-----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, My5F641FMM0yKjbn/lqRG2V20+gNcQEBpFZBIPAsLWmggI8waHba7tXNqcfjH7nT DJot/kov11Hblyt/GZw/HA== 0000879555-98-000010.txt : 19980821 0000879555-98-000010.hdr.sgml : 19980821 ACCESSION NUMBER: 0000879555-98-000010 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980820 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: 98694796 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 June 30, 1998 ----------------- 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 June 30, 1998 ----------------------------------------------- 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 June 30, March 31, 1998 1998 (Unaudited) (Audited) ASSETS ------------ - ------------ INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) $117,113,785 $121,032,270 OTHER ASSETS Cash and cash equivalents 1,644,220 1,653,522 Investments 2,852,127 2,970,867 Notes receivable 2,056,333 2,056,333 Deferred acquisition costs, net of accumulated amortization (Note B) 1,656,139 1,681,137 Organization costs, net of accumulated amortization (Note B) 40,334 67,358 Other assets 1,905,168 1,728,300 ----------- - ----------- $127,268,106 $131,189,787 =========== =========== LIABILITIES Accounts payable & accrued expenses (Note C) $ 11,428 $ 4,553 Accounts payable affiliates 9,485,760 8,703,412 Capital contributions payable (Note D) 2,571,349 2,726,063 ----------- - ----------- 12,068,537 11,434,028 ----------- - ----------- 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 June 30, 1998 115,937,234 120,447,861 General Partner (737,665) (692,102) ----------- - ----------- 115,199,569 119,755,759 ----------- - ----------- $127,268,106 $131,189,787 =========== =========== The accompanying notes are an integral part of these statements. 1 Boston Capital Tax Credit Fund III L.P. BALANCE SHEETS SERIES 15 - ---------------------------- June 30, March 31, 1998 1998 (Unaudited) (Audited) ASSETS ----------- - --------- INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) $15,647,122 $16,246,406 OTHER ASSETS Cash and cash equivalents 154,593 156,717 Investments 125,000 125,000 Notes receivable 110,000 110,000 Deferred acquisition costs, net of accumulated amortization (Note B) 254,907 257,535 Organization costs, net of accumulated amortization (Note B) - - - Other assets 573,708 473,086 ---------- - ---------- $16,865,330 $17,368,744 ========== ========== LIABILITIES Accounts payable and accrued expenses (Note C) $ 3,150 $ 1,145 Accounts payable affiliates 2,596,441 2,360,745 Capital contributions payable (Note D) 32,922 32,922 ---------- - ---------- 2,632,513 2,394,812 ---------- - ---------- 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 June 30, 1998 14,423,160 15,156,864 General Partner (190,343) (182,932) ---------- - ---------- 14,232,817 14,973,932 ---------- - ---------- $16,865,330 $17,368,744 ========== ========== The accompanying notes are an integral part of these statements. 2 Boston Capital Tax Credit Fund III L.P. BALANCE SHEETS SERIES 16 - ---------------------------- June 30, March 31, 1998 1998 (Unaudited) (Audited) ASSETS ----------- - --------- INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) $29,695,515 $30,777,843 OTHER ASSETS Cash and cash equivalents 225,758 199,558 Investments 1,000,758 1,000,758 Notes receivable - - - Deferred acquisition costs net of accumulated amortization (Note B) 408,658 412,871 Organization costs, net of accumulated amortization (Note B) - - - Other assets 86,263 72,210 ---------- - ---------- $31,416,952 $32,463,240 ========== ========== LIABILITIES Accounts payable & accrued expenses (Note C) $ 494 $ - - Accounts payable affiliates 2,408,081 2,235,091 Capital contributions payable (Note D) 145,311 145,311 ---------- - ---------- 2,553,886 2,380,402 ---------- - ---------- 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 June 30, 1998 29,041,044 30,248,618 General Partner (177,978) (165,780) Unrealized gain (loss) on securities available for sale, net - - - ---------- - ---------- 28,863,066 30,082,838 ---------- - ---------- $31,416,952 $32,463,240 ========== ========== The accompanying notes are an integral part of these statements. 3 Boston Capital Tax Credit Fund III L.P. BALANCE SHEETS SERIES 17 - ---------------------------- June 30, March 31, 1998 1998 (Unaudited) (Audited) ASSETS ----------- - --------- INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) $26,797,065 $27,762,778 OTHER ASSETS Cash and cash equivalents 399,189 388,024 Investments - - - Notes receivable 1,409,982 1,409,982 Deferred acquisition costs net of accumulated amortization (Note B) 361,535 373,197 Organization costs, net of accumulated amortization (Note B) 872 10,804 Other assets 1,154,797 1,121,814 ---------- - ---------- $30,123,440 $31,066,599 ========== ========== LIABILITIES Accounts payable & accrued expenses (Note C) $ 2,082 $ - - Accounts payable affiliates 2,334,642 2,159,306 Capital contributions payable (Note D) 1,367,195 1,367,195 ---------- - ---------- 3,703,919 3,526,501 ---------- - ---------- 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 June 30, 1998 26,585,005 27,694,376 General Partner (165,484) (154,278) ---------- - ---------- 26,419,521 27,540,098 ---------- - ---------- $30,123,440 $31,066,599 ========== ========== The accompanying notes are an integral part of these statements. 4 Boston Capital Tax Credit Fund III L.P. BALANCE SHEETS SERIES 18 - ---------------------------- June 30, March 31, 1998 1998 (Unaudited) (Audited) ASSETS ------------ - ---------- INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) $20,414,613 $20,921,603 OTHER ASSETS Cash and cash equivalents 264,168 301,444 Investments 349,000 474,000 Notes receivable 536,351 536,351 Deferred acquisition costs, new of accumulated amortization (Note B) 277,716 280,569 Organization costs, net of accumulated amortization (Note B) 11,083 18,772 Other assets 62,740 44,622 ---------- - ---------- $21,915,671 $22,577,361 ========== ========== LIABILITIES Accounts payable & accrued expenses (Note C) $ 294 $ - - Accounts payable affiliates 1,143,528 1,048,041 Capital contributions payable (Note D) 562,921 717,635 ---------- - ---------- 1,706,743 1,765,676 ---------- - ---------- 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 June 30, 1998 20,317,066 20,913,795 General Partner (108,138) (102,110) ---------- - ---------- 20,208,928 20,811,685 ---------- - ---------- $21,915,671 $22,577,361 ========== ========== The accompanying notes are an integral part of these statements. 5 Boston Capital Tax Credit Fund III L.P. BALANCE SHEETS SERIES 19 - ---------------------------- June 30, March 31, 1998 1998 (Unaudited) (Audited) ASSETS ------------ - ---------- INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) $24,559,470 $25,323,640 OTHER ASSETS Cash and cash equivalents 600,512 607,779 Investments 1,377,369 1,371,109 Notes receivables - - - Deferred acquisition costs, net of accumulated amortization (Note B) 353,323 356,965 Organization costs, net of accumulated amortization (Note B) 28,379 37,782 Other assets 27,660 16,568 ---------- - ---------- $26,946,713 $27,713,843 ========== ========== LIABILITIES Accounts payable & accrued expenses (Note C) $ 5,408 $ 3,408 Accounts payable affiliates 1,003,068 900,229 Capital contributions payable (Note D) 463,000 463,000 ---------- - ---------- 1,471,476 1,366,637 ---------- - ---------- 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 June 30, 1998 25,570,959 26,434,208 General Partner (95,722) (87,002) ---------- - ---------- 25,475,237 26,347,206 ---------- - ---------- $26,946,713 $27,713,843 ========== ========== 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 June 30, (Unaudited) 1998 1997 ---- ---- Income Interest income $ 76,746 $ 40,067 ---------- ---------- Share of loss from Operating Partnerships (Note D) (3,909,238) (3,532,434) ---------- ---------- Expenses Professional fees 35,385 16,337 Fund management fee (Note C) 560,837 531,208 Amortization 52,024 55,405 General and administrative expenses 75,452 62,419 ---------- ---------- 723,698 665,369 ---------- ---------- NET LOSS $(4,556,190) $(4,157,736) ========== ========== Net loss allocated to limited partners $(4,510,627) $(4,116,159) ========== ========== Net loss allocated general partner $ (45,563) $ (41,577) ========== ========== Net loss per BAC $ (1.02) $ (.95) ========== ========== 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 June 30, (Unaudited) SERIES 15 - ----------------------- 1998 1997 ---- - ---- Income Interest income $ 2,631 $ 1,593 -------- - -------- Share of loss from Operating Partnerships (598,423) (749,269) -------- - -------- Expenses Professional fees - 2,962 Fund management fee (Note C) 116,938 125,388 Amortization 2,628 2,628 General and administrative expenses 25,757 10,774 -------- - -------- 145,322 141,752 -------- - -------- NET LOSS $(741,115) $(889,428) ======== ======== Net loss allocated to limited partners $(733,704) $(880,534) ======== ======== Net loss allocated to general partner $ (7,411) $ (8,894) ======== ======== Net loss per BAC $ (.19) $ (.23) ======== ======== 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 June 30, (Unaudited) SERIES 16 - ------------------------ 1998 1997 ---- - ---- Income Interest income $ 29,750 $ 8,862 -------- - -------- Share of loss from Operating Partnerships (1,081,720) (965,282) -------- - -------- Expenses Professional fees 13,793 8,077 Fund management fee (Note C) 136,688 169,345 Amortization 13,107 15,370 General and administrative expenses 4,214 16,531 -------- - -------- 167,802 209,323 -------- - -------- NET LOSS $(1,219,772) $(1,165,743) ========= ======== Net loss allocated to limited partners $(1,207,574) $(1,154,086) ========= ======== Net loss allocated to general partner $ (12,198) $ (11,657) ========= ======== Net loss per BAC $ (.22) $ (.21) ========= ======== 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 June 30, (Unaudited) SERIES 17 - ------------------------ 1998 1997 ---- - ---- Income Interest income $ 1,746 $ 4,158 -------- -- - -------- Share of loss from Operating Partnerships (957,936) (525,396) -------- - ---------- Expenses Professional fees 12,819 1,737 Fund management fee (Note C) 118,167 141,843 Amortization 21,595 13,820 General and administrative expenses 11,806 12,933 -------- - ---------- 164,387 170,333 -------- - ---------- NET LOSS $(1,120,577) $ (691,571) ========= ========== Net loss allocated to limited partners $(1,109,371) $ (684,655) ========= ========== Net loss allocated to general partner $ (11,206) $ (6,916) ========= ========== Net loss per BAC $ (.22) $ (.14) ======== ========== 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 June 30, (Unaudited) SERIES 18 - ---------------------- 1998 1997 ---- - ---- Income Interest income $ 18,255 $ 7,242 -------- - -------- Share of loss from Operating Partnerships (506,989) (615,610) -------- - -------- Expenses Professional fees - 1,539 Fund management fee (Note C) 88,707 94,632 Amortization 10,542 10,542 General and administrative expenses 14,774 10,141 -------- - -------- 114,023 116,854 -------- - -------- NET LOSS $(602,757) $(725,222) ======== ======== Net loss allocated to limited partners $(596,729) $(717,970) ======== ======== Net loss allocated to general partner $ (6,028) $ (7,252) ======== ======== Net loss per BAC $ (.17) $ (.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 June 30, (Unaudited) SERIES 19 - ---------------------- 1998 1997 ---- - ---- Income Interest income $ 24,364 $ 18,212 -------- - -------- Share of loss from Operating Partnerships (764,170) (676,877) -------- - -------- Expenses Professional fees 8,773 2,022 Fund management fee (Note C) 100,337 - - Amortization 13,045 13,045 General and administrative expenses 10,008 12,040 -------- - -------- 132,163 27,107 -------- - -------- NET LOSS $(871,969) $(685,772) ======== ======== Net loss allocated to limited partners $(863,249) $(678,914) ======== ======== Net loss allocated to general partner $ (8,720) $ (6,858) ======== ======== Net loss per BAC $ (.22) $ (.17) ======== ======== The accompanying notes are an integral part of these statements. 12 Boston Capital Tax Credit Fund III L.P. STATEMENT OF CHANGES IN PARTNERS' CAPITAL Three Months Ended June 30, 1998 (Unaudited) Unrealized gain (loss) on securities available General for Assignees Partner sale, net Total --------- ------- --------- - ----- Partners' capital (deficit) April 1, 1998 $120,447,861 $(692,102) $ - $119,755,759 Net change in unrealized gain (loss) on secur- ities available for sale - - - - - Net income (loss) (4,510,627) (45,563) - (4,556,190) ----------- -------- --------- - ----------- Partners' capital (deficit), June 30, 1998 $115,937,234 $(737,665) $ - $115,199,569 =========== ======== ========== =========== The accompanying notes are an integral part of these statements. 13 Boston Capital Tax Credit Fund III L.P. STATEMENT OF CHANGES IN PARTNERS' CAPITAL Three Months Ended June 30, 1998 (Unaudited) Unrealized gain (loss) on securities available General for Assignees Partner sale,net Total --------- ------- -------- - ----- Series 15 - --------- Partners' capital (deficit), April 1, 1998 $15,156,864 $ (182,932) $ - $14,973,932 Net change in unrealized gain (loss) on secur- ities available for sale - - - - - Net income (loss) (733,704) (7,411) - (741,115) ---------- -------- ---------- - ---------- Partners' capital (deficit), June 30, 1998 $14,423,160 $ (190,343) $ - $14,232,817 ========== ======== ========== ========== Series 16 - --------- Partners' capital (deficit), April 1, 1998 $30,248,618 $ (165,780) $ - $30,082,838 Net change in unrealized gain (loss) on secur- ities available for sale - - - - - Net income (loss) (1,207,574) (12,198) - (1,219,772) ---------- -------- --------- - ---------- Partners' capital (deficit), June 30, 1998 $29,041,044 $(177,978) $ - $28,863,066 ========== ======== ========= ========== The accompanying notes are an integral part of these statements. 14 Boston Capital Tax Credit Fund III L.P. STATEMENT OF CHANGES IN PARTNERS' CAPITAL Three Months Ended June 30, 1998 (Unaudited) Unrealized gain (loss) on securities available General for Assignees Partner sale,net Total --------- ------- -------- - ----- Series 17 - --------- Partners' capital (deficit), April 1, 1998 $27,694,376 $(154,278) $ - $27,540,098 Net change in unrealized gain (loss) on secur- ities available for sale - - - - - Net income (loss) (1,109,371) (11,206) - (1,120,577) ---------- -------- --------- - ---------- Partners' capital (deficit), June 30, 1998 $26,585,005 $(165,484) $ - $26,419,521 ========== ======== ========= ========== Series 18 - --------- Partners' capital (deficit), April 1, 1998 $20,913,795 $(102,110) $ - $20,811,685 Net change in unrealized gain (loss) on secur- ities available for sale - - - - - Net income (loss) (596,729) (6,028) - (602,757) ---------- ------- --------- - ---------- Partners' capital (deficit), June 30, 1998 $20,317,066 $(108,138) $ - $20,208,928 ========== ======= ========= ========== The accompanying notes are an integral part of these statements. 15 Boston Capital Tax Credit Fund III L.P. STATEMENT OF CHANGES IN PARTNERS' CAPITAL Three Months Ended June 30, 1998 (Unaudited) Unrealized gain (loss) on securities available General for Assignees Partner sale,net Total --------- ------- -------- - ----- Series 19 - --------- Partners' capital (deficit), April 1, 1998 $26,434,208 $ (87,002) $ - $26,347,206 Net change in unrealized gain (loss) on secur- ities available for sale - - - - - Net income (loss) (863,249) (8,720) - (871,969) ---------- -------- ---------- - ---------- Partners' capital (deficit), June 30, 1998 $25,570,959 $ (95,722) $ - $25,475,237 ========== ======== ========== ========== The accompanying notes are an integral part of these statements. 16 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Three Months Ended June 30, (Unaudited) 1998 1997 ---- - ---- Cash flows from operating activities: Net loss $ (4,556,190) $ (4,157,736) Adjustments Distributions from Operating Partnerships 9,244 245 Amortization 52,024 55,405 Share of loss from Operating Partnerships 3,909,238 3,532,434 Changes in assets and liabilities (Decrease) Increase in accounts payable and accrued expenses 4,793 5,116 Decrease (Increase) in accounts receivable (77,932) (3,965) Decrease (Increase) in accounts payable affiliates 784,429 656,557 ---------- - ---------- Net cash (used in) provided by operating activities 125,606 88,056 ---------- - ---------- Cash flows from investing activities: Acquisition costs repaid (paid) for Operating Partnerships acquired or to acquire - - - Capital contributions paid to Operating Partnerships (154,714) (343,418) Advances to Operating Partnerships (98,934) - - Investments 118,740 49,862 ---------- - - --------- Net cash (used in) provided by investing activities 134,908 (293,556) ---------- - ---------- 17 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Three Months Ended June 30, (Unaudited) 1998 1997 ---- - ---- 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 (9,302) 205,500 ---------- - ---------- Cash and cash equivalents, beginning 1,653,522 3,925,706 ---------- - ---------- Cash and cash equivalents, ending $ 1,644,220 $ 3,720,206 ========== ========== Supplemental schedule of noncash investing and financing activates: 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. 18 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Three Months Ended June 30, (Unaudited) Series 15 - ------------------------- 1998 1997 ---- - ---- Cash flows from operating activities: Net loss $ (741,115) $ (889,428) Adjustments Distributions from Operating Partnerships 861 - - Amortization 2,628 2,628 Share of loss from Operating Partnerships 598,423 749,269 Changes in assets and liabilities (Decrease) increase in accounts payable and accrued expenses 2,005 1 Decrease (Increase) in accounts receivable (1,688) - - Decrease (Increase) in accounts payable affiliates 235,696 137,013 -------- - - -------- Net cash (used in) provided by operating activities 96,810 (517) -------- - - -------- Cash flows from investing activities: Acquisition costs repaid (paid) for Operating Partnerships acquired or to acquire - - - Capital contributions paid to Operating Partnerships - (145,064) Advances to Operating Partnerships (98,934) - - Investments - - - -------- - - -------- Net cash (used in) provided by investing activities (98,934) (145,064) -------- - - -------- 19 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Three Months Ended June 30, (Unaudited) Series 15 - ---------------------- 1998 1997 ---- - ---- 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 (2,124) (145,581) Cash and cash equivalents, beginning 156,717 246,845 -------- - -------- Cash and cash equivalents, ending $ 154,593 $ 101,264 ======== ======== 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. 20 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Three Months Ended June 30, (Unaudited) Series 16 - ------------------------- 1998 1997 ---- - ---- Cash flows from operating activities: Net loss $(1,219,772) $(1,165,743) Adjustments Distributions from Operating Partnerships 607 182 Amortization 4,214 15,370 Share of loss from Operating Partnerships 1,081,720 965,282 Changes in assets and liabilities (Decrease) increase in accounts payable and accrued expenses 494 5,115 Decrease (Increase) in accounts receivable (14,053) (238) Decrease (Increase) in accounts payable affiliates 172,990 172,995 ---------- - ---------- Net cash (used in) provided by operating activities 26,200 (7,037) ---------- - ---------- Cash flows from investing activities: Acquisition costs repaid (paid) for Operating Partnerships acquired or to acquire - - - Capital contributions paid to Operating Partnerships - (8,414) Advances to Operating Partnerships - - - Investments - 10,147 ---------- - ---------- Net cash (used in) provided by investing activities - 1,733 ---------- - ---------- 21 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Three Months Ended June 30, (Unaudited) Series 16 - ----------------------- 1998 1997 ---- - ----- 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 26,200 (5,304) Cash and cash equivalents, beginning 199,558 1,183,424 ---------- - ---------- Cash and cash equivalents, ending $ 225,758 $ 1,178,120 ========== ========== 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. 22 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Three Months Ended June 30, (Unaudited) Series 17 - ------------------------- 1998 1997 ---- - ---- Cash flows from operating activities: Net loss $(1,120,577) $ (691,571) Adjustments Distributions from Operating Partnerships 7,776 63 Amortization 21,595 13,820 Share of loss from Operating Partnerships 957,936 525,396 Changes in assets and liabilities (Decrease) increase in accounts payable and accrued expenses - - - Decrease (Increase) in accounts receivable (32,983) - - Decrease (Increase) in accounts payable affiliates 177,418 148,225 ---------- - ---------- Net cash (used in) provided by operating activities 11,165 (4,067) ---------- - ---------- Cash flows from investing activities: Acquisition costs repaid (paid) for Operating Partnerships acquired or to acquire - - - Capital contributions paid to Operating Partnerships - (4,000) Advances to Operating Partnerships - - - Investments - - - ---------- - ---------- Net cash (used in) provided by investing activates - (4,000) ---------- - ---------- 23 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Three Months Ended June 30, (Unaudited) Series 17 - ------------------------ 1998 1997 ---- ---- 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 11,165 (8,067) Cash and cash equivalents, beginning 388,024 539,185 ---------- - ---------- Cash and cash equivalents, ending $ 399,189 $ 531,118 ========== ========== 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. 24 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Three Months Ended June 30, (Unaudited) Series 18 - ------------------------- 1998 1997 ---- - ---- Cash flows from operating activities: Net loss $ (602,757) $ (725,222) Adjustments Distributions from Operating Partnerships - - - Amortization 10,542 10,542 Share of loss from Operating Partnerships 506,989 615,610 Changes in assets and liabilities (Decrease) increase in accounts payable and accrued expenses 294 1 Decrease (Increase) in accounts receivable (18,118) (1,484) Decrease (Increase) in accounts payable affiliates 95,488 95,487 ---------- - ---------- Net cash (used in) provided by operating activities (7,562) (5,066) ---------- - ---------- Cash flows from investing activities: Acquisition costs repaid (paid) for Operating Partnerships acquired or to acquire - - - Capital contributions paid to Operating Partnerships (154,714) (38,317) Advances to Operating Partnerships - - - Investments 125,000 6,216 ---------- - ---------- Net cash (used in) provided by investing activities (29,714) (32,101) ---------- - ---------- 25 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Three Months Ended June 30, (Unaudited) Series 18 - ----------------------- 1998 1997 ---- ---- 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 (37,276) (37,167) Cash and cash equivalents, beginning 301,444 766,409 --------- - ---------- Cash and cash equivalents, ending $ 264,168 $ 729,242 ========= ========== 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 Three Months Ended June 30, (Unaudited) Series 19 - ------------------------- 1998 1997 ---- - ---- Cash flows from operating activities: Net loss $ (871,969) $ (685,772) Adjustments Distributions from Operating Partnerships - - - Amortization 13,045 13,045 Share of loss from Operating Partnerships 764,170 676,877 Changes in assets and liabilities (Decrease) increase in accounts payable and accrued expenses 2,000 (1) Decrease (Increase) in accounts receivable (11,090) (2,243) Decrease (Increase) in accounts payable affiliates 102,837 102,837 ---------- - ---------- Net cash (used in) provided by operating activities (1,007) 104,743 ---------- - ---------- Cash flows from investing activities: Acquisition costs repaid (paid) for Operating Partnerships acquired or to acquire - - - Capital contributions paid to Operating Partnerships - (147,623) Advances to Operating Partnerships - - - Investments (6,260) 33,499 ---------- - ---------- Net cash (used in) provided by investing activities (6,260) (114,124) ---------- - --------- 27 Boston Capital Tax Credit Fund III L.P. STATEMENTS OF CASH FLOWS Three Months Ended June 30, (Unaudited) Series 19 - ------------------------ 1998 1997 ---- ---- 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 (7,267) (9,381) Cash and cash equivalents, beginning 607,779 1,189,843 ---------- - ---------- Cash and cash equivalents, ending $ 600,512 $ 1,180,462 ========== ========== 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. NOTES TO FINANCIAL STATEMENTS June 30, 1998 (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. 29 Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1998 (Unaudited) NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES The condensed financial statements included herein as of December 31, 1997 and for the three and nine 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. The amortized cost of securities available for sale as of June 30, 1998 by contractual maturity are as follows: Amortized Cost ----------- Due in one year or less $2,852,127 Due after one year - --------- Total $2,852,127 ========= The fair market value of the securities is $2,852,127. 30 Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1998 (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 June 30, 1998 and 1997 the Fund has accumulated organization amortization totaling $894,093 and $752,527 respectively. The breakdown of accumulated organization amortization within the Fund as of June 30, 1998 and 1997 is as follows: 1998 1997 ---- ---- Series 15 $167,077 $167,077 Series 16 227,909 194,437 Series 17 205,016 165,287 Series 18 139,212 108,458 Series 19 154,879 117,268 ------- ------- $894,093 $752,527 ======= ======= On July 1, 1995, the Fund began amortizing unallocated acquisition costs over 330 months from April 1, 1995. As of June 30, 1998 the Fund has accumulated unallocated acquisition amortization totaling $237,199. The breakdown of accumulated unallocated acquisition amortization within the fund as of June 30, 1998 for Series 15, Series 16, Series 17, Series 18, and Series 19 is $34,263, $54,770, $66,216, $37,224 and $44,726, 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 June 30, 1998 all series had completed payment of all acquisition fees due to Boston Capital Partners, Inc. 31 Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1998 (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 June 30, 1998 and 1997 are as follows: 1998 1997 ---- ---- Series 15 $137,013 $137,013 Series 16 172,995 172,995 Series 17 141,342 148,224 Series 18 95,487 95,487 Series 19 102,837 102,837 ------- ------- $649,674 $656,556 ======= ======= NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS At June 30, 1998 and 1997, 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 June 30, 1998 and 1997 is as follows: 1998 1997 ---- ---- Series 15 68 68 Series 16 64 64 Series 17 49 49 Series 18 34 34 Series 19 26 26 --- --- 241 241 === === 32 Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1998 (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 June 30, 1998 and 1997 are as follows: 1998 1997 ---- ---- Series 15 $ 32,922 $ 34,528 Series 16 145,311 146,817 Series 17 1,367,195 1,840,259 Series 18 562,921 717,635 Series 19 463,000 684,180 --------- ---------- $2,571,349 $ 3,423,419 ========= ========== 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 three months ended March 31, 1998. 33 Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1998 (Unaudited) NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued) COMBINED SUMMARIZED STATEMENTS OF OPERATIONS Three months ended March 31, (Unaudited) Series 15 - --------------------------- 1998 1997 ---- ---- Revenues Rental $ 2,361,861 $ 2,308,177 Interest and other 108,691 91,331 --------- - --------- 2,470,552 2,399,508 --------- - --------- Expenses Interest 716,760 725,350 Depreciation and amortization 929,837 945,223 Operating expenses 1,510,079 1,543,974 --------- - --------- 3,156,676 3,214,547 --------- - --------- NET LOSS $ (686,124) $ (815,039) ========= ========= Net loss allocated to Boston Capital Tax Credit Fund III L.P. $ (598,423) $ (749,269) ========= ========= Net loss allocated to other partners $ (6,861) $ (8,150) ========= ========= Net loss suspended $ (80,834) $ (57,620) ========= ========= 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. 34 Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1998 (Unaudited) NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued) COMBINED SUMMARIZED STATEMENTS OF OPERATIONS Three months ended March 31, (Unaudited) Series 16 - -------------------------- 1998 1997 ---- ---- Revenues Rental $ 2,967,061 $ 3,136,950 Interest and other 233,688 243,004 ---------- - ---------- 3,200,749 3,379,954 ---------- - ---------- Expenses Interest 1,030,920 1,255,106 Depreciation and amortization 1,159,007 1,101,563 Operating expenses 2,123,215 1,998,317 ---------- - ---------- 4,313,142 4,354,986 ---------- - ---------- NET LOSS $(1,112,393) $ (975,032) ========== ========== Net loss allocated to Boston Capital Tax Credit Fund III L.P. $(1,081,720) $ (965,282) ========== ========== Net loss allocated to other partners $ (30,673) $ (9,750) ========== ========== 35 Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1998 (Unaudited) NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued) COMBINED SUMMARIZED STATEMENTS OF OPERATIONS Three Months ended March 31, (Unaudited) Series 17 - -------------------------- 1998 1997 Revenues ---- ---- Rental $ 2,610,299 $ 3,379,339 Interest and other 163,805 123,355 ---------- - --------- 2,774,104 3,502,694 ---------- - --------- Expenses Interest 1,032,783 1,180,312 Depreciation and amortization 1,132,381 1,008,431 Operating expenses 1,576,552 1,844,653 ---------- - --------- 3,741,716 4,033,396 ---------- - --------- NET LOSS $ (967,612) $ (530,702) ========== ========= Net loss allocated to Boston Capital Tax Credit Fund III L.P. $ (957,936) $ (525,396) ========== ========= Net loss allocated to other partners $ (9,676) $ (5,306) ========== ========= 36 Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1998 (Unaudited) NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued) COMBINED SUMMARIZED STATEMENTS OF OPERATIONS Three months ended March 31, (Unaudited) Series 18 - ---------------------------- 1998 1997 Revenues ---- ---- Rental $ 1,526,479 $1,518,521 Interest and other 57,354 70,593 --------- - --------- 1,583,833 1,589,114 --------- - --------- Expenses Interest 549,159 564,891 Depreciation and amortization 681,994 727,004 Operating expenses 877,378 919,048 --------- - --------- 2,108,531 2,210,943 --------- - --------- NET LOSS $ (524,698) $ (621,829) ========= ========= Net loss allocated to Boston Capital Tax Credit Fund III L.P. $ (506,989) $ (615,610) ========= ========= Net loss allocated to other partners $ (5,247) $ (6,219) ========= ========= Net loss suspended $ (12,462) $ - - ========= ========= 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. 37 Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1998 (Unaudited) NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued) COMBINED SUMMARIZED STATEMENTS OF OPERATIONS Three months ended March 31, (Unaudited) Series 19 - -------------------------- 1998 1997 Revenues ---- ---- Rental $ 2,172,136 $ 2,168,507 Interest and other 59,513 65,317 --------- - --------- 2,231,649 2,233,824 --------- - --------- Expenses Interest 881,904 937,920 Depreciation and amortization 984,268 725,461 Operating expenses 1,137,366 1,254,158 --------- - --------- 3,003,538 2,917,539 --------- - --------- NET LOSS $ (771,889) $ (683,715) ========= ========= Net loss allocated to Boston Capital Tax Credit Fund III L.P. $ (764,170) $ (676,877) ========= ========= Net loss allocated to other partners $ (7,719) $ (6,838) ========= ========= 38 Boston Capital Tax Credit Fund III L.P. NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30,1998 (Unaudited) NOTE D - INVESTMENT IN OPERATING PARTNERSHIPS-CONTINUED When comparing the results of operations from the operating partnerships for the three months ended March 31, 1998 and March 31, 1997 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, 1999 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. 39 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 June 30, 1998, none of Series 15 net offering proceeds had been used to pay capital contributions. Series 15 net offering proceeds in the amount of $32,922 remain to be used by the Fund to pay remaining capital contributions to the Operating Partnerships that Series 15 has invested in as of June 30, 1998. (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. 40 During the quarter ended June 30, 1998, none 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 June 30, 1998. (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 June 30, 1998, none of Series 17 net offering proceeds had been used to pay capital contributions. Series 17 net offering proceeds in the amount of $399,189 remain to be used by the Fund to pay remaining capital contributions to the Operating Partnerships that Series 17 has invested in as of June 30, 1998. (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 June 30, 1998, $154,714 of Series 18 net offering proceeds had been used to pay capital contributions. Series 18 net offering proceeds in the amount of $264,168 remain to be used by the Fund to pay remaining capital contributions to the Operating Partnerships that Series 18 has invested in as of June 30, 1998. (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 June 30, 1998, none of Series 19 net offering proceeds had been used to pay capital contributions. Series 19 net offering proceeds in the amount of $463,000 remain to be used by the Fund to pay remaining capital contributions to the Operating Partnerships that Series 19 has invested in as of June 30, 1998. Results of Operations - --------------------- As of June 30, 1998 and 1997 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 41 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 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 June 30, 1998. 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 June 30, 1998 for Series 15, Series 16, Series 17, Series 18 and Series 19 were $116,938, $136,688, $118,167, $88,707, and $100,337 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 June 30, 1998 and 1997, the average qualified occupancy for the series was 100% for both years. The series had a total of 68 properties at June 30, 1998, 68 of which were at 100% qualified occupancy. For the three months being reported Series 15 reflects a net loss from Operating Partnerships of $686,124. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $243,713. This is an interim period estimate; it is not necessarily indicative of the final year end results. 42 The physical occupancy of California Investors VII Limited Partnership (Summit Ridge Apartments/Longhorn Pavillion) as of June 30, 1998 was 92%. The property had previously suffered operational difficulties due to more expensive debt and high expenses. All indications are that, despite a difficult marketplace, the property is competing effectively. As a result of a diligent effort to control costs, the property has generated a positive operational cash flow year- to-date. The Operating General Partner is optimistic about the continued positive prospects for this property. During the first quarter of 1998 occupancy for Hidden Cove Apartments Hidden Cove) began to drop slightly and accounts receivable from tenants started to rise. A resulting site visit to the property revealed poor maintenance upkeep by the management company. As a result, the Operating General Partner is in the process of hiring a new management company. The Operating General Partner of School Street I Limited Partnership (School Street Apts. I) pledged his general partnership interest in the Operating Partnership as collateral for another loan. Since this was a violation of the terms of the partnership agreement, the Operating General Partner was removed and replaced during 1997. In the transition, occupancies suffered and as a result, a leasing agent was hired by the new Operating General Partner to rent the vacant units. Occupancy was at approximately 83% in August 1998. It is anticipated that all units will be fully leased by the end of the third quarter. In addition, the Operating General Partner hired a new managing agent effective June 1998, and a refinancing application has been filed with the state housing agency, in hopes to further improve operations. Any capital needs are anticipated to be addressed as part of the refinancing package. (Series 16) As of June 30, 1998 and 1997, the average qualified occupancy for the series was 99.6% for both years. The series had a total of 64 properties at June 30, 1998. Out of the total, 62 had 100% qualified occupancy. For the three months being reported Series 16 reflects a net loss from Operating Partnerships of $1,112,393. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $46,614. 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 (Mariner's Pointe Apartment and Mariners's Pointe Apartments II) pledged his general partner interest to an unaffiliated lending institution in violation of the partnership agreement. As this was a violation of the terms of the partnership agreement, the Operating General Partner and management agent were removed and replaced during 1997. The property operated with deficits during 1997 due to vacancies, uncollected rents and high operating expenses. The new management company has been focusing on reducing the property's operating expenses and reducing vacancies. 43 As a result the property is operating above break-even in the second quarter of 1998 and average occupancy is at 99%. In addition the Operating General. Partner will be filing refinancing applications with the lender by year-end to further improve operations (Series 17) As of June 30, 1998 and 1997, the average qualified occupancy for the series was 99.7% for both years. The series had a total of 49 properties at June 30, 1998. Out of the total 48 had 100% qualified occupancy. For the three months being reported Series 17 reflects a net loss from Operating Partnerships of $967,612. When adjusted for depreciation, which, is a non-cash item, the Operating Partnerships reflect positive operations of $164,769. This is an interim period estimate; it is not necessarily indicative of the final year end results. Annadale Housing Partners (Annadale Apartments) has reported net losses due to operational issues associated with the property. Although occupancy has stabilized, economic factors relevant to the marketplace prevent the necessary rental income to be generated to cover the operational expenses. Occupancy is at 92% as of June 30, 1998. The physical occupancy of California Investors VII Limited Partnership (Summit Ridge Apartments/Longhorn Pavillion) as of June 30, 1998 was 92%. The property had previously suffered operational difficulties due to more expensive debt and high expenses. All indications are that, despite a difficult marketplace, the property is competing effectively. As a result of a diligent effort to control costs, the property has generated a positive operational cash flow year-to-date. The Operating General Partner is optimistic about the continued positive prospects for this property. The property owned by California Investors VI L.P. (Orchard Park) continues to suffer from physical occupancy issues. Occupancy at June 30, 1998 was at 86%. The occupancy problem appears to be related to the marketplace, but the management agent has replaced the site manager in hopes that changes in personnel will stimulate new interest in the property. Management continues to be aggressive with marketing the property and conducting active outreach. The Operating General Partner, with the assistance of a consultant, is developing a new marketing campaign, which will be implemented during the 3rd or 4th quarter of 1998. The curb appeal of the property has improved with capital repairs completed at the property in 1997. (Series 18) As of June 30, 1998 and 1997 the average qualified occupancy for the series was 99.9% and 100%, respectively. The series had a total of 34 properties at June 30, 1998, out of the total 33 had 100% qualified occupancy. 44 For the three months being reported Series 18 reflects a net loss from Operating Partnerships of $524,698. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $157,296. This is an interim period estimate; it is not necessarily indicative of the final year end results. In August 1996 the Investment General Partner was notified that Virginia Avenue Affordable Limited Partnership (Kristine Apartments) was named as defendant in a land encroachment complaint. Initial efforts to settle the complaint were unsuccessful, but recently a judgement was issued by which the operating partnership would receive an appropriate quit claim deed and other title related documents confirming the partnership's interest in the disputed property. (Series 19) As of June 30, 1998 and 1997 the average qualified occupancy for the series was 100% for both years. The series had a total of 26 properties at June 30, 1998, all of which were at 100% qualified occupancy. For the three months being reported Series 19 reflects a net loss from Operating Partnerships of $771,888. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $212,380. This is an interim period estimate; it is not necessarily indicative of the final year end results. 45 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 46 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: August 20, 1998 By: /s/ John P. Manning ------------------- John P. Manning, Partner & Principal Financial Officer 47 EX-27 2
CT 0000879555 BOSTON CAPITAL TAX CREDIT FUND III LP 3-MOS MAR-31-1999 APR-01-1998 JUN-30-1998 127,268,106 0 0 0 0 127,268,106 76,746 0 (4,632,936) 0 0 0 (4,556,190) 0 0
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