . . . . . . 10 PART II. OTHER INFORMATION Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . . . . 11 Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . 12 Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3 HOUSING PROGRAMS LIMITED (a California limited partnership) BALANCE SHEETS JUNE 30, 1996 AND DECEMBER 31, 1995 ASSETS
1996 1995 (Unaudited) (Audited ------------ ------------ INVESTMENTS IN LIMITED PARTNERSHIPS (Notes 1 and 2) $ 14,475,719 $ 14,470,783 CASH AND CASH EQUIVALENTS (Notes 1 and 2) 786,881 595,330 SHORT TERM INVESTMENTS (Note 1) 125,000 125,000 ------------ ------------ TOTAL ASSETS $ 15,387,600 $ 15,191,113 ============ ============ LIABILITIES AND PARTNERS' DEFICIENCY LIABILITIES: Notes payable (Notes 3 and 6) $ 10,169,743 $ 10,169,743 Accrued interest payable (Notes 3 and 6) 10,370,108 9,864,545 Accrued fees and expenses due general partners (Note 4) 1,170,380 990,393 Accounts payable and other liabilities (Note 2) 162,617 15,432 ------------ ------------ 21,872,848 21,040,113 ------------ ------------ COMMITMENTS AND CONTINGENCIES (Notes 2, 4 and 6) PARTNERS' EQUITY (DEFICIENCY): General partners (315,598) (309,236) Limited partners (6,169,650) (5,539,764) ------------ ------------ (6,485,248) (5,849,000) ------------ ------------ TOTAL LIABILITIES AND PARTNERS' DEFICIENCY $ 15,387,600 $ 15,191,113 ============ ============
The accompanying notes are an integral part of these financial statements. 1 4 HOUSING PROGRAMS LIMITED (a California limited partnership) STATEMENTS OF OPERATIONS SIX AND THREE MONTHS ENDED JUNE 30, 1996 AND 1995
Six months Three months Six months Three months ended ended ended ended June 30, 1996 June 30, 1996 June 30, 1995 June 30, 1995 ------------- ------------- ------------- ------------- INTEREST INCOME $ 19,563 $ 12,847 $ 26,616 $ 21,255 ------------ ------------ ------------ ------------ OPERATING EXPENSES: Management fees - general partner (Note 4) 263,326 131,663 284,448 142,224 General and administrative (Note 4) 25,964 10,946 39,846 22,276 Legal and accounting (Note 4) 66,152 21,348 90,272 32,024 Interest (Note 3) 521,770 252,781 483,062 241,531 ------------ ------------ ------------ ------------ Total operating expenses 877,212 416,738 897,628 438,055 ------------ ------------ ------------ ------------ LOSS FROM OPERATIONS (857,649) (403,891) (871,012) (416,800) DISTRIBUTIONS FROM LIMITED PARTNERSHIPS RECOGNIZED AS INCOME 145,401 - 143,419 EQUITY IN INCOME OF LIMITED PARTNERSHIPS AND AMORTIZATION OF ACQUISITION COSTS (Note 2) 76,000 38,000 37,240 18,620 ------------ ------------ ------------ ------------ NET LOSS $ (636,248) $ (365,891) $ (690,353) $ (398,180) ============ ============ ============ ============ NET LOSS PER LIMITED PARTNERSHIP INTEREST $ (51) $ (30) $ (56) $ (32) ============ ============ ============ ============
The accompanying notes are an integral part of these financial statements. 2 5 HOUSING PROGRAMS LIMITED (a California limited partnership) STATEMENTS OF PARTNERS' DEFICIENCY SIX MONTHS ENDED JUNE 30, 1996 (Unaudited)
General Limited Partners Partners Total ------------ ------------ ------------ PARTNERSHIP INTERESTS June 30, 1996 12,368 ============ DEFICIENCY, January 1, 1996 $ (309,236) $ (5,539,764) $ (5,849,000) Net loss for the six months ended June 30, 1996 (6,362) (629,886) (636,248) ------------ ------------ ------------ DEFICIENCY, June 30, 1996 $ (315,598) $ (6,169,650) $ (6,485,248) ============ ============ ============
The accompanying notes are an integral part of these financial statements. 3 6 HOUSING PROGRAMS LIMITED (a California limited partnership) STATEMENTS OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 1996 AND 1995 (Unaudited)
1996 1995 ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (636,248) $ (690,353) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Equity in income of limited partnerships and amortization of acquisition costs (76,000) (37,240) Increase in accrued interest payable 505,563 474,614 Increase in accrued fees and expenses due general partners 179,987 184,452 Increase in accounts payable and other liabilities 147,185 22,886 ------------ ------------ Net cash provided by (used in) operating activities 120,487 (45,641) ------------ ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Distributions from limited partnerships recognized as a return of capital 71,064 174,593 Increase in advances to limited partnership - (31,331) Decrease in short term investments - 408,409 ------------ ------------ Net cash provided by investing activities 71,064 551,671 ------------ ------------ NET INCREASE IN CASH AND CASH EQUIVALENTS 191,551 506,030 CASH AND CASH EQUIVALENTS,beginning of period 595,330 624,935 ------------ ------------ CASH AND CASH EQUIVALENTS,end of period $ 786,881 $ 1,130,965 ============ ============
The accompanying notes are an integral part of these financial statements. 4 7 HOUSING PROGRAMS LIMITED (A CALIFORNIA LIMITED PARTNERSHIP) NOTES TO FINANCIAL STATEMENTS JUNE 30, 1996 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES GENERAL The information contained in the following notes to the financial statements is condensed from that which would appear in the annual audited financial statements; accordingly, the financial statements included herein should be reviewed in conjunction with the financial statements and related notes thereto contained in the Housing Programs Limited (the "Partnership") annual report for the year ended December 31, 1995. National Partnership Investments Corp. ("NAPICO") is a general partner for the Partnership. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end. The results of operations for the interim period presented are not necessarily indicative of the results for the entire year. In the opinion of NAPICO, the accompanying unaudited financial statements contain all adjustments (consisting primarily of normal recurring accruals) necessary to present fairly the financial position of the Partnership at June 30, 1996 and the results of operations for the six and three months then ended and changes in cash flows for the six months then ended. ORGANIZATION The Partnership is a limited partnership which was formed under the laws of the State of California on May 15, 1984. On September 12, 1984, the Partnership offered 3,000 units consisting of 6,000 limited partnership interests and warrants to purchase a maximum of 6,000 additional limited partnership interests through a public offering . The general partners of the Partnership are Housing Programs Corporation II, NAPICO, and Coast Housing Investment Associates ("CHIA"). LB I Group Inc. owns 100 percent of the stock of Housing Programs Corporation II. Casden Investment Corp. owns 100 percent of NAPICO's stock. CHIA is a limited partnership formed under the California Limited Partnership Act and consists of Messrs. Nicholas G. Ciriello, general partner and Charles H. Boxenbaum, limited partner. Mr. Boxenbaum is currently the chief executive officer of NAPICO. The business of the Partnership is conducted primarily by its general partners as the Partnership has no employees of its own. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 5 8 HOUSING PROGRAMS LIMITED (A CALIFORNIA LIMITED PARTNERSHIP) NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 1996 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) METHOD OF ACCOUNTING FOR INVESTMENT IN LIMITED PARTNERSHIPS The investments in local limited partnerships are accounted for on the equity method. Acquisition, selection fees and other costs related to the acquisition of the projects have been capitalized to the investment accounts. NET LOSS PER LIMITED PARTNERSHIP INTEREST Net loss per limited partnership interest was computed by dividing the limited partners' share of net loss by the number of limited partnership interests outstanding during the year. The number of limited partnership interests was 12,368 for all years presented. CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of cash and bank certificates of deposit with an original maturity of three months or less. SHORT TERM INVESTMENTS Short term investments consist of bank certificates of deposit and other securities with original maturities ranging from more than three months to twelve months. The fair value of these securities, which have been classified as held for sale, approximates their carrying value. INCOME TAXES No provision has been made for income taxes in the accompanying financial statements since such taxes, if any, are the liability of the individual partners. NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS The Partnership now holds indirect interests in 18 properties, as the sole limited partner in various limited partnerships. As a result of the loss of the Montecito Hotel on July 18, 1995 through foreclosure proceedings, the number of properties in which the Partnership has an interest, has been reduced from 19 to 18. The 18 lower-tier limited partnerships own residential rental projects consisting of a total of 2,686 apartment units. The mortgage loans of these projects are insured by various governmental agencies. The Partnership, as a limited partner, is entitled to 99 percent of the income and losses of the lower-tier limited partnerships. 6 9 HOUSING PROGRAMS LIMITED (A CALIFORNIA LIMITED PARTNERSHIP) NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 1996 NOTE 2 - INVESTMENT IN LIMITED PARTNERSHIPS (CONTINUED) The Partnership's allocated portion of equity in losses from the lower-tier limited partnerships is recognized in the financial statements of the Partnership until the Partnership's investment account in the applicable lower-tier limited partnership is reduced to a zero balance. Losses incurred after the investment account is reduced to zero are not recognized. Distributions from the limited partnerships are treated as a reduction of capital until the Partnership's investment account balance in the applicable lower-tier limited partnership has been reduced to the lesser of zero or a negative amount equal to future capital contributions required to be made by the Partnership to the applicable lower-tier limited partnership. Subsequent distributions are treated as income. The following is a summary of the Partnership's investment in lower-tier limited partnerships as of June 30, 1996: Balance, beginning of period $14,470,783 Amortization of acquisition costs (18,000) Equity in income of limited partnerships 94,000 Distribution recognized as return of capital (71,064) ----------- Balance, end of period $14,475,719 ===========
The following are unaudited combined estimated statements of operations for the six and three months ended June 30, 1996 and 1995 for the limited partnerships in which the Partnership has investments:
Six months Three months Six months Three months ended ended ended ended June 30, 1996 June 30, 1996 June 30, 1995 June 30, 1995 --------------- -------------- ------------- ------------- INCOME Rental and Other $8,566,000 $4,283,000 $ 8,408,000 $4,204,000 EXPENSES Depreciation 1,762,000 881,000 1,754,000 877,000 Interest 1,854,000 927,000 1,886,000 943,000 Operating 5,646,000 2,823,000 5,580,000 2,790,000 --------- --------- ------------ ----------- Total expenses 9,262,000 4,631,000 9,220,000 4,610,000 --------- --------- ------------ ----------- NET LOSS $ (696,000) $ (348,000) $ (812,000) $ (406,000) =========== =========== =========== ===========
Included in cash and accounts payable and other liabilities at June 30, 1996 is $157,898 received by the Partnership from certain limited partnerships that is payable on their behalf to various lenders. 7 10 HOUSING PROGRAMS LIMITED (A CALIFORNIA LIMITED PARTNERSHIP) NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 1996 NOTE 3 - NOTES PAYABLE Certain of the Partnership's investments involved purchases of partnership interests in the lower-tier partnerships from partners who subsequently withdrew from the applicable lower-tier partnership. The Partnership is obligated for non-recourse notes payable in the aggregate outstanding principal amount as of June 30, 1996 of $10,169,743, bearing interest at 9.5 percent, to such sellers of the partnership interests. The notes have principal maturity dates ranging from October 1996 to December 1999 or upon the sale or refinancing of the underlying partnership properties. The notes are collateralized by the Partnership's investment in the applicable investee limited partnerships and are payable only out of cash distributions from the applicable investee partnerships, as defined in the notes. Unpaid and accrued interest is due at maturity of the notes. The Partnership is currently negotiating for the sale of Deep Lake Hermitage. There is a $1,500,000 note payable by the Partnership to a seller of interests in the lower-tier partnership that owns the Deep Lake Hermitage property. That note, together with accrued interest thereon of $1,402,846, becomes due in October, 1996. Based on the current estimated value of the Deep Lake Hermitage property, it is anticipated that the sale will not generate sufficient funds to fully repay the note payable. NOTE 4 - ACCRUED FEES AND EXPENSES DUE TO GENERAL PARTNERS Under the terms of the Partnership's Restated Certificate and Agreement of Limited Partnership, the Partnership is obligated to the general partners for an annual management fee equal to 0.5 percent of the invested assets of the limited partnerships. Invested assets is defined as the costs of acquiring project interests including the proportionate amount of the mortgage loans related to the Partnership's interests in the capital accounts of the respective limited partnerships. The Partnership also reimburses NAPICO for certain expenses. The reimbursement to NAPICO was $9,948, and $14,923 for the six months ended June 30, 1996 and 1995, respectively, and is included in operating expenses. As of June 30, 1996, the fees and expenses due the general partners exceeded the Partnership's cash and cash equivalents and short term investments. The general partners, during the forthcoming year, will not demand payment of amounts due in excess of such cash or such that the Partnership would not have sufficient operating cash. An affiliate of NAPICO is the general partner in 10 of the limited partnerships, and another affiliate receives property management fees of approximately 5 to 6% of revenues from five of these partnerships. For the six months ended June 30, 1996 and 1995, approximately $118,900 and $113,900, respectively, was paid to the NAPICO affiliate for property management fees. Pursuant to the Memorandum of Understanding entered into on August 11, 1995, the Partnership paid to the affiliated management company $16,207 in interest on May 1, 1996. The interest relates to funds advanced to the Partnership by the master disbursement account maintained by the management company. In addition, the Partnership on May 1, 1996 reimbursed Housing Programs Corporation II $15,000 for professional fees, 8 11 HOUSING PROGRAMS LIMITED (A CALIFORNIA LIMITED PARTNERSHIP) NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 1996 NOTE 4 - ACCRUED FEES AND EXPENSES DUE TO GENERAL PARTNERS (CONTINUED) which were paid on behalf of the Partnership in connection with issues raised in the Memorandum of Understanding. NOTE 5 - CONTINGENCIES NAPICO is a plaintiff in various lawsuits and has also been named as defendant in other lawsuits arising from transactions in the ordinary course of business. In the opinion of NAPICO, the claims will not result in any material liability to the Partnership. NOTE 6 - FAIR VALUE OF FINANCIAL INSTRUMENTS Statement of Financial Accounting Standards No. 107, "Disclosure about Fair Value of Financial Instruments," requires disclosure of fair value information about financial instruments, when it is practicable to estimate that value. The notes payable are collateralized by the Partnership's investments in investee limited partnerships and are payable only out of cash distributions from the investee partnerships. The income generated by the operations of the investee limited partnerships, which account for the Partnership's primary source of revenues, are subject to various government rules, regulations and restrictions which make it impracticable to estimate the fair value of the notes payable and related accrued interest. The carrying amount of other assets and liabilities reported on the balance sheets that require such disclosure approximates fair value due to their short-term maturity. 9 12 HOUSING PROGRAMS LIMITED (A CALIFORNIA LIMITED PARTNERSHIP) JUNE 30, 1996 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS LIQUIDITY AND CAPITAL RESOURCES The Partnership's primary sources of funds include interest income earned from investing available cash and distributions from limited partnerships in which the Partnership has invested. It is not expected that any of the local limited partnerships in which the Partnership has invested will generate cash flow sufficient to provide for distributions to limited partners in any material amount. RESULTS OF OPERATIONS Partnership revenues consist primarily of interest income earned on certificates of deposit and other temporary investment of funds. The Partnership may also receive distributions from the lower-tier limited partnerships in which it has invested, however, such amounts are not expected to be material. Operating expenses of the Partnership consist of recurring general and administrative expenses, professional fees for services rendered to the Partnership and accrued interest on the notes payable. In addition, an annual Partnership management fee in an amount equal to .5 percent of invested assets is payable to the general partners. The Partnership accounts for its investments in the local limited partnerships on the equity method, thereby adjusting its investment balance by its proportionate share of the income or loss of the local limited partnerships. Losses incurred after the limited partnership investment account is reduced to zero are not recognized. Distributions received from limited partnerships are treated as return of capital until the investment balance has been reduced to zero or to a negative amount equal to future capital contributions required. Subsequent distributions received are treated as income. Except for certificates of deposit and money market funds, the Partnership's investments consist entirely of interests in other limited partnerships owning government assisted housing projects. Available cash is invested to provide interest income as reflected in the statements of operations. These funds can be converted to cash to meet obligations as they arise. The Partnership intends to continue investing available funds in this manner. The Montecito Local Partnership had been operating at a deficit, and the general partner of the Montecito Local Partnership was unsuccessful in its attempts to negotiate a mortgage modification with the lender. No mortgage payments were made since June 6, 1994 and the mortgage was in default. On July 18, 1995, the property was foreclosed upon by the lender. The Partnership's original investment in the Montecito Local Partnership represented approximately 5% of the Partnership's total capital raised. The Partnership's financial statements reflect no investment in the Montecito Local Partnership at June 30, 1996 and December 31, 1995. 10 13 HOUSING PROGRAMS LIMITED (A CALIFORNIA LIMITED PARTNERSHIP) JUNE 30, 1996 PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS As of June 30, 1996, NAPICO was a plaintiff or defendant in several lawsuits. None of these suits are related to the Partnership. In the opinion of NAPICO, the claims will not result in any material liability to the Partnership. Housing Programs Corporation II, a general partner of the Partnership, and certain of its affiliates, on their own behalf and on behalf of the Partnership and certain other partnerships with which they are associated (collectively, the "Plaintiff Partnerships"), and NAPICO, and certain of its affiliates, have entered into a Memorandum of Understanding dated August 11, 1995 and a Supplement to Memorandum of Understanding dated April 30 1996 (the "MOU"). In addition to establishing certain Partnership controls, the MOU resolved and settled various management and control issues which were under discussion for some time and various claims which were raised in a lawsuit filed in the Los Angeles Superior Court on June 9, 1995 by Housing Programs Corporation II, the Partnership, and others against, among others , NAPICO ("the Lawsuit"). All parties entered into the MOU without any admission of wrongdoing or liability by any defendant as to any claim in the Lawsuit, in a desire to avoid continued litigation that would be expensive, time consuming and complex. By virtue of the MOU, the parties thereto have agreed, among other things, to the following: 1. An analysis was prepared of the books and records of the Partnership including an analysis of the books and records of the master disbursement account maintained by an affiliate of NAPICO. Based on the analysis, the Partnership paid NAPICO and its affiliates $16,207 in interest on May 1, 1996, related to funds advanced to the Partnership by the master disbursement account. 2. HAPI Management, Inc. ("HAPI"), an affiliate of NAPICO shall continue to manage the five Partnership properties it currently manages, subject to various agreed-upon modifications to the existing management agreements, and HAPI will not manage the other properties of the Partnership. All future management arrangements with HAPI will be subject to Housing Programs Corporation II's reasonable approval. 3. On May 1, 1996, the Partnership reimbursed Housing Programs Corporation II $15,000 for professional fees, which were paid on behalf of the Partnership in connection with issues raised in the MOU. 4. The Partnership has engaged an independent Cash Manager, designated by Housing Programs Corporation II, and approved by NAPICO, to perform cash management services, including maintenance of the Partnership's bank accounts and reserves, payment of property management fees and other accounts payable, payments to affiliates of NAPICO, and payment of cash distributions, if any, to the Limited Partners. NAPICO has agreed to prepare detailed annual budgets to be approved by Housing Programs Corporation II and thereafter used by the Cash Manager as a guide and control over Partnership operations. 11 14 HOUSING PROGRAMS LIMITED (A CALIFORNIA LIMITED PARTNERSHIP) JUNE 30, 1996 PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS (CONTINUED) 5. Upon the uncured breach of certain provisions of the MOU, or upon a future breach of NAPICO's fiduciary duties, Housing Programs Corporation II may cause NAPICO to resign as a general partner of the Partnership and become a limited partner thereof. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) No reports on Form 8-K were filed during the quarter ended June 30, 1996. 12 15 HOUSING PROGRAMS LIMITED (A CALIFORNIA LIMITED PARTNERSHIP) JUNE 30, 1996 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 thereunto duly authorized. HOUSING PROGRAMS LIMITED (a California limited partnership) By: National Partnership Investments Corp. General Partner Date: ------------------------------------------------- By: ------------------------------------------------- Bruce Nelson President Date: ------------------------------------------------- By: ------------------------------------------------- Shawn Horwitz Executive Vice President and Chief Financial Officer 13 EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE PARTNERSHIP'S STATEMENTS OF EARNING AND BALANCE SHEETS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 6-MOS DEC-31-1996 JAN-01-1996 JUN-30-1996 786,881 0 0 0 0 911,881 0 0 15,387,600 162,617 0 0 0 0 (6,485,248) 15,387,600 0 240,964 0 0 355,442 0 521,770 (636,248) 0 (636,248) 0 0 0 (636,248) 0 0
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