-----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, FWKFLfTKOzZxeh74btMMnAFcZoQMYZ7OShSBxUiMeXRx568DEEu2hw4Z9x8A1O6m Kbr2rO9/9NGJGnBhwgSdRw== 0000879555-97-000007.txt : 19971118 0000879555-97-000007.hdr.sgml : 19971118 ACCESSION NUMBER: 0000879555-97-000007 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971117 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOSTON CAPITAL TAX CREDIT FUND III L P CENTRAL INDEX KEY: 0000879555 STANDARD INDUSTRIAL CLASSIFICATION: OPERATORS OF APARTMENT BUILDINGS [6513] IRS NUMBER: 521749505 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-21718 FILM NUMBER: 97722835 BUSINESS ADDRESS: STREET 1: 313 CONGRESS ST STREET 2: C/O BOSTON CAPITAL PARTNERS INC CITY: BOSTON STATE: MA ZIP: 02210 BUSINESS PHONE: 6174390072 MAIL ADDRESS: STREET 1: ONE BOSTON PLACE STREET 2: STE 2100 CITY: BOSTON STATE: MA ZIP: 02108-4406 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) [x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30,1997 ----------------- or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to -------- -------- Commission file number 0-21718 ------- BOSTON CAPITAL TAX CREDIT FUND III L.P. - ----------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 52-1749505 - -------------------------------- ----------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) One Boston Place, Suite 2100, Boston, Massachusetts 02108 - ----------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (617) 624-8900 -------------- - ----------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)has been subject to such filing requirements for the past 90 days. Yes X No ------ ------ BOSTON CAPITAL TAX CREDIT FUND III L.P. -------------------------------------------------- QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 1997 ----------------------------------------------- TABLE OF CONTENTS ----------------- PART I - FINANCIAL INFORMATION Item 1. Financial Statements.............................. Balance Sheets.................................... Statements of Operations.......................... Statement of Changes in Partners' Capital......... Statements of Cash Flows.......................... Notes to Financial Statements..................... Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations..................................... PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K.................. Signatures........................................ Boston Capital Tax Credit Fund III L.P. BALANCE SHEETS September 30, March 31, 1997 1997 (Unaudited) (Audited) ASSETS ------------ - ------------ INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) $127,883,324 $134,386,913 OTHER ASSETS Cash and cash equivalents 3,437,958 3,925,706 Investments 1,536,277 1,393,309 Notes receivable 2,081,333 2,081,333 Deferred acquisition costs, net of accumulated amortization (Note B) 1,723,360 1,757,808 Organization costs, net of accumulated amortization (Note B) 143,720 220,083 Other assets 2,089,079 2,080,483 ----------- - ----------- $138,895,051 $145,845,635 =========== =========== LIABILITIES Accounts payable & accrued expenses (Note C) $ 4,552 $ 4,681 Accounts payable affiliates 7,879,058 6,579,726 Capital contributions payable (Note D) 3,421,913 3,765,854 ----------- - ----------- 11,305,523 10,350,261 ----------- - ----------- PARTNERS' CAPITAL Limited Partners Units of limited partnership interest, $10 stated value per BAC; 22,000,000 authorized BACs; 21,996,102 issued and outstanding, as of September 30, 1997 128,205,752 136,032,541 General Partner (613,738) (534,681) Unrealized gain (loss) on securities available for sale, net (2,486) (2,486) ----------- - ----------- 127,589,528 135,495,374 ----------- - ----------- $138,895,051 $145,845,635 =========== =========== The accompanying notes are an integral part of these statements. 1 Boston Capital Tax Credit Fund III L.P. BALANCE SHEETS SERIES 15 - ---------------------------- September 30, March 31, 1997 1997 (Unaudited) (Audited) ASSETS ----------- - --------- INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) $17,260,580 $18,675,081 OTHER ASSETS Cash and cash equivalents 72,317 246,845 Investments - - - Notes receivable 135,000 135,000 Deferred acquisition costs, net of accumulated amortization (Note B) 262,791 268,047 Organization costs, net of accumulated amortization (Note B) - - - Other assets 476,479 475,563 ---------- - ---------- $18,207,167 $19,800,536 ========== ========== LIABILITIES Accounts payable and accrued expenses (Note C) $ 1,145 $ 1,144 Accounts payable affiliates 2,086,719 1,812,693 Capital contributions payable (Note D) 34,528 178,680 ---------- - ---------- 2,122,392 1,992,517 ---------- - ---------- PARTNERS' CAPITAL Limited Partners Units of limited partnership interest, $10 stated value per BAC; 22,000,000 authorized BACs; 3,870,500 issued and outstanding, as of September 30, 1997 16,256,598 17,962,610 General Partner (171,823) (154,591) Unrealized gain (loss) on securities available for sale, net - - - ---------- - ---------- 16,084,775 17,808,019 ---------- - ---------- $18,207,167 $19,800,536 ========== ========== The accompanying notes are an integral part of these statements. 2 Boston Capital Tax Credit Fund III L.P. BALANCE SHEETS SERIES 16 - ---------------------------- September 30, March 31, 1997 1997 (Unaudited) (Audited) ASSETS ----------- - --------- INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) $32,424,196 $33,987,844 OTHER ASSETS Cash and cash equivalents 1,104,196 1,183,424 Investments 312,799 283,537 Notes receivable - - - Deferred acquisition costs net of accumulated amortization (Note B) 421,296 429,721 Organization costs, net of accumulated amortization (Note B) 22,315 44,630 Other assets 9,576 8,790 ---------- - ---------- $34,294,378 $35,937,946 ========== ========== LIABILITIES Accounts payable & accrued expenses (Note C) $ - $ - - Accounts payable affiliates 2,089,101 1,743,106 Capital contributions payable (Note D) 145,311 155,225 ---------- - ---------- 2,234,412 1,898,331 ---------- - ---------- PARTNERS' CAPITAL Limited Partners Units of limited partnership interest, $10 stated value per BAC; 22,000,000 authorized BACs; 5,429,402 issued and outstanding, as of September 30, 1997 32,206,596 34,166,449 General Partner (146,002) (126,206) Unrealized gain (loss) on securities available for sale, net (628) (628) ---------- - ---------- 32,059,966 34,039,615 ---------- - ---------- $34,294,378 $35,937,946 ========== ========== The accompanying notes are an integral part of these statements. 3 Boston Capital Tax Credit Fund III L.P. BALANCE SHEETS SERIES 17 - ---------------------------- September 30, March 31, 1997 1997 (Unaudited) (Audited) ASSETS ----------- - --------- INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) $29,555,825 $30,804,793 OTHER ASSETS Cash and cash equivalents 508,246 539,185 Investments - - - Notes receivable 1,409,982 1,409,982 Deferred acquisition costs net of accumulated amortization (Note B) 388,747 396,522 Organization costs, net of accumulated amortization (Note B) 30,668 50,533 Other assets 1,333,493 1,329,684 ---------- - ---------- $33,226,961 $34,530,699 ========== ========== LIABILITIES Accounts payable & accrued expenses (Note C) $ - $ - - Accounts payable affiliates 1,876,616 1,593,932 Capital contributions payable (Note D) 1,840,259 1,844,259 ---------- - ---------- 3,716,875 3,438,191 ---------- - ---------- PARTNERS' CAPITAL Limited Partners Units of limited partnership interest, $10 stated value per BAC; 22,000,000 authorized BACs; 5,000,000 issued and outstanding, as of September 30, 1997 29,644,664 31,211,262 General Partner (134,578) (118,754) Unrealized gain (loss) on securities available for sale, net - - - ---------- - ---------- 29,510,086 31,092,508 ---------- - ---------- $33,226,961 $34,530,699 ========== ========== The accompanying notes are an integral part of these statements. 4 Boston Capital Tax Credit Fund III L.P. BALANCE SHEETS SERIES 18 - ---------------------------- September 30, March 31, 1997 1997 (Unaudited) (Audited) ASSETS ------------ - ---------- INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) $22,377,480 $23,513,680 OTHER ASSETS Cash and cash equivalents 694,776 766,409 Investments 189,035 173,619 Notes receivable 536,351 536,351 Deferred acquisition costs, new of accumulated amortization (Note B) 286,276 291,983 Organization costs, net of accumulated amortization (Note B) 34,149 49,526 Other assets 41,931 41,564 ---------- - ---------- $24,159,998 $25,373,132 ========== ========== LIABILITIES Accounts payable & accrued expenses (Note C) $ - $ 129 Accounts payable affiliates 932,067 741,114 Capital contributions payable (Note D) 717,635 755,887 ---------- - ---------- 1,649,702 1,497,130 ---------- - ---------- PARTNERS' CAPITAL Limited Partners Units of limited partnership interest, $10 stated value per BAC; 22,000,000 authorized BACs; 3,616,200 issued and outstanding, as of September 30, 1997 22,595,796 23,947,845 General Partner (85,120) (71,463) Unrealized gain (loss) on securities available for sale, net (380) (380) ---------- - ---------- 22,510,296 23,876,002 ---------- - ---------- $24,159,998 $25,373,132 ========== ========== The accompanying notes are an integral part of these statements. 5 Boston Capital Tax Credit Fund III L.P. BALANCE SHEETS SERIES 19 - ---------------------------- September 30, March 31, 1997 1997 (Unaudited) (Audited) ASSETS ------------ - ---------- INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) $26,265,243 $27,405,515 OTHER ASSETS Cash and cash equivalents 1,058,423 1,189,843 Investments 1,034,443 936,153 Notes receivables - - - Deferred acquisition costs, net of accumulated amortization (Note B) 364,250 371,535 Organization costs, net of accumulated amortization (Note B) 56,588 75,394 Other assets 227,600 224,882 ---------- - ---------- $29,006,547 $30,203,322 ========== ========== LIABILITIES Accounts payable & accrued expenses (Note C) $ 3,407 $ 3,408 Accounts payable affiliates 894,555 688,881 Capital contributions payable (Note D) 684,180 831,803 ---------- - ---------- 1,582,142 1,524,092 ---------- - ---------- PARTNERS' CAPITAL Limited Partners Units of limited partnership interest, $10 stated value per BAC; 22,000,000 authorized BACs; 4,080,000 issued and outstanding, as of September 30, 1997 27,502,098 28,744,375 General Partner (76,215) (63,667) Unrealized gain (loss) on securities available for sale, net (1,478) (1,478) ---------- - ---------- 27,424,405 28,679,230 ---------- - ---------- $29,006,547 $30,203,322 ========== ========== The accompanying notes are an integral part of these statements. 6 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF OPERATIONS Three Months Ended September 30, (Unaudited) 1997 1996 ---- ---- Income Interest income $ 51,860 $ 82,820 ---------- ---------- Share of loss from Operating Partnerships (Note D) (2,953,785) (3,406,060) ---------- ---------- Expenses Professional fees 181,326 171,115 Fund management fee (Note C) 537,585 558,446 Amortization 55,405 61,575 General and administrative expenses 71,869 70,524 ---------- ---------- 846,185 861,660 ---------- ---------- NET LOSS $(3,748,110) $(4,184,900) ========== ========== Net loss allocated to limited partners $(3,710,629) $(4,143,051) ========== ========== Net loss allocated general partner $ (37,481) $ (41,849) ========== ========== Net loss per BAC $ (.85) $ ( .93) ========== ========== The accompanying notes are an integral part of these statements. 7 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF OPERATIONS Three Months Ended September 30, (Unaudited) SERIES 15 - ----------------------- 1997 1996 ---- - ---- Income Interest income $ 630 $ 1,120 -------- - -------- Share of loss from Operating Partnerships (662,215) (708,211) -------- - -------- Expenses Professional fees 46,746 37,105 Fund management fee (Note C) 110,595 125,913 Amortization 2,628 9,186 General and administrative expenses 12,262 8,582 -------- - -------- 172,231 180,786 -------- - -------- NET LOSS $(833,816) $(887,877) ======== ======== Net loss allocated to limited partners $(825,478) $(878,998) ======== ======== Net loss allocated to general partner $ (8,338) $ (8,879) ======== ======== Net loss per BAC $ (.21) $ (.22) ======== ======== The accompanying notes are an integral part of these statements. 8 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF OPERATIONS Three Months Ended September 30, (Unaudited) SERIES 16 - ------------------------ 1997 1996 ---- - ---- Income Interest income $ 15,685 $ 14,142 -------- - -------- Share of loss from Operating Partnerships (595,713) (645,998) -------- - -------- Expenses Professional fees 47,673 33,908 Fund management fee (Note C) 152,486 131,130 Amortization 15,370 15,372 General and administrative expenses 18,349 16,582 -------- - -------- 233,878 196,992 -------- - -------- NET LOSS $(813,906) $(828,848) ======== ======== Net loss allocated to limited partners $(805,767) $(820,560) ======== ======== Net loss allocated to general partner $ (8,139) $ (8,288) ======== ======== Net loss per BAC $ (.14) $ (.15) ======== ======== The accompanying notes are an integral part of these statements. 9 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF OPERATIONS Three Months Ended September 30, (Unaudited) SERIES 17 - ------------------------ 1997 1996 ---- - ---- Income Interest income $ 3,594 $ 4,710 -------- -- - -------- Share of loss from Operating Partnerships (718,001) (1,082,278) -------- - ---------- Expenses Professional fees 33,229 41,418 Fund management fee (Note C) 114,981 116,959 Amortization 13,820 13,820 General and administrative expenses 14,416 10,190 -------- - ---------- 176,446 182,387 -------- - ---------- NET LOSS $(890,853) $(1,259,955) ======== ========== Net loss allocated to limited partners $(881,944) $(1,247,355) ======== ========== Net loss allocated to general partner $ (8,909) $ (12,600) ======== ========== Net loss per BAC $ (.18) $ (.25) ======== ========== The accompanying notes are an integral part of these statements. 10 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF OPERATIONS Three Months Ended September 30, (Unaudited) SERIES 18 - ---------------------- 1997 1996 ---- - ---- Income Interest income $ 8,310 $ 9,297 -------- - -------- Share of loss from Operating Partnerships (519,526) (618,443) -------- - -------- Expenses Professional fees 28,026 19,874 Fund management fee (Note C) 78,936 88,144 Amortization 10,542 10,542 General and administrative expenses 11,764 8,713 -------- - -------- 129,268 127,273 -------- - -------- NET LOSS $(640,484) $(736,419) ======== ======== Net loss allocated to limited partners $(634,079) $(729,055) ======== ======== Net loss allocated to general partner $ (6,405) $ (7,364) ======== ======== Net loss per BAC $ (.18) $ (.20) ======== ======== The accompanying notes are an integral part of these statements. 11 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF OPERATIONS Three Months Ended September 30, (Unaudited) SERIES 19 - ---------------------- 1997 1996 ---- - ---- Income Interest income $ 23,641 $ 53,551 -------- - -------- Share of loss from Operating Partnerships (458,330) (351,130) -------- - -------- Expenses Professional fees 25,652 38,810 Fund management fee (Note C) 80,587 96,300 Amortization 13,045 12,655 General and administrative expenses 15,078 26,457 -------- - -------- 134,362 174,222 -------- - -------- NET LOSS $(569,051) $(471,801) ======== ======== Net loss allocated to limited partners $(563,361) $(467,083) ======== ======== Net loss allocated to general partner $ (5,690) $ (4,718) ======== ======== Net loss per BAC $ (.14) $ (.11) ======== ======== The accompanying notes are an integral part of these statements. 12 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF OPERATIONS Six Months Ended September 30, (Unaudited) 1997 1996 ---- ---- Income Interest income $ 91,928 $ 224,955 ---------- ---------- Share of loss from Operating Partnerships (Note D) (6,486,219) (7,267,504) ---------- ---------- Expenses Professional fees 197,664 260,940 Fund management fee (Note C) 1,065,349 1,105,911 Amortization 110,810 123,103 General and administrative expenses 137,732 143,572 ---------- ---------- 1,511,555 1,633,526 ---------- ---------- NET LOSS $(7,905,846) $(8,676,075) ========== ========== Net loss allocated to limited partners $(7,826,789) $(8,589,314) ========== ========== Net loss allocated general partner $ (79,057) $ (86,761) ========== ========== Net loss per BAC $ (1.78) $ (1.95) ========== ========== The accompanying notes are an integral part of these statements. 13 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF OPERATIONS Six Months Ended September 30, (Unaudited) SERIES 15 - ----------------------- 1997 1996 ---- - ---- Income Interest income $ 2,223 $ 3,883 ---------- -- - -------- Share of loss from Operating Partnerships (1,411,484) (1,508,293) ---------- -- - -------- Expenses Professional fees 49,708 58,793 Fund management fee (Note C) 235,983 245,074 Amortization 5,256 18,371 General and administrative expenses 23,036 16,734 ---------- -- - -------- 313,983 338,972 ---------- -- - -------- NET LOSS $(1,723,244) $(1,843,382) ========== ========== Net loss allocated to limited partners $(1,706,012) $(1,824,948) ========== ========== Net loss allocated to general partner $ (17,232) $ (18,434) ========== ========== Net loss per BAC $ (.44) $ (.47) ========== ========== The accompanying notes are an integral part of these statements. 14 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF OPERATIONS Six Months Ended September 30, (Unaudited) SERIES 16 - ------------------------ 1997 1996 ---- - ---- Income Interest income $ 24,547 $ 32,107 ---------- -- - -------- Share of loss from Operating Partnerships (1,560,995) (1,576,905) ---------- -- - -------- Expenses Professional fees 55,750 50,327 Fund management fee (Note C) 321,831 261,755 Amortization 30,740 30,698 General and administrative expenses 34,880 30,640 ---------- -- - -------- 443,201 373,420 ---------- -- - -------- NET LOSS $(1,979,649) $(1,918,218) ========== ========== Net loss allocated to limited partners $(1,959,853) $(1,899,036) ========== ========== Net loss allocated to general partner $ (19,796) $ (19,182) ========== ========== Net loss per BAC $ (.36) $ (.35) ========== ========== The accompanying notes are an integral part of these statements. 15 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF OPERATIONS Six Months Ended September 30, (Unaudited) SERIES 17 - ------------------------ 1997 1996 ---- - ---- Income Interest income $ 7,753 $ 23,852 ---------- - ---------- Share of loss from Operating Partnerships (1,243,397) (1,968,570) ---------- - ---------- Expenses Professional fees 34,967 69,088 Fund management fee (Note C) 256,824 264,939 Amortization 27,639 27,639 General and administrative expenses 27,348 20,154 ---------- - ---------- 346,778 381,820 ---------- - ---------- NET LOSS $(1,582,422) $(2,326,538) ========== ========== Net loss allocated to limited partners $(1,566,598) $(2,303,273) ========== ========== Net loss allocated to general partner $ (15,824) $ (23,265) ========== ========== Net loss per BAC $ (.31) $ (.46) ========== ========== The accompanying notes are an integral part of these statements. 16 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF OPERATIONS Six Months Ended September 30, (Unaudited) SERIES 18 - ---------------------- 1997 1996 ---- - ---- Income Interest income $ 15,552 $ 23,801 ---------- -- - -------- Share of loss from Operating Partnerships (1,135,136) (1,283,112) ---------- -- - -------- Expenses Professional fees 29,565 29,225 Fund management fee (Note C) 173,568 174,970 Amortization 21,084 21,084 General and administrative expenses 21,905 18,223 ---------- ------ - ---- 246,122 243,502 ---------- - - --------- NET LOSS $(1,365,706) $(1,502,813) ========== ========== Net loss allocated to limited partners $(1,352,049) $(1,487,785) ========== ========== Net loss allocated to general partner $ (13,657) $ (15,028) ========== ========== Net loss per BAC $ (.37) $ (.41) ========== ========== The accompanying notes are an integral part of these statements. 17 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF OPERATIONS Six Months Ended September 30, (Unaudited) SERIES 19 - ---------------------- 1997 1996 ---- - ---- Income Interest income $ 41,853 $ 141,312 ---------- -- - -------- Share of loss from Operating Partnerships (1,135,207) (930,624) ---------- -- - -------- Expenses Professional fees 27,674 53,507 Fund management fee (Note C) 77,143 159,173 Amortization 26,091 25,311 General and administrative expenses 30,563 57,821 ---------- -- - -------- 161,471 295,812 ---------- -- - -------- NET LOSS $(1,254,825) $(1,085,124) ========== ========== Net loss allocated to limited partners $(1,242,277) $(1,074,273) ========== ========== Net loss allocated to general partner $ (12,548) $ (10,851) ========== ========== Net loss per BAC $ (.30) $ (.26) ========== ========== The accompanying notes are an integral part of these statements. 18 Boston Capital Tax Credit Fund III L.P. STATEMENT OF CHANGES IN PARTNERS' CAPITAL Six Months Ended September 30, 1997 (Unaudited) Unrealized gain (loss) on securities available General for Assignees Partner sale, net Total --------- ------- --------- - ----- Partners' capital (deficit) April 1, 1997 $136,032,541 $(534,681) $ (2,486) $135,495,374 Net change in unrealized gain (loss) on secur- ities available for sale - - - - - Net income (loss) (7,826,789) (79,057) - (7,905,846) ----------- -------- --------- - ----------- Partners' capital (deficit), September 30, 1997 $128,205,752 $(613,738) $ (2,486) $127,589,528 =========== ======== ========== =========== The accompanying notes are an integral part of these statements. 19 Boston Capital Tax Credit Fund III L.P. STATEMENT OF CHANGES IN PARTNERS' CAPITAL Six Months Ended September 30, 1997 (Unaudited) Unrealized gain (loss) on securities available General for Assignees Partner sale,net Total --------- ------- -------- - ----- Series 15 - --------- Partners' capital (deficit), April 1, 1997 $17,962,610 $ (154,591) $ - $17,808,019 Net change in unrealized gain (loss) on secur- ities available for sale - - - - - Net income (loss) (1,706,012) (17,232) - (1,723,244) ---------- -------- ---------- - ---------- Partners' capital (deficit), September 30, 1997 $16,256,598 $ (171,823) $ - $16,084,775 ========== ======== ========== ========== Series 16 - --------- Partners' capital (deficit), April 1, 1997 $34,166,449 $ (126,206) $ (628) $34,039,615 Net change in unrealized gain (loss) on secur- ities available for sale - - - - - Net income (loss) (1,959,853) (19,796) - (1,979,649) ---------- -------- --------- - ---------- Partners' capital (deficit), September 30, 1997 $32,206,596 $(146,002) $ (628) $32,059,966 ========== ======== ========= ========== The accompanying notes are an integral part of these statements. 20 Boston Capital Tax Credit Fund III L.P. STATEMENT OF CHANGES IN PARTNERS' CAPITAL Six Months Ended September 30, 1997 (Unaudited) Unrealized gain (loss) on securities available General for Assignees Partner sale,net Total --------- ------- -------- - ----- Series 17 - --------- Partners' capital (deficit), April 1, 1997 $31,211,262 $(118,754) $ - $31,092,508 Net change in unrealized gain (loss) on secur- ities available for sale - - - - - Net income (loss) (1,566,598) (15,824) - (1,582,422) ---------- -------- --------- - ---------- Partners' capital (deficit), September 30, 1997 $29,644,664 $(134,578) $ - $29,510,086 ========== ======== ========= ========== Series 18 - --------- Partners' capital (deficit), April 1, 1997 $23,947,845 $ (71,463) $ (380) $23,876,002 Net change in unrealized gain (loss) on secur- ities available for sale - - - - - Net income (loss) (1,352,049) (13,657) - (1,365,706) ---------- ------- --------- - ---------- Partners' capital (deficit), September 30, 1997 $22,595,796 $(85,120) $ (380) $22,510,296 ========== ======= ========= ========== The accompanying notes are an integral part of these statements. 21 Boston Capital Tax Credit Fund III L.P. STATEMENT OF CHANGES IN PARTNERS' CAPITAL Six Months Ended September 30, 1997 (Unaudited) Unrealized gain (loss) on securities available General for Assignees Partner sale,net Total --------- ------- -------- - ----- Series 19 - --------- Partners' capital (deficit), April 1, 1997 $28,744,375 $ (63,667) $ (1,478) $28,679,230 Net change in unrealized gain (loss) on secur- ities available for sale - - - - - Net income (loss) (1,242,277) (12,548) - (1,254,825) ---------- -------- ---------- - ---------- Partners' capital (deficit), September 30, 1997 $27,502,098 $ (76,215) $ (1,478) $27,424,405 ========== ======== ========== ========== 22 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Six Months Ended September 30, 1997 (Unaudited) 1997 1996 ---- - ---- Cash flows from operating activities: Net loss $ (7,905,846) $ (8,676,075) Adjustments Distributions from Operating Partnerships 17,436 5,412 Amortization 110,810 123,103 Share of loss from Operating Partnerships 6,486,219 7,267,504 Changes in assets and liabilities (Decrease) Increase in accounts payable and accrued expenses (129) (69,153) Decrease (Increase) in accounts receivable (7,677) 555,176 Decrease (Increase) in accounts payable affiliates 1,299,332 1,289,233 ---------- - ---------- Net cash (used in) provided by operating activities 145 495,200 ---------- - ---------- Cash flows from investing activities: Acquisition costs repaid (paid) for Operating Partnerships acquired or to acquire - 15,000 Capital contributions paid to Operating Partnerships (344,925) (5,930,833) Advances to Operating Partnerships - 2,597,334 Investments (142,968) 1,710,839 ---------- - ----------- Net cash (used in) provided by investing activities (487,893) (1,607,660) ---------- - ---------- 23 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Six Months Ended September 30, (Unaudited) 1997 1996 ---- - ---- Continued - --------- Cash flows from financing activity: Credit adjusters received from Operating Partnerships - 793 ---------- - ---------- Net cash (used in) provided by financing activity - 793 ---------- - ---------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (487,748) (1,111,667) ---------- - ---------- Cash and cash equivalents, beginning 3,925,706 4,958,860 ---------- - ---------- Cash and cash equivalents, ending $ 3,437,958 $ 3,847,193 ========== ========== Supplemental schedule of noncash investing and financing activates: The fund has increased its investments for unpaid capital contributions due to the Operating Partnerships $ - $ 429,000 ========== ========== The accompanying notes are an integral part of these statements. 24 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Six Months Ended September 30, (Unaudited) Series 15 - ------------------------- 1997 1996 ---- - ---- Cash flows from operating activities: Net loss $(1,723,244) $(1,843,382) Adjustments Distributions from Operating Partnerships 3,017 1,096 Amortization 5,256 18,371 Share of loss from Operating Partnerships 1,411,484 1,508,293 Changes in assets and liabilities (Decrease) increase in accounts payable and accrued expenses 1 (67,711) Decrease (Increase) in accounts receivable - (44,215) Decrease (Increase) in accounts payable affiliates 274,026 274,020 -------- - - -------- Net cash (used in) provided by operating activities (29,460) (153,528) -------- - - -------- Cash flows from investing activities: Acquisition costs repaid (paid) for Operating Partnerships acquired or to acquire - 2,640 Capital contributions paid to Operating Partnerships (145,068) (14,705) Advances to Operating Partnerships - - - Investments - 151,594 -------- - - -------- Net cash (used in) provided by investing activities (145,068) 139,529 -------- - - -------- 25 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Six Months Ended September 30, (Unaudited) Series 15 - ---------------------- 1997 1996 ---- - ---- Continued - --------- Cash flows from financing activity: Credit adjusters received from Operating Partnerships - - - -------- - -------- Net cash (used in) provided by financing activity - - - -------- - -------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (174,528) (13,999) Cash and cash equivalents, beginning 246,845 163,428 -------- - -------- Cash and cash equivalents, ending $ 72,317 $ 149,429 ======== ======== Supplemental schedule of noncash investing and financing activities The Fund has increased its investments for unpaid capital contributions due to the Operating Partnerships $ - $ - - ======== ========= The accompanying notes are an integral part of these statements. 26 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Six Months Ended September 30, (Unaudited) Series 16 - ------------------------- 1997 1996 ---- - ---- Cash flows from operating activities: Net loss $(1,979,649) $(1,918,218) Adjustments Distributions from Operating Partnerships 2,653 678 Amortization 30,740 30,698 Share of loss from Operating Partnerships 1,560,995 1,576,905 Changes in assets and liabilities (Decrease) increase in accounts payable and accrued expenses - (100) Decrease (Increase) in accounts receivable (786) 24,182 Decrease (Increase) in accounts payable affiliates 345,995 345,952 ---------- - ---------- Net cash (used in) provided by operating activities (40,052) 60,097 ---------- - ---------- Cash flows from investing activities: Acquisition costs repaid (paid) for Operating Partnerships acquired or to acquire - 3,700 Capital contributions paid to Operating Partnerships (9,914) (712,752) Advances to Operating Partnerships - 483,464 Investments (29,262) 79,065 ---------- - ---------- Net cash (used in) provided by investing activities (39,176) (146,523) ---------- - ---------- 27 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Six Months Ended September 30, (Unaudited) Series 16 - ----------------------- 1997 1996 ---- - ----- Continued - --------- Cash flows from financing activity: Credit adjusters received from Operating Partnerships - - - --------- - ---------- Net cash (used in) provided by financing activity - - - --------- - ---------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (79,228) (86,426) Cash and cash equivalents, beginning 1,183,424 1,429,491 ---------- - ---------- Cash and cash equivalents, ending $ 1,104,196 $ 1,343,065 ========== ========== Supplemental schedule of noncash investing and financing activities: The Fund has increased its investments for unpaid capital contributions due to the Operating Partnerships $ - $ - - ========== ========== The accompanying notes are an integral part of these statements. 28 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Six Months Ended September 30, (Unaudited) Series 17 - ------------------------- 1997 1996 ---- - ---- Cash flows from operating activities: Net loss $(1,582,422) $(2,326,538) Adjustments Distributions from Operating Partnerships 5,570 1,166 Amortization 27,639 27,639 Share of loss from Operating Partnerships 1,243,397 1,968,570 Changes in assets and liabilities (Decrease) increase in accounts payable and accrued expenses - - - Decrease (Increase) in accounts receivable (3,807) (6,058) Decrease (Increase) in accounts payable affiliates 282,684 289,578 ---------- - ---------- Net cash (used in) provided by operating activities (26,939) (45,643) ---------- - ---------- Cash flows from investing activities: Acquisition costs repaid (paid) for Operating Partnerships acquired or to acquire - 3,410 Capital contributions paid to Operating Partnerships (4,000) (217,177) Advances to Operating Partnerships - 15,000 Investments - 628,486 ---------- - ---------- Net cash (used in) provided by investing activates (4,000) 429,719 ---------- - ---------- 29 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Six Months Ended September 30, (Unaudited) Series 17 - ------------------------ 1997 1996 ---- ---- Continued - --------- Cash flows from financing activity: Credit adjusters received from Operating Partnerships - - - ---------- - ---------- Net cash (used in) provided by financing activity - - - ---------- - ---------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (30,939) 384,076 Cash and cash equivalents, beginning 539,185 285,417 ---------- - ---------- Cash and cash equivalents, ending $ 508,246 $ 669,493 ========== ========== Supplemental schedule of noncash investing and financing activities: The Fund has increased its investments for unpaid capital contributions due to the Operating Partnerships $ - $ - - ========== ========== The accompanying notes are an integral part of these statements. 30 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Six Months Ended September 30, (Unaudited) Series 18 - ------------------------- 1997 1996 ---- - ---- Cash flows from operating activities: Net loss $(1,365,706) $(1,502,813) Adjustments Distributions from Operating Partnerships 1,132 2,472 Amortization 21,084 21,084 Share of loss from Operating Partnerships 1,135,136 1,283,112 Changes in assets and liabilities (Decrease) increase in accounts payable and accrued expenses (129) (1,621) Decrease (Increase) in accounts receivable (367) 6,336 Decrease (Increase) in accounts payable affiliates 190,953 190,848 ---------- - ---------- Net cash (used in) provided by operating activities (17,897) (582) ---------- - ---------- Cash flows from investing activities: Acquisition costs repaid (paid) for Operating Partnerships acquired or to acquire - 2,465 Capital contributions paid to Operating Partnerships (38,320) (155,948) Advances to Operating Partnerships - - - Investments (15,416) 453,992 ---------- - ---------- Net cash (used in) provided by investing activities (53,736) 300,509 ---------- - ---------- 31 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Six Months Ended September 30, (Unaudited) Series 18 - ----------------------- 1997 1996 ---- ---- Continued - --------- Cash flows from financing activity: Credit adjusters received from Operating Partnerships - - - --------- - ---------- Net cash (used in) provided by financing activity - - - --------- - ---------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (71,633) 299,927 Cash and cash equivalents, beginning 766,409 529,400 --------- - ---------- Cash and cash equivalents, ending $ 694,776 $ 829,327 ========= ========== Supplemental schedule of noncash investing and financing activities: The Fund has increased its investments for unpaid capital contributions due to the Operating Partnerships $ - $ - - ========= ========= The accompanying notes are an integral part of these statements. 32 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Six Months Ended September 30, (Unaudited) Series 19 - ------------------------- 1997 1996 ---- - ---- Cash flows from operating activities: Net loss $(1,254,825) $(1,085,124) Adjustments Distributions from Operating Partnerships 5,064 - - Amortization 26,091 25,311 Share of loss from Operating Partnerships 1,135,207 930,624 Changes in assets and liabilities (Decrease) increase in accounts payable and accrued expenses (1) 279 Decrease (Increase) in accounts receivable (2,717) 574,931 Decrease (Increase) in accounts payable affiliates 205,674 188,835 ---------- - ---------- Net cash (used in) provided by operating activities 114,493 634,856 ---------- - ---------- Cash flows from investing activities: Acquisition costs repaid (paid) for Operating Partnerships acquired or to acquire - 2,785 Capital contributions paid to Operating Partnerships (147,623) (4,830,251) Advances to Operating Partnerships - 2,098,870 Investments (98,290) 397,702 ---------- - ---------- Net cash (used in) provided by investing activities (245,913) (2,330,894) ---------- - --------- 33 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Six Months Ended September 30, (Unaudited) Series 19 - ------------------------ 1997 1996 ---- ---- Continued - --------- Cash flows from financing activity: Credit adjusters received from Operating Partnerships - 793 ---------- - ---------- Net cash (used in) provided by financing activity - 793 ---------- - ---------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (131,420) (1,695,245) Cash and cash equivalents, beginning 1,189,843 2,551,124 ---------- - ---------- Cash and cash equivalents, ending $ 1,058,423 $ 855,879 ========== ========== Supplemental schedule of noncash investing and financing activities: The Fund has increased its investments for unpaid capital contributions due to the Operating Partnerships $ - $ 429,000 ========== ========== The accompanying notes are an integral part of these statements. 34 Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS September 30, 1997 (Unaudited) NOTE A - ORGANIZATION Boston Capital Tax Credit Fund III L.P. (the "Fund") was formed under the laws of the State of Delaware as of September 19, 1991 for the purpose of acquiring, holding, and disposing of limited partnership interests in Operating Partnerships which will acquire, develop, rehabilitate, operate and own newly constructed, existing or rehabilitated low-income apartment complexes ("Operating Partnerships"). The general partner of the Fund is Boston Capital Associates III L.P., a Delaware limited partnership. Boston Capital Associates, a Massachusetts general partnership, whose only two partners are Herbert F. Collins and John P. Manning, the principals of Boston Capital Partners, Inc., is the sole general partner of the general partner. The limited partner of the general partner is Capital Investment Holdings, a general partnership whose partners are certain officers and employees of Boston Capital Partners, Inc., and its affiliates. The Assignor Limited Partner is BCTC III Assignor Corp., a Delaware corporation which is wholly-owned by Herbert F. Collins and John P. Manning. Pursuant to the Securities Act of 1933, the Fund filed a Form S-11 Registration Statement with the Securities and Exchange Commission, effective January 24, 1992 which covered the offering (the "Public Offering") of the Fund's beneficial assignee certificates ("BACs") representing assignments of units of the beneficial interest of the limited partnership interest of the Assignor Limited Partner. The Fund registered 20,000,000 BACs at $10 per BAC for sale to the public in one or more series. On September 4, 1993 the Fund filed an amendment to Form S-11 with the Securities and Exchange Commission which registered an additional 2,000,000 BACs at $10 per BAC for sale to the public in one or more series. The registration for the additional BACs became effective on October 6, 1993. Offers and sales of BACs in Series 15 through 19 of the Fund were completed and the last of the BACs in Series 15, 16, 17, 18 and 19 were issued by the Fund on June 26, 1992, December 28, 1992, June 17, 1993, September 22, 1993, and December 17, 1993, respectively. The Fund sold 3,870,500 of Series 15 BACs, for a total of $38,705,000; 5,429,402 of Series 16 BACs, for a total of $54,293,000; 5,000,000 of Series 17 BACs, for a total of $50,000,000; 3,616,200 of Series 18 BACs, for a total of $36,162,000; and 4,080,000 of Series 19 BACs, for a total of $40,800,000. The Fund issued the last BACs in Series 19 on December 17, 1993. This concluded the Public Offering of the Fund. 35 Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED September 30, 1997 (Unaudited) NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES The condensed financial statements included herein as of September 30, 1997 and for the three and six months then ended have been prepared by the Fund, without audit. The Fund accounts for its investments in Operating Partnerships using the equity method, whereby the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. Costs incurred by the Fund in acquiring the investments in the Operating Partnerships are capitalized to the investment account. The Fund's accounting and financial reporting policies are in conformity with generally accepted accounting principles and include adjustments in interim periods considered necessary for a fair presentation of the results of operations. Such adjustments are of a normal recurring nature. Investment Securities - --------------------- The Fund has determined that all of it's investment securities are to be categorized as securities available for sale. Securities classified as available for sale are those debt securities that the Fund purchased that may be liquidated prior to the maturity date should the need arise. These securities are carried at approximate fair market value. All of the investments held by the Fund are tax-exempt municipal bonds. The amortized cost of securities available for sale as of September 30, 1997 by contractual maturity are as follows: Amortized Cost ----------- Due in one year or less $1,538,763 Due after one year - --------- Total $1,538,763 ========= The fair market value of the securities is $1,536,277. The difference being an unrealized loss on securities available for sale of $2,486, as of September 30, 1997. 36 Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED September 30, 1997 (Unaudited) NOTE - B ACCOUNTING AND FINANCIAL REPORTING POLICIES - CONTINUED Amortized cost is the face value of the securities and any unamortized premium or discount. The balance sheet reflects the fair market value under investments. Amortization - ------------ The Fund amortizes organizational costs over 60 months. As of September 30, 1997 and 1996 the Fund has accumulated organization amortization totaling $790,707 and $624,866 respectively. The breakdown of accumulated organization amortization within the Fund as of September 30, 1997 and 1996 is as follows: 1997 1996 ---- ---- Series 15 $167,077 $153,961 Series 16 205,594 160,964 Series 17 175,219 135,490 Series 18 116,147 85,392 Series 19 126,670 89,059 ------- ------- $790,707 $624,866 ======= ======= On July 1, 1995, the Fund began amortizing unallocated acquisition costs over 330 months from April 1, 1995. As of September 30, 1997 the Fund has accumulated unallocated acquisition amortization totaling $169,973. The breakdown of accumulated unallocated acquisition amortization within the fund as of September 30, 1997 for Series 15, Series 16, Series 17, Series 18, and Series 19 is $26,379, $42,133, $39,003, $28,664 and $33,799, respectively. NOTE C - RELATED PARTY TRANSACTIONS The Fund has entered into several transactions with various affiliates of the general partner, including Boston Capital Partners, Inc., and Boston Capital Asset Management Limited Partnership (formerly Boston Capital Communications Limited Partnership) as follows: Boston Capital Partners, Inc. is entitled to asset acquisition fees for selecting, evaluating, structuring, negotiating, and closing the Fund's acquisition of interests in the Operating Partnerships. Prior to the quarter ended September 30, 1997 all series had completed payment of all acquisition fees due to Boston Capital Partners, Inc. 37 Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED September 30, 1997 (Unaudited) NOTE C - RELATED PARTY TRANSACTIONS - CONTINUED An annual fund management fee based on .5 percent of the aggregate cost of all apartment complexes owned by the Operating Partnerships, has been accrued to Boston Capital Asset Management Limited Partnership (formerly Boston Capital Communications Limited Partnership). The fund management fees accrued for the quarter ended September 30, 1997 and 1996 are as follows: 1997 1996 ---- ---- Series 15 $137,013 $137,013 Series 16 172,995 172,968 Series 17 142,488 141,348 Series 18 95,487 95,424 Series 19 102,837 96,300 ------- ------- $650,820 $643,053 ======= ======= NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS At September 30, 1997 and 1996, the Fund had limited partnership interests in 241 Operating Partnerships which own or are constructing apartment complexes. The breakdown of Operating Partnerships within the Fund at September 30, 1997 and 1996 is as follows: 1997 1996 ---- ---- Series 15 68 68 Series 16 64 64 Series 17 49 49 Series 18 34 34 Series 19 26 26 --- --- 241 241 === === 38 Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED September 30, 1997 (Unaudited) NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS - CONTINUED Under the terms of the Fund's investment in each Operating Partnership, the Fund is required to make capital contributions to the Operating Partnerships. These contributions are payable in installments over several years upon each Operating Partnership achieving specified levels of construction and/or operations. The contributions payable at September 30, 1997 and 1996 are as follows: 1997 1996 ---- ---- Series 15 $ 34,528 $ 189,312 Series 16 145,311 155,255 Series 17 1,840,259 2,090,611 Series 18 717,635 756,295 Series 19 684,180 2,577,367 --------- ---------- $3,421,913 $ 5,768,840 ========= ========== The Fund's fiscal year ends March 31st of each year, while all the Operating Partnerships' fiscal years are the calendar year. Pursuant to the provisions of each Operating Partnership Agreement, financial results for each of the Operating Partnerships are provided to the Fund within 45 days after the close of each Operating Partnership's quarterly period. Accordingly, the current financial results available for the Operating Partnerships are for the six months ended June 30, 1997. 39 Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED September 30, 1997 (Unaudited) NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued) COMBINED SUMMARIZED STATEMENTS OF OPERATIONS Six months ended June 30, (Unaudited) Series 15 - --------------------------- 1997 1996 ---- ---- Revenues Rental $ 4,675,328 $ 4,513,330 Interest and other 218,980 252,380 --------- - --------- 4,894,308 4,765,710 --------- - --------- Expenses Interest 1,508,149 1,593,940 Depreciation and amortization 2,034,327 2,018,829 Operating expenses 2,871,634 2,703,877 --------- - --------- 6,414,110 6,316,646 --------- - --------- NET LOSS $(1,519,802) $(1,550,936) ========= ========= Net loss allocated to Boston Capital Tax Credit Fund III L.P. $(1,411,484) $(1,508,293) ========= ========= Net loss allocated to other partners $ (15,198) $ (15,510) ========= ========= Net loss suspended $ (93,120) $ (27,133) ========= ========= The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the partnership adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income. 40 Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED September 30, 1997 (Unaudited) NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued) COMBINED SUMMARIZED STATEMENTS OF OPERATIONS Six months ended June 30, (Unaudited) Series 16 - -------------------------- 1997 1996 ---- ---- Revenues Rental $ 6,076,922 $ 5,926,919 Interest and other 492,341 464,389 ---------- - ---------- 6,569,263 6,391,308 ---------- - ---------- Expenses Interest 2,140,469 2,022,957 Depreciation and amortization 2,257,796 2,463,062 Operating expenses 3,747,760 3,498,891 ---------- - ---------- 8,146,025 7,984,910 ---------- - ---------- NET LOSS $(1,576,762) $(1,593,602) ========== ========== Net loss allocated to Boston Capital Tax Credit Fund III L.P. $(1,560,995) $(1,577,666) ========== ========== Net loss allocated to other partners $ (15,767) $ (15,936) ========== ========== 41 Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED September 30, 1997 (Unaudited) NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued) COMBINED SUMMARIZED STATEMENTS OF OPERATIONS Six Months ended June 30, (Unaudited) Series 17 - -------------------------- 1997 1996 Revenues ---- ---- Rental $ 6,125,371 $ 5,408,971 Interest and other 251,581 195,250 ---------- - --------- 6,376,952 5,604,221 ---------- - --------- Expenses Interest 2,296,620 2,370,100 Depreciation and amortization 1,993,456 1,892,667 Operating expenses 3,342,831 3,329,909 ---------- - --------- 7,632,907 7,592,676 ---------- - --------- NET LOSS $(1,255,955) $(1,988,455) ========== ========= Net loss allocated to Boston Capital Tax Credit Fund III L.P. $(1,243,397) $(1,968,570) ========== ========= Net loss allocated to other partners $ (12,558) $ (19,885) ========== ========= 42 Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED September 30, 1997 (Unaudited) NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued) COMBINED SUMMARIZED STATEMENTS OF OPERATIONS Six months ended June 30, (Unaudited) Series 18 - ---------------------------- 1997 1996 Revenues ---- ---- Rental $ 3,052,863 $2,880,998 Interest and other 151,299 116,979 --------- - --------- 3,204,162 2,997,977 --------- - --------- Expenses Interest 1,116,578 1,022,766 Depreciation and amortization 1,426,453 1,484,915 Operating expenses 1,807,734 1,786,368 --------- - --------- 4,350,765 4,294,049 --------- - --------- NET LOSS $(1,146,603) $(1,296,072) ========= ========= Net loss allocated to Boston Capital Tax Credit Fund III L.P. $(1,135,136) $(1,283,112) ========= ========= Net loss allocated to other partners $ (11,467) $ (12,960) ========= ========= 43 Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED September 30, 1997 (Unaudited) NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued) COMBINED SUMMARIZED STATEMENTS OF OPERATIONS Six months ended June 30, (Unaudited) Series 19 - -------------------------- 1997 1996 Revenues ---- ---- Rental $ 4,338,435 $ 4,002,983 Interest and other 148,618 123,221 --------- - --------- 4,487,053 4,126,204 --------- - --------- Expenses Interest 1,815,802 1,463,473 Depreciation and amortization 1,488,051 1,151,242 Operating expenses 2,329,874 2,451,513 --------- - --------- 5,633,727 5,066,228 --------- - --------- NET LOSS $(1,146,674) $ (940,024) ========= ========= Net loss allocated to Boston Capital Tax Credit Fund III L.P. $(1,135,207) $ (930,624) ========= ========= Net loss allocated to other partners $ (11,467) $ (9,400) ========= ========= 44 Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED September 30, 1997 (Unaudited) NOTE D - INVESTMENT IN OPERATING PARTNERSHIPS-CONTINUED When comparing the results of operations from the operating partnerships for the six months ended June 30, 1997 and June 30, 1996 for Series 17 and 19, variances, some material in nature, exist. The variances are the result of a number of factors including an increase in the number of Operating Partnerships which have completed construction, and an increase in the number which have completed the lease-up phase. Smaller variances are anticipated in future years since the Fund has finished acquiring Operating Partnerships, construction is complete on all of the Operating Partnerships and most have completed the lease-up phase. NOTE E - TAXABLE LOSS The Fund's taxable loss for the fiscal year ended March 31, 1998 is expected to differ from its loss for financial reporting purposes. This is primarily due to accounting differences in depreciation incurred by the Operating Partnerships and also differences between the equity method of accounting and the IRS accounting methods. No provision or benefit for income taxes has been included in these financial statements since taxable income or loss passes through to, and is reportable by, the partners and assignees individually. 45 Item 2. Management's Discussions and Analysis of Financial Condition and Results of Operations Liquidity - --------- The Fund's primary source of funds is the proceeds of its Public Offering. Other sources of liquidity will include (i) interest earned on capital contributions held pending investment and on Working Capital Reserves and (ii) cash distributions from operations of the operating Partnerships in which the Fund has and will invest. Interest income is expected to decrease over the life of the Fund as capital contributions are paid to the Operating Partnerships and Working Capital Reserves are expended. The Fund does not anticipate significant cash distributions from operations of the Operating Partnerships. The Fund is currently accruing the fund management fee. Pursuant to the Partnership Agreement, such liabilities will be deferred until the Fund receives sales of refinancing proceeds from Operating Partnerships which will be used to satisfy such liabilities. The Fund's working capital and sources of liquidity coupled with affiliated party liability accruals allow sufficient levels of liquidity to meet the third party obligations of the Fund. The Fund is currently unaware of any trends which would create insufficient liquidity to meet future third party obligations. Capital Resources - ----------------- The Fund offered BACs in a Public Offering declared effective by the Securities and Exchange Commission on January 24, 1992. The Fund received $38,705,000, $54,293,000, $50,000,000, $36,162,000 and $40,800,000 representing 3,870,500, 5,429,402, 5,000,000, 3,616,200 and 4,080,000 BACs from investors admitted as BAC Holders in Series 15, Series 16, Series 17, Series 18, and Series 19, respectively. The Public Offering was completed on December 17, 1993. (Series 15) The Fund commenced offering BACs in Series 15 on January 24, 1992. Offers and sales of BACs in Series 15 were completed on June 26, 1992. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 68 Operating Partnerships in the amount of $28,257,701. During the quarter ended September 30, 1997, none of Series 15 net offering proceeds had been used to pay capital contributions. Series 15 net offering proceeds in the amount of $34,528 remain to be used by the Fund to pay remaining capital contributions to the Operating Partnerships that Series 15 has invested in as of September 30, 1997. (Series 16) The Fund commenced offering BACs in Series 16 on July 13, 1992. Offers and sales of BACs in Series 16 were completed on December 28, 1992. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 64 Operating Partnerships in the amount of $39,579,774. 46 During the quarter ended September 30, 1997, $1,500 of Series 16 net offering proceeds had been used to pay capital contributions. Series 16 net offering proceeds in the amount of $145,311 remain to be used by the Fund to pay remaining capital contributions to the Operating Partnerships that Series 16 has invested in as of September 30, 1997. (Series 17) The Fund commenced offering BACs in Series 17 on January 24, 1993. Offers and sales of BACs in Series 17 were completed on June 17, 1993. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 49 Operating Partnerships in the amount of $36,538,204. During the quarter ended September 30, 1997, none of Series 17 net offering proceeds had been used to pay capital contributions. Series 17 net offering proceeds in the amount of $508,246 remain to be used by the Fund to pay remaining capital contributions to the Operating Partnerships that Series 17 has invested in as of September 30, 1997. (Series 18) The Fund commenced offering BACs in Series 18 on June 17, 1993. Offers and sales of BACs in Series 18 were completed on September 22, 1993. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 34 operating Partnerships in the amount of $26,442,202. During the quarter ended September 30, 1997 none of Series 18 net offering proceeds had been used to pay capital contributions. Series 18 net offering proceeds in the amount of $717,635 remain to be used by the Fund to pay remaining capital contributions to the Operating Partnerships that Series 18 has invested in as of September 30, 1997. (Series 19). The Fund commenced offering BACs in Series 19 on October 8, 1993. Offers and sales of BACs in Series 19 were completed on December 17, 1993. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 26 Operating Partnerships in the amount of $29,614,506. During the quarter ended September 30, 1997 none of Series 19 net offering proceeds had been used to pay capital contributions. Series 19 net offering proceeds in the amount of $684,180 remain to be used by the Fund to pay remaining capital contributions to the Operating Partnerships that Series 19 has invested in as of September 30, 1997. Results of Operations - --------------------- As of September 30, 1997 and 1996 the Fund held limited partnership interests in 241 Operating Partnerships. In each instance the Apartment Complex owned by the applicable Operating Partnership is eligible for the Federal Housing Tax Credit. Occupancy of a unit in each Apartment Complex which initially complied with the Minimum Set-Aside Test (i.e., occupancy by tenants 47 with incomes equal to no more than a certain percentage of area median income) and the Rent Restriction Test (i.e., gross rent charged tenants does not exceed 30% of the applicable income standards) is referred to hereinafter as "Qualified Occupancy." Each of the Operating Partnerships and each of the respective Apartment Complexes are described more fully in the Prospectus or applicable report on Form 8-K. The General Partner believes that there is adequate casualty insurance on the properties. The results of operations for future periods are likely to vary from those for the period ended September 30, 1997. The losses from Operating Partnerships reported for this interim period are not necessarily indicative of the results anticipated for future periods as some of these Operating Partnerships are in the lease-up phase. The Fund incurred a fund management fee to Boston Capital Asset Management Limited Partnerships (formerly Boston Capital Communications Limited Partnership) in an amount equal to .5 percent of the aggregate cost of the apartment complexes owned by the Operating Partnerships, less the amount of certain asset management and reporting fees paid by the Operating Partnerships. The fund management fees incurred for the quarter ended September 30, 1997 for Series 15, Series 16, Series 17, Series 18 and Series 19 were $110,595, $152,486, $114,981, $78,936, and $80,587 respectively. The Fund's investment objectives do not include receipt of significant cash distributions from the Operating Partnerships in which it has invested or intends to invest. The Fund's investments in Operating Partnerships have been and will be made principally with a view towards realization of Federal Housing Tax Credits for allocation to its partners and BAC holders. (Series 15) As of September 30, 1997 and 1996, the average qualified occupancy for the series was 100% and 100%, respectively. The series had a total of 68 properties at September 30, 1997 all of which were at 100% qualified occupancy. For the six months being reported Series 15 reflects a net loss from Operating Partnerships of $1,519,802. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $514,525. This is an interim period estimate; it is not necessarily indicative of the final year end results. 48 California Investors VII Limited Partnership was operating at a deficit due to higher than projected operating expenses and a competitive rental market. Operating shortfalls caused the accrual of accounts payable. The Operating Partnership closed on a debt refinancing in the fourth quarter of 1996. The favorable interest rate enabled the Operating Partnership to payoff the accrued accounts payable and reduced the monthly debt payment. The refinancing should also create increased operating stability for the Operating Partnership. The new management company at Hidden Cove continues to make improvements to the tenant base and occupancy, which stands at 93% at September 30, 1997, however the property is still generating operating deficits. As such, the management company is implementing cost saving measures to mitigate these deficits and stabilize the property. (Series 16) As of September 30, 1997 and 1996, the average qualified occupancy for the series was 99.6% and 100%, respectively. The series had a total of 64 properties at September 30, 1997. Out of the total 62 had 100% qualified occupancy. For the six months being reported Series 16 reflects a net loss from Operating Partnerships of $1,576,762. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $681,034. This is an interim period estimate; it is not necessarily indicative of the final year end results. The Operating General Partner of Mariner's Pointe Limited Partnership I and Mariner's Pointe Limited Partnership II pledged his general partnership interest to an unaffiliated lending institution. As this was a violation of the terms of the partnership agreement, the Operating General Partner was removed and replaced. The properties are operating at a slightly negative cash flow. The deficits are being funded by the new General Partner. (Series 17) As of September 30, 1997 and 1996, the average qualified occupancy for the series was 99.7% and 99.6%, respectively. The series had a total of 49 properties at September 30, 1997. Out of the total 48 had 100% qualified occupancy. For the six months being reported Series 17 reflects a net loss from Operating Partnerships of $1,255,955. When adjusted for depreciation, which, is a non-cash item, the Operating Partnerships reflect positive operations of $737,501. This is an interim period estimate; it is not necessarily indicative of the final year end results. Annadale Housing Partners has reported net losses due to operational issues associated with the property. The Operating Partnership has stabilized since the completion of rehabilitation and occupancy has shown steady improvement. Occupancy is at 95% as of September 30, 1997. 49 California Investors VII Limited Partnership was operating at a deficit due to higher than projected operating expenses and a competitive rental market. Operating shortfalls caused the accrual of accounts payable. The Operating Partnership closed on a debt refinancing in the fourth quarter of 1996. The favorable interest rate enabled the Operating Partnership to payoff the accrued accounts payable and reduced the monthly debt payment. The refinancing should also create increased operating stability for the Operating Partnership. The property owned by California Investors VI L.P. has experienced a reduction in occupancy, which stands at 92% at September 30, 1997. The management company is increasing their marketing efforts, as well as implementing capital improvements to the property to attract tenants. These efforts should improve occupancy and stabilize the property. (Series 18) As of September 30, 1997 and 1996 the average qualified occupancy for the series was 100% and 100% respectively. The series had a total of 34 properties at September 30, 1997 all of which were at 100% qualified occupancy. For the six months being reported Series 18 reflects a net loss from Operating Partnerships of $1,146,603. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $279,850. This is an interim period estimate; it is not necessarily indicative of the final year end results. In August 1996 the General Partner was notified that Virginia Avenue Housing Limited Partnership was named as defendant in a land encroachment complaint. Efforts by the Operating General Partner to settle the complaint have been unsuccessful. At this time, the Investment Limited Partner is examining the possibility of Operating General Partner removal and the pursuit of a separate settlement on behalf of the Operating Partnership. (Series 19) As of September 30, 1997 and 1996 the average qualified occupancy for the series was 100% and 99.9% respectively. The series had a total of 26 properties at September 30, 1997. All of which were at 100% qualified occupancy. For the six months being reported Series 19 reflects a net loss from Operating Partnerships of $1,146,674. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $341,377. This is an interim period estimate; it is not necessarily indicative of the final year end results. 50 PART II - OTHER INFORMATION Item 1. Legal Proceedings None Item 2. Changes in Securities None Item 3. Defaults upon Senior Securities None Item 4. Submission of Matters to a Vote of Security Holders None Item 5. Other Information None Item 6. Exhibits and Reports on Form 8-K (a) Exhibits None (b) Reports on Form 8-K 51 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. BOSTON CAPITAL TAX CREDIT FUND III L.P. By: Boston Capital Associates III L.P. By: C&M Associates d/b/a Boston Capital Associates Date: November 17, 1997 By: /s/ John P. Manning ------------------- John P. Manning, Partner & Principal Financial Officer 52 EX-27 2
CT 0000879555 BOSTON CAPITAL TAX CREDIT FUND III LP 6-MOS MAR-31-1998 APR-01-1997 SEP-30-1997 138,895,051 0 0 0 0 138,895,051 91,928 0 (7,997,774) 0 0 0 (7,905,846) 0 0
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