-----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, UwyE09mYtf9M/iZY88KgM4SZhxBzGxC5C1KuZvZEno1YYpamMZdNN4XU0myoK30y poGvfnpj/tN0zffy3m87Og== 0001047469-98-028207.txt : 19980727 0001047469-98-028207.hdr.sgml : 19980727 ACCESSION NUMBER: 0001047469-98-028207 CONFORMED SUBMISSION TYPE: 10-K405 PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980724 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTURY PACIFIC HOUSING FUND I CENTRAL INDEX KEY: 0000809034 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 953938971 STATE OF INCORPORATION: CA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-K405 SEC ACT: SEC FILE NUMBER: 033-11194 FILM NUMBER: 98670585 BUSINESS ADDRESS: STREET 1: 1925 CENTURY PARK EAST STE 1760 CITY: LOS ANGELES STATE: CA ZIP: 90067 BUSINESS PHONE: 3102081888 MAIL ADDRESS: STREET 2: 1925 CENTURY PARK EAST SUITE 1760 CITY: LOS ANGELES STATE: CA ZIP: 90067 10-K405 1 10-K405 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K [X] Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 FOR THE FISCAL YEAR ENDED MARCH 31, 1998 OR [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 COMMISSION FILE NUMBER 33-11194 CENTURY PACIFIC HOUSING FUND-I A CALIFORNIA LIMITED PARTNERSHIP I.R.S. EMPLOYER IDENTIFICATION NO. 95-3938971 1925 CENTURY PARK EAST, SUITE 1760, LOS ANGELES, CA 90067 (310) 208-1888 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 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. [X] Yes [ ] No Indicate by check mark if disclosure of delinquent filers in response to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K (X). No documents are incorporated into the text by reference. [ ] Yes [X ] No Exhibit Index is located on Page 16. Registrant's Prospectus dated April 15, 1987, as amended (the "Prospectus") and the Registrant's Supplement No. 3 dated December 21, 1988 to Prospectus dated April 15, 1987 ("Supplement No. 3") but only to the extent expressly incorporated by reference in Parts I through IV hereof. Capitalized terms, which are not defined herein, have the same meaning as in the Prospectus. TABLE OF CONTENTS PART I
ITEM 1. BUSINESS............................................................3 ITEM 2. PROPERTIES..........................................................5 ITEM 3. LEGAL PROCEEDINGS...................................................8 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.................8 PART II ITEM 5. MARKET FOR THE REGISTRANT'S PARTNERSHIP INTERESTS...................9 ITEM 6. SELECTED FINANCIAL DATA.............................................9 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS..........................................10 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA........................12 ITEM 9. CHANGES AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE...........................................12 PART III ITEM 10. DIRECTORS AND EXECUTIVE COMPENSATION OF THE REGISTRANT.............13 ITEM 11. EXECUTIVE COMPENSATION.............................................14 ITEM 12. PARTNERSHIP INTEREST OWNERSHIP OF CERTAIN BENEFCIAL OWNERS AND MANAGEMENT..............................................14 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.....................14 PART IV ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K....15 EXHIBIT INDEX................................................................16 SIGNATURES...................................................................17
PART I ITEM 1. BUSINESS Century Pacific Housing Fund-I (the "Partnership") was formed on October 6, 1986 as a limited partnership under the laws of the State of California to invest in multi-family housing developments. The Partnership's business is to invest primarily in other limited partnerships ("Operating Partnerships") that are organized for the purpose of either constructing or acquiring and operating existing affordable multi-family rental apartments that are eligible for the Low-Income Housing Tax Credit, or to a lesser extent, the Rehabilitation Tax Credit, both enacted by the Tax Reform Act of 1986 (sometimes referred to as "Credits" or "Tax Credits"). The Partnership invested in 21 properties (the "Properties"). Each of the Properties qualifies for the Low-Income Housing Tax Credit, and one property, a historic structure, qualifies for the Rehabilitation Tax Credit. All of these Properties receive one or more forms of assistance from federal, state or local governments. A summary of the Partnership's objectives and a summary of the Tax Credits are provided in the Prospectus under "Investment Objectives and Policies" and "Federal Income Tax Aspects" on pages 45 and 79, respectively, and are incorporated herein by reference. In order to stimulate private investment in low and moderate income housing of the types in which the Partnership has invested, the federal government has provided investors with significant ownership incentives intended to reduce the risks and provide investors/owners with certain tax benefits, limited cash distributions and the possibility of long-term capital gains. The ownership incentives include interest subsidies, rent subsidies, mortgage insurance and other measures. Long-term investments in real estate limit the ability of the Partnership to vary its portfolio in response to changing economic, financial and investment conditions, and such investments are subject to changes in economic circumstances and housing patterns, rising operating costs and vacancies, rent controls and collection difficulties, costs and availability of energy, as well as other factors which normally affect real estate values. In addition, these properties usually are rent restricted and are subject to government agency programs, which may or may not require prior consent to transfer ownership. The Partnership acquired the Properties by investing as the limited partner in Operating Partnerships, which own the Properties. As a limited partner, the Partnership's liability for obligations of the Operating Partnerships is limited to its investment. The Partnership made capital contributions to the Operating Partnerships in amounts sufficient to pay the Operating Partnerships' expenses and to reimburse the general partners for their costs incurred in forming the Operating Partnerships, if any, and acquiring the Properties. For each acquisition, this typically included a cash down payment (in one or more installments), acceptance of the property's mortgage indebtedness, and execution of a Purchase Money Note in favor of the seller of the property. For a summary of the acquisition financing activities for each property, see the financial information contained under ITEM 2. The Partnership's primary objective is to provide Low-Income Housing Tax credits to limited partners generally over a 10-year period. Each of the Partnership's Operating Partnerships has been allocated by the relevant state tax credit agency an amount of the Low-Income Housing Tax Credit for 10 years from the date the property is placed-in-service. The required holding period of the Properties is 15 years (the "Compliance Period"). The Properties must satisfy rent restrictions, tenant income limitations and other requirements (the "Low-Income Housing Tax Credit Requirements") in order to maintain eligibility for recognition of the Low-Income Housing Tax Credit at all times during the Compliance Period. Once an Operating Partnership has become eligible for the Low-Income Housing Tax Credit, it may lose such eligibility and suffer an event of recapture if its property fails to remain in compliance with the Low-Income Housing Tax Credit Requirements. To date, none of the Operating Partnerships have suffered an event of recapture of the Low-Income Housing Tax Credit. 3 Nineteen of the twenty-one Operating Partnerships receives rental subsidy payments, including payments under Section 8 of Title II of the Housing and Community Development Act of 1974 ("Section 8"). The subsidy agreements expire at various times during and after the 15-year compliance period of the Operating Partnerships. The United States Department of Housing and Urban Development ("HUD") has issued a notice implementing provisions to renew Section 8 contracts expiring during HUD's fiscal year 1997, where requested by an owner, for an additional one year term at current rent levels. As of June 16, 1998, eleven of the Operating Partnerships' Section 8 contracts are due to expire during 1998. The Operating Partnerships have not yet received HUD's approval of their extension requests. At the present time, the Partnership cannot reasonably predict legislative initiatives and government budget negotiations, the outcome of which could result in a reduction in funds available for the various federal and state administered housing programs including the Section 8 program. Such changes could adversely affect the future net operating income and debt structure of any or all Operating Partnerships receiving such subsidy or similar subsidies. EMPLOYEES The Partnership does not employ any persons. Alternatively, the Partnership reimburses an affiliate for overhead allocation consisting primarily of payroll costs. 4 ITEM 2. PROPERTIES As of March 31, 1998, the Partnership had acquired equity interests in the Operating Partnerships set forth in the table below. Each of the Properties acquired by the Operating Partnerships receives benefits under government assistance programs. The table set forth below summarizes the Properties acquired, and the purchase price, original indebtedness assumed and the government assistance programs benefiting each property. Further information concerning these Properties may be found in Supplement No. 3 to the Prospectus, pages 4 through 66, which information is incorporated herein by reference and is summarized below. 5
AVERAGE CASH GOVERNMENT PROPERTY NAME, OCCUPANCY PURCHASE DOWN PURCHASE MORTGAGE RESIDUAL ASSISTANCE LOCATION AND RENTAL UNITS 1997 PRICE PAYMENT NOTE ASSUMED NOTE PROGRAM - ---------------------------------------------------------------------------------------------------------------------------------- Century Pacific Housing Partnership V (CPHP-V) - JAYCEE TOWERS Dayton, OH Section 236 204 residential units 97% $5,700,000 $400,196 $ 16,500 $3,000,123 $2,283,181 Section 8 CPHP-VIII - SUNSET TOWNHOMES Newton, KS 50 residential units 90% 1,225,000 138,000 - 751,905 335,095 Section 236 CPHP-XI - CONTINENTAL TERRACE Fort Worth, TX Section 236 200 residential units 96% 4,600,000 482,883 - 2,609,991 1,507,126 Section 8 CPHP-XII - YALE VILLAGE Houston, TX Section 236 180 residential units 82% 5,250,000 530,894 - 3,075,000 1,644,106 Section 8 CPHP-XIII - ATLANTIS Virginia Beach, VA Section 236 208 residential units 100% 6,032,000 801,000 - 2,678,416 2,552,584 Section 8 CPHP-XIV - KINGS ROW Houston, TX Section 236 180 residential units 97% 3,780,000 394,213 - 1,848,269 1,537,518 Section 8 CPHP-XV - CASTLE GARDENS Lubbock, TX Section 236 152 residential units 92% 3,268,000 320,140 - 1,787,613 1,160,247 Section 8 CPHP-XVI - ROCKWELL VILLA Oklahoma City, OK Section 236 60 residential units 89% 1,235,400 129,564 - 707,207 398,629 Section 8 CPHP-XVII - LONDON SQUARE VILLAGE Oklahoma City, OK Section 236 200 residential units 94% 4,214,000 414,097 - 2,820,832 979,071 Section 8 CPHP-XVIII - ASCENSION TOWERS Memphis, TN 197 residential units 100% 6,727,500 409,094 50,000 3,863,739 2,404,667 Section 236 COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP Baltimore, MD Section 221(d)(4) 50 residential units 99% 3,990,000(1) 1,625,000 - 2,365,000 - Section 8 CPHP-XX - HOLIDAY HEIGHTS Fort Worth, TX Section 236 100 residential units 96% 2,200,000 191,000 - 1,120,000 889,000 Section 8
6
AVERAGE CASH GOVERNMENT PROPERTY NAME, OCCUPANCY PURCHASE DOWN PURCHASE MORTGAGE RESIDUAL ASSISTANCE LOCATION AND RENTAL UNITS 1997 PRICE PAYMENT NOTE ASSUMED NOTE PROGRAM - ---------------------------------------------------------------------------------------------------------------------------------- CPHP-XXII - HARRIET TUBMAN TERRACE Berkeley, CA Section 236 91 residential units 100% 4,732,000 593,000 - 1,718,171 2,420,829(2) Section 8 - CPHP-I - CHARTER HOUSE Dothan, AL 100 residential units 97% 2,146,000 195,000 - 1,169,000 782,000 Section 236 Section 236 CPHP-II-VOA - SUNSET PARK Section 8 Denver, CO Flexible 242 residential units 91% 6,500,000 956,000 - 3,081,144 2,462,856 Subsidy loan Section 221(d)(3) CPHP-III - HIGHLAND PARK Section 8 Topeka, KS Flexible 200 residential units 95% 6,900,000 939,000 - 2,024,000 3,937,000 Subsidy loan Section 236 CPHP-IV - FOREST GLEN ESTATES Section 8 Kansas City, KS Flexible 160 residential units 98% 4,960,000 738,000 - 2,488,000 1,734,000 Subsidy loan CPHP-VI - EDGEWOOD Danville, IL 150 residential units 86% 3,540,000 680,000 - 2,359,950 500,050 Section 8 CPHP-VII - GULFWAY TERRACE New Orleans, LA Section 236 206 residential units 79% 5,700,000 683,000 - 3,301,974 1,715,026 Section 8 Section 236 CPHP-IX - WIND RIDGE Section 8 Wichita, KS Flexible 136 residential units 93% 3,500,000 382,000 - 1,791,936 1,326,064 Subsidy loan CPHP-X - BERGEN CIRCLE Springfield, MA Section 236 201 residential units 95% 12,261,000 1,768,000 - 6,946,158 3,546,842 Section 8 - ---------------------------------------------------------------------------------------------------------------------------------- $98,460,900 $12,770,081 $66,500 $51,508,428 $34,115,891 - ---------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------
1 This amount represents the development cost and not the purchase price. 2 This total includes a flexible subsidy loan in the amount of $185,000 and the assumption of a prior residual note in the amount of $200,000. 7 ITEM 3. LEGAL PROCEEDINGS As of June 16, 1998, there were no pending legal proceeding against the Partnership or any Operating Partnership in which it has invested. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS There were no submissions of matters to a vote of security holders during the year ended March 31, 1998. 8 PART II ITEM 5. MARKET FOR THE REGISTRANT'S PARTNERSHIP INTERESTS There is at present no public market for the units of limited partnership interests (the "Units"), and it is unlikely that any public market for the Units will develop. See the Prospectus under "Transferability of Interest" on pages 29 and 72 of the Prospectus, which information is incorporated herein by reference. The number of owners of Units as of June 16, 1998 was approximately 2,093, holding 22,315 units. As of June 16, 1998, there were no cash distributions. ITEM 6. SELECTED FINANCIAL DATA The following summary of selected financial data should be read in conjunction with ITEM 14, herein, which also includes a summary of the Partnership's significant accounting policies.
YEAR ENDED MARCH 31, ------------------------------------------------------------------------------------------- OPERATIONS 1998 1997 1996 1995 1994 - -------------------------------- ----------------- ------------------ ----------------- ------------------ ----------------- Revenues $ 1,720 $ 2,100 $ 3,900 $ 5,000 $ 4,200 Operating Expenses (72,591) (73,359) (75,053) (72,069) (106,432) Equity in Net Losses of Operating Partnerships (134,311) (136,010) (176,789) (241,098) (256,914) -------------- -------------- -------------- -------------- -------------- Net Loss $(205,182) $(207,269) $(247,942) $(308,167) $(359,146) -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- Net Loss per Unit of Limited Partnership Interest $ (9) $ (9) $ (11) $ (14) $ (16) -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
MARCH 31, --------------------------------------------------------------------------------------- FINANCIAL POSITION 1998 1997 1996 1995 1994 - -------------------------------- ------------- ------------ ------------ ------------ ------------- Total Assets $277,925 $410,633 $547,704 $722,045 $961,812 ------------- ------------ ------------ ------------ ------------- ------------- ------------ ------------ ------------ -------------
9 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS The Partnership raised $8,517,000 in equity capital during calendar year 1987 and raised an additional $13,798,000 through April 15, 1988. In late December 1987, the Partnership invested in eight Operating Partnerships, which own eight multi-family properties located in various states representing $45,507,000 of property value. During 1988, the Partnership invested in an additional 13 properties located in eight states representing $52,953,900 of property value. As of March 31, 1998, the Partnership's portfolio consists of 21 Properties. The Properties are located in 13 states and contain 3,267 residential units. The average occupancy level for each property during calendar year 1997 was approximately 94% and most Properties generated sufficient revenue to cover operating costs, debt service, and the funding of reserves. For a summary of the combined financial status of the Operating Partnerships and the Properties, see the financial information contained under ITEM 14. LIQUIDITY AND CAPITAL RESOURCES The Partnership is currently experiencing a liquidity problem. Under the Partnership Agreement, the Partnership is entitled to receive distributions of surplus cash from the Operating Partnerships which is to provide the funds necessary for the Partnership to meet its operating costs. To date, the Operating Partnerships have not provided sufficient cash distributions to enable the Partnership to meet its current obligations. The Partnership has also incurred allocated losses from all but one of its Operating Partnerships to the extent of the Partnership's cash contributions and has a negative working capital. As a result of the foregoing, the Partnership has been dependent upon its general partners and affiliates for continued financial support to meet its operating costs. Management maintains that the general partners and/or affiliates, though not required to do so, will continue to fund operations of the Partnership by continuing to fund operating costs and by deferring payment of allocated overhead expenses and repayment of operating cash advances. Management believes the possibility exists that one or several Operating Partnerships may require additional capital, in addition to that previously contributed by the Partnership, to sustain operations. In such case, the source of the required capital needs may be from (i) limited reserves from the Partnership (which may include distributions received from the Operating Partnerships that would otherwise be available for distribution to partners), (ii) debt financing at the Operating Partnership level (which may not be available), or (iii) additional equity contributions from the general partner of the Operating Partnerships (which may not be available). There can be no assurance that any of these sources would be readily available to provide for possible additional capital requirements, which may be necessary to sustain the operations of the Operating Partnerships. However, the Partnership is under no obligation to fund operating deficits of the Operating Partnerships in the form of additional contributions or loans. Due to the uncertainty of the continuation of the Section 8 program, management has been forced to look at several options to prepare for the possible lack of subsidy income to the Operating Partnerships. The loss of subsidy income to the Operating Partnerships will make it more difficult for the Operating Partnerships to provide sufficient cash distributions to the Partnership. Management has identified the courses of action they will take as a result of the potential changes to the Section 8 program. The plan that the Operating Partnerships follow will depend on the federal government's decision to implement the decentralization or elimination of HUD. HUD's proposed Mark-to-Market approach would create an atmosphere where the projects would have to compete for residents in the conventional market. The following alternatives are listed as plans of action that management plans to pursue in response to HUD's actions: 10 1. HUD may transfer project control to a local Housing Authority in the form of block grants. The Housing Authority would determine the market rents based on the area market. The projects would respond to the local Housing Authority and follow their procedures and guidelines. 2. The current tenants may receive a housing voucher administered by the local Housing Authority. The projects will accept vouchers and actively seek applicants who have vouchers. The projects will also accept non-voucher residents who will pay rent amounts not to exceed the maximum rents for persons at 60% of the median income level as in compliance with Section 42 of the Internal Revenue Code ("IRC"). 3. If no subsidies or vouchers are given to the projects or the tenants, all rents will be raised not to exceed the maximum rents for persons at 60% of the median income level as in compliance with Section 42 of the IRC. With rental rate increases, many of the current residents will be unable to pay the higher rents, thus forcing them to move from the projects and to seek housing elsewhere. An increase in the move out rate will cause a severe cash flow strain to the project. To compensate for the loss of income and increased vacancy turnover costs, the projects will require effective marketing, competitive rental rates and possible upgrading to units and/or common areas to attract qualified applicants and maintain a low vacancy rate. 4. HUD may restructure loans in order to minimize the monthly costs to the project and reduce the chances for default. Even with reduced or eliminated payments, the project will be forced to increase rents in order to operate. 5. The final option is to buy off the HUD insured loan making the complex free from HUD's or the local Housing Authority's regulations. TAX REFORM ACT OF 1986, OMNIBUS BUDGET RECONCILIATION ACT OF 1987, TECHNICAL AND MISCELLANEOUS REVENUE ACT OF 1988, OMNIBUS BUDGET RECONCILIATION ACT OF 1989 AND OMNIBUS BUDGET RECONCILIATION ACT OF 1990 The Partnership is organized as a limited partnership and is a "pass through" tax entity which does not, itself, pay federal income tax. However, the partners of the Partnership, who are subject to federal income tax, may be affected by the Tax Reform Act of 1986, the Omnibus Budget Reconciliation Act of 1987, the Technical and Miscellaneous Revenue Act of 1988, the Omnibus Budget Reconciliation Act of 1989 and the Omnibus Budget Reconciliation Act of 1990 (collectively the "Tax Acts"). The Partnership will consider the effect of certain aspects of the Tax Acts on the partners when making investment decisions. The Partnership does not anticipate that the Tax Acts will have a material adverse impact on the Partnership's business operations, capital resources, plans or liquidity. RESULTS OF OPERATIONS The Partnership generated revenue of $1,720, $2,100 and $3,900 in the fiscal years ended March 31, 1998, 1997 and 1996, respectively, which principally represents transfer fees charged to limited partners to cover administrative costs incurred by the Partnership upon the private transfer of their interests. There were $6,690,770 in tax losses generated during the Partnership's calendar tax year ended December 31, 1997, arising primarily from Operating Partnership losses allocated to the Partnership and the Partnership's general and administrative costs. The Partnership received $3,346,334 in tax credits allocated directly from the Operating Partnerships for the calendar year ended December 31, 1997. 11 INFLATION Inflation is not expected to have a material adverse impact on the Partnership's operations during its period of ownership of the Properties. ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA The financial statements at March 31, 1998 and 1997 together with the report of the independent auditors thereon are incorporated by reference from the Registrant's Financial Statements on the pages indicated in ITEM 14. ITEM 9. CHANGES AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE On September 30, 1997, the prior auditors, Rubin, Brown, Gornstein & Co., LLP, were dismissed as auditors for the Partnership. The decision to change accountants was approved by the Partnership's Board of Directors. Rubin, Brown, Gornstein & Co., LLP's report on the Partnership's financial statements for the year ended March 31, 1997 contained a modification as to uncertainty of the Partnership to continue as a going concern. Rubin, Brown, Gornstein & Co., LLP's report on the above mentioned financial statements contained no adverse opinions or disclaimer of opinions, and was not qualified as to uncertainty, audit scope or accounting principles, other than those previously discussed. Effective September 30, 1997, the Partnership engaged Novogradac & Company LLP to perform the audit of the Partnership's financial statements as of and for the year ended March 31, 1998. There are no known disagreements on any matter of accounting principles or practices or financial statement disclosure with current or predecessor auditors. 12 PART III ITEM 10. DIRECTORS AND EXECUTIVE COMPENSATION OF THE REGISTRANT The Partnership has no officers or directors. Management of the Partnership is vested in Irwin Jay Deutch and Century Pacific Capital Corporation ("CPCC") (the "general partners"). The general partners will involve themselves in the day-to-day affairs of the Partnership as required to protect the limited partners' investment and advance the Partnership's tax investment objectives. Mr. Deutch, the managing general partner, has the overall responsibility of the preparation and transmittal of periodic reports to the limited partners, preparation and filing of the Partnership's tax returns with the IRS and the appropriate state tax authorities, and the preparation and filing of reports to HUD and other government agencies. Following is biographical information on Mr. Deutch and the Executive Officers of CPCC: IRWIN JAY DEUTCH IRWIN JAY DEUTCH, age 57, is Chairman of the Board, President, and Chief Executive Officer of Century Pacific Realty Corporation ("CPRC"), a general partner of the Operating Partnerships that owns the Properties in which CPHF-I has invested, and its affiliates. Mr. Deutch has been involved with low-income housing investments since 1968. He is the individual general partner in 62 private limited partnerships and two public limited partnerships investing in 209 properties, including 196 multi-family properties with 33,700 apartment units, 10 commercial projects, and 3 hotel properties. Fifty-eight of the 62 private limited partnerships have invested in affordable housing. In his capacity as general partner and officer of CPRC, he oversees the management of these partnerships and assumes overall responsibility for the development, direction, and operation of all affiliated CPRC companies. Mr. Deutch is recognized as an expert in the field of affordable housing and frequently addresses professional groups on topics of real estate investment, syndication, tax law, and the Low-Income Housing Tax Credit program. Mr. Deutch received a B.B.A. with distinction from the University of Michigan School of Business Administration in 1962 and a Juris Doctor degree with honors from the University of Michigan Law School in 1965. He is a member of the Order of the Coif. Mr. Deutch served in the Honors Program in the Office of the Chief Counsel of the Internal Revenue Service from 1965 to 1967, where he was assigned to the Interpretative Division in Washington, D.C. He attended Georgetown Law Center and received his Masters of Law degree in taxation in 1967. Mr. Deutch is a member of the State Bars of Michigan and California, as well as the American, Federal, Los Angeles, and Beverly Hills Bar Associations. KEY OFFICERS OF CPCC AND AFFILIATES ESSIE SAFAIE, age 49, is Chief Financial Officer and Chief Operating Officer of CPRC. Prior to joining CPRC in 1988, from 1985 to 1988, he was Vice President and Chief Financial Officer of Sunrise Investments, Inc., a real estate syndication firm with $450 million of real estate under management. During this period, Mr. Safaie was also President of an affiliated property management firm, S&L Property Management, Inc., with over 12,000 residential units and 800,000 square feet of commercial office space under direct management. From 1982 to 1985, Mr. Safaie was assistant controller of Standard Management Company, builder and managers of luxury hotels, commercial offices and residential units. From 1980 to 1982, he served as financial officer of Diamond "M" Drilling Company. Mr. Safaie received a B.A. degree in Business Administration from California State University with a major in accounting. 13 CHARLES L. SCHWENNESEN, age 52, is Vice President of Acquisition Finance of CPRC and is responsible for financial analysis and "due diligence" reviews of all properties acquired by CPRC. Prior to joining CPRC in 1987, he was a consultant to companies, which provided investment opportunities through private placements. From 1984 to 1985, Mr. Schwennesen was Vice President of Cranston Securities Company and was responsible for the structuring of more than $30 million of mortgage revenue bond financing for affordable housing projects. From 1977 to 1984, Mr. Schwennesen was a manager with the accounting firm of Price Waterhouse where he specialized in providing auditing and consulting services to publicly held California real estate development companies involved in the affordable housing industry. Mr. Schwennesen is a Certified Public Accountant and holds a Masters degree in Business Administration from the UCLA Graduate School of Management and a B.A. degree in Mathematics from UCLA. ITEM 11. EXECUTIVE COMPENSATION The Partnership has no officers or directors. However, in connection with the operations of the Partnership and the Operating Partnerships, the general partners and their affiliates will or may receive certain fees, compensation, income and other payments which are described in the Prospectus under "Compensation, Fees and Reimbursements" on page 17, the terms of which are incorporated herein by reference. During the fiscal years ended March 31, 1998, 1997 and 1996, CPCC, a general partner of the Partnership, and CPRC, a general partner of the Operating Partnerships, earned $512,139, $507,803 and $505,381, respectively, in compensation from the Operating Partnerships and $60,000 was accrued for each fiscal year for the reimbursement for overhead allocation from Century Pacific Investment Corporation ("CPIC"). During fiscal year 1998, the general partners received no payments from the Operating Partnerships. ITEM 12. PARTNERSHIP INTEREST OWNERSHIP OF CERTAIN BENEFCIAL OWNERS AND MANAGEMENT No partner in the Partnership owns more than 5% of the total number of partnership interests outstanding. Irwin J. Deutch, the managing general partner, holds a one-half percent general partnership interest and C.P. Westwood Associates holds a one percent limited partnership interest. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS Irwin J. Deutch is the managing general partner of the Partnership, and CPCC is also a general partner. Irwin J. Deutch is the sole Director and President of CPCC, and the stock of CPCC is solely owned by the Deutch Family Trust. Mr. Deutch is also the President, sole Director and the Deutch Family trust is the sole stockholder of CPRC, the general partner of the Operating Partnerships that own the Properties in which the Partnership is invested. The general partners were allocated their proportionate share of the Partnership's tax losses and allocated tax credits. CPCC and CPRC accrued certain fees for their services in managing and advising the Partnership and its business. CPIC, an affiliate, provides all the services and materials necessary for the operation of the Partnership and is reimbursed for actual costs. These transactions are more particularly set forth in the financial statements found under ITEM 14. 14 PART IV ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K (a) Exhibits - See the Exhibit Index at page 16 of this report.
(b) (1) Financial Statements: Independent Auditors' Reports F-1 Balance Sheets as of March 31, 1998 and 1997 F-2 Statements of Operations for the Years Ended March 31, 1998, 1997 and 1996 F-3 Statements of Partners' Equity (Deficit) for the Years Ended March 31, 1998, 1997 and 1996 F-4 Statements of Cash Flows for the Years Ended March 31, 1998, 1997 and 1995 F-5 Notes to Financial Statements F-6 (2) Financial Statement Schedules: Schedule III - Real Estate and Accumulated Depreciation of Operating Partnerships in which CPHF-I has Limited Partnership Interests F-12 Notes to Schedule III - Real Estate and Accumulated Depreciation of Operating Partnerships in which CPHF-I has Limited Partnership Interests F-14 Schedule IV - Mortgage Loans on Real Estate of Operating Partnerships in which CPHF-I has Limited Partnership Interests F-16 Notes to Schedule IV - Mortgage Loans on Real Estate of Operating Partnerships in which CPHF-I has Limited Partnership Interests F-20 All other schedules are omitted because they are not applicable or the required information is shown in the financial statements or notes thereto. (c) Reports on Form 8-K Registrant did file with the Securities and Exchange Commission a Current Report on Form 8-K during the year ended March 31, 1998.
15 EXHIBIT INDEX These exhibits are numbered in accordance with the exhibit table of Item 601 of Regulation S-K.
Exhibit Number Description -------------- ----------- 11 Omitted - inapplicable 12 Omitted - inapplicable 13 Omitted - inapplicable 16 Omitted - inapplicable 18 Omitted - inapplicable 21 Omitted - inapplicable 23 Omitted - inapplicable 27 Financial Data Schedule
16 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CENTURY PACIFIC HOUSING FUND-I Date: 7/23/98 /s/ Irwin Jay Deutch --------------------- -------------------------------------------- By: Irwin Jay Deutch, as Managing General Partner and Century Pacific Capital I Corporation, as Corporate General Partner and as Attorney-in-Fact for all Investor Limited Partners Date: 7/23/98 /s/ Irwin Jay Deutch --------------------- -------------------------------------------- By: Irwin Jay Deutch, President 17 REPORT OF INDEPENDENT AUDITORS' To the Partners of Century Pacific Tax Credit Housing Fund-I We have audited the accompanying balance sheet of Century Pacific Tax Credit Housing Fund-I (the "Partnership"), as of March 31, 1998, and the related statements of operations, changes in partners' equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of Century Pacific Tax Credit Housing Fund-I for the years ended March 31, 1997 and 1996 were audited by other auditors, whose reports dated June 16, 1997 and June 13, 1996, respectively, included an explanatory paragraph describing conditions that raised substantial doubt about the Partnership's ability to continue as a going concern. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Century Pacific Tax Credit Housing Fund-I as of March 31, 1998, and the results of its operations, changes in partners' equity (deficit), and cash flows for the year then ended in conformity with generally accepted accounting principles. The accompanying financial statements have been prepared assuming that the Partnership will continue as a going concern. As discussed in Note 6 to the financial statements, the Partnership's Operating Partnerships have suffered recurring operating losses, have not provided sufficient cash distributions to fund administrative costs and the Partnership has a net capital deficiency, which raises substantial doubt about the Partnership's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 6. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. We have also audited the related financial statement schedules listed in Item 14(b)(2) as of December 31, 1997. In our opinion, the financial statement schedules present fairly, in all material respects, the information required to be set forth therein. Atlanta, Georgia June 16, 1998 F-1 CENTURY PACIFIC TAX CREDIT HOUSING FUND - I BALANCE SHEETS MARCH 31,
ASSETS 1998 1997 ---------------------- ---------------------- Cash $ 2,296 $ 693 Receivable from related party (Note 4) 15,549 15,549 Investments in Operating Partnerships (Notes 1 and 5) 260,080 394,391 ---------------------- ---------------------- Total assets $ 277,925 $ 410,633 ---------------------- ---------------------- ---------------------- ---------------------- LIABILITIES AND PARTNERS' EQUITY (DEFICIT) Accounts payable and accrued expenses $ 10,800 $ 11,600 Advance from affiliate (Note 4) 62,455 62,455 Payable to related parties (Note 4) 785,415 712,141 ---------------------- ---------------------- Total liabilities $ 858,670 $ 786,196 ---------------------- ---------------------- Partners' equity (deficit) General partners $ (390,337) $ (386,233) Limited partners, $1,000 stated value per unit 50,000 units autherized, 22,315 units issued and outstanding (Note 4) (190,408) 10,670 ---------------------- ---------------------- Total partners' equity (deficit) $ (580,745) $ (375,563) ---------------------- ---------------------- Total liabilities and partners' equity (deficit) $ 277,925 $ 410,633 ---------------------- ---------------------- ---------------------- ----------------------
F-2 CENTURY PACIFIC TAX CREDIT HOUSING FUND - I STATEMENTS OF OPERATIONS FOR THE YEARS ENDED MARCH 31,
1998 1997 1996 ---------- ---------- ---------- REVENUES Transfer fees $ 1,720 $ 2,100 $ 3,900 ---------- ---------- ---------- EXPENSES Allocated overhead expenses - affiliate (Note 3) 60,000 60,000 60,000 Other general and administrative 12,591 13,359 15,053 ---------- ---------- ---------- Total expenses 72,591 73,359 75,053 ---------- ---------- ---------- Loss Before Equity In Net Losses Of Operating Partnerships (70,871) (71,259) (71,153) Equity In Net Losses Of Operating Partnerships (Note 5) (134,311) (136,010) (176,789) ---------- ---------- ---------- NET LOSS $(205,182) $(207,269) $(247,942) ---------- ---------- ---------- ---------- ---------- ---------- Allocation Of Net Loss General partners $ (4,104) $ (4,145) $ (4,959) Limited partners (201,078) (203,124) (242,983) ---------- ---------- ---------- $(205,182) $(207,269) $(247,942) ---------- ---------- ---------- ---------- ---------- ---------- Net Loss Per Unit Of Limited Partnership Interest (Note 1) $ (9) $ (9) $ (11) ---------- ---------- ---------- ---------- ---------- ---------- Average Number Of Outstanding Units 22,315 22,315 22,315 ---------- ---------- ---------- ---------- ---------- ----------
F-3 CENTURY PACIFIC TAX CREDIT HOUSING FUND - I STATEMENTS OF PARTNERS' EQUITY (DEFICIT) FOR THE YEARS ENDED MARCH 31, 1998, 1997 AND 1996
GENERAL LIMITED PARTNERS PARTNERS TOTAL ---------- ---------- ---------- Partners' Equity (Deficit) - March 31, 1995 $(377,129) $ 456,777 $ 79,648 Net Loss (4,959) (242,983) (247,942) ---------- ---------- ---------- Partners' Equity (Deficit) - March 31, 1996 (382,088) 213,794 (168,294) Net Loss (4,145) (203,124) (207,269) ---------- ---------- ---------- Partners' Equity (Deficit) - March 31, 1997 (386,233) 10,670 (375,563) Net Loss (4,104) (201,078) (205,182) ---------- ---------- ---------- Partners' Equity (Deficit) - March 31, 1998 $(390,337) $(190,408) $(580,745) ---------- ---------- ---------- ---------- ---------- ---------- Percentage Interest - March 31, 1998 2% 98% 100% ---------- ---------- ---------- ---------- ---------- ----------
F-4 CENTURY PACIFIC TAX CREDIT HOUSING FUND - I STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED MARCH 31,
1998 1997 1996 --------- --------- --------- Cash Flows From Operating Activities Net loss $(205,182) $(207,269) $(247,942) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Equity in net losses of Operating Partnerships 134,311 136,010 176,789 Changes in assets and liabilities: Decrease in accounts payable and accrued expenses (800) (9,240) (1,460) Increase in payable to related parties 73,274 76,738 75,061 Increase (decrease) in advance to affiliate 0 2,700 (1,824) --------- --------- --------- Net Cash Provided By (Used In) Operating Activities 1,603 (1,061) 624 --------- --------- --------- Net Increase (Decrease) In Cash 1,603 (1,061) 624 Cash - Beginning Of Year 693 1,754 1,130 --------- --------- --------- Cash - End Of Year $ 2,296 $ 693 $ 1,754 --------- --------- --------- --------- --------- ---------
F-5 CENTURY PACIFIC TAX CREDIT HOUSING FUND - I Notes to the Financial Statements For the years ended March 31, 1998, 1997 and 1996 1. ORGANIZATION Century Pacific Housing Fund-I, a California limited partnership (the "Partnership"), was formed on October 6, 1986 for the purpose of raising capital by offering and selling limited partnership interests and then acquiring limited partnership interests in 21 limited partnerships (the "Operating Partnerships"), which acquired and operate 21 multi-family residential apartment properties (the "Properties"). The general partners of the Partnership are Century Pacific Capital Corporation, a California corporation ("CPCC"), and Irwin Jay Deutch, an individual (collectively, the "general partners"). The general partners and affiliates of the general partners (the "general partners and affiliates") have interests in the Partnership and receive compensation from the Partnership and the Operating Partnerships (Note 3). The Properties qualify for the Low-Income Housing Tax Credit established by Section 42 of the Tax Reform Act of 1986 (the "Low-Income Housing Tax Credit") and one property qualifies for Historic Rehabilitation Tax Credits (collectively, the "Tax Credits"). The Properties are leveraged low-income multi-family residential complexes and receive one or more forms of assistance from federal, state or local government agencies (the "Government Agencies"). In July 1987, the Partnership began raising capital from sales of limited partnership interests, at $1,000 per Unit, to limited partners. The Partnership authorized the issuance of a maximum of 50,000 Units of which 22,315 were subscribed and issued. The limited partnership interest offering closed in April 1988. The Partnership has acquired limited partnership interests ranging from 97% to 99% in the Operating Partnerships, which have invested in rental property. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS BASIS OF ACCOUNTING The Partnership prepares its financial statements on the tax basis of accounting. Memorandum entries, while not recorded in the records of the Partnership, have been made in order to prepare the financial statements in accordance with generally accepted accounting principles. On August 7, 1991, management changed from a calendar year end to a fiscal year end of March 31 for financial reporting purposes. Accordingly, the Partnership's quarterly periods end June 30, September 30 and December 31. The Operating Partnerships, for financial reporting purposes, have a calendar year end. The Partnership, as well as the Operating Partnerships, has a calendar year-end for income tax purposes. USE OF ESTIMATES The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. F-6 CENTURY PACIFIC TAX CREDIT HOUSING FUND - I Notes to the Financial Statements For the years ended March 31, 1998, 1997 and 1996 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS (CONTINUED) INCOME TAXES In accordance with federal and state income tax regulations, no income taxes are levied on the Partnership. Federal and state income taxes on partnership income are levied on the partners in their individual capacity. The tax returns, the qualification of the Partnership as such for tax purposes and the amount of distributable income or loss are subject to examination by federal and state taxing authorities. If such examination results in changes in the Partnership qualification or in distributable income or loss, the tax liability of the partners could change. CASH AND CASH EQUIVALENTS Cash and cash equivalents include all cash balances and highly liquid investments with a maturity of three months or less. Restricted cash is not considered a cash equivalent. ECONOMIC CONCENTRATIONS The Partnership operates 21 properties in 13 different states. Future operations could be affected by changes in the economic or other conditions in that geographical area or by changes in federal low-income housing subsidies or the demand for such housing. CONCENTRATION OF CREDIT RISK The Partnership deposits its cash in financial institutions. At times, deposits may exceed federally insured limits. The Partnership has not experienced losses in such accounts. INVESTMENTS IN OPERATING PARTNERSHIPS The Partnership uses the equity method to account for its investment in the Operating Partnerships (Note 4). Under the equity method of accounting, the investment is carried at cost and adjusted for the Partnership's share of the Operating Partnerships' results of operations and by cash distributions received. Equity in the loss of each Operating Partnership allocated to the Partnership is not recognized to the extent that the investment balance would become negative. Costs paid by the Partnership for organization of the Operating Partnerships as well as direct costs of acquiring Properties, including acquisition fees and reimbursable acquisition expenses paid to the general partner, have been capitalized as investments in Operating Partnerships. NET LOSS PER UNIT OF LIMITED PARTNERSHIP INTEREST Net loss per unit of limited partnership interest is calculated based upon the weighted average number of Units outstanding, which is 22,315 for the years ended March 31, 1998, 1997 and 1996. F-7 CENTURY PACIFIC TAX CREDIT HOUSING FUND - I Notes to the Financial Statements For the years ended March 31, 1998, 1997 and 1996 3. RELATED PARTY TRANSACTIONS The general partners of the Partnership are CPCC and Irwin Jay Deutch. The original limited partner of the Partnership is Westwood Associates, of which its partners are Irwin Jay Deutch and key employees of CPCC. Century Pacific Placement Corporation ("CPPC"), an affiliate of the general partners, served as the broker-dealer-manager for sales of the limited partnership interests in the Partnership. Century Pacific Realty Corporation ("CPRC"), an affiliate of CPCC, is a general partner in each of the Operating Partnerships. The general partners have an aggregate one percent interest in the Partnership, as does the original limited partner. CPRC has one- percent interest in each of the Operating Partnerships, except for one Operating Partnership in which it has a one-half percent interest. The general partners and affiliates receive compensation and reimbursement of expenses from the Partnership, as set forth in the limited partnership agreement, for their services in managing the Partnership and its business. The general partners and affiliates also receive compensation and reimbursement of expenses for the Operating Partnerships. This compensation and reimbursement includes services provided to the Partnership during its offering stage, acquisition stage, operational stage, and termination of refinancing stage. The general partners and affiliates earned the following fees for services provided to the Partnership and were entitled to reimbursement for costs incurred by the general partners and affiliates on behalf of the Partnership and the Operating Partnerships for the years ended March 31, 1998, 1997 and 1996 as follows:
1998 1997 1996 ---- ---- ---- Fees and reimbursement from the Partnership: Reimbursement for overhead allocated from Century Pacific Investment Corporation ("CPIC") $ 60,000 $ 60,000 $ 60,000 Fees and reimbursement from the Operating Partnerships: Supervisory management fee (CPCC and CPRC) 152,115 152,115 152,115 Partnership management fee (CPCC and CPRC) 360,024 355,688 353,266 -------- -------- -------- Subtotal 512,139 507,803 505,381 -------- -------- -------- Total $572,139 $567,803 $565,381 -------- -------- -------- -------- -------- --------
At March 31, 1998 and 1997, payable to related parties consists of fees and certain general and administrative costs accrued as payable by the Partnership to the general partners and affiliates relating to the above and prior year's amounts totaling $785,415 and $712,141, respectively. Such fees and allocated costs have been deferred until the Partnership has sufficient cash to pay them. F-8 CENTURY PACIFIC TAX CREDIT HOUSING FUND - I Notes to the Financial Statements For the years ended March 31, 1998, 1997 and 1996 3. RELATED PARTY TRANSACTIONS (CONTINUED) Receivable from related party of $15,549 at March 31, 1998 and 1997, represent cash advances to several of the Operating Partnerships, and the payment of state franchise taxes for Century Pacific Housing Partnership III, IV, V, VIII, IX, XVIII, XX, and XXII. At March 31, 1998 and 1997, CPRC was owed $62,455 for non-interest bearing, demand cash advances to the Partnership. The general partners may advance funds to the Partnership to fund operating deficits, but are not obligated to do so. Such advances shall be evidenced by a promissory note of a term no more than 12 months in length and at a rate of interest no lower than the prime rate. All such loans shall be repaid prior to any distributions of net cash flow. At March 31, 1998 and 1997, the Partnership had no outstanding advances due to the general partners. 4. INVESTMENTS IN OPERATING PARTNERSHIPS At March 31, 1998 and 1997, the Partnership owned limited partnership interests in 21 Operating Partnerships, each of which has invested in a multi-family rental property. Investments in Operating Partnerships consist of the following:
1998 1997 ---- ---- Cash contributions to Operating Partnerships to fund purchase of beneficial interests in Properties $ 15,497,467 $ 15,497,467 Cash contributions to Operating Partnerships to fund operations 6,150 6,150 Cash distribution from Operating Partnership (6,326) (6,326) Acquisition and organization costs 3,342,778 3,342,778 Equity in net losses of Operating Partnerships (18,579,989) (18,445,678) ------------ ------------ $ 260,080 $ 394,391 ------------ ------------ ------------ ------------
F-9 CENTURY PACIFIC TAX CREDIT HOUSING FUND - I Notes to the Financial Statements For the years ended March 31, 1998, 1997 and 1996 4. Investments in Operating Partnerships (continued) A summary of the combined balance sheet as of December 31, 1997 and 1996 and statements of operations of the aforementioned Operating Partnerships for the years then ended follows: COMBINED BALANCE SHEET ASSETS
1997 1996 ---- ---- Cash $ 765,650 $ 696,441 Reserve for replacements 2,662,017 2,404,825 Land and buildings 66,772,562 70,285,050 Other assets 3,032,585 3,158,994 ------------ ------------ Total assets $ 73,232,81 $ 76,545,310 ------------ ------------ ------------ ------------ LIABILITIES AND PARTNERS' DEFICIT Notes payable $122,299,736 $117,461,408 Other liabilities 3,594,859 3,465,252 ------------ ------------ Total liabilities 125,894,595 120,926,660 Partners' deficit (52,661,781) (44,381,350) ------------ ------------ Total liabilities and partners' deficit $ 73,232,814 $ 76,545,310 ------------ ------------ ------------ ------------
COMBINED STATEMENT OF OPERATIONS
1997 1996 ---- ---- Revenues Rental income $ 16,129,155 $ 15,782,773 Other income 771,008 484,683 ------------ ------------ Total revenues 16,900,163 16,267,456 Expenses Utilities 2,761,690 2,631,303 Repairs and maintenance 4,034,260 4,393,997 Management fees 1,340,547 1,228,089 Other operating expenses 5,044,824 5,466,104 Interest 7,017,451 5,860,931 Depreciation and amortization 4,299,752 4,370,272 ------------ ------------ Total expenses 24,498,524 23,950,696 ------------ ------------ Net loss $ (7,598,361) $ (7,683,240) ------------ ------------ ------------ ------------ ALLOCATION OF NET LOSS General partners and other limited partners $ (7,446,394) $ (7,547,230) CPHF-I (151,967) (136,010) ------------ ------------ Total $ (7,598,361) $ (7,683,240) ------------ ------------ ------------ ------------
F-10 CENTURY PACIFIC TAX CREDIT HOUSING FUND - I Notes to the Financial Statements For the years ended March 31, 1998, 1997 and 1996 5. COMMITMENTS AND CONTINGENCIES The rent of the Operating Partnerships, all of which received rental subsidy payments, including payments under Section 8 of Title II of the Housing and Community Development Act of 1974 ("Section 8) are subject to specific laws, regulations, and agreements with federal and state agencies. The subsidy agreements expire at various times during and after the 15-year compliance period of the Operating Partnerships. The United States Department of Housing and Urban Development ("HUD") has issued a notice implementing provisions to renew Section 8 contracts expiring during HUD's fiscal year 1997, where requested by an owner, for an additional one year term at current rent levels. As of June 16, 1998, eleven of the Operating Partnerships' Section 8 contracts are due to expire during 1998. The Operating Partnerships have not yet received HUD's approval of their extension requests. At the present time, the Partnership cannot reasonably predict legislative initiatives and governmental budget negotiations, the outcome of which could result in a reduction in funds available for the various federal and state administered housing programs including the Section 8 program. Such changes could adversely affect the future net operating income and debt structure of any or all Operating Partnerships receiving such subsidy or similar subsidies. 6. GOING CONCERN The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplates continuation of the Partnership as a going concern. However, the Partnership's Operating Partnerships have not achieved the operating results required to provide the Partnership with sufficient cash distributions to fund the Partnership's administrative costs. Additionally, the Partnership has incurred allocated losses from all but one of its Operating Partnerships to the extent of the Partnership's cash contributions. As a result of the foregoing, the Partnership is dependent upon the general partners and affiliates for continued financial support. The auditors' report on eleven of the Operating Partnerships' financial statements contained an explanatory paragraph relating to a going concern issue concerning the expiration of the Housing Assistance Payment ("HAP") contract. These Operating Partnerships have HAP contracts with HUD that are due to expire during 1998. As of June 16, 1998, none of the Operating Partnerships have been granted one-year extensions. Management has requested one-year extensions for the Operating Partnerships, however, as of June 16, 1998, these extensions have not yet been granted. Management maintains that the general partners and affiliates, though not required to do so, will continue to fund operations by deferring payment to related parties of allocated overhead expenses, and by funding any Partnership operating costs. Unpaid allocated overhead expenses will accrue and become payable when the Operating Partnerships generate sufficient cash distributions to the Partnership to cover such expenses. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. F-11 CENTURY PACIFIC TAX CREDIT HOUSING FUND - I Schedule III Page 1 of 2 REAL ESTATE AND ACCUMULATED DEPRECIATION OF OPERATING PARTNERSHIPS IN WHICH CPTCHF-I HAS LIMITED PARTNERSHIP INTEREST DECEMBER 31, 1997
INITIAL COST TO COST CAPITALIZED OPERATING PARTNERSHIP SUBSEQUENT TO ACQUISITION --------------------- ------------------------- Buildings And Buildings And Description (1) Encumbrances (2) Land Improvements Land Improvements - -------------------------------------------------------------------------------------------------- CPHP-I - Charter House Dothan, Alabama $ 2,385,790 $ 179,577 $ 1,918,125 $ 0 $ 105,298 CPHP-II - Sunset Park Denver, Colorado 8,763,776 803,595 5,696,405 7,305 820,325 CPHP-III - Highland Park Topeka, Kansas 10,688,798 434,475 6,465,525 251 469,561 CPHP-IV - Forest Glen Estates Kansas City, Missouri 6,229,898 427,519 4,469,134 292 230,902 CPHP-V - Jaycee Towers Dayton, Ohio 7,739,916 599,719 5,096,481 0 363,297 CPHP-VI - Edgewood Danville, Illinois 3,087,651 223,418 3,316,582 0 250,554 CPHP-VII - Gulfway Terrace New Orleans, Lousiana 6,305,184 270,343 5,429,657 237 325,872 CPHP-VIII - Sunset Townhomes Newton, Kansas 1,400,231 50,259 1,174,741 138 126,009 CPHP-IX - Wind Ridge Wichita, Kansas 4,099,334 169,514 3,330,486 146 667,133 CPHP-X - Bergan Circle Springfield, Massachusetts 14,542,276 901,206 11,359,794 0 1,131,909 ----------- --------- ---------- ----- --------- Balance Carried Forward 65,242,854 4,059,625 48,256,930 8,369 4,490,860 ----------- --------- ---------- ----- ---------
CONTINUED----
Life Upon Which GROSS AMOUNT AT WHICH ACCUMULATED Depreciation CARRIED AT CLOSE OF YEAR DEPRECIATION In Latest ------------------------------------ ------------- Income Buildings And Buildings And Date Of Date Statement Is Description (1) Land Improvements Total Improvements Construction Acquired Computed - -------------------------------------------------------------------------------------------------------------------------- CPHP-I - Charter House Dothan, Alabama $ 179,577 $ 2,023,423 $ 2,203,000 $ 751,760 1972 Dec-87 27.5 years CPHP-II - Sunset Park Denver, Colorado 810,900 6,516,730 7,327,630 2,388,590 1971 Dec-87 10 - 50 years CPHP-III - Highland Park Topeka, Kansas 434,726 6,935,086 7,369,812 3,375,822 1967 Dec-87 10 - 40 years CPHP-IV - Forest Glen Estates Kansas City, Missouri 427,811 4,700,036 5,127,847 1,988,183 1971 Dec-87 40 years CPHP-V - Jaycee Towers Dayton, Ohio 599,719 5,459,778 6,059,497 1,815,248 1970 Dec-88 27.5 years CPHP-VI - Edgewood Danville, Illinois 223,418 3,567,136 3,790,554 1,313,073 1970 Dec-87 27.5 years CPHP-VII - Gulfway Terrace New Orleans, Lousiana 270,580 5,755,529 6,026,109 2,404,910 1970 Dec-87 10 - 40 years CPHP-VIII - Sunset Townhomes Newton, Kansas 50,397 1,300,750 1,351,147 546,762 1971 Aug-88 40 years CPHP-IX - Wind Ridge Wichita, Kansas 169,660 3,997,619 4,167,279 1,743,906 1969 Dec-87 10 - 40 years CPHP-X - Bergan Circle Springfield, Massachusetts 901,206 12,491,703 13,392,909 4,726,153 1976 Dec-87 27.5 years --------- ---------- ---------- ---------- Balance Carried Forward 4,067,994 52,747,790 56,815,784 21,054,407 --------- ---------- ---------- ----------
F-12 CENTURY PACIFIC TAX CREDIT HOUSING FUND - I Schedule III Page 2 of 2 REAL ESTATE AND ACCUMULATED DEPRECIATION OF OPERATING PARTNERSHIPS IN WHICH CPTCHF-I HAS LIMITED PARTNERSHIP INTEREST DECEMBER 31, 1997
INITIAL COST TO COST CAPITALIZED OPERATING PARTNERSHIP SUBSEQUENT TO ACQUISITION ---------------------- ------------------------- Buildings And Buildings And Description (1) Encumbrances (2) Land Improvements Land Improvements - ------------------------------------------------------------------------------------------------------- Balance Carried Forward $65,242,854 $ 4,059,625 $48,256,930 $8,369 $ 4,490,860 CPHP-XI - Continental Terrace Fort Worth, Texas 5,597,889 231,946 4,368,054 1,049 553,707 CPHP-XII - Yale Village Houston, Texas 8,035,679 299,925 4,950,075 1,364 671,162 CPHP-XIII - Atlantis Virginia Beach, Virginia 7,855,166 520,607 5,382,387 2,861 678,475 CPHP-XIV - Kings Row Houston, Texas 5,164,084 193,458 3,586,542 947 714,225 CPHP-XV - Castle Gardens Lubbock, Texas 4,214,701 161,989 3,106,011 821 582,953 CPHP-XVI - Rockwell Villa Oklahoma City, Oklahoma 1,501,218 75,255 1,160,145 1,168 239,741 CPHP-XVII - London Square Oklahoma City, Oklahoma 4,824,130 203,978 4,009,000 0 701,400 CPHP-XVIII - Ascension Towers Memphis, Tennessee 8,620,215 176,341 6,551,159 0 716,591 Coleman Manor Associates LP Baltimore, Maryland 2,346,108 61,281 3,384,621 0 160,330 CPHP-XX- Holiday Heights Fort Worth, Texas 2,919,427 202,445 1,942,864 0 186,300 CPHP-XXII - Harriet Tubman Berkeley, Calfornia 5,978,265 361,275 3,807,339 5,097 436,832 ------------ ---------- ----------- ------- ----------- $122,299,736 $6,548,125 $90,505,127 $21,676 $10,132,576 ------------ ---------- ----------- ------- ----------- ------------ ---------- ----------- ------- -----------
CONTINUED-----------
Life Upon Which GROSS AMOUNT AT WHICH ACCUMULATED Depreciation CARRIED AT CLOSE OF YEAR DEPRECIATION In Latest ------------------------------------ ------------- Income Buildings And Buildings And Date Of Date Statement Is Description (1) Land Improvements Total Improvements Construction Acquired Computed - ----------------------------------------------------------------------------------------------------------------------------------- Balance Carried Forward $ 4,067,994 $ 52,747,790 $56,815,784 $21,054,407 CPHP-XI - Continental Terrace Fort Worth, Texas 232,995 4,921,761 5,154,756 2,104,681 1971 Oct-88 20 - 40 years CPHP-XII - Yale Village Houston, Texas 301,289 5,621,237 5,922,526 2,618,020 1970 Aug-88 20 - 40 years CPHP-XIII - Atlantis Virginia Beach, Virginia 523,468 6,060,862 6,584,330 2,515,099 1970 Jul-88 20 - 40 years CPHP-XIV - Kings Row Houston, Texas 194,405 4,300,767 4,495,172 1,870,122 1968 Aug-88 20 - 40 years CPHP-XV - Castle Gardens Lubbock, Texas 162,810 3,688,964 3,851,774 1,467,418 1971 Jul-88 15 - 40 years CPHP-XVI - Rockwell Villa Oklahoma City, Oklahoma 76,423 1,399,886 1,476,309 518,485 1970 Jul-88 27.5 years CPHP-XVII - London Square Oklahoma City, Oklahoma 203,978 4,710,400 4,914,378 2,050,912 1975 Aug-88 27.5 years CPHP-XVIII - Ascension Towers Memphis, Tennessee 176,341 7,267,750 7,444,091 2,647,578 1975 Aug-88 27.5 years Coleman Manor Associates LP Baltimore, Maryland 61,281 3,544,951 3,606,232 1,195,893 1903 May-88 27.5 years CPHP-XX- Holiday Heights Fort Worth, Texas 202,445 2,129,164 2,331,609 851,814 1972 Oct-88 32 years CPHP-XXII - Harriet Tubman Berkeley, Calfornia 366,372 4,244,171 4,610,543 1,540,513 1975 Aug-88 27.5 years ---------- ------------ ------------ ----------- $6,569,801 $100,637,703 $107,207,504 $40,434,942 ---------- ------------ ------------ ----------- ---------- ------------ ------------ -----------
F-13 CENTURY PACIFIC TAX CREDIT HOUSING FUND - I NOTES TO SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION OF OPERATING PARTNERSHIPS IN WHICH CPTCHF-I HAS LIMITED PARTNERSHIP INTERESTS DECEMBER 31, 1997 NOTE 1 - DESCRIPTION OF PROPERTIES The Properties held by the Operating Partnerships in which CPTCHF-I has invested are housing projects, primarily for families and elderly or handicapped individuals of low and moderate income. NOTE 2 - SCHEDULE OF ENCUMBRANCES
OPERATING PARTNERSHIP MORTGAGE RESIDUAL PURCHASE OTHER NAME AND PROPERTY NAME NOTES NOTE NOTE NOTES TOTAL - -------------------------------------------------------------------------------------------------------- CPHP-I - Charter House $ 925,132 $1,460,658 $0 $0 $2,385,790 CPHP-II - Sunset Park 2,522,516 5,524,553 0 716,707 8,763,776 CPHP-III - Highland Park 1,216,907 8,818,969 0 652,922 10,688,798 CPHP-IV - Forest Glen Estates 2,000,892 3,884,312 0 344,694 6,229,898 CPHP-V - Jaycee Towers 2,481,363 4,679,328 0 579,225 7,739,916 CPHP-VI - Edgewood 1,983,513 834,742 0 269,396 3,087,651 CPHP-VII - Gulfway Terrace 2,724,803 3,008,516 0 571,865 6,305,184 CPHP-VIII - Sunset Townhomes 611,480 726,528 0 62,223 1,400,231 CPHP-IX - Wind Ridge 1,391,653 2,373,858 0 333,823 4,099,334 CPHP-X - Bergan Circle 6,052,152 7,937,632 0 552,492 14,542,276 CPHP-XI - Continental Terrace 2,095,354 3,137,365 0 365,170 5,597,889 CPHP-XII - Yale Village 2,456,976 3,552,586 0 2,026,117 8,035,679 CPHP-XIII - Atlantis 2,155,114 5,432,707 0 267,345 7,855,166 CPHP-XIV - Kings Row 1,426,021 3,290,356 0 447,707 5,164,084 CPHP-XV - Castle Gardens 1,469,476 2,496,664 0 248,561 4,214,701 CPHP-XVI - Rockwell Villa 538,175 839,426 0 123,617 1,501,218 CPHP-XVII - London Square 2,220,656 2,085,975 0 517,499 4,824,130 CPHP-XVIII - Ascension Towers 3,207,107 5,091,167 0 321,941 8,620,215 Coleman Manor Associates 2,152,954 0 0 193,154 2,346,108 CPHP-XX - Holiday Heights 907,716 1,900,278 0 111,433 2,919,427 CPHP-XXII - Harriet Tubman 1,427,977 4,230,731 221,500 98,057 5,978,265 ---------------------------------------------------------------------- $41,967,937 $71,306,351 $221,500 $8,803,948 $122,299,736 ---------------------------------------------------------------------- ----------------------------------------------------------------------
F-14 CENTURY PACIFIC TAX CREDIT HOUSING FUND - I NOTES TO SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION OF OPERATING PARTNERSHIPS IN WHICH CPTCHF-I HAS LIMITED PARTNERSHIP INTERESTS DECEMBER 31, 1997 NOTE 3 - RECONCILIATION OF REAL ESTATE AND ACCUMULATED DEPRECIATION
ACCUMULATED COST DEPRECIATION ------------------------------------------------------------ Balance at December 31, 1994 $104,666,235 $27,805,217 Additions during year: Depreciation 4,100,658 Improvements 726,514 ------------------------------------------------------------ Balance at December 31, 1995 105,392,749 31,905,875 Additions during year: Depreciation 4,272,435 Improvements 1,070,611 ------------------------------------------------------------ Balance at December 31, 1996 106,463,360 36,178,310 Additions during year: Depreciation 4,256,632 Improvements 744,144 ------------------------------------------------------------ $107,207,504 $40,434,942 ------------------------------------------------------------ ------------------------------------------------------------
F-15 CENTURY PACIFIC TAX CREDIT HOUSING FUND - I MORTGAGE LOANS ON REAL ESTATE OF OPERATING PARTNERSHIPS IN WHICH CPTCHF-I HAS LIMITED PARTNERSHIP INTERESTS DECEMBER 31, 1997 Schedule IV Page 1 of 2
Monthly Payments to Maturity Original (Net of Face Carrying Final Maturity HUD Amount of Amount of Description (1) Interest Rate Date Subsidy) Mortgage Mortgage (2) - ---------------------------- --------------- -------------- ----------- ----------- ------------ First mortgages assumed by Operating Partnerships: CPHP-I - Charter House Dothan, Alabama 7.00% Mar-13 $ 8,238 $1,325,700 $925,132 CPHP-II - Sunset Park Denver, Colorado 7.00% Nov-14 8,592 4,859,300 2,522,516 CPHP-III - Highland Park Topeka, Kansas 3.00% Dec-08 10,835 2,914,500 1,216,907 CPHP-IV - Forest Glen Estates Kansas City, Missouri 7.50% Apr-13 6,582 2,729,761 2,000,892 CPHP-V - Jaycee Towers Dayton, Ohio 8.50% Sep-12 7,387 3,361,200 2,481,363 CPHP-VI - Edgewood Danville, Illinois 6.25% Mar-13 18,155 2,360,000 1,983,513 CPHP-VII - Gulfway Terrace New Orleans, Lousiana 7.00% Jun-15 13,576 3,616,200 2,724,803 CPHP-VIII - Sunset Townhomes Newton, Kansas 8.50% Sep-12 1,819 828,300 611,480 CPHP-IX - Wind Ridge Wichita, Kansas 8.50% Nov-10 4,544 2,021,600 1,391,653 CPHP-X - Bergan Circle Springfield, Massachusetts 6.92% Mar-18 24,646 7,381,100 6,052,152 --------- ----------- ---------- Balance Carried Forward 104,374 31,397,661 21,910,411 --------- ----------- ----------
F-16 CENTURY PACIFIC TAX CREDIT HOUSING FUND - I MORTGAGE LOANS ON REAL ESTATE OF OPERATING PARTNERSHIPS IN WHICH CPTCHF-I HAS LIMITED PARTNERSHIP INTERESTS DECEMBER 31, 1997 Schedule IV Page 2 of 2
Monthly Payments to Maturity Original (Net of Face Carrying Final Maturity HUD Amount of Amount of Description (1) Interest Rate Date Subsidy) Mortgage Mortgage (2) - ------------------------------ ------------- --------------- ----------- ----------- ------------ Balance Brought Forward $104,374 $31,397,661 $21,910,411 CPHP-XI - Continental Terrace Fort Worth, Texas 7.00% Mar-13 18,659 3,002,600 2,095,354 CPHP-XII - Yale Village Houston, Texas 7.00% Jun-15 12,400 3,363,300 2,456,976 CPHP-XIII - Atlantis Virginia Beach, Virginia 8.50% Mar-12 7,200 2,946,500 2,155,114 CPHP-XIV - Kings Row Houston, Texas 7.05% Aug-11 13,925 2,116,000 1,426,021 CPHP-XV - Castle Gardens Lubbock, Texas 8.50% Jun-15 14,353 1,949,900 1,469,476 CPHP-XVI - Rockwell Villa Oklahoma City, Oklahoma 7.00% Sep-13 1,922 812,700 538,175 CPHP-XVII - London Square Oklahoma City, Oklahoma 7.50% Jun-12 7,787 3,153,900 2,220,656 CPHP-XVIII - Ascension Towers Memphis, Tennessee 7.00% May-15 9,506 4,290,000 3,207,107 Coleman Manor Associates LP Baltimore, Maryland 10.00% Jul-29 12,545 2,365,000 2,152,954 CPHP-XX- Holiday Heights Fort Worth, Texas 7.00% Apr-14 2,787 1,252,700 907,716 CPHP-XXII - Harriet Tubman Berkeley, California 7.00% Oct-15 4,155 1,882,700 1,427,977 -------- ----------- ----------- $209,613 $58,532,961 $41,967,937 -------- ----------- ----------- -------- ----------- -----------
F-17 CENTURY PACIFIC TAX CREDIT HOUSING FUND - I MORTGAGE LOANS ON REAL ESTATE OF OPERATING PARTNERSHIPS IN WHICH CPTCHF-I HAS LIMITED PARTNERSHIP INTERESTS DECEMBER 31, 1997 Schedule IV Page 1 of 2
Monthly Payments to Maturity Original (Net of Face Carrying Final Maturity HUD Amount of Amount of Description (1) Interest Rate Date Subsidy) Mortgage Mortgage (2) - ------------------------------ ------------- --------------- ----------- ----------- ------------- Residual notes (second mortgages): CPHP-I - Charter House Dothan, Alabama (1) Dec-02 (1) $781,581 $1,460,658 CPHP-II - Sunset Park Denver, Colorado (1) Dec-02 (1) 2,462,936 5,524,553 CPHP-III - Highland Park Topeka, Kansas (1) Dec-02 (1) 3,936,695 8,818,969 CPHP-IV - Forest Glen Estates Kansas City, Missouri (1) Dec-02 (1) 1,733,923 3,884,312 CPHP-V - Jaycee Towers Dayton, Ohio (1) Oct-05 (1) 2,245,673 4,679,328 CPHP-VI - Edgewood Danville, Illinois (1) Dec-02 (1) 415,192 834,742 CPHP-VII - Gulfway Terrace New Orleans, Lousiana (1) Dec-02 (1) 1,255,000 3,008,516 CPHP-VIII - Sunset Townhomes Newton, Kansas (1) Aug-03 (1) 341,229 726,528 CPHP-IX - Wind Ridge Wichita, Kansas (1) Dec-02 (1) 1,045,000 2,373,858 CPHP-X - Bergan Circle Springfield, Massachusetts (1) Jul-13 (1) 3,547,072 7,937,632 ---------- ---------- Balance Carried Forward 17,764,301 39,249,096 ---------- ----------
F-18 CENTURY PACIFIC TAX CREDIT HOUSING FUND - I MORTGAGE LOANS ON REAL ESTATE OF OPERATING PARTNERSHIPS IN WHICH CPTCHF-I HAS LIMITED PARTNERSHIP INTERESTS DECEMBER 31, 1997 Schedule IV Page 2 of 2
Monthly Payments to Maturity Original (Net of Face Carrying Final Maturity HUD Amount of Amount of Description (1) Interest Rate Date Subsidy) Mortgage Mortgage (2) - ------------------------------ ------------- --------------- ----------- ----------- ------------ Balance Brought Forward $17,764,301 $39,249,096 CPHP-XI - Continental Terrace Fort Worth, Texas (1) Oct-03 (1) 1,595,364 3,137,365 CPHP-XII - Yale Village Houston, Texas (1) Jul-03 (1) 1,255,000 3,552,586 CPHP-XIII - Atlantis Virginia Beach, Virginia (1) Jul-03 (1) 2,552,584 5,432,707 CPHP-XIV - Kings Row Houston, Texas (1) Aug-03 (1) 1,537,518 3,290,356 CPHP-XV - Castle Gardens Lubbock, Texas (1) Jul-03 (1) 1,160,247 2,496,664 CPHP-XVI - Rockwell Villa Oklahoma City, Oklahoma (1) Jul-03 (1) 398,629 839,426 CPHP-XVII - London Square Oklahoma City, Oklahoma (1) Jul-03 (1) 979,071 2,085,975 CPHP-XVIII - Ascension Towers Memphis, Tennessee (1) Aug-03 (1) 2,404,667 5,091,167 CPHP-XX- Holiday Heights Fort Worth, Texas (1) Oct-04 (1) 909,472 1,900,278 CPHP-XXII - Harriet Tubman Berkeley, California (1) Dec-03 (1) 2,036,000 4,230,731 ----------- ----------- $32,592,853 $71,306,351 ----------- ----------- ----------- -----------
F-19 CENTURY PACIFIC TAX CREDIT HOUSING FUND - I NOTES TO SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE OF OPERATING PARTNERSHIPS IN WHICH CPTCHF-I HAS LIMITED PARTNERSHIP INTERESTS DECEMBER 31, 1997 NOTE 1 - DESCRIPTION Each Operating Partnership has invested in a Property. The Operating Partnerships assumed mortgage loan obligations from the sellers of the properties, and with the exception of two mortgages, all mortgage loan obligations are insured by the United States Department of Housing and Urban Development. All mortgages are secured by the land and buildings of the properties. In addition, the Operating Partnerships issued residual notes to the sellers of the properties as partial consideration. The notes bear interest at the minimum long-term federal rate as announced from time-to-time pursuant to Section 1274 of the Internal Revenue Code, provided that such rate shall not be less than 7% nor greater than 15%. The notes are secured by the land and buildings of the properties. The notes are repayable out of future cash available for distribution and unpaid principal and interest are due at maturity. NOTE 2 - RECONCILIATION OF MORTGAGES
For the Year Ended December 31, 1997 ----------------------------------- Mortgage Residual Loans Notes ----------------------------------- Balance at December 31, 1994 $45,702,571 $56,404,386 Additions during year: Accrued interest 4,571,877 Deductions during year: Payments (1,162,519) ----------- ----------- Balance at December 31, 1995 44,540,052 60,976,263 Additions during year: Accrued interest 5,041,436 Deductions during year: Payments (1,242,226) ----------- ----------- Balance at December 31, 1996 43,297,826 66,017,699 Additions during year: Accrued interest 5,288,652 Deductions during year: Payments (1,329,889) ----------- ----------- $41,967,937 $71,306,351 ----------- ----------- ----------- -----------
F-20 EX-27 2 EXHIBIT 27
6 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEET AND STATEMENT OF OPERATIONS FOUND ON PAGES F-2 AND F-3 OF THE PARTNERSHIP'S FORM 10K FOR THE YEAR END AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. YEAR MAR-31-1998 APR-01-1997 MAR-31-1998 260,080 0 15,549 2,296 0 277,925 0 0 858,670 858,670 0 (375,563) 0 0 (205,182) 0 0 0 0 (580,745) 0 0 1,720 72,591 0 (134,311) 0 (205,182) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 344,279 18.40 (9.19) 0 0 0 0 12.45 .211 0 0
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