10-Q 1 b301sep10q.htm BCTC FUND III SEPTEMBER 30, 2001 Boston Capital Tax Credit Fund III L

FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

(Mark One)

(X)   QUARTERLY REPORT PERSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934.

      For the quarterly period ended September 30, 2001

                                             or

( )   TRANSITION REPORT PERSUANT 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

(I.R.S. Employer

of incorporation or organization)

Identification No.)

 

One Boston Place, Suite 2100, Boston, Massachusetts  02108
(Address of principal executive offices)           (Zip Code)

Registrants 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 preceeding 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, 2001

TABLE OF CONTENTS

FOR THE QUARTER ENDED September 30, 2001 *

Balance_Sheets *

Balance_Sheets_Series_15 *

Balance_Sheets_Series_16 *

Balance_Sheets_Series_17 *

Balance_Sheets_Series_18 *

Balance_Sheets_Series_19 *

Statements_of_Operations *

THree Months Ended September 30 *

Statements_of_Operations_Series_15 *

Statements_of_Operations_Series_16 *

Statements_of_Operations_Series_17 *

Statements_of_Operations_Series_18 *

Statements_of_Operations_Series_19 *

SIX Months Ended September 30 16

Statements_of_Operations_Series_15 17

Statements_of_Operations_Series_16 18

Statements_of_Operations_Series_17 19

Statements_of_Operations_Series_18 20

Statements_of_Operations_Series_19 21

Changes_in_Partners_Capital 22

Changes_in_Partners_Capital_Series_15 23

Changes_in_Partners_Capital_Series_16 23

Changes_in_Partners_Capital_Series_17 24

Changes_in_Partners_Capital_Series_18 24

Changes_in_Partners_Capital_Series_19 25

Statements_of_Cash_Flows 26

THREE MONTHS Ended September 30

Statements_of_Cash_Flows_Series_15 28

Statements_of_Cash_Flows_Series_16 30

Statements_of_Cash_Flows_Series_17 32

Statements_of_Cash_Flows_Series_18 34

Statements_of_Cash_Flows_Series_19 36

Notes_to_Financial_Statements *

Note_A_Organization *

Note_B_Accounting *

Investment *

Cost

Note_C_Related_Party_Transactions 40

Note_D_Investments 41

Combined_Statements_of_Operations 43

Combined_Statements_Series_15 43

Combined_Statements_Series_16 44

Combined_Statements_Series_17 45

Combined_Statements_Series_18 46

Combined_Statements_Series_19 *

Liquidity *

Capital_Resources *

Results_of_Operations 50

Part_II_Other_Information 55

SIGNATURES 56

 

 

 

 

 

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

 

 

September 30,

2001

(Unaudited)

March 31,

2001

(Audited)

ASSETS

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

$ 80,713,947

$ 85,319,858
     

OTHER ASSETS

    

Cash and cash equivalents

2,122,592

1,122,380

Investments

541,431

1,465,643

Notes receivable

1,309,982

1,309,982

Deferred acquisition costs, 

   net of accumulated amortization

  (Note B)

 

1,440,006

 

1,474,454

Other assets

  2,994,725

  3,032,043
 

  89,122,683

$ 93,724,360
     

LIABILITIES

    
     

Accounts payable & accrued expenses 
(Note C)

$      4,553

$      4,553

Accounts payable affiliates

16,316,759

    15,040,788

Capital contributions payable

  1,384,034

  1,384,034
 

 17,705,346

 16,429,375
     

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 March 31, 2001   







72,592,826







78,411,698

General Partner

(1,175,489)

(1,116,713)
 

 71,417,337

 77,294,985
 

$ 89,122,683

$ 93,724,360

 

 

 

 

The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 15

 

 

September 30,
2001
(Unaudited)

March 31,
2001
(Audited)

ASSETS

 

 

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

$10,048,046

$10,617,785
     

OTHER ASSETS

    

Cash and cash equivalents

353,861

229,627

Investments

144,280

   286,218

Notes receivable

-

-

Deferred acquisition costs, 
   net of accumulated amortization
  (Note B)

 

220,744

 

226,000

Other assets

   798,247

   799,327
 

$11,565,178

$12,158,957
     

LIABILITIES

    
     

Accounts payable & accrued expenses 
  (Note C)

$     1,145

$     1,145

Accounts payable affiliates

4,492,492

4,218,465

Capital contributions payable

    16,206

    16,206
 

 4,509,843

 4,235,816
     

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 March 31, 2001   







7,317,453







8,176,581


General Partner

 (262,118)

 (253,440)
 

 7,055,335

 7,923,141
 

$11,565,178

$12,158,957



The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 16



September 30,
2001
(Unaudited)

March 31,
2001
(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS (Note D)

$19,208,007

$20,493,977

 

    

OTHER ASSETS

    

Cash and cash equivalents

671,219

113,123

Investments

-

535,809

Notes receivable

-

-

Deferred acquisition costs, 
   net of accumulated amortization 
  (Note B)

 

353,896

 

362,321

Other assets

   125,928

   138,036
 

$20,359,050

$21,643,266
     

LIABILITIES

    
     

Accounts payable & accrued expenses 
  (Note C)

$         -

$         -

Accounts payable affiliates

3,757,016

3,411,025

Capital contributions payable

   138,506

   138,506
 

 3,895,522

 3,549,531
     

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 March 31, 2001







16,765,502







18,379,407

General Partner

    (301,974)

 (285,672)

 

16,463,528

18,093,735
 

$20,359,050

$21,643,266


The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 17



September 30,
2001
(Unaudited)

March 31,
2001
(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING 
   PARTNERSHIPS (Note D)

$18,634,176

$19,483,775

 

    

OTHER ASSETS

    

Cash and cash equivalents

427,006

397,129

Investments

-

-

Notes receivable

1,309,982

1,309,982

Deferred acquisition costs, 
   net of accumulated amortization
  (Note B)

 

318,773

 

326,548

Other assets

 1,963,133

 1,985,681
 

$22,653,070

$23,503,115
     

LIABILITIES

    
     

Accounts payable & accrued expenses 
  (Note C)

$         -

$         -

Accounts payable affiliates

4,892,445

4,633,143

Capital contributions payable

1,186,768

 1,186,768
 

6,079,213

 5,819,911
     

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 March 31, 2001   







16,837,798







17,936,052


General Partner

 (263,941)

 (252,848)
 

16,573,857

17,683,204
 

$22,653,070

$23,503,115


The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 18



September 30,
2001
(Unaudited)

March 31,
2001
(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING   

   PARTNERSHIPS (NOTE D)

$13,464,652

$14,578,072
     

OTHER ASSETS

    

Cash and cash equivalents

337,634

238,396

Investments

-

107,824

Notes receivable

-

-

Deferred acquisition costs,  

   Net of accumulated amortization

  (Note B)

 

240,623

 

246,330

Other assets

    89,184

    93,007
 

$14,132,093

$15,263,629
     

LIABILITIES

    
     

Accounts payable & accrued expenses 

  (Note C)


$         -

$         -

Accounts payable affiliates

2,084,859

1,893,885

Capital contributions payable

    18,554

    18,554
 

 2,103,413

 1,912,439
     

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 March 31, 2001       







12,218,621







13,527,906


General Partner

 (189,941)

 (176,716)
 

12,028,680

13,351,190
 

$14,132,093

$15,263,629



The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 19



September 30,
2001
(Unaudited)

March 31,
2001
(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS (NOTE D)    

$19,359,066

$20,146,249
     

OTHER ASSETS

    

Cash and cash equivalents

332,872

144,105

Investments

397,151

535,792

Notes receivable

-

-

Deferred acquisition costs, 
   net of accumulated amortization
   (Note B)

 

305,970

 

313,255

Other assets

    18,233

    15,992
 

$20,413,292

$21,155,393
     

LIABILITIES

    
     

Accounts payable & accrued expenses
   (Note C)

$     3,408

$     3,408

Accounts payable affiliates

1,089,947

884,270

Capital contributions payable

    24,000

    24,000
 

 1,117,355

   911,678
     

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 March 31, 2001    







19,453,452







20,391,752


General Partner

 (157,515)

 (148,037)
 

19,295,937

20,243,715
 

$20,413,292

$21,155,393

The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS


Three Months Ended September 30,
(Unaudited)

 


2001


2000
     

Income

    

  Interest income

$     23,847

$     37,213

  Other income

     13,985

          -
 

     37,832

     37,213

Share of loss from Operating 
  Partnerships(Note D)

(2,187,880)

(2,124,298)
     

Expenses

    

  Professional fees

97,526

115,440

  Fund management fee (Note C) 

593,107

629,550

  Amortization

17,224

17,224

  General and administrative expenses

     30,961

     33,235

  

   738,818

    795,449
     

  NET LOSS

$(2,888,866)

$(2,882,534)
     

Net loss allocated to limited partners

$(2,859,978)

$(2,853,709)
     

Net loss allocated to general partner

$   (28,888)

$   (28,825)
     

Net loss per BAC

$      (.65)

$      (.64)
     















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended September 30,
(Unaudited)

Series 15


2001


2000
     

Income

    

  Interest income

$     4,671

$     4,881

  Other income

     1,735

         -

     6,406

     4,881

Share of loss from Operating 
  Partnerships(Note D)

 (258,840)

 (387,097)
     

Expenses

    

  Professional fees

34,635

27,000

  Fund management fee    

131,863

130,963

  Amortization

2,628

2,628

  General and administrative expenses

     5,827

     6,936

  

  174,953

   167,527
     

  NET LOSS

$ (427,387)

$ (549,743)
     

Net loss allocated to limited partners

$ (423,113)

$ (544,246)
     

Net loss allocated to general partner

$   (4,274)

$   (5,497)
     

Net loss per BAC

$     (.11)

$     (.14)
     

















The accompanying notes are an integral part of this statement

 

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended September 30,
(Unaudited)

Series 16


2001


2000
     

Income

    

  Interest income

$     6,520

$    10,715

  Other income

         -

         -
 

     

     6,520

    10,715

Share of loss from Operating 
  Partnerships(Note D)

 (671,288)

 (674,182)
     

Expenses

    

  Professional fees

30,235

27,500

  Fund management fee    

165,047

 170,359

  Amortization

4,213

     4,213

  General and administrative expenses

     7,768

     7,604

  

  207,263

   209,676
     

  NET LOSS

$ (872,031)

$ (873,143)
     

Net loss allocated to limited partners

$ (863,311)

$ (864,412)
     

Net loss allocated to general partner

$   (8,720)

$   (8,731)
     

Net loss per BAC

$     (.16)

$     (.16)
     














 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended September 30,
(Unaudited)

Series 17


2001


2000
     

Income

    

  Interest income

$     2,470

$     3,247

  Other income

    12,250

         -
 

    14,720

     3,247

Share of loss from Operating 
  Partnerships(Note D)

 (364,610)

 (384,948)
     

Expenses

    

  Professional fees

1,384

22,000

  Fund management fee    

100,073

132,904

  Amortization

3,887

3,887

  General and administrative expenses

     6,708

     7,972

  

  112,052

   166,763
     

  NET LOSS

$ (461,942)

$ (548,464)
     

Net loss allocated to limited partners

$ (457,323)

$ (542,979)
     

Net loss allocated to general partner

$   (4,619)

$   (5,485)
     

Net loss per BAC

$     (.09)

$     (.11)
     















 



The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended September 30,
(Unaudited)

Series 18


2001


2000
     

Income

    

  Interest Income

$     2,067

$     3,397

  Other income

         -

         -
 

     2,067

     3,397

Share of loss from Operating 
  Partnerships(Note D)

 (514,265)

 (340,994)
     

Expenses

    

  Professional fees

16,866

18,066

  Fund management fee    

94,487

92,487

  Amortization

2,853

2,853

  General and administrative expenses

     4,988

     5,014

  

  119,194

   118,420
     

  NET LOSS

$ (631,392)

$ (456,017)
     

Net loss allocated to limited partners

$ (625,078)

$ (451,457)
     

Net loss allocated to general partner

$   (6,314)

$   (4,560)
     

Net loss per BAC

$     (.17)

$     (.12)
     















 



The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended September 30,
(Unaudited)

Series 19


2001


2000
     

Income

    

  Interest income

$     8,119

$    14,973

  Other income

         -

         -

     8,119

    14,973

Share of loss from Operating 
  Partnerships(Note D)

 (378,877)

 (337,077)
     

Expenses

    

  Professional fees

14,406

20,874

  Fund management fee    

101,637

102,837

  Amortization

3,643

3,643

  General and administrative expenses

     5,670

     5,709

  

  125,356

   133,063
     

  NET LOSS

$ (496,114)

$ (455,167)
     

Net loss allocated to limited partners

$ (491,153)

$ (450,615)
     

Net loss allocated to general partner

$   (4,961)

$   (4,552)

Net loss per BAC

$     (.12)

$     (.11)
     



















The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS


Six Months Ended September 30,
(Unaudited)

 


2001


2000
     

Income

    

  Interest income

$     51,967

$     65,392

  Other income

     14,404

        999
 

     66,371

     66,391

Share of loss from Operating 
  Partnerships(Note D)

(4,544,508)

(4,614,002)
     

Expenses

    

  Professional fees

170,933

128,812

  Fund management fee (Note C) 

1,141,596

1,177,365

  Amortization

34,448

34,448

  General and administrative expenses

     52,534

     78,224

  

1,399,511

  1,418,849
     

  NET LOSS

$(5,877,648)

$(5,966,460)
     

Net loss allocated to limited partners

$(5,818,872)

$(5,906,796)
     

Net loss allocated to general partner

$   (58,776)

$   (59,664)
     

Net loss per BAC

$     (1.33)

$     (1.33)
     















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Six Months Ended September 30,
(Unaudited)

Series 15


2001


2000
     

Income

    

  Interest income

$    10,398

$      9,175

  Other income

     1,750

          9

    12,148

      9,184

Share of loss from Operating 
  Partnerships(Note D)

 (569,424)

  (842,603)
     

Expenses

    

  Professional fees

44,325

30,230

  Fund management fee    

251,231

241,854

  Amortization

5,256

5,256

  General and administrative expenses

     9,718

     15,186

  

 310,530

    292,526
     

  NET LOSS

$ (867,806)

$(1,125,945)
     

Net loss allocated to limited partners

$ (859,128)

$(1,114,686)
     

Net loss allocated to general partner

$   (8,678)

$   (11,259)
     

Net loss per BAC

$     (.22)

$      (.29)
     

















The accompanying notes are an integral part of this statement

 

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Six Months Ended September 30,
(Unaudited)

Series 16


2001


2000
     

Income

    

  Interest income

$     14,722

$     21,140

  Other income

        404

        436
 

     

     15,126

     21,576

Share of loss from Operating 
  Partnerships(Note D)

(1,279,510)

(1,493,347)
     

Expenses

    

  Professional fees

43,157

31,783

  Fund management fee    

301,244

 322,789

  Amortization

8,425

     8,425

  General and administrative expenses

     12,997

     18,863

  

   365,823

    381,860
     

  NET LOSS

$(1,630,207)

$(1,853,631)
     

Net loss allocated to limited partners

$(1,613,905)

$(1,835,095)
     

Net loss allocated to general partner

$   (16,302)

$   (18,536)

Net loss per BAC

$      (.30)

$      (.34)
     














 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Six Months Ended September 30,
(Unaudited)

Series 17


2001


2000
     

Income

    

  Interest income

$      4,645

$      6,245

  Other income

     12,250

        554
 

     16,895

      6,799

Share of loss from Operating 
  Partnerships(Note D)

  (845,728)

  (857,964)
     

Expenses

    

  Professional fees

41,377

24,446

  Fund management fee    

219,292

245,323

  Amortization

7,775

7,775

  General and administrative expenses

     12,070

     18,578

  

   280,514

    296,122
     

  NET LOSS

$(1,109,347)

$(1,147,287)
     

Net loss allocated to limited partners

$(1,098,254)

$(1,135,814)
     

Net loss allocated to general partner

$   (11,093)

$   (11,473)
     

Net loss per BAC

$      (.22)

$      (.23)
     















 



The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Six Months Ended September 30,
(Unaudited)

Series 18


2001


2000
     

Income

    

  Interest Income

$      4,946

$     6,707

  Other income

          -

         -
 

      4,946

     6,707

Share of loss from Operating 
  Partnerships(Note D)

(1,109,126)

 (748,344)
     

Expenses

    

  Professional fees

23,175

19,982

  Fund management fee    

181,121

165,403

  Amortization

5,707

5,707

  General and administrative expenses

      8,327

    12,026

  

   218,330

   203,118
     

  NET LOSS

$(1,322,510)

$ (944,755)
     

Net loss allocated to limited partners

$(1,309,285)

$ (935,307)
     

Net loss allocated to general partner

$   (13,225)

$   (9,448)
     

Net loss per BAC

$      (.36)

$     (.26)
     















 



The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Six Months Ended September 30,
(Unaudited)

Series 19


2001


2000
     

Income

    

  Interest income

$    17,256

$    22,125

  Other income

         -

         -

    17,256

    22,125

Share of loss from Operating 
  Partnerships(Note D)

 (740,720)

 (671,744)
     

Expenses

    

  Professional fees

18,899

22,371

  Fund management fee    

188,708

201,996

  Amortization

7,285

7,285

  General and administrative expenses

     9,422

    13,571

  

  224,314

   245,223
     

  NET LOSS

$ (947,778)

$ (894,842)
     

Net loss allocated to limited partners

$ (938,300)

$ (885,894)
     

Net loss allocated to general partner

$   (9,478)

$   (8,948)

Net loss per BAC

$     (.23)

$     (.22)
     



















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Six Months Ended September 30, 2001
(Unaudited)

 





Assignees



General
Partner





Total
       

Partners' capital 
 (deficit)
  April 1, 2001



$ 78,411,698



$(1,116,713)



$ 77,294,985

    

      
       

Net income (loss)

(5,818,872)

   (58,776)

(5,877,648)
       

Partners' capital 
 (deficit),
  September 30, 2001



$ 72,592,826



$(1,175,489)



$ 71,417,337
       





























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Six Months Ended September 30, 2001
(Unaudited)

 

Assignees

General
Partner

Total

Series 15

      

Partners' capital 
 (deficit)
  April 1, 2001



$  8,176,581



$  (253,440)



$  7,923,141

    

      
       

Net income (loss)

  (859,128)

    (8,678)

  (867,806)
       

Partners' capital 
 (deficit)
  September 30, 2001    



$  7,317,453



$  (262,118)



$  7,055,335
       
       

Series 16

      

Partners' capital 
 (deficit)
  April 1, 2001



$ 18,379,407



$  (285,672)



$ 18,093,735
       
       

Net income (loss)

(1,613,905)

   (16,302)

(1,630,207)
       

Partners' capital 
 (deficit)
  September 30, 2001    



$ 16,765,502



$  (301,974)



$ 16,463,528
       


















The accompanying notes are an integral part of these statements.

 

 

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Six Months Ended September 30, 2001
(Unaudited)

 

Assignees

General
Partner

Total

Series 17

      

Partners' capital 
 (deficit)
  April 1, 2001



$ 17,936,052



$  (252,848)



$ 17,683,204

    

      
       

Net income (loss)

(1,098,254)

    (11,093)

(1,109,347)
       

Partners' capital 
 (deficit)
  September 30, 2001    



$ 16,837,798



$  (263,941)



$ 16,573,857
       
       

Series 18

      

Partners' capital 
 (deficit)
  April 1, 2001



$ 13,527,906



$  (176,716)



$ 13,351,190
       
       

Net income (loss)

(1,309,285)

   (13,225)

(1,322,510)
       

Partners' capital 
 (deficit),
  September 30, 2001   



$ 12,218,621



$  (189,941)



$ 12,028,680
       


















The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Six Months Ended September 30, 2001
(Unaudited)

 

Assignees

General
Partner

Total

Series 19

      

Partners' capital 
 (deficit)
  April 1, 2001



$ 20,391,752



$  (148,037)



$ 20,243,715

    

      
       

Net income (loss)

  (938,300)

    (9,478)

  (947,778)
       

Partners' capital 
 (deficit),
  September 30, 2001      



  $ 19,453,452



$  (157,515)



$ 19,295,937
       
































The accompanying notes are an integral part of this statement

 

 

 

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

 

2001

2000

Cash Flows from operating activities:

    
     

   Net Loss

$(5,877,648)

$(5,966,460)

   Adjustments

    

      Distributions from Operating
        Partnerships


61,403


21,775


      Amortization


34,448


34,448

      Share of Loss from Operating
        Partnerships


4,544,508


4,614,002

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


-


      (2)

      Decrease (Increase) in accounts
        receivable


37,318


(81,109)

      Decrease (Increase) in accounts
        payable affiliates


 1,275,971


  1,331,586
     

      Net cash (used in) provided by 
        operating activities


    76,000


   (45,760)
     
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to 
     Operating Partnerships


-


(10,000)

   Advances in Operating Partnerships

-

 54,340

   Investments

   924,212

   (35,334)
     

   Net cash (used in) provided by
     investing activities


   924,212


     9,006 














The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

 

2001

2000
     

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


1,000,212


   (36,754)
     

Cash and cash equivalents, beginning

  1,122,380

  1,754,063
     

Cash and cash equivalents, ending

$  2,122,592

$  1,717,309
     




























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 15

 

2001

2000

Cash Flows from operating activities:

    
     

   Net Loss

$  (867,806)

$(1,125,945)

   Adjustments

    

      Distributions from Operating
        Partnerships


315


12


      Amortization


5,256


5,256

      Share of Loss from Operating
        Partnerships


569,424


842,603

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


-


-

      Decrease (Increase) in accounts
        receivable


1,080


3,138

      Decrease (Increase) in accounts
        payable affiliates


    274,027


    274,026
     

      Net cash (used in) provided by 
        operating activities


   (17,704)


      (910)
     
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to 
     Operating Partnerships


-


-

   Advances in Operating Partnerships

-

 32,170

   Investments

    141,938

    (6,771)
     

   Net cash (used in) provided by
     investing activities


    141,938


     25,399














The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 15

 

2001

2000
     

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

 124,234

   24,489
     

Cash and cash equivalents, beginning

    229,627

    308,497
     

Cash and cash equivalents, ending

$    353,861

$    332,986
     




























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 16

 

2001

2000

Cash Flows from operating activities:

    
     

   Net Loss

$(1,630,207)

$(1,853,631)

   Adjustments

    

      Distributions from Operating
        Partnerships


6,460


4,830


      Amortization


8,425


8,425

      Share of Loss from Operating
        Partnerships


1,279,510


1,493,347

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


-


-

      Decrease (Increase) in accounts
        receivable


12,108


(3,751)

      Decrease (Increase) in accounts
        payable affiliates


    345,991


    345,989
     

      Net cash (used in) provided by 
        operating activities


     22,287


    (4,791)
     
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to 
     Operating Partnerships


-


-

   Advances in Operating Partnerships

-

 -

   Investments

    535,809

   (13,643)
     

   Net cash (used in) provided by
     investing activities


    535,809


   (13,643)














The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 16

 

2001

2000
     

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

558,096

 (18,434)
     

Cash and cash equivalents, beginning

    113,123

    307,415
     

Cash and cash equivalents, ending

$    671,219

$    288,981
     




























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 17

 

2001

2000

Cash Flows from operating activities:

    
     

   Net Loss

$(1,109,347)

$(1,147,287)

   Adjustments

    

      Distributions from Operating
        Partnerships


3,871


1,200


      Amortization


7,775


7,775

      Share of Loss from Operating
        Partnerships


845,728


857,964

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


-


-

      Decrease (Increase) in accounts
        receivable


22,548


(45,465)

      Decrease (Increase) in accounts
        payable affiliates


    259,302

    314,923
 

 

  

      Net cash (used in) provided by 
        operating activities


     29,877


   (10,890)
     
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to 
     Operating Partnerships


-


-

   Advances in Operating Partnerships

-

 22,170

   Investments

          -

          -
     

   Net cash (used in) provided by
     investing activities


          -


     22,170














The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 17

 

2001

2000
     

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


29,877


   11,280
     

Cash and cash equivalents, beginning

    397,129

    404,005
     

Cash and cash equivalents, ending

$    427,006

$    415,285
     




























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 18

 

2001

2000

Cash Flows from operating activities:

    
     

   Net Loss

$(1,322,510)

$  (944,755)

   Adjustments

    

      Distributions from Operating
        Partnerships


4,294


15,654


      Amortization


5,707


5,707

      Share of Loss from Operating
        Partnerships


1,109,126


748,344

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


-


-

      Decrease (Increase) in accounts
        receivable


3,823


(27,590)

      Decrease (Increase) in accounts
        payable affiliates


    190,974


    190,974
     

      Net cash (used in) provided by 
        operating activities


    (8,586)


   (11,666)
     
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to 
     Operating Partnerships


-


-

   Advances in Operating Partnerships

  

-

   Investments

    107,824

     (5,053)
     

   Net cash (used in) provided by
     investing activities


    107,824


    (5,053)














The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 18

 

2001

2000
     

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

99,238

(16,719)
     

Cash and cash equivalents, beginning

    238,396

    377,094
     

Cash and cash equivalents, ending

$    337,634

$    360,375
     




























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 19

 

2001

2000

Cash Flows from operating activities:

    
     

   Net Loss

$  (947,778)

$  (894,842)

   Adjustments

    

      Distributions from Operating
        Partnerships


46,463


79


      Amortization


7,285


7,285

      Share of Loss from Operating
        Partnerships


740,720


671,744

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


-


(2)

      Decrease (Increase) in accounts
        receivable


(2,241)


(7,441)

      Decrease (Increase) in accounts
        payable affiliates


    205,677


    205,674
     

      Net cash (used in) provided by 
        operating activities


     50,126


   (17,503)
     
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to 
     Operating Partnerships


-


(10,000)

   Advances in Operating Partnerships

-

 -

   Investments

    138,641

    (9,867)
     

   Net cash (used in) provided by
     investing activities


    138,641


  (19,867)














The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 19

 

2001

2000
     

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

188,767

 (37,370)
     

Cash and cash equivalents, beginning

    144,105

    357,052
     

Cash and cash equivalents, ending

$    332,872

$    319,682
     




























The accompanying notes are an integral part of this statement

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2001

(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"). Effective as of June 1, 2001 there was
a restructuring, and as a result, the Fund's general partner was reorganized
as follows. The General Partner of the Fund continues to be Boston Capital
Associates III L.P., a Delaware limited partnership. The general partner of
the General Partner is now BCA Associates Limited Partnership, a Massachusetts
limited partnership, whose sole general partner is C&M Management, Inc., a
Massachusetts corporation and whose limited partners are Herbert F. Collins
and John P. Manning. Mr. Manning is the principal of Boston Capital Partners,
Inc. The limited 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.




 











Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2001
(Unaudited)

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES

The condensed financial statements included herein as of September 30, 2001
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.

Investments

The Fund has included in investments Certificates of Deposit with original
materities of one year or less. These investments are carried at costs.




























 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2001
(Unaudited)

Amortization

On July 1, 1995, the Fund began amortizing unallocated acquisition
costs over 330 months from April 1, 1995. As of September 30, 2001 the Fund has accumulated unallocated acquisition amortization totaling $453,332.  The
breakdown of accumulated unallocated acquisition amortization within the fund
as of September 30, 2001 and 2000 is as follows:

 

       2001

     2000
     

Series 15

$ 68,425

$ 57,914

Series 16

109,533

92,683

Series 17

108,978

93,428

Series 18

74,317

62,903

Series 19

 92,079

 77,509

$453,332

$384,437

 

NOTE C - RELATED PARTY TRANSACTIONS

The Fund has entered into several transactions with various affiliates
of the general partner, including Boston Capital Holdings LP, Boston Capital
Partners, Inc., and Boston Capital Asset Management Limited Partnership as
follows:

Boston Capital Partners, Inc. is entitled to asset acquisition fees for
selecting, evaluating, structuring, negotiating, and closing the Funds
acquisition of interests in the Operating Partnerships.   Prior to the quarter
ended September 30, 2001 all series had completed payment of all acquisition
fees due to Boston Capital Partners, Inc.











 







Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2001
(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.  The fund
management fees accrued for the quarter ended September 30, 2001 and 2000 are
as follows:

 

        2001

        2000
     

Series 15

$137,013

$137,013

Series 16

172,995

172,995

Series 17

140,925

140,925

Series 18

95,487

95,487

Series 19

102,837

102,837
 

$649,257

$649,257

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS

At September 30, 2001 and 2000, 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, 2001 and 2000 is as follows:

 

   

Series 15

68

Series 16

64

Series 17

49

Series 18

34

Series 19

 26
 

241








 

 

 

 

 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2001
(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,
2001 and 2000 are as follows:  

 

        2001

        2000
     

Series 15

$   16,206

$   32,922

Series 16

138,506

140,006

Series 17

1,186,768

1,206,768

Series 18

18,554

18,554

Series 19

   24,000

   24,000
 

$1,384,034

$1,422,250

 

The Funds 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 Partnerships quarterly period.  Accordingly, the current
financial results available for the Operating Partnerships are for the six
months ended June 30, 2001.
























 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)

Series 15

 

        2001

        2000
     

Revenues

    

   Rental

$  5,109,169

$  4,981,202

   Interest and other

    267,968

    186,280
     
 

  5,377,137

  5,167,482
     

Expenses

    

   Interest

1,389,872

1,405,186

   Depreciation and amortization

1,729,906

1,793,633

   Operating expenses

  3,412,349

  3,250,569
 

  6,532,127

  6,449,388
     

NET LOSS

$(1,154,990)

$(1,281,906)
     

Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.



$  (569,424)



$  (842,603)
     
     

Net loss allocated to other 
   Partners


$   (11,550)


$   (12,819)
     

Net loss suspended

$  (574,016)

$  (426,484)

 

 

 

 

The Partnership 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 Partnerships 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.

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30
(Unaudited)

Series 16

 

        2001

        2000
     

Revenues

    

   Rental

$  6,679,868

$  6,716,959

   Interest and other

    445,249

    298,631
     
 

  7,125,117

  7,015,590
     

Expenses

    

   Interest

1,933,686

    1,896,381

   Depreciation and amortization

2,398,895

2,476,924

   Operating expenses

  4,343,183

  4,361,258
 

  8,675,764

  8,734,563
     

NET LOSS

$(1,550,647)

$(1,718,973)
     

Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.



$(1,279,510)



$(1,493,347)
     
     

Net loss allocated to other 
   Partners


$   (15,506)


$   (17,190)
     

Net loss suspended

$  (255,631)

$  (208,436)

 

 

 

 

The Partnership 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 Partnerships 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.

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30
(Unaudited)

Series 17
 

        2001

        2000
     

Revenues

    

   Rental

$  6,132,062

$  5,885,099

   Interest and other

    273,097

    219,957
     
 

  6,405,159

  6,105,056
     

Expenses

    

   Interest

1,944,788

  1,837,794

   Depreciation and amortization

1,901,503

  1,850,823

   Operating expenses

  3,649,713

  3,407,855
 

  7,496,004

  7,096,472
     

NET LOSS

$(1,090,845)

$  (991,416)
     

Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.



$  (845,728)



$  (857,964)
     
     

Net loss allocated to other 
   Partners


$   (10,909)


$    (9,914)
     

Net Loss Suspended

$  (234,208)

$  (123,538)

 

 

 

 

The Partnership 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 Partnerships 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.

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30
(Unaudited)

Series 18

 

        2001

        2000
     

Revenues

    

   Rental

$  3,393,133

$  3,329,953

   Interest and other

    165,599

    195,964
     
 

  3,558,732

  3,525,917
     

Expenses

    

   Interest

1,028,035

    949,620

   Depreciation and amortization

1,295,163

  1,259,597

   Operating expenses

  2,396,743

  2,103,943
 

  4,719,941

  4,313,160
     

NET LOSS

$(1,161,209)

$  (787,243)
     

Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.



$(1,109,126)



$  (748,344)
     
     

Net loss allocated to other 
   Partners


$   (11,612)


$    (7,872)

Net loss suspended

$   (40,471)

$   (31,026)

 

 

 

 

The Partnership 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 Partnerships 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.

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)

Series 19
 

        2001

        2000
     

Revenues

    

   Rental

$  4,902,385

$  4,738,188

   Interest and other

    154,135

    138,529
     
 

  5,056,520

  4,876,717
     

Expenses

    

   Interest

1,648,828

    1,617,009

   Depreciation and amortization

1,456,915

  1,465,822

   Operating expenses

  2,733,582

  2,487,713
 

  5,839,325

  5,570,544
     

NET LOSS

$  (782,805)

$  (693,827)
     

Net loss allocation to Boston  

   Capital Tax Credit Fund 
   III L.P.



$  (740,720)



$  (671,744)
     
     

Net loss allocated to other 
   Partners


$    (7,828)


$    (6,938)
     

Net loss suspended

$   (34,257)

$   (15,145)

 

 

 

 

The Partnership 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 Partnerships 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.

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2001
(Unaudited)




NOTE E - TAXABLE LOSS

The Fund's taxable loss for the year ended March 31, 2002 is expected to
differ from its loss for financial reporting purposes.  This is primarily due
to accounting differences in depreciation incurred by the Operating
Partnerships and also differences between the equity method of accounting and
the IRS accounting methods.  No provision or benefit for income taxes has been
included in these financial statements since taxable income or loss passes
through to, and is reportable by, the partners and assignees individually

Item 2.  Management's Discussions and Analysis of Financial Condition and
Results of Operations

Liquidity

The Funds 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.  Fund management
fees accrued during the quarter ended September 30, 2001 were $649,257 and
total fund management fees accrued as of September 30, 2001 were $15,146,538.
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 Funds 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 of the Fund.

The Fund has recorded an additional $1,170,220 as payable to affiliates.
This represents fundings to make advances and/or loans to certain Operating
Partnerships in Series 15 and Series 17 of $213,564, and $956,656,
respectively.

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, 2001, none of Series 15 net
offering proceeds had been used to pay capital contributions. Series 15 net
offering proceeds in the amount of $16,206 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, 2001.

(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.

     During the quarter ended September 30, 2001, none of Series 16 net
offering proceeds had been used to pay capital contributions.  Series 16 net
offering proceeds in the amount of $138,506 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, 2001.

(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, 2001, none of Series 17 net
offering proceeds had been used to pay capital contributions.  Series 17 has
outstanding contributions payable in the amount of $1,186,768 as of September
30, 2001. Of the amount outstanding, $1,139,873 has been advanced or loaned
to the Operating Partnerships. The advances and loans will be converted to
capital and the remaining contributions of $46,895 will be released from
available net offering proceeds when the Operating Partnerships have achieved
the conditions set forth in their partnership agreements.

(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, 2001, none of Series 18 net
offering proceeds had been used to pay capital contributions.  Series 18 net
offering proceeds in the amount of $18,554 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, 2001.

(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, 2001, none of Series 19 net
offering proceeds had been used to pay capital contributions.  Series 19 net
offering proceeds in the amount of $24,000 remain to be used by the Fund to
pay remaining capital contributions to the Operating Partnerships that Series
19 has invested in as of September 30, 2001.

Results of Operations

As of September 30, 2001 and 2000 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 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 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, 2001 for Series 15, Series 16, Series 17, Series 18 and Series
19 were $131,863, $165,047, $100,073, $94,487, and $101,637 respectively.

The Funds investment objectives do not include receipt of significant
cash distributions from the Operating Partnerships in which it has invested or
intends to invest.  The Funds investments in Operating Partnerships have been
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, 2001 and 2000, the average qualified occupancy for
the series was 100%.  The series had a total of 68 properties at September 30,
2001, all of which were at 100% qualified occupancy.

For the six months being reported Series 15 reflects a net loss from
Operating Partnerships of $1,154,990.  When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect positive operations of
$574,916.  This is an interim period estimate; it is not necessarily
indicative of the final year end results.

     Operations continue to improve at Hidden Cove Apartments (Hidden Cove) as
evidenced by stabilized occupancy and increased rental collections. Occupancy
for the third quarter of 2001 averaged 98%. To date, the property has been
able to complete minor capital improvements and fund its replacement reserve
account without financial assistance. The property operated above breakeven
for the year 2000 and continued to do so through the third quarter of 2001.
Cash flow and reserves will be utilized to make improvements necessary to
maintain building safety. The Operating General Partner has completed
negotiations with the property's management company and has transferred the
Operating General Partnership interest to that entity effective January 1,
2001. It is anticipated that the addition of a local Operating General
Partner will enhance the property's ability to refinance its permanent
mortgage. Operations continue to improve.

In April of 2000, School Street I LP, (School Street Apartments - Phase
I) inserted Marshall School Street I, LLC, as the Operating General Partner
and property management company. Since taking control, the management company
completed the capital improvements program and improved the tenant selection
criteria. As a result, physical occupancy at the property has increased and
stabilized. During the first nine months of 2001 occupancy averaged 99%. The
improved occupancy and the improved tenant selection criteria increased cash
flow significantly during the first nine months of 2001, but it still remains
below breakeven. The Operating General Partner continues to fund any
operating cash deficits. The mortgage, property taxes, insurance and payables
are current.

On July 16, 2001 a grease fire occurred in one unit at Timmons Village
(Timmons Village Limited Partnership). Rehabilitation work has commenced and
is expected to be completed by the end of November 2001. The repair work is
covered by the property's insurance less the deductible. The property is
covered by rental loss insurance and a claim has been filed for the lost
rents.

 

 

 

 

 

Series 16

As of September 30, 2001 and 2000, the average qualified occupancy for
the series was 99.9%. The series had a total of 64 properties at September
30, 2001.  Out of the total, 63 had 100% qualified occupancy.

For the six months being reported Series 16 reflects a net loss from
Operating Partnerships of $1,550,647.  When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect positive operations of
$848,248.  This is an interim period estimate; it is not necessarily
indicative of the final year end results.

Cass Partners, L.P. (Fitzgerald Apartments) continues to operate below
breakeven due to low occupancy. An increased supply of affordable housing in
the area with superior amenities hampered marketing efforts and made tenant
retention difficult. Average physical occupancy for 2000 was 75%, down from an
average of 85% in 1999. Average occupancy for the first nine months of 2001
was 74%. Property management lowered rents during June of 2001 by $50 per
unit to better compete against the newer affordable housing complexes. The
positive impact of the lowered rents is projected to materialize during the
fourth quarter of 2001. Additionally, commercial rental income in 2001 is
significantly ahead of 2000 and will have a positive impact on cash flow.
However the property is not expected to break even during 2001. Marketing
efforts consist of referrals from the nearby Air Force Base, newspaper
advertising and flyers. The Operating General Partner continues to support
the property financially. The second mortgage was renewed on April 26, 2001
with a reduction in the interest rate. The mortgage, taxes, insurance and
accounts payable are current.

Series 17

   As of September 30, 2001 and 2000, the average qualified occupancy for
the series was 99.7%.  The series had a total of 49 properties at September
30, 2001.  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 $1,090,845.  When adjusted for depreciation, which,
is a non-cash item, the Operating Partnerships reflect positive operations of
$810,658. This is an interim period estimate; it is not necessarily
indicative of the final year end results.

  Annadale Housing Partners (Kingsview Manor & Estates) has historically
reported net losses due to operational issues associated with the
property. Occupancy remains stable at 90% through the third quarter of 2001.
During 1999 the mortgage was restructured to reduce operating costs. As a
result of the mortgage restructure and improved occupancy the property
maintained break-even operations during 2000. Operations at the property
continue to improve in 2001, partly due to a 14% increase in rental income
over the prior year. An affiliate of the management company assumed the
General Partner responsibilities for the partnership, on January 1, 2001. The
property continues to breakeven, in part due to a 14% increase in rental
income over the prior year. The Investment Partner continues to monitor this
situation.

The mortgage lender for Cypress Point Limited Partnership (Laurel Ridge
Apartment) placed the partnership in default of its mortgage because the
property failed to achieve the required debt service coverage ratio and failed
to make its required real estate tax payment. The existing loan terms
provided for an interest rate adjustment after the initial five-year permanent
mortgage period. When this adjustment occurred there was a rate increase,
which in turn increased the property's debt service payment, adversely
affecting operations. The Investment Limited Partner advanced funds to the
partnership to bring the taxes current. In September 2000, BCP Wisconsin
LLC became the managing general partner of the partnership. BCP Wisconsin LLC
negotiated a standstill agreement with the lender in order to allow time to
devise different options for dealing with existing loan defaults. The lender
was not amenable to the work out plan that BCP Wisconsin LLC had previously
proposed. BCP Wisconsin LLC ultimately decided that the interests of the
property would best be served if it took out the existing lender under a
refinancing with an alternate mortgage lender. Application for refinancing
was made with an alternate lender. In June of 2001 the Investment General
Partner refinanced the first mortgage and put in place BCP Cypress LLC as the
new sole General Partner. The refinancing provided significantly more
favorable loan terms. The capital improvement project at the property is
expected to be completed by November and has had a positive impact on rents.
No further funding advances from the Investment Limited Partner are expected
to be required. The loan proceeds from the refinancing has allowed repayment
of all prior advances (including capital improvement work) from the Investment
Limited Partner. Operations at the property are positive.

The area surrounding the property owned by California Investors VI LP
(Orchard Park) continues to experience economic growth. A high school has
been built across the street from the front entrance of the community and
opened during the third quarter. The location of this school will continue to
enhance marketing efforts. Occupancy averaged 98% for the third quarter of
2001. In 2001 the property has been able to operate at breakeven, while
continuing to fund capital improvement projects. In addition to the positive
changes affecting this partnership, an affiliate of the management company
assumed the General Partner responsibilities for the partnership on January 1,
2001, and is now responsible for funding all future operating deficits.

Physical occupancy at Palmetto Properties Ltd. (Palmetto Villas)
for 2000 averaged 84%. Occupancy in the third quarter of 2001 remains stable
at 97%. The property suffered from low occupancy in 1999 and the first half
of 2000 due to poor on-site management and significant deferred maintenance
issues. As a result, the property management company was replaced in January
2001. Since the management company change occurred, occupancy levels have
steadily increased as improvements have been made at the property and deferred
maintenance has been addressed. However, property taxes remain an issue.
Rural Development paid the 1998 delinquent taxes as an advance against the
mortgage. The 1999 and 2000 taxes remain delinquent. The Investment General
Partner continues negotiations with the current Operating General Partner
aimed at removing him from the partnership. The new management company has
expressed interest in assuming the role of Operating General Partner, and
based on the management company's performance to date, the partnership would
benefit from this arrangement.

Mt. Vernon Associates, L.P. is a 76-unit building located in Mt. Vernon,
NY. The Partnership suffers from negative cash flow as a result of high
operating expenses. The property has been able to meet obligations due to the
Operating General Partner funding deficits. As the management agent is an
affiliate of the Operating General Partner, the Partnership has also been
deferring management management fees. The New York State department of Housing
and Community Renwal (DHCR) performed a compliance monitoring visit in 1999
where they tested the Partnership's compliance with the applicable
requirements of Section 42. The results of the sample of tenants files
reviewed indicated that 15 units were potentially not in compliance. The
Operating General Partner prepared responses to DHCR's findings, however, DHCR
filed form 8823 (report of noncompliance) with the IRS in 2000. To date no
recapture of credits been taken. The Operating General Partner and the
Investment Limited Partner are working together to combine resources and
determine whether the files can be brought back into compliance, as well as
establishing measures going forward to make sure the tenant files are properly
documented. The Investment Limited Partner continues to monitor this situation
closely.

 

 

Series 18

 As of September 30, 2001 and 2000 the average qualified occupancy for the
series was 100%.  The series had a total of 34 properties at September 30,
2001, all of which were at 100% qualified occupancy.

For the six months being reported Series 18 reflects a net loss from
Operating Partnerships of $1,161,209. When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect positive operations of
$133,954. This is an interim period estimate; it is not necessarily
indicative of the final year end results.

Harris Housing Limited Partnership (Harris Music Lofts), located in West
Palm Beach, Florida, operated slightly below break-even for the third quarter
of 2001 mainly due to high operating expenses. In addition, the project has
performed some necessary repairs. The General Partner continues to share
operating costs with an affiliated property in the same neighborhood in an
attempt to reduce expenses. The Operating General Partner has also managed to
secure a rental increase resulting in a net increase of gross potential rents
of $18,000 annually. It is anticipated that the project will breakeven in
2002. Average occupancy for the second quarter of 2001 remained strong at
97%.

Marengo Park Apartments, Limited Partnership (Marengo Park) operated
below breakeven due to low occupancy levels. Occupancy averaged 84% in 2000.
Management has attributed the occupancy problem to the local economy. Due to
historical low occupancy rates, the property suffered from under funded
reserves and delinquent real estate taxes. The Investment General Partner and
the Operating General Partner negotiated a workout plan with Rural Development
to address these issues. Now that the workout plan is in place both real
estate taxes and reserves are current. Additionally, Rural Development
approved Special Market Rate rents at the property in an effort to improve
occupancy. Occupancy has improved to 100% as of 9/30, and operations have
significantly improved. The property has been able to meet all required
monthly expenses, including taxes and reserve deposits. They will further
benefit by a reduction in their annual tax expense, which is expected to go
into effect in 2002.

Parvin's Limited Partnership (Parvin's Branch Townhomes) continues to
incur operating deficits due to high debt service payments.  The loan has an
interest rate of 10.5% and is amortized over 15 years. The management company
and Operating General Partner are in discussions with the existing first
mortgage holder regarding restructuring and/or refinancing the existing
mortgage, in an effort to reduce the debt service. The Operating General
Partner and the management company have been deferring their respective fees
to improve the property's cash flow.  In addition, the Operating General
Partner continues to fund deficits.  The property currently has an occupancy
rate of 100%. The management company continues to monitor operating expenses
and reports that expenses remain stable and within acceptable levels.
Management continues to anticipate breakeven operations when the debt service
requirement is reduced.

Glen Place Apartments Limited Partnership (Glen Place Apartments)
received 60-Day letters issued by the IRS stating that the Operating
Partnership had not met certain IRC Section 42 requirements for the tax years
1996 and 1997. The 60-Day letters, were the result of an IRS audit of the
Operating Partnership's tenant files. As a result of their audit, the IRS has
proposed an adjustment that would disallow 59% of past and future tax credits.
The adjustment will also include interest and penalties on the past tax credit
being disallowed. The Investment General Partner and its counsel are working
with the Operating General Partner and its counsel to negotiate a more favor-
able settlement. As a result of the Investment General Partner's expectation
that certain past and future credits will be disallowed, the auditor's have
included a contingency footnote in the annual financial statement (Note H)
which is a part of the recently filed 10-K dated March 31, 2001.
Chelsea Square Development LP is a six unit property, which incurred
negative cash flow during 2000 as a result of low residential rental rates,
payment of back property and water/sewer taxes and the non payment of
commercial rental revenue to the property. To resolve the negative cash flow,
residential and rental rates were increased in June 2001. Additionally, the
Investment General Partner has contacted the Operating General Partner
regarding the receipt of commercial rental income. The Investment General
Partner is working to confirm the commercial rental income will be allocated
to the operating partnership. The back property and water/sewer taxes are on
an approved payment plan with the municipality and will be brought current by
the end of the second quarter of 2003. The property will not break even in
2001, however, application of current and past due commercial rental revenue,
coupled with the rental rate increase should allow the property to breakeven
in 2002. The mortgage and property insurance are current.

Series 19

  As of September 30, 2001 and 2000 the average qualified occupancy
for the series was 100%.  The series had a total of 26 properties at September
30, 2001, all of which were at 100% qualified occupancy.

For the six months being reported Series 19 reflects a net loss from
Operating Partnerships of $782,805.  When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect positive operations of
$674,110. This is an interim period estimate; it is not necessarily
indicative of the final year end results.

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

            

 

 

 

 

SIGNATURES

  Pursuant to the requirements of Section 13 of the Securities Exchange
Act of 1934, the Fund has duly caused this Report to be signed on its behalf
by the undersigned, thereunto duly authorized.  
 

Boston Capital Tax Credit Fund III L.P.
     
 

By:

Boston Capital Associates III L.P.
   

General Partner
     
 

By:

BCA Associates Limited Partnership,
   

General Partner
     
 

By:

C&M Management Inc.,
   

General Partner

Date:

    
     

November 20, 2001

By:

/s/ John P. Manning 
     
   

John P. Manning

 

 

  Pursuant to the requirements of the Securities Exchange Act of 1934, this 
report has been signed below by the following persons on behalf of the Fund 
and in the capacities and on the dates indicated:

DATE:

SIGNATURE:

TITLE:
     

Novmeber 20, 2001

/s/ John P. Manning

Director, President
   

(Principal Executive
 

John P. Manning

Officer) C&M Management
   

Inc.; Director,
   

President (Principal
   

Executive Officer)
   

BCTC III Assignor Corp.