10-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

þ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the fiscal year ended March 31, 2007

or

o 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 of incorporation or organization)	(I.R.S. Employer 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
Securities registered pursuant to Section 12(b) of the Act:

Securities registered pursuant to Section 12(b) of the Act:
Title of each class — Name of each exchange on which registered
None

Securities registered pursuant to Section 12(g) of the Act:

Title of class
None

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes o           No þ

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes o           No þ

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 o           No þ

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. þ

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o      Accelerated filer o      Non-accelerated filer þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o           No þ

DOCUMENTS INCORPORATED BY REFERENCE

The following documents of the Fund are incorporated by reference:

Form 10-K
Parts	Document
Parts I, III as supplemented	Prospectus (as defined in Part I, Item I of this Form 10-K)
	Parts II, IV Form 8-K
	Form 8-K dated April 4, 1994
	Form 8-K dated April 4, 1994
	Form 8-K dated April 7, 1994
	Form 8-K dated April 8, 1994
	Form 8-K dated April 12, 1994
	Form 8-K dated April 14, 1994
	Form 8-K dated May 12, 1994
	Form 8-K dated May 29, 1994
	Form 8-K dated May 31, 1994
	Form 8-K dated June 16, 1994
	Form 8-K dated June 27, 1994
	Form 8-K dated June 27, 1994
	Form 8-K dated July 8, 1994
	Form 8-K dated September 1, 1994
	Form 8-K dated September 12, 1994
	Form 8-K dated September 21, 1994
	Form 8-K dated October 19, 1994
	Form 8-K dated October 25, 1994
	Form 8-K dated October 28, 1994
	Form 8-K dated November 19, 1994
	Form 8-K dated January 12, 1995

BOSTON CAPITAL TAX CREDIT FUND III L.P.
Form 10-K ANNUAL REPORT
FOR THE YEAR ENDED MARCH 31, 2007

TABLE OF CONTENTS

PART I
Item 1.	Business
Item 1A.	Risk Factors
Item 1B.	Unresolved Staff Comments
Item 2.	Properties
Item 3.	Legal Proceedings
Item 4.	Submission of Matters to a Vote of Security Holders
PART II
Item 5.	Market for the Fund’s Limited Partnership Interests and Related Partnership Matters
Item 6.	Selected Financial Data
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 7a.	Quantitative and Qualitative Disclosure About Market Risk
Item 8.	Financial Statements and Supplementary Data
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Item 9a.	Controls and Procedures
PART III
Item 10.	Directors, Executive Officers, and Corporate Governance
Item 11.	Executive Compensation
Item 12.	Security Ownership of Certain Beneficial Owners and Management
Item 13.	Certain Relationships and Related Transactions, Director Independence
Item 14.	Principal Accountant Fees and Services
PART IV
Item 15.	Exhibits, Financial Statement Schedules, and Reports on Form 8-K
	Signatures
Financial Statements
Independent Auditors Consent
Section 302 Certification
Section 302 Certification
Section 906 Certification
Section 906 Certification
Sable Chase of McDoough, L.P.

PART I

Item 1. Business

Organization

Boston Capital Tax Credit Fund III L.P. (the “Fund”) is a limited partnership formed under the Delaware Revised Uniform Limited Partnership Act as of September 19, 1991. 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. John P. 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 John P. Manning.

The assignor limited partner was formed for the purpose of serving in that capacity for the Fund and will not engage in any other business. Units of beneficial interest in the limited partnership interest of the assignor limited partner are assigned by the assignor limited partner by means of beneficial assignee certificates (“BACs”) to investors and investors are entitled to all the rights and economic benefits of a limited partner of the Fund, including rights to a percentage of the income, gains, losses, deductions, credits and distributions of the Fund.

A Registration Statement on Form S-11 and the related prospectus, as supplemented (together with each subsequently filed prospectus, as supplemented, the “Prospectus”) was filed with the Securities and Exchange Commission and became effective January 24, 1992 in connection with a public offering (together with each subsequent offering of BACs described herein, the “Offering”) in one or more series of a minimum of 250,000 BACs and a maximum of 20,000,000 BACs at $10 per BAC. On September 4, 1993 the Fund filed 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 additional BACs became effective on October 6, 1993. As of March 31, 2007, subscriptions had been received and accepted by the General Partner in Series 15, 16, 17, 18 and 19 for 21,996,102 BACs, representing capital contributions of $219,961,020. The Fund issued the last BACs in Series 19 on December 17, 1993. This concluded the Offering of the Fund.

The Offering, including information regarding the issuance of BACs in series, is described in each Prospectus, as supplemented, under the caption “The Offering”, which descriptions are incorporated herein by reference.

1

Description of Business

The Fund’s principal business is to invest as a limited partner in other limited partnerships (the “Operating Partnerships”) each of which will own or lease and will operate an apartment complex exclusively or partially for low- and moderate-income tenants. Each Operating Partnership in which the Fund invests owns apartment complexes, which are completed, newly constructed, under construction or rehabilitation, or to-be constructed or rehabilitated, and which are expected to receive government assistance. Each apartment complex is expected to qualify for the low-income housing tax credit under Section 42 of the Code (the “Federal Housing Tax Credit”), providing tax benefits over a period of ten to twelve years in the form of tax credits which investors may use to offset income, subject to strict limitations, from other sources. Some apartment complexes may also qualify for the historic rehabilitation tax credit under Section 47 of the Code (the “Rehabilitation Tax Credit”). The Federal Housing Tax Credit and the government assistance programs are described on pages 37 to 51 of the Prospectus, as supplemented, under the captions “Tax Credit Programs” and “Government Assistance Programs,” which is incorporated herein by reference. Section 236 (f) (ii) of the National Housing Act, as amended, and Section 101 of HUD (the “Housing and Urban Development Act of 1965”), as amended, each provide for the making by HUD of rent supplement payments to low income tenants in properties which receive other forms of federal assistance including tax credits. The payments for each tenant, which are made directly to the owner of their property, generally are in amounts to enable the tenant to pay rent equal to 30% of the adjusted family income. Some of the apartment complexes in which the Fund has invested are receiving such rent supplements from HUD. HUD has been in the process of converting rent supplement assistance to assistance paid not to the owner of the apartment complex, but directly to the individuals. At this time, the Fund is unable to predict whether Congress will continue rent supplement programs payable directly to owners of apartment complexes.

As of March 31, 2007 the Fund had invested in 63 Operating Partnerships on behalf of Series 15, 61 Operating Partnerships on behalf of Series 16, 47 Operating Partnerships on behalf of Series 17, 34 Operating Partnerships on behalf of Series 18 and 26 Operating Partnerships on behalf of Series 19. A description of these Operating Partnerships is set forth in Item 2 herein.

The business objectives of the Fund are to:

(1)	provide current tax benefits to investors in the form of Federal Housing Tax Credits, and in limited instances, a small amount of Rehabilitation Tax Credits, which an investor may apply, subject to strict limitations, against the investor’s federal income tax liability from active, portfolio and passive income;
(2)	provide tax benefits in the form of passive losses which an investor may apply to offset his passive income (if any); and
(3)	Preserve and protect the Fund’s capital and provide capital appreciation and cash distributions through increases in value of the Fund’s investments and, to the extent applicable, equity buildup through periodic payments on the mortgage indebtedness with respect to the apartment complexes.

2

The business objectives and investment policies of the Fund are described more fully on pages 30 to 37 of the Prospectus, as supplemented, under the caption “Investment Objectives and Acquisition Policies,” which is incorporated herein by reference.

Employees

The Fund does not have any employees. Services are performed by the general partner and its affiliates and agents retained by them.

Item 1A. Risk Factors

As used in this Item 1A, references to “we, “us” and “our” mean the Fund.

An investment in our BACs and our investments in Operating Partnerships are subject to risks. These risks may impact the tax benefits of an investment in our BACs, and the amount of proceeds available for distribution to our limited partners, if any, on liquidation of our investments.

In addition to the other information set forth in this report, you should carefully consider the following factors which could materially affect our business, financial condition or results of operations. The risks described below are not the only risks we face. Additional factors not presently known to us or that we currently deem to be immaterial also may materially adversely affect our business operations.

The ability of limited partners to claim tax losses from their investment in us is limited.

The IRS may audit us or an Operating Partnership and challenge the tax treatment of tax items. The amount of Low Income Housing Tax Credits and tax losses allocable to the investors could be reduced if the IRS were successful in such a challenge. The alternative minimum tax could reduce tax benefits from an investment in our BACs. Changes in tax laws could also impact the tax benefits from an investment in our BACs and/or the value of the Operating Partnerships. Until the Operating Partnerships have completed a mandatory fifteen year Low Income Housing Tax Credit compliance period, investors are at risk for potential recapture of Low Income Housing Tax Credits that have already been claimed.

The Low Income Housing Tax Credits rules are extremely complicated and noncompliance with these rules may have adverse consequences for BAC holders.

Noncompliance with applicable tax regulations may result in the loss of future Low Income Housing Tax Credits and the fractional recapture of Low Income Housing Tax Credits already taken. In most cases the annual amount of Low Income Housing Tax Credits that an individual can use is limited to the tax liability due on the person’s last $25,000 of taxable income. The Operating Partnerships may be sold at a price, which would not result in our realizing cash distributions or proceeds from the transaction. Accordingly, we may be unable to distribute any cash to our investors. Low Income Housing Tax Credits may be the only benefit from an investment in our BACs.

3

Poor performance of one housing complex, or the real estate market generally, could impair our ability to satisfy our investment objectives.

Each housing complex is subject to mortgage indebtedness. If an Operating Partnership failed to pay its mortgage, it could lose its housing complex in foreclosure. If foreclosure were to occur during the first 15 years of the existence of the Fund, the loss of any remaining future Low Income Housing Tax Credits, a fractional recapture of previously claimed Low Income Housing Tax Credits, and a loss of our investment in the housing complex would occur. To the extent the Operating Partnerships receive government financing or operating subsidies, they may be subject to one or more of the following risks:

- difficulties in obtaining rent increases

- limitations on cash distributions;

- limitations on sales or refinancing of Operating Partnerships;

- limitations on transfers of interests in Operating Partnerships;

- limitations on removal of local general partners;

- limitations on subsidy programs; and

- possible changes in applicable regulations.

The value of real estate is subject to risks from fluctuating economic conditions, including employment rates, inflation, tax, environmental, land use and zoning policies, supply and demand of similar properties, and neighborhood conditions, among others.

No trading market for the BACs exists or is expected to develop.

There is currently no active trading market for the BACs. Accordingly, limited partners may be unable to sell their BACs or may have to sell BACs at a discount. Limited partners should consider their BACs to be a long-term investment.

Investors may realize taxable gain on sale or disposition of BACs.

     Upon the sales or other taxable disposition of BACs, investors will realize taxable income to the extent that their allocable share of the non-recourse mortgage indebtedness on the apartment complexes, together with the money they receive from the sale of the BACs, is greater than the original cost of their BACs. This realized taxable income is reduced to the extent that investors have suspended passive losses or credits. It is possible that the sale of BACs may not generate enough cash to pay the tax obligations arising from the sale.

Investors may have tax liability in excess of cash.

     Investors eventually may be allocated profits for tax purposes, which exceed any cash distributed to them. Under these circumstances, unless an investor has passive losses or credits to reduce this tax liability, the investor will have to pay federal income tax without a corresponding cash distribution. Similarly, in the event of a sale or foreclosure of an apartment complex or a sale of BACs, an investor may be allocated taxable income, resulting in tax liability, in excess of any cash distributed to him or her as a result of the event.

4

Investors may not receive cash if apartment complexes are sold.

     There is no assurance that investors will receive any cash distributions from the sale or refinancing of an apartment complex. The price at which an apartment complex is sold may not be large enough to pay the mortgage and other expenses which must be paid at such time. Even if there are net cash proceeds from a sale distributed to the Fund, expenses such as accrued management fees and unpaid loans will be deducted pursuant to Section 4.02(a) of the Fund Agreement. If any of these events happen, investors will not get all of their investment back, and the only benefit from an investment will be the tax credits received.

The sale or refinancing of the apartment complexes is dependent upon the following material factors:

- The necessity of obtaining the consent of the operating general partners;

- The necessity of obtaining the approval of any governmental agency(ies) providing government assistance to the apartment complex; and

- The uncertainty of the market.

Any sale may occur well after the fifteen-year federal housing tax credit compliance period.

We have insufficient sources of cash to pay our existing liabilities.

We currently do not have sufficient cash resources to satisfy our financial liabilities. Furthermore, we do not anticipate that we will have sufficient available cash to pay our future financial liabilities. Substantially all of our existing liabilities are payable to our general partner and its affiliates. Though the amounts payable to the general partner and its affiliates are contractually currently payable, we do not believe that the general partner or its affiliates will demand immediate payment of these contractual obligations in the near term, however, there can be no assurance that this will be the case. We would be materially adversely affected if the general partner or its affiliates demanded payment in the near term of our existing contractual liabilities or suspended the provision of services to us because of our inability to satisfy these obligations. All monies currently deposited, or that will be deposited in the future, into the Fund’s working capital reserves are intended to be utilized to pay our existing and future liabilities.

Item 1B. Unresolved Staff Comments

Not applicable.

Item 2. Properties

The Fund has acquired a limited partnership interest in 231 Operating Partnerships in five series, identified in the table set forth below. In each instance the apartment complexes owned by the applicable Operating Partnership is eligible for the Federal Housing Tax Credit. Initial occupancy of a unit in each apartment complex which complied with the minimum set-aside test (i.e., initial occupancy by tenants with incomes equal to no more than a

5

designated 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 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.

Please refer to Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for a more detailed discussion of operational difficulties experienced by certain of the Operating Partnerships.

6

Boston Capital Tax Credit Fund III L.P. — Series 15

PROPERTY PROFILES AS OF MARCH 31, 2007

				Mortgage							Cap Con
				Balance				Qualified			Paid
Property				As of		Acq	Const	Occupancy			Thru
Name	Location	Units		12/31/06		Date	Comp	3/31/07			3/31/07
April Gardens Apts. III	Las Piedras, PR		32	$	1,427,307	09/92	05/93		100	%	$	279,823
Autumwood Heights	Keysville, VA		40		1,261,816	08/92	01/93		100	%		256,700
Barton Village Apartments	Arlington, GA		18		495,194	10/92	03/93		100	%		101,154
Bergen Meadows	Bergen, NY		24		977,364	07/92	07/92		100	%		199,420
Bridlewood Terrace	Horse Cave, KY		24		759,313	01/94	01/95		100	%		167,679
Brunswick Commons	Lawrenceville, VA		24		780,494	03/92	09/92		100	%		152,282
Buena Vista Apartments, Phase II	Union, SC		44		1,412,298	03/92	01/92		100	%		281,000
Calexico Senior Apts.	Calexico, CA		38		1,870,908	09/92	09/92		100	%		366,220
Chestnut Hills Estates	Altoona, AL		24		716,914	09/92	09/92		100	%		146,500
Columbia Heights Apts.	Camden, AR		32		1,247,655	10/92	09/93		100	%		247,599
Country Meadows II, III, IV	Sioux Falls, SD		55		1,064,605	05/92	09/92		100	%		1,220,825
Curwensville House Apts.	Curwensville, PA		28		1,175,120	09/92	07/93		100	%		262,000
Deerfield Commons	Crewe, VA		39		1,195,713	04/92	06/92		100	%		242,430

7

Boston Capital Tax Credit Fund III L.P. — Series 15

PROPERTY PROFILES AS OF MARCH 31, 2007

Continued

				Mortgage							Cap Con
				Balance				Qualified			Paid
Property				As of		Acq	Const	Occupancy			Thru
Name	Location	Units		12/31/06		Date	Comp	3/31/07			3/31/07
East Park Apts. I	Dilworth, MN		24	$	482,803	06/94	01/94		100	%	$	406,100
Edgewood Apts.	Munford-ville, KY		24		762,143	06/92	08/92		100	%		156,763
Golden Age Apts.	Oak Grove, MO		17		391,791	04/92	11/91		100	%		84,410
Graham Village Apts.	Graham, NC		50		1,176,270	10/94	06/95		100	%		919,461
Greentree Apts.	Utica, OH		24		665,037	04/94	10/75		100	%		76,069
Greenwood Village	Fort Gaines, GA		24		652,598	08/92	05/93		100	%		131,268
Hadley’s Lake Apts.	East Machias ME		18		1,008,932	09/92	01/93		100	%		291,400
Hammond Heights Apts.	Westernport, MD		35		1,443,932	07/92	02/93		100	%		327,944
Harrison- ville Properties II	Harrison- ville, MO		24		593,028	03/92	11/91		100	%		144,004
Harvest Point Apts.	Madison, SD		30		1,165,150	03/95	12/94		100	%		268,760
Hearthside II	Portage, MI		60		1,816,135	04/92	11/92		100	%		1,153,620

8

Boston Capital Tax Credit Fund III L.P. — Series 15

PROPERTY PROFILES AS OF MARCH 31, 2007

Continued

				Mortgage							Cap Con
				Balance				Qualified			Paid
Property				As of		Acq	Const	Occupancy			Thru
Name	Location	Units		12/31/06		Date	Comp	3/31/07			3/31/07
Heron’s Landing I	Lake Placid, FL		37	$	1,168,522	10/92	10/92		100	%	$	255,339
Higginsville Estates	Higginsville, MO		24		611,027	03/92	03/91		100	%		146,111
Kearney Estates	Kearney, MO		24		616,327	05/92	01/92		100	%		138,103
Lakeside Apts.	Lake Village AR		32		1,187,119	08/94	08/95		100	%		282,004
Lake View Green Apts.	Lake View, SC		24		863,544	03/92	07/92		100	%		183,603
Laurelwood Apartments, Phase II	Winnsboro, SC		32		1,038,750	03/92	02/92		100	%		229,986
Lebanon Properties III	Lebanon, MO		24		614,320	03/92	02/92		100	%		152,171
Lebanon Village II	Spring Grove, VA		24		888,416	08/92	02/93		100	%		169,000
Lilac Apts.	Leitchfield, KY		24		696,187	06/92	07/92		100	%		148,015
Livingston Plaza	Livingston, TX		24		648,889	12/92	11/93		100	%		176,534
Manning Lane Apts.	Manning, SC		42		1,428,330	08/92	03/93		100	%		296,436
Marshall Lane Apts.	Marshallville, GA		18		537,019	08/92	12/92		100	%		114,200

9

Boston Capital Tax Credit Fund III L.P. — Series 15

PROPERTY PROFILES AS OF MARCH 31, 2007

Continued

				Mortgage							Cap Con
				Balance				Qualified			Paid
Property				As of		Acq	Const	Occupancy			Thru
Name	Location	Units		12/31/06		Date	Comp	3/31/07			3/31/07
Maryville Properties	Maryville, MO		24	$	698,372	05/92	03/92		100	%	$	156,636
Meadow View Apts.	Grantsville, MD		36		1,442,074	05/92	02/93		100	%		291,322
Millbrook Commons	Sanford, ME		16		893,268	06/92	11/92		100	%		227,100
Monark Homes	Van Buren & Barling, AR		10		307,918	06/94	03/94		100	%		239,800
North Prairie Manor Apts.	Plainwell, MI		28		851,850	09/92	05/93		100	%		206,820
North Trail Apts.	Arkansas City, KS		24		793,801	09/94	12/94		100	%		194,118
Osceola Estates Apts	Osceola, IA		24		596,640	05/92	05/92		100	%		161,325
Payson Senior Center Apts.	Payson, AZ		39		1,447,011	08/92	08/92		100	%		365,755
Rainier Manor Apts.	Mt. Rainier, MD		104		3,494,272	04/92	01/93		100	%		1,095,382
Ridgeview Apartments	Brainerd, MN		24		847,560	03/92	01/92		100	%		165,434

10

Boston Capital Tax Credit Fund III L.P. — Series 15

PROPERTY PROFILES AS OF MARCH 31, 2007

Continued

				Mortgage							Cap Con
				Balance				Qualified			Paid
Property				As of		Acq	Const	Occupancy			Thru
Name	Location	Units		12/31/06		Date	Comp	3/31/07			3/31/07
Rio Mimbres II Apartments	Deming, NM		24	$	752,026	04/92	04/92		100	%	$	149,811
Rolling Brook III Apts.	Algonac, MI		26		801,991	06/92	11/92		100	%		185,632
School St. Apts. Phase I	Marshall, WI		24		637,647	04/92	05/92		100	%		666,025
Shenandoah Village	Shenandoah, PA		34		1,429,367	08/92	02/93		100	%		317,136
Showboat Manor Apts.	Chesaning, MI		26		772,411	07/92	02/93		96	%		178,084
Spring Creek II Apts.	Derby, KS		50		764,462	04/92	06/92		100	%		1,060,282
Sunset Sq. Apts.	Scottsboro, AL		24		717,697	09/92	08/92		100	%		143,900
Taylor Mill Apartments	Hodgenville, KY		24		747,023	04/92	05/92		100	%		173,606
Timmons Village Apts.	Lynchburg, SC		18		605,473	05/92	07/92		100	%		122,450
University Meadows	Detroit, MI		53		2,235,469	06/92	12/92		100	%		1,676,750
Valatie Woods	Valatie, NY		32		1,250,051	06/92	04/92		100	%		277,600

11

Boston Capital Tax Credit Fund III L.P. — Series 15

PROPERTY PROFILES AS OF MARCH 31, 2007

Continued

				Mortgage							Cap Con
				Balance				Qualified			Paid
Property				As of		Acq	Const	Occupancy			Thru
Name	Location	Units		12/31/06		Date	Comp	3/31/07			3/31/07
Village Woods	Healdton, OK		24	$	675,004	08/94	12/94		100	%	$	173,616
Villas Del Mar	Urb. Corales de Hatillo, PR		32		1,427,942	08/92	08/92		100	%		307,200
Virgen del Pozo Garden Apts.	Sabana Grande, PR		70		3,256,068	08/92	07/93		100	%		772,550
Weedpatch Country Apts.	Weedpatch, CA		36		1,913,123	01/94	09/94		100	%		461,197
Whitewater Village Apts.	Ideal, GA		18		510,540	08/92	11/92		100	%		108,000
Wood Park Pointe	Arcadia, FL		36		1,139,515	06/92	05/92		100	%		243,672

12

Boston Capital Tax Credit Fund III L.P. — Series 16

PROPERTY PROFILES AS OF MARCH 31, 2007

				Mortgage							Cap Con
				Balance				Qualified			Paid
Property				As of		Acq	Const	Occupancy			Thru
Name	Location	Units		12/31/06		Date	Comp	3/31/07			3/31/07
1413 Leavenworth Apts.	Omaha, NE		60	$	1,850,486	12/92	03/93		100	%	$	1,287,526
Abbey Orchards Apts.	Nixa, MO		48		1,289,867	03/94	06/94		100	%		1,163,875
Abbey Orchards Apts. II	Nixa, MO		56		1,078,246	08/94	07/94		100	%		1,137,750
Bernice Villa Apts.	Bernice, LA		32		875,998	05/93	10/93		100	%		200,476
Branch River Commons Apts	Wakefield, NH		24		1,225,080	09/92	02/93		100	%		246,105
Brunswick Manor Apts.	Lawrence- ville ,VA		40		1,373,516	02/94	07/94		100	%		278,519
Canterfield Manor	Denmark, SC		20		745,078	11/92	01/93		100	%		175,959
Cape Ann YMCA Community Ctr.	Gloucester, MA		23		276,131	01/93	12/93		100	%		693,132
Carriage Park Village	Westville, OK		24		674,614	02/93	07/93		100	%		144,714
Cedar Trace Apts.	Brown City, MI		16		487,927	10/92	07/93		100	%		102,500
Cielo Azul Apts.	Aztec, NM		30		986,981	05/93	05/93		100	%		389,749
Clymer Park Apts.	Clymer, PA		32		1,409,501	12/92	11/94		100	%		317,428

13

Boston Capital Tax Credit Fund III L.P. — Series 16

PROPERTY PROFILES AS OF MARCH 31, 2007

Continued

				Mortgage							Cap Con
				Balance				Qualified			Paid
Property				As of		Acq	Const	Occupancy			Thru
Name	Location	Units		12/31/06		Date	Comp	3/31/07			3/31/07
Crystal Ridge Apts.	Davenport, IA		126	$	3,432,337	10/93	02/94		100	%	$	3,032,972
Cumberland Woods Apts.	Middlesboro, KY		40		1,407,365	12/93	10/94		100	%		412,700
Deer Run Apts.	Warrenton, NC		31		595,588	08/93	03/93		100	%		572,200
Derry Round House Court	Borough of Derry, PA		26		1,075,976	02/93	02/93		100	%		248,019
Fairmeadow Apts.	Latta, SC		24		854,470	01/93	07/93		100	%		195,400
Falcon Ridge Apts.	Beattyville, KY		32		1,006,418	04/94	01/95		100	%		247,200
Forest Pointe Apts.	Butler, GA		25		723,602	12/92	09/93		100	%		162,397
Gibson Manor Apts.	Gibson, NC		24		859,875	12/92	06/93		100	%		161,412
Greenfield Properties	Greenfield, MO		20		534,021	01/93	05/93		100	%		126,046
Greenwood Apts.	Mt. Pleasant, PA		36		1,416,863	11/93	10/93		100	%		352,000
Harmony House Apts.	Galax, VA		40		1,411,347	11/92	07/93		100	%		285,588
Haynes House Apartments	Roxbury, MA		131		2,446,904	08/94	09/95		100	%		2,005,814
Holly Tree Manor	Holly Hill, SC		24		858,860	11/92	02/93		100	%		201,490
Isola Square Apartments	Isola, MS		32		940,409	11/93	04/94		100	%		246,722

14

Boston Capital Tax Credit Fund III L.P. — Series 16

PROPERTY PROFILES AS OF MARCH 31, 2007

Continued

				Mortgage							Cap Con
				Balance				Qualified			Paid
Property				As of		Acq	Const	Occupancy			Thru
Name	Location	Units		12/31/06		Date	Comp	3/31/07			3/31/07
Joiner Manor	Joiner, AR		25	$	757,930	01/93	06/93		100	%	$	149,670
Landview Manor	Bentonia, MS		28		815,718	07/93	02/94		100	%		190,109
Laurel Ridge Apts.	Idabel, OK		52		1,329,617	04/93	12/93		100	%		282,606
Lawtell Manor Apts.	Lawtell, LA		32		869,467	04/93	08/93		100	%		202,603
Logan Lane Apts	Ridgeland, SC		36		1,260,529	09/92	03/93		100	%		274,750
Meadows of Southgate	Southgate, MI		83		2,088,080	07/93	05/94		100	%		1,716,000
Mendota Village Apts	Mendota, CA		44		1,910,695	12/92	05/93		100	%		438,300
Mid City Apts.	Jersey City, NJ		58		2,529,447	09/93	06/94		100	%		3,097,210
Newport Elderly Apts.	Newport, VT		24		1,163,365	02/93	10/93		100	%		221,626
Newport Manor Apts.	Newport, TN		30		917,713	09/93	12/93		100	%		204,863
Oak Forest Apts.	Eastman, GA		41		1,133,367	12/92	10/93		100	%		251,269

15

Boston Capital Tax Credit Fund III L.P. — Series 16

PROPERTY PROFILES AS OF MARCH 31, 2007

Continued

				Mortgage							Cap Con
				Balance				Qualified			Paid
Property				As of		Acq	Const	Occupancy			Thru
Name	Location	Units		12/31/06		Date	Comp	3/31/07			3/31/07
Parkwoods Apts.	Anson, ME		24	$	1,244,324	12/92	09/93		100	%	$	320,206
Plantation Manor	Tchula, MS		28		800,699	07/93	12/93		100	%		195,030
Ransom St. Apartments	Blowing Rock, NC		13		496,928	12/93	11/94		100	%		100,249
Sable Chase of McDonough	McDonough, GA		222		4,276,036	12/93	12/94		100	%		5,618,968
Simmesport Square Apts.	Simmesport, LA		32		884,775	04/93	06/93		100	%		198,500
St. Croix Commons Apts.	Woodville, WI		40		899,203	10/94	12/94		100	%		534,847
St. Joseph Square Apts.	St. Joseph, LA		32		920,454	05/93	09/93		100	%		206,086
Summersville Estates	Summersville, MO		24		601,025	05/93	06/93		100	%		157,976
Stony Ground Villas	St. Croix, VI		22		1,379,069	12/92	06/93		100	%		358,414
Talbot Village II	Talbotton, GA		24		685,054	08/92	04/93		100	%		129,683
Tan Yard Branch Apts. I	Blairsville, GA		24		738,311	12/92	09/94		100	%		151,154
Tan Yard Branch Apts. II	Blairsville, GA		25		722,625	12/92	07/94		100	%		144,304

16

Boston Capital Tax Credit Fund III L.P. — Series 16

PROPERTY PROFILES AS OF MARCH 31, 2007

Continued

				Mortgage							Cap Con
				Balance				Qualified			Paid
Property				As of		Acq	Const	Occupancy			Thru
Name	Location	Units		12/31/06		Date	Comp	3/31/07			3/31/07
The Fitzgerald Building	Plattsmouth, NE		20	$	555,161	12/93	12/93		100	%	$	924,780
The Woodlands	Tupper Lake, NY		18		906,488	09/94	02/95		100	%		214,045
Tuolumne City Senior Apts.	Tuolumne, CA		30		1,550,025	12/92	08/93		100	%		376,535
Turtle Creek Apts.	Monticello, AR		27		823,401	05/93	10/93		100	%		185,392
Valley View Apartments	Palatine Bridge, NY		32		1,361,848	05/94	05/94		100	%		326,870
Victoria Pointe Apts.	North Port, FL		42		1,401,883	10/94	01/95		100	%		338,058
Vista Linda Apartments	Sabana Grande, PR		50		2,446,778	01/93	12/93		100	%		445,530
West End Manor	Union, SC		28		957,415	05/93	05/93		100	%		231,741
Westchester Village of Oak Grove	Oak Grove, MO		33		941,526	12/92	04/93		100	%		889,700
Westchester Village of St. Joseph	St. Joseph, MO		60		1,107,015	07/93	06/93		100	%		1,316,500
Willcox Senior Apts.	Willcox, AZ		30		1,070,121	01/93	06/93		100	%		268,747
Woods Landing Apts.	Damascus, VA		40		1,408,481	12/92	09/93		100	%		286,171

17

Boston Capital Tax Credit Fund III L.P. — Series 17

PROPERTY PROFILES AS OF MARCH 31, 2007

				Mortgage							Cap Con
				Balance				Qualified			Paid
Property				As of		Acq	Const	Occupancy			Thru
Name	Location	Units		12/31/06		Date	Comp	3/31/07			3/31/07
Annadale Apartments	Fresno, CA		222	$	12,685,618	01/96	06/90		100	%	$	1,108,873
Artesia Properties	Artesia, NM		40		1,354,889	09/94	09/94		100	%		399,464
Aspen Ridge Apts.	Omaha, NE		42		942,413	09/93	11/93		100	%		809,750
Briarwood Apartments	Clio, SC		24		872,928	12/93	08/94		100	%		211,133
Briarwood Apartments of DeKalb	DeKalb, IL		48		1,040,312	10/93	06/94		100	%		1,041,834
Briarwood Village	Buena Vista, GA		38		1,098,350	10/93	05/94		100	%		252,700
Brookwood Village	Blue Springs, MO		72		2,147,001	12/93	12/94		100	%		1,629,100
Cairo Senior Housing	Cairo, NY		24		1,040,096	05/93	04/93		100	%		201,711
Caney Creek Apts.	Caneyville, KY		16		460,007	05/93	04/93		100	%		118,800
Central House	Cambridge, MA		128		1,650,601	04/93	12/93		100	%		2,498,109
Clinton Estates	Clinton, MO		24		717,204	12/94	12/94		100	%		162,717
Cloverport Apts.	Cloverport, KY		24		719,709	04/93	07/93		100	%		174,575
College Greene Senior Apts	Chili, NY		110		3,752,942	03/95	08/95		100	%		232,545

18

Boston Capital Tax Credit Fund III L.P. — Series 17

PROPERTY PROFILES AS OF MARCH 31, 2007

Continued

				Mortgage							Cap Con
				Balance				Qualified			Paid
Property				As of		Acq	Const	Occupancy			Thru
Name	Location	Units		12/31/06		Date	Comp	3/31/07			3/31/07
Crofton Manor Apts.	Crofton, KY		24	$	771,087	04/93	03/93		100	%	$	168,420
Deerwood Village Apts	Adrian, GA		20		618,005	02/94	07/94		100	%		160,900
Doyle Village	Darien, GA		38		1,134,766	09/93	04/94		100	%		235,509
Fuera Bush Senior Housing	Fuera Bush, NY		24		1,064,526	07/93	05/93		100	%		189,364
Gallaway Manor Apts.	Gallaway, TN		36		1,022,222	04/93	05/93		100	%		221,432
Glenridge Apartments	Bullhead City, AZ		52		1,988,503	06/94	06/94		100	%		520,500
Green Acres Estates	West Bath, ME		48		1,009,451	01/95	11/94		100	%		135,849
Green Court Apartments	Mt. Vernon, NY		76		2,323,989	11/94	11/94		100	%		964,813
Henson Creek Manor	Fort Washington, MD		105		3,979,968	05/93	04/94		100	%		2,980,421
Hickman Manor Apts. II	Hickman, KY		16		513,950	11/93	12/93		100	%		134,094
Hill Estates, II	Bladenboro, NC		24		981,677	03/95	07/95		100	%		132,300
Houston Village	Alamo, GA		24		651,356	12/93	05/94		100	%		169,418
Isola Square Apts.	Greenwood, MS		36		1,035,857	11/93	08/94		100	%		304,556

19

Boston Capital Tax Credit Fund III L.P. — Series 17

PROPERTY PROFILES AS OF MARCH 31, 2007

Continued

				Mortgage							Cap Con
				Balance				Qualified			Paid
Property				As of		Acq	Const	Occupancy			Thru
Name	Location	Units		12/31/06		Date	Comp	3/31/07			3/31/07
Ivywood Park Apts.	Smyrna, GA		106	$	3,621,127	06/93	10/93		100	%	$	2,093,847
Jonestown Manor Apts.	Jonestown, MS		28		842,475	12/93	12/94		100	%		243,605
Largo Ctr. Apartments	Largo, MD		100		4,013,522	03/93	06/94		100	%		2,753,475
Laurel Ridge Apts.	Naples, FL		78		2,909,908	02/94	12/94		100	%		1,808,844
Lee Terrace Apartments	Pennington Gap, VA		40		1,444,627	02/94	12/94		100	%		288,268
Maplewood Park Apts.	Union City, GA		110		3,198,654	04/94	07/95		100	%		1,416,091
Oakwood Manor of Bennetts-ville	Bennetts-ville, SC		24		849,443	09/93	12/93		100	%		89,200
Opelousas Point Apts.	Opelousas, LA		44		1,336,812	11/93	03/94		100	%		439,277
Palmetto Villas	Palmetto, FL		49		1,575,059	05/94	04/94		100	%		421,795
Park Place	Lehigh Acres, FL		36		1,319,244	02/94	05/94		100	%		283,687
Pinehurst Senior Apts.	Farwell, MI		24		777,330	02/94	02/94		100	%		183,176
Quail Village	Reedsville, GA		31		847,108	09/93	02/94		100	%		171,855
Royale Townhomes	Glen Muskegon, MI		79		2,581,914	12/93	12/94		100	%		909,231

20

Boston Capital Tax Credit Fund III L.P. — Series 17

PROPERTY PROFILES AS OF MARCH 31, 2007

Continued

				Mortgage							Cap Con
				Balance				Qualified			Paid
Property				As of		Acq	Const	Occupancy			Thru
Name	Location	Units		12/31/06		Date	Comp	3/31/07			3/31/07
Seabreeze Manor	Inglis, FL		37	$	1,198,662	03/94	01/95		100	%	$	294,387
Soledad Senior Apts.	Soledad, CA		40		1,879,484	10/93	01/94		100	%		407,894
Stratford Place	Midland, MI		53		874,639	09/93	06/94		100	%		902,915
Villa West V Apartments	Topeka, KS		52		948,688	02/93	10/92		100	%		902,700
Waynesburg House Apts.	Waynesburg, PA		34		1,449,528	07/94	12/95		100	%		501,140
West Front Residence	Skowhegan, ME		30		1,478,855	09/94	08/94		100	%		487,390
West Oaks Apartments	Raleigh, NC		50		1,299,677	06/93	07/93		100	%		811,994
White Castle Manor	White Castle, LA		24		754,455	06/94	05/94		100	%		198,684

21

Boston Capital Tax Credit Fund III L.P. — Series 18

PROPERTY PROFILES AS OF MARCH 31, 2007

				Mortgage							Cap Con
				Balance				Qualified			Paid
Property				As of		Acq	Const	Occupancy			Thru
Name	Location	Units		12/31/06		Date	Comp	3/31/07			3/31/07
Arch Apartments	Boston, MA		75	$	1,667,060	04/94	12/94		100	%	$	3,017,845
Bear Creek Apartments	Naples, FL		118		4,940,929	03/94	04/95		100	%		3,586,687
Briarwood Apartments	Humbolt, IA		20		691,613	08/94	04/95		100	%		162,536
California Apartments	San Joaquin, CA		42		1,763,014	03/94	12/94		100	%		519,100
Chatham Manor	Chatham, NY		32		1,345,452	01/94	12/93		100	%		296,860
Chelsea Sq. Apartments	Chelsea, MA		6		301,393	08/94	12/94		100	%		451,929
Clarke School	Newport, RI		56		2,421,552	12/94	12/94		100	%		1,804,536
Cox Creek Apartments	Ellijay, GA		25		809,949	01/94	01/95		100	%		214,824
Evergreen Hills Apts.	Macedon, NY		72		2,631,020	08/94	01/95		100	%		1,627,293
Glen Place Apartments	Duluth, MN		35		1,018,680	04/94	06/94		100	%		1,328,621
Harris Music Building	West Palm Beach, FL		38		1,526,501	06/94	11/95		100	%		1,286,304
Kristine Apartments	Bakersfield,CA		60		1,131,417	10/94	10/94		100	%		1,636,293
Lakeview Meadows II	Battle Creek, MI		60		1,487,824	08/93	05/94		100	%		1,029,000

22

Boston Capital Tax Credit Fund III L.P. — Series 18

PROPERTY PROFILES AS OF MARCH 31, 2007

Continued

				Mortgage							Cap Con
				Balance				Qualified			Paid
Property				As of		Acq	Const	Occupancy			Thru
Name	Location	Units		12/31/06		Date	Comp	3/31/07			3/31/07
Lathrop Properties	Lathrop, MO		24	$	714,885	04/94	05/94		100	%	$	171,579
Leesville Elderly Apts.	Leesville, LA		54		1,293,052	06/94	06/94		100	%		776,500
Lockport Seniors Apts.	Lockport, LA		40		982,175	07/94	09/94		100	%		595,439
Maple Leaf Apartments	Franklinville, NY		24		1,073,711	08/94	12/94		100	%		296,587
Maple Terrace	Aurora, NY		32		1,345,470	09/93	09/93		100	%		279,988
Marengo Park Apts.	Marengo, IA		24		729,335	10/93	03/94		100	%		133,552
Meadowbrook Apartments	Oskaloosa, IA		16		468,693	11/93	09/94		100	%		96,908
Meadows Apartments	Show Low, AZ		40		1,443,567	03/94	05/94		100	%		420,302
Natchitoches Senior Apartments	Natchitoches, LA		40		940,715	06/94	12/94		100	%		644,175
Newton Plaza Apts.	Newton, IA		24		785,331	11/93	09/94		100	%		166,441
Oakhaven Apartments	Ripley, MS		24		477,309	01/94	07/94		100	%		116,860
Parvin’s Branch Townhouses	Vineland, NJ		24		571,762	08/93	11/93		100	%		761,856

23

Boston Capital Tax Credit Fund III L.P. — Series 18

PROPERTY PROFILES AS OF MARCH 31, 2007

Continued

				Mortgage							Cap Con
				Balance				Qualified			Paid
Property				As of		Acq	Const	Occupancy			Thru
Name	Location	Units		12/31/06		Date	Comp	3/31/07			3/31/07
Peach Tree Apartments	Felton, DE		32	$	1,436,361	01/94	07/93		100	%	$	206,100
Pepperton Villas	Jackson, GA		29		838,157	01/94	06/94		100	%		222,762
Prestonwood Apartments	Bentonville, AR		62		656,423	12/93	12/94		100	%		1,067,200
Richmond Manor	Richmond, MO		36		995,447	06/94	06/94		100	%		231,593
Rio Grande Apartments	Eagle Pass, TX		100		2,070,058	06/94	05/94		100	%		666,840
Troy Estates	Troy, MO		24		663,112	12/93	01/94		100	%		159,007
Vista Loma Apartments	Bullhead City, AZ		41		1,564,428	05/94	09/94		100	%		465,650
Vivian Seniors Apts.	Vivian, LA		40		225,762	07/94	09/94		100	%		625,691
Westminster Meadow	Grand Rapids, MI		64		1,922,701	12/93	11/94		100	%		1,378,000

24

Boston Capital Tax Credit Fund III L.P. — Series 19

PROPERTY PROFILES AS OF MARCH 31, 2007

				Mortgage							Cap Con
				Balance				Qualified			Paid
Property				As of		Acq	Const	Occupancy			Thru
Name	Location	Units		12/31/06		Date	Comp	3/31/07			3/31/07
Callaway Villa	Holt’s Summit, MO		48	$	1,028,137	06/94	12/94		100	%	$	1,181,010
Carrollton Villa	Carrollton, MO		48		1,340,005	06/94	03/95		100	%		1,121,758
Clarke School	Newport, RI		56		2,421,552	12/94	12/94		100	%		1,153,719
Coopers Crossing	Irving, TX		93		3,281,609	06/96	12/95		100	%		2,145,000
Delaware Crossing Apartments	Ankeny, IA		152		3,017,143	08/94	03/95		100	%		3,337,884
Garden Gate Apartments	Forth Worth, TX		240		5,239,527	02/94	04/95		100	%		3,576,605
Garden Gate Apartments	Plano, TX		240		6,572,866	02/94	05/95		100	%		3,166,064
Hebbronville Senior	Hebbronville, TX		20		498,962	12/93	04/94		100	%		82,592
Jefferson Square	Denver, CO		64		2,252,818	05/94	08/95		100	%		1,715,351
Jenny Lynn Apts.	Morgantown, KY		24		776,786	01/94	09/94		100	%		182,800
Lone Star Senior	Lone Star, TX		24		591,662	12/93	05/94		100	%		138,740
Mansura Villa II Apartments	Mansura, LA		32		931,162	05/94	08/95		100	%		227,910
Maplewood Park Apts.	Union City, GA		110		3,198,654	04/94	07/95		100	%		1,416,091
Martindale Apts.	Martindale, TX		24		644,462	12/93	01/94		100	%		154,790

25

Boston Capital Tax Credit Fund III L.P. — Series 19

PROPERTY PROFILES AS OF MARCH 31, 2007

Continued

				Mortgage							Cap Con
				Balance				Qualified			Paid
Property				As of		Acq	Const	Occupancy			Thru
Name	Location	Units		12/31/06		Date	Comp	3/31/07			3/31/07
Munford Village	Munford, AL		24	$	728,020	10/93	04/94		100	%	$	165,800
Northpoint Commons	Kansas City, MO		158		4,234,697	07/94	06/95		100	%		2,124,024
Poplar Ridge Apts.	Madison, VA		16		631,547	12/93	10/94		100	%		124,704
Prospect Villa III Apartments	Hollister, CA		30		1,693,248	03/95	05/95		100	%		499,104
Sahale Heights Apts.	Elizabethtown, KY		24		825,794	01/94	06/94		100	%		238,600
Seville Apartments	Forest Village, OH		24		646,225	03/94	03/78		100	%		71,780
Sherwood Knoll	Rainsville, AL		24		751,172	10/93	04/94		100	%		162,500
Summerset Apartments	Swainsboro, GA		30		912,736	01/94	11/95		100	%		223,029
Tanglewood Apartments	Lawrenceville, GA		130		3,724,042	11/93	12/94		100	%		3,020,840
Village North I	Independence, KS		24		823,930	06/94	12/94		100	%		190,471
Vistas at Lake Largo	Largo, MD		110		4,616,590	12/93	01/95		100	%		2,833,420
Wedgewood Lane Apartments	Cedar City, UT		24		969,966	06/94	09/94		100	%		262,800

26

Item 3. Legal Proceedings

None.

Item 4. Submission of Matters to a Vote of Security Holders

None.

27

PART II

Item 5. Market for the Fund’s Limited Partnership Interests and Related Fund Matters and Issuer Purchases of Fund Interests

(a)	Market Information
	The Fund is classified as a limited partnership and does not have common stock. There is no established public trading market for the BACs and it is not anticipated that any public market will develop.
(b)	Approximate number of security holders
	As of March 31, 2007 the Fund has 12,974 BAC holders for an aggregate of 21,996,102 BACs, at a subscription price of $10 per BAC, received and accepted.
	The BACs were issued in series. Series 15 consists of 2,403 investors holding 3,870,500 BACs, Series 16 consists of 3,327 investors holding 5,429,402 BACs, Series 17 consists of 2,850 investors holding 5,000,000 BACs, Series 18 consists of 2,054 investors holding 3,616,200 BACs, and Series 19 consists of 2,340 investors holding 4,080,000 BACs at March 31, 2007.
(c)	Dividend history and restriction
	The Fund has made no distributions of net cash flow to its BAC holders from its inception, September 19, 1991 through March 31, 2007.
	The Fund Agreement provides that profits, losses and credits will be allocated each month to the holder of record of a BAC as of the last day of such month. Allocation of profits, losses and credits among BAC holders are made in proportion to the number of BACs held by each BAC holder.
	Any distributions of net cash flow or liquidation, sale or refinancing proceeds will be made within 180 days of the end of the annual period to which they relate. Distributions will be made to the holders of record of a BAC as of the last day of each month in the ratio which (i) the BACs held by the holder on the last day of the calendar month bears to (ii) the aggregate number of BACs outstanding on the last day of such month.
	Fund allocations and distributions are described in the Prospectus, as supplemented, under the caption “Sharing Arrangements: Profits, Credits, Losses, Net Cash Flow and Residuals”, which is incorporated herein by reference.

28

Item 6. Selected Financial Data

The information set forth below presents selected financial data of the Fund for each of the years ended March 31, 2003 through March 31, 2007. Additional detailed financial information is set forth in the audited financial statements listed in Item 15 hereof.

	March 31,			March 31,			March 31,			March 31,			March 31,
Operations	2007			2006			2005			2004			2003
Interest & Other Income	$	138,587		$	50,412		$	24,940		$	30,103		$	45,840
Share of Loss of Operating Partnership		(1,280,294	)		(3,518,129	)		(12,401,037	)		(9,459,170	)		(9,013,016	)
Operating Expense *		(4,046,414	)		(14,206,603	)		(21,174,761	)		(3,818,419	)		(3,394,204	)
Net Loss	$	(5,188,121	)	$	(17,674,320	)	$	(33,550,858	)	$	(13,247,486	)	$	(12,361,380	)
Net Loss per BAC	$	(0.23	)	$	(0.80	)	$	(1.51	)	$	(.60	)	$	(.56	)

	March 31,			March 31,			March 31,		March 31,		March 31,
Balance Sheet	2007			2006			2005		2004		2003
Total Assets	$	6,232,167		$	11,569,745		$	27,590,451	$	58,793,521	$	70,791,712
Total Liabilities	$	25,312,464		$	23,655,997		$	22,002,383	$	19,522,261	$	18,272,966
Partners’ Capital	$	(19,080,297	)	$	(12,086,252	)	$	5,588,068	$	39,271,260	$	52,518,746

* Operating Expense includes Impairment Losses recorded in the amounts of $1,365,076 for 2007, $11,603,236 for 2006, $18,797,540 for 2005, $1,136,378 for 2004, and $707,589 for 2003.

29

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements including our intentions, hopes, beliefs, expectations, strategies and predictions of our future activities, or other future events or conditions. These statements are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1993, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created by these acts. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including, for example, the factors identified in Part I, Item 1 of this Report. Although we believe that the assumptions underlying these forward-looking statements are reasonable, any of the assumptions could be inaccurate, and there can be no assurance that the forward-looking statements included in this Report will prove to be accurate. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of this information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved.

Liquidity

The Fund’s primary source of funds is the proceeds of each Offering. Other sources of liquidity include (i) interest earned on capital contributions held pending investment or on working capital reserves and (ii) cash distributions from operations of the Operating Partnerships in which the Fund has and will invest. All sources of liquidity are available to meet the obligations of the Fund. The Fund does not anticipate significant cash distributions in the long or short term from operations of the Operating Partnerships.

The Fund is currently accruing the annual fund management fee to enable each series to meet current and future third party obligations. Fund management fees accrued during the year ended March 31, 2007 were $2,456,290, and total fund management fees accrued as of March 31, 2007 were $24,404,262. During the year ended March 31, 2007 the Fund paid fees of $780,800 which were applied to prior year accruals.

Pursuant to the Partnership Agreement, such liabilities will be deferred until the Fund receives sale or refinancing proceeds from Operating Partnerships, and at that time proceeds from such sales or refinancing would be used to satisfy such liabilities.

Capital Resources

The Fund offered BACs in the Offering declared effective by the Securities and Exchange Commission on January 24, 1992. The Fund received and accepted subscriptions for $219,961,020 representing 21,996,102 BACs from investors admitted as BAC holders in Series 15 through 19 of the Fund. The Fund issued the last BACs in Series 19 on December 17, 1993. This concluded the Public Offering of the Fund.

(Series 15). The Fund commenced offering BACs in Series 15 on January 24, 1992. The Fund received and accepted subscriptions for $38,705,000 representing 3,870,500 BACs from investors admitted as BAC holders in Series 15. Offers and sales of BACs in Series 15 were completed and the last of BACs in Series 15 were issued by the Fund on June 26, 1992.

30

During the fiscal year ended March 31, 2007, the Fund did not use any of Series 15 net offering proceeds to pay outstanding installments of its capital contributions. As of March 31, 2006, proceeds from the offer and sale of BACs in Series 15 had been used to invest in a total of 67 Operating Partnerships in an aggregate amount of $29,390,546, and the Fund had completed payment of all installments of its capital contributions to 66 of the 67 Operating Partnerships. Series 15 has $4,208 in capital contributions that remain to be paid to some of the Operating Partnerships. The remaining contributions will be released when the Operating Partnership has achieved the conditions set forth in its partnership agreement.

(Series 16). The Fund commenced offering BACs in Series 16 on July 10, 1992. The Fund received and accepted subscriptions for $54,293,000, representing 5,429,402 BACs in Series 16. Offers and sales of BACs in Series 16 were completed and the last of the BACs in Series 16 were issued by the Fund on December 28, 1992.

During the fiscal year ended March 31, 2007, the Fund did not use any of Series 16 net offering proceeds to pay outstanding installments of its capital contributions. As of March 31, 2007, the net proceeds from the offer and sale of BACs in Series 16 had been used to invest in a total of 64 Operating Partnerships in an aggregate amount of $40,829,228, and the Fund had completed payment of all installments of its capital contributions to 60 of the 64 Operating Partnerships. Series 16 has $71,862 in capital contributions that remain to be paid to the other 4 Operating Partnerships. The remaining contributions will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

(Series 17). The Fund commenced offering BACs in Series 17 on January 24, 1993. The Fund received and accepted subscriptions for $50,000,000 representing 5,000,000 BACs from investors admitted as BAC holders in Series 17. Offers and sales of BACs in Series 17 were completed and the last of the BACs in Series 17 were issued on June 17, 1993.

During the fiscal year ended March 31, 2007, the Fund did not use any of Series 17 net offering proceeds to pay outstanding installments of its capital contributions. As of March 31, 2007, proceeds from the offer and sale of BACs in Series 17 had been used to invest in a total of 48 Operating Partnerships in an aggregate amount of $37,062,980, and the Fund had completed payments of all installments of its capital contributions to 43 of the 48 Operating Partnerships. Series 17 has outstanding contributions payable to 5 Operating Partnerships in the amount of $67,895 as of March 31, 2007. Of the amount outstanding, $15,097 has been funded into an escrow account on behalf of one Operating Partnership. The remaining contributions will be released 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. The Fund received and accepted subscriptions for $36,162,000 representing 3,616,200 BACs from investors admitted as BAC holders in Series 18. Offers and sales of BACs in Series 18 were completed and the last of the BACs in Series 18 were issued on September 22, 1993.

During the fiscal year ended March 31, 2007, the Fund did not use any of Series 18 net offering proceeds to pay outstanding installments of its capital contributions. As of March 31, 2007, proceeds from the offer and sale of BACs in Series 18 had been used to invest in a total of 34 Operating Partnerships

31

in an aggregate amount of $26,652,205, and the Fund had completed payments of all installments of its capital contributions to 32 of the 34 Operating Partnerships. Series 18 has $18,554 in capital contributions that remain to be paid to the other 2 Operating Partnerships. The remaining contributions will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

(Series 19). The Fund commenced offering BACs in Series 19 on October 8, 1993. The Fund received and accepted subscriptions for $40,800,000 representing 4,080,000 BACs from investors admitted as BAC holders in Series 19. Offers and sales of BACs in Series 19 were completed and the last of the BACs in Series 19 were issued on December 17, 1993.

During the fiscal year ended March 31, 2007, the Fund did not use any of Series 19 net offering proceeds to pay outstanding installments of its capital contributions. As of March 31, 2007, proceeds from the offer and sale of BACs in Series 19 had been used to invest in a total of 26 Operating Partnerships in an aggregate amount of $30,164,485, and the Fund had completed payments of all installments of its capital contributions to the Operating Partnerships.

Results of Operations

The Fund incurred an annual fund management fee to the general partner and/or its affiliates in an amount equal to 0.5% of the aggregate cost of the apartment complexes owned by the Operating Partnerships, less the amount of various partnership management and reporting fees paid or payable by the Operating Partnerships. The annual fund management fee incurred, net of reporting fees received for the fiscal years ended March 31, 2007, 2006 and 2005, was $2,138,666, $2,098,275, and $1,666,693, respectively. The decrease in March 31, 2005 annual fund management fee incurred net of reporting fees is primarily the result of the payment of prior years’ reporting fees in the amounts of $256,461 for Series 15 and $235,999 for Series 17 from the sale of one Operating Partnership.

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 March 31, 2007 and 2006, the average Qualified Occupancy for the series was 99.9%. The series had a total of 63 properties at March 31, 2007, 62 of which were at 100% Qualified Occupancy.

For the tax years ended December 31, 2006 and 2005, the series, in total, generated $2,103,420 and $2,921,113, respectively, in passive income tax losses that were passed through to the investors and also provided $0.00 and $0.05, respectively, in tax credits per BAC to the investors. Series 15 experienced a decrease in the tax credits generated per BAC from calendar year 2005 to 2006. The Operating Partnerships were allocated tax credits for 10 years. Based on each Operating Partnership’s lease-up, the total credits could be spread over as many as 13 years. In cases where the actual number of years is more than 10, the credits delivered in the early and later years will be less than the maximum allowable per year. The decrease in credits from calendar year 2005 to 2006 results from the fact that a large number of the Operating Partnerships are in their final years of credit. The decrease in tax credits generated per BAC is expected to continue until all credits have been realized and tax credits generated per BAC will be reduced to zero.

32

As of March 31, 2007 and 2006, Investments in Operating Partnerships for Series 15 was $361,924, and $594,892, respectively. Investments in Operating Partnerships was affected by the way the Fund accounts for its investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the years ended December 31, 2006 and 2005, Series 15 reflects net loss from Operating Partnerships of $(1,969,500) and $(1,838,522), respectively, which includes depreciation and amortization of $3,027,505 and $3,307,014, respectively.

For the years ended March 31, 2007, 2006, and 2005, the net income (loss) for series 15 was $516,570, $(1,364,396), and $(5,118,904), respectively. The major components of these amounts are the Fund’s share of income (losses) from Operating Partnership and the fund management fee. The variances in net income is due to the income (losses) recorded from the dispositions of Operating Partnerships in the prior year.

In an attempt to capitalize on the strong California real estate market, the operating general partner of Hidden Cove Apartments (Hidden Cove) entered into an agreement to sell the property and the transaction closed in May 2003. As part of the purchase agreement, the buyer is required to maintain the property as affordable housing through the end of the tax credit compliance period and to provide a recapture bond to avoid the recapture of the tax credits that have been taken. Sale proceeds due to Boston Capital Tax Credit Fund I-Series 3 and Series 15 were $1,572,368 and $136,352, respectively. The majority of the sale proceeds were received by the investment limited partnerships in May 2003, and the balance was received in September 2003. Of the proceeds received, $1,240,404 and $107,565, for Series 3 and Series 15, respectively, was distributed to the investors in July 2004. This represented a per BAC distribution of $.430 and $.028 for Series 3 and 15, respectively. The total returned to the investors was distributed based on the number of BACs held by each investor. The amounts for each series, while different in actual dollars, represent the same percentage of return to each investment limited partnership. The remaining proceeds total of $360,750 was paid to Boston Capital Asset Management Limited Partners (BCAMLP) for fees and expenses related to the sale and partial reimbursement of amounts payable to affiliates. The breakdown of the amount paid to BCAMLP is as follows: $10,000 represents reimbursement of expenses incurred related to sale, which includes due diligence, legal and mailing costs; $50,000 represents the reimbursement of overhead and expenses incurred for overseeing and managing the disposition of the property; and $300,750 represents a partial payment of outstanding asset management fees due to BCAMLP. At the time of the sale, the operating general partners retained some funds in an account in the name of the Operating Partnership to cover costs that would be incurred in the process of dissolving the Operating Partnership entity. These funds were not fully utilized and the investment limited partnership share of the remaining funds was paid in April 2005. The totals received were $9,163 for Series 3 and $795 for Series 15. The amounts have been added to each Series’ available reserves and were recognized in the gain on the sale of the property as of March 31, 2005. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero for Series 3 and $66,166 for Series 15. Accordingly, the gain on the sale of the property was recorded by Series 3 and Series 15 of $1,535,521 and $28,992, respectively. The gains recorded represented the proceeds received by the investment limited partnerships, net

33

of their remaining investment balance, unreimbursed advances to the Operating Partnership and their share of the overhead and expense reimbursement. In the prior year, March 31, 2006, $3,990 and $46,010 for Series 15 and Series 3, respectively, of the sales proceeds were refunded to BCAMLP to pay accrued asset management fees.

School Street I Limited Partnership (School Street Apts. I) is a 24-unit complex located in Marshall, Wisconsin. The property has struggled with low occupancy for several years. Throughout 2005, management took numerous steps to increase occupancy, including: decreasing the rent levels, eliminating water and sewer surcharges, initiating a resident referral program, replacing the site manager, and advertising in local publications. In 2006, management also offered several rental incentives. All of these leasing efforts started to take effect, with improved cash flow and increased occupancy over the first two quarters of 2006. However, a number of evictions in the third quarter, due to non-payment of rent, resulted in a decrease in occupancy and a decline in cash flow. The average 2006 occupancy was 79%, compared to 74% in 2005 and the first quarter 2007 average occupancy was 76%. The mortgage payments, taxes, insurance, and accounts payable are current. The original mortgage for this property matured in December 2004. The operating general partner was able to refinance the mortgage with a four-year loan, which requires monthly interest payments only, in the first two years.

In April 2005, the special limited partner of the Operating Partnership agreed, on behalf of the limited partners of the Operating Partnership, that the investment general partner would supplement 25% of the operating general partner’s operating deficit fundings by advancing the necessary funds at quarterly intervals, provided these advances would not exceed an aggregate of $25,000. As of the fourth quarter 2006, the investment general partner has advanced $25,000 to the Operating Partnership under the April 2005 agreement and has fulfilled its operating advance obligation per this agreement. Prior to the April 2005 agreement, the investment general partner had funded $107,076. The total funding to date from the investment general partner is $132,076. The property’s 15-year LIHTC Compliance Period expired on December 31, 2006. In May 2007, the operating general partner received an offer from an unrelated third party to purchase School Street Apts. I. A purchase and sale agreement has not yet been executed; however, the sale is anticipated to close in the second or third quarter of 2007.

Beckwood Manor Eight Limited Partnership (Lakeside Apartments) is a 32-unit, senior property, located in Lake Village, Arkansas. Occupancy through the first quarter for 2007 was 74%. The property was unable to breakeven in 2006. The low occupancy is due to a lack of qualified residents in the Lake Village area. To increase rental traffic to the property, the management company continues to advertise heavily in surrounding area newspapers. The mortgage payments, taxes, insurance, and accounts payables are current.

Livingston Plaza, Limited (Livingston Plaza) is a 24-unit, family property located in Livingston, Texas. Average occupancy declined from 87% in 2005 to 75% in 2006. In the first quarter 2007, physical occupancy continues to decline and as of March 2007, this property was operating with 63% physical occupancy. The significant decline in occupancy is due to the fact that in early January the property started experiencing security issues, such as violent behavior and vandalism, which stem from some of the newer residents. As a result of security issues, the site manger has expressed concerns for her safety while working at the property and was considering resigning. To address these issues, the management hired a full time security person and evicted the problem residents. As a result, the reputation of the property is gradually improving. Despite the decline in occupancy level, the property continues to

34

operate above breakeven. This is in large part due to significant reductions in maintenance expenses. The site manager decreased maintenance expenses by hiring a resident to do maintenance work at the property instead of hiring a contractor. To increase the occupancy, the management is continuously working with local Section 8 representatives and developing relationships with local churches and community centers. The mortgage payments, taxes, insurance, and accounts payables are current. The operating general partner guarantee is unlimited in time and amount.

Osage Housing Associates Limited Partnership (Spring Creek Apartments II) is a 50-unit family property located in Derby, Kansas, a suburb of Wichita. The property operated with a deficit of approximately $25,000 in 2005 despite an average occupancy of 92%. The operating general partner appealed the real estate taxes in 2006 and was able to secure a 50% real estate tax reduction. The reduction in real estate taxes was helpful as was the increase to 95% occupancy in 2006, but due to high operating expenses the property operated with a deficit of $8,211. In the first quarter of 2007 occupancy averaged 92% but the property continued to operate at a deficit. Management has recently increased marketing efforts in order to increase occupancy and is diligently working to control turnover and operating expenses in an effort to reach breakeven status by end of the second quarter of 2007. The operating general partner funded operating deficits in 2006 despite an expired guarantee and has stated that they will continue to fund any deficits if applicable. The mortgage payments, taxes, and insurance are current. The compliance period for this property ended in December 2006.

Greentree Apartments Limited, (Sue-Ellen Apartments) is a 24-unit family property in Utica, OH. In 2005 the property had an occupancy rate of 75% and had a loss of cash in the amount of ($3,816). Average occupancy in 2006 remained at 75%, with 2006 fourth quarter occupancy of 76%. In January, 2006, the management agent terminated their contract and was replaced with a new agent who has been working to resolve the vacancy problem by preparing all vacant units to be market ready and networking with local businesses for income qualified applicants. The first quarter financial information for 2007 has been unattainable primarily due to the passing of the operating general partner, on April 23, 2007. The operating general partner’s son is believed to be assuming his father’s duties. The investment general partner will continue to contact the operating general partner and managing agent to obtain income and financial reports. The operating general partner continues to fund deficiencies despite an expired guarantee. The compliance period for this property ends in 2009.

In October 2004, while attempting to capitalize on the strong California real estate market, the operating general partner of California Investors VII (Summit Ridge Apartments/Longhorn Pavilion) entered into an agreement to sell the property and the transaction closed in the first quarter of 2005. As part of the purchase agreement, the buyer is required to maintain the property as affordable housing through the end of the tax credit compliance period, and to provide a recapture bond to avoid the recapture of the tax credits that have been taken. The proceeds to the investment limited partner received in the first quarter 2005 are $919,920, $312,959, $1,459,511, and $1,346,025, for Boston Capital Tax Credit Fund II-Series 12 and Series 14 (BCTC II) and Series 15 and Series 17 of the Fund, respectively. Of the total received, $211,638 is for payment of outstanding reporting fees due to an affiliate of the investment partnership, $183,283 is a reimbursement of funds previously advanced to the Operating Partnership by affiliates of the investment partnership and $3,643,494 is the estimated proceeds from the sale of the investment limited partners’ interests. Of the proceeds, $612,758, $206,285, $940,482, and $865,445, for Series 12, Series 14, Series 15, and Series 17, respectively, are estimated to be distributed to the investors, or used to pay

35

non-resident tax withholdings requirements of the State of California. This represents a per BAC distribution of $.206, $.037, $.243, and $.173, for Series 12, Series 14, Series 15, and Series 17, respectively. Of the remaining proceeds, $643,691 were paid to BCAMLP for fees and expenses related to the sale and partial reimbursement for amounts owed to affiliates. The breakdown of amounts paid to BCAMLP is as follows: $51,250 represents the reimbursement of overhead and expenses incurred for overseeing and managing the disposition of the property; $88,274 represents a reimbursement of estimated expenses incurred in connection with the disposition; and $504,167 represents a partial payment of outstanding asset management fees due to BCAMLP. The remaining proceeds of $374,833 will be returned to cash reserves. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnerships. Losses on the sale of the property were recorded by Series 12, Series 14, Series 15 and Series 17 of $(2,113,352), $(690,791), $(3,046,179) and $(2,791,520), respectively, in the quarter ended March 31, 2005. As of December 2005 additional sales proceeds of $99,080 were received and allocated to Series 12, Series 14, Series 15 and Series 17 as follows: $23,128 to Series 12, $7,786 to Series 14, $35,500 to Series 15 and $32,666 to Series 17. These proceeds will be retained by the investment limited partner to improve their reserve balances as well. The gain/(loss) recorded represented the proceeds received by the investment limited partner, net of their remaining investment balance, unreimbursed advances to the Operating Partnership and their share of the overhead and expense reimbursement. In the prior year, March 31, 2006, $11,964, $4,028, $18,362 and $16,897 for Series 12, Series 14, Series 15 and Series 17, respectively, of the sales proceeds were refunded to BCAMLP to pay accrued asset management fees.

Wood Park Pointe, RRH, Limited (Wood Park Pointe) is located in Arcadia, Florida. The property was hit by multiple hurricanes in the late fall of 2004 resulting in the total loss of habitability to all 37 residential units. Rural Development is requiring that the project be rebuilt. The operating general partner received insurance proceeds for reconstruction in January 2005. The proceeds were less than the anticipated rebuilding costs; however, the operating general partner has secured increased rental amounts per Rural Development so that the property can sustain additional debt. A contractor has been selected to rebuild the property. The anticipated construction start date was slated for October 2006, but has been delayed since negotiations with Rural Development regarding costs had not yet been finalized. The operating general partner received approval for the construction budget in the first quarter of 2007 and construction commenced immediately following. At the end of the first quarter of 2007 the project was approximately 30% complete with construction scheduled to finish in the early Fall of 2007.

The investment general partner entered into an agreement with the operating general partner for the transfer of the investment limited partner’s interest. The operating general partner will assume the outstanding mortgage balance of $1,136,402 and the additional debt for the construction of the property and cash proceeds to the investment general partner of $37,000. The sale is expected to occur in the first quarter of 2008. Of the anticipated proceeds to be received, it is anticipated that $7,500 will be paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $29,500 will be returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment limited partnership. After all outstanding obligation of the investment limited partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution.

36

Lake View Associates (Lake View Green Apartments) is a 24-unit property located in Lake View, SC. Low occupancy, due to a lack of rental assistance, has hindered this property’s performance. Occupancy, which averaged 79% in 2005, improved to 83% in 2006. Occupancy improved during the first quarter of 2007, briefly rising to 96% before decreasing to 88% at the end of the quarter. Management continues to have difficulty finding residents that are able to pay the rental rates necessary to sustain the property. Due to federal and state cutbacks, residents are not receiving the rental assistance payments that were expected when the property was originally underwritten. Current operating expense levels are in line with the state average and the property continues to operate below breakeven. The mortgage, taxes, insurance and payables are current. The compliance period for the property ends in 2007. The operating general partner’s obligation to fund operating deficits is unlimited in time and amount.

Buena Vista Apartments, Phase II (Buena Vista Apartments) is a 44-unit property located in Union, SC. Industrial decline in the area has led to a dwindling population base from which to draw qualified residents. The property has had trouble competing with properties that receive rental assistance, but was able to increase average occupancy to 93% in 2006. Through the first quarter of 2007, occupancy remains about 90%. Mortgage, taxes, insurance and payables to non-related entities are current. The operating general partner’s guarantee is unlimited in time and amount. The compliance period for this property ends in 2007.

Sioux Falls Housing Association One, LP (Country Meadows II) is a 55-unit property located in Sioux Falls, SD. In 2006 occupancy levels averaged 94% for the year. At the end of the first quarter of 2007, occupancy was 100%. Previous cash flow deficits were the result of lower occupancy levels of 83% in 2004 and 76% in 2005. The 2006 audited financial statement reported the property operated at above breakeven. The development’s compliance period ended in December 2006.

In December 2006, Series 15 exercised an option to transfer its interest in Oakwood Village, Limited to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $1,078,022 and cash proceeds to the investment limited partner of $43,121. The transaction closed in January 2007. Of the proceeds received, $7,000 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds of $36,121 were returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment limited partnership. After all outstanding obligations of the investment limited partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership’s investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $36,121 as of March 31, 2007.

In December 2006, Series 15 exercised an option to transfer its interest in Wauchula Limited to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $1,437,943 and cash proceeds to the investment limited partner of $57,518. The transaction closed in January 2007. Of the proceeds received, $7,000 was paid to BCAMLP for expenses related

37

to the sale, which includes third party legal costs. The remaining proceeds of $50,518 were returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment limited partnership. After all outstanding obligations of the investment limited partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership’s investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $50,518 as of March 31, 2007.

In January 2007, the Operating General Partner of Coralville Housing Associates entered into an agreement to sell the property and the transaction closed on March 1, 2007. Cash proceeds to the investment limited partner were $1,189,874. Of the proceeds received, $7,500 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs and $20,000 was payment of outstanding asset management fees due to an affiliate of the investment limited partnership. The remaining proceeds from the sale of $1,162,374 were returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment limited partnership. After all outstanding obligations of the investment limited partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $1,162,374 as of March 31, 2007.

(Series 16). As of March 31, 2007 and 2006, the average Qualified Occupancy for the series was 100%. The series had a total of 61 properties at March 31, 2007, all of which were at 100% Qualified Occupancy.

For the tax years ended December 31, 2006 and 2005, the series, in total, generated $3,240,345 and $2,986,452, respectively, in passive income tax losses that were passed through to the investors and also provided $0.00 and $0.02, respectively, in tax credits per BAC to the investors. Series 16 experienced a decrease in the tax credits generated per BAC from calendar year 2005 to 2006. The Operating Partnerships were allocated tax credits for 10 years. Based on each Operating Partnership’s lease-up, the total credits could be spread over as many as 13 years. In cases where the actual number of years is more than 10, the credits delivered in the early and later years will be less than the maximum allowable per year. The decrease in credits from calendar year 2005 to 2006 results from the fact some of the Operating Partnerships have entered their final years of credit. The decrease in tax credits generated per BAC is expected to continue until all credits have been realized and tax credits generated per BAC will be reduced to zero.

As of March 31, 2007 and 2006, Investments in Operating Partnerships for Series 16 was $1,126,865 and $1,974,221, respectively. Investments in Operating Partnerships was affected by the way the Fund accounts for these

38

investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the years ended December 31, 2006 and 2005, Series 16 reflects net loss from Operating Partnerships of $(4,739,128) and $(2,724,758), respectively, which includes depreciation and amortization of $4,072,542 and $4,195,283, respectively.

For the years ended March 31, 2007, 2006, and 2005, the net loss for series 16 was $1,501,940, $3,277,786, and $7,557,628, respectively. The major components of these amounts are the Fund’s share of income (losses) from Operating Partnership and the fund management fee.

Cass Partners, LP (The Fitzgerald Building) is a 20-unit apartment building located in Plattsmouth, NE. This property continues to operate below breakeven due to low occupancy. The first quarter 2007 physical occupancy averaged 32%. Due to the lack of cash flow, management has not been able to make ready the vacant apartments, which are in need of general maintenance and repairs, as well as updates to kitchen appliances. Also affecting the marketing of the property is its downtown location, lack of parking and amenities such as washer/dryer hook-ups. The operating general partner has taken the property management in-house with the objective of reducing operating expenses. In 2006 operating expenses decreased 28% mostly in administrative and maintenance expenses. The taxes and insurance are current through December 2006 and although the mortgage was two months delinquent in 2006, the operating general partner has funded the debt payments to bring the mortgage current. Despite an expired operating deficit guaranty, the operating general partner has continued to fund operating deficits. However, the operating general partner has indicated that it will not be able to continue to fund deficits going forward. In addition, the mortgage term is set to mature in June 2007 and the lender has stated that it will not refinance the debt at that time. The investment general partner has analyzed the potential costs and benefits of maintaining the property through the 2008 compliance period and concluded that the cost of supporting the property’s operations through the end of the compliance period is most likely to be extremely high. Avoiding tax credit recapture does not appear to justify the amount of the required investment. As a result, the operating general partner anticipates a consensual transfer of the property to the lender in the second quarter of 2007.

Clymer Park Associates Limited Partnership (Clymer Park Apartments) located in Clymer, Pennsylvania is a 32-unit elderly development. The 2006 audited financial statement indicates operations above breakeven due to improvements in occupancy. As of March 31, 2007 average occupancy at the property was 97%. The management company currently maintains a significant waiting list of pre-qualified tenants waiting for rental assistance. The operating general partner continues to monitor the Operating Partnership.

The operating general partner of Mariner’s Pointe Limited Partnership I and Mariner’s Pointe Limited Partnership II entered into an agreement to sell the Mariner’s Pointe I & II. The transaction closed in March 2006. As part of the purchase agreement, the buyer is required to maintain the property as affordable housing through the end of the tax credit compliance period, and to provide a recapture bond to avoid the recapture of the tax credits that have been taken. The sales price for Mariner’s Pointe I & II was $4,587,705, which includes outstanding mortgage balances of approximately $3,998,707 and proceeds to the investment limited partnership of $264,924. Of the total investment limited partnership proceeds received, $110,860 represents a reimbursement of funds previously advanced to the Operating Partnership by the

39

investment limited partnership, $52,500 represents payment of outstanding reporting fees due to an affiliate of the investment limited partnership and approximately $14,501 is for third party legal costs. Proceeds from the sale of $87,063 will be returned to cash reserves held by Series 16. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment limited partnership. After all outstanding obligations of the investment limited partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Losses on the sale of the property were recorded by Series 16 of $(108,072), in the quarter ended March 31, 2006. The loss recorded represents the proceeds received by the investment limited partner, net of their remaining investment balance. Accordingly, a loss on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, has been recorded in the amount of ($23,530) as of March 31, 2006. At the time of the sale, the operating general partners retained some funds in an account in the name of the Operating Partnership to cover costs that would be incurred in the process of dissolving the Operating Partnership entity. These funds were not fully utilized and the investment limited partnership share of the remaining funds was paid in June 2006. Accordingly, a gain was recorded for the total additional proceeds received in the amount of $2,521 as of June 30, 2006.

Summersville Estates (Summersville Estates Limited Partnership) is a 24–unit property located in Summersville, Missouri. The average occupancy for 2006 was 81%. The low occupancy is largely due to a lack of rental assistance on four units. The rent on these four units is more than the cost to rent many of the single family homes in the area. Management has been in regular contact with the local housing authority to bring applicants with mobile vouchers to the property and is also trying to get rental incentives approved. The property manager, who also performs maintenance, has concentrated on getting vacant units rent-ready in a timely manner and improving the curb appeal of the property. As a result, occupancy through the first quarter of 2007 improved to 83%. The investment general partner will continue to work with management on getting the vacant units leased and monitor operations closely until they have stabilized. The mortgage, taxes and insurance are all current.

Croix Commons Limited Partnership (St. Croix Commons Apartments) is a 40-unit, family property located in Woodville, Wisconsin. The property operated with an average occupancy of 80% for the year 2006. Based on the most recent information received, occupancy through March 2007 has been consistent with prior year average at 82%. Operating expenses continue to stay below the state average. Because of the high vacancy rate and the low rental rates in the area, the property did not achieve breakeven operations through the first quarter 2007. The management agent continues to market the available units by working closely with the local housing authority and continues various marketing efforts to attract qualified residents. The operating general partner continues to financially support the Operating Partnership. The mortgage, taxes, insurance and payables are current.

1413 Leavenworth Historic, L.P. (Lofts By The Market Apartments) is a 60-unit historic development located on the fringe of the historic warehouse district in downtown Omaha, Nebraska. The property operated with positive cash flow through 1999, although unresolved tax credit compliance issues accumulated, including the receipt of 8823s. Since 2000, ineffective management and the cost of repairing deferred maintenance items in 2002 resulted in the property operating with a substantial negative cash flow. The original developer/general partner is still in place and continues to fund the

40

operating deficits. Over the past seven years, there have been four different management companies retained to manage the property. This inconsistency contributed to the cash flow and compliance problems at the property. On June 1, 2003, management of the property was transferred to Fieldcrest Management. Fieldcrest is an entity related to the operating general partner that was formed to take over the management of the operating general partner’s assets. The operating general partner’s close relationship with the managing agent has encouraged him to provide the resources and cooperation necessary to assure the management company’s success in operating the property effectively. The management company has implemented expense controls and has worked to decrease payables. Occupancy has remained above 90% since 2005 and the first quarter 2007 average occupancy was 95%. The 2006-year to date occupancy was 90%. The property refinanced the debt at the beginning of September 2005 and paid down some payables from the proceeds of the refinance. The first quarter 2007 unaudited financial statements show that the property expended cash in January 2007; however, the property made the annual real estate tax payment in that month. Based on the other two months of the first quarter, the property is operating well. Current tenant files have been audited for tax compliance standards and management has found no violations. Prior year 8823s continue to be reviewed to determine if issues can still be addressed. The investment general partner will continue to monitor occupancy and cash flow.

Sable Chase of McDonough L.P (Sable Chase) is a 225-unit property located in McDonough, GA. Occupancy fell to 56% in the fourth quarter of 2006, and has held at that level through the first quarter of 2007. After extensive storm damage in 2005-2006, the investment general partner approved substantial roof repairs funded from replacement reserves and insurance proceeds. In August 2006, a new site manager raised rents during renovations. The rent increase and disruption from construction work, coupled with increased drug activity, caused residents to move out. After a drug enforcement sweep and subsequent evictions of 13 families, the original rents were reinstated and a new leasing staff was hired. In a site visit to the property in April 2007 the investment general partner noted that curb appeal has improved, applicant traffic has increased, and 25 move-ins are scheduled in early May 2007. All insurance, real estate taxes and mortgage payments are current. The operating general partner’s guarantee is unlimited in time and amount, with the compliance period for this property ending in 2008.

Meadows of Southgate LDHA, is an 83 unit property located in Southgate, MI. In 2005, the property suffered the effect of several new communities opening in the area, all offering lower rents with heavy concessions. Average occupancy through the fourth quarter 2006 was 83%. In the first quarter 2007, average physical occupancy increased to 91%. The newly hired site manager is actively marketing the community in the surrounding areas and as a result more prospective residents are visiting the property. Because of the low occupancy the property is operating with a slight deficit. Since the property is positioned in a convenient location, the management anticipates that the physical occupancy will stabilize by the second quarter 2007 and the property will be able to breakeven. The operating general partner continues to fund any operating deficits. The mortgage, taxes, and insurance are current.

In December 2006, Series 16 transferred its investment limited partner interest and its general partner interest in Riviera Apartments, Limited to an entity related to the remaining operating general partner for its assumption of the outstanding mortgage balance and cash proceeds of $25,000 to the general partner and $25,000 to the investment limited partner. As part of the purchase agreement, the remaining operating general partner is required to maintain the property as affordable housing through the end of the tax credit compliance period, and to provide a recapture bond to avoid the recapture of

41

the tax credits that have been taken. Of the proceeds received, $5,000 represented reporting fees due to an affiliate of the investment limited partnership and the balance represented proceeds from the sale. Of the proceeds received, $7,500 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds of $12,500 were returned to cash reserves held by Series 16. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment limited partnership. After all outstanding obligations of the investment limited partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership’s investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $12,500 as of December 31, 2006. The sale of the Operating Partnership has been recognized as of December 31, 2006, but the sale proceeds were received in the first quarter of 2007.

(Series 17). As of March 31, 2007 and 2006, the average Qualified Occupancy for the Series was 100%. The series had a total of 47 properties at March 31, 2007, all of which were at 100% Qualified Occupancy.

For the tax years ended December 31, 2006 and 2005, the series, in total, generated $2,772,035 and $1,752,116, respectively, in passive income tax losses that were passed through to the investors and also provided $0.00 and $0.05, respectively, in tax credits per BAC to the investors. Series 17 experienced a decrease in the tax credits generated per BAC from calendar year 2005 to 2006. The Operating Partnerships were allocated tax credits for 10 years. Based on each Operating Partnership’s lease-up, the total credits could be spread over as many as 13 years. In cases where the actual number of years is more than 10, the credits delivered in the early and later years will be less than the maximum allowable per year. The decrease in credits from calendar year 2005 to 2006 results from the fact some of the Operating Partnerships have entered their final years of credit. The decrease in tax credits generated per BAC is expected to continue until all credits have been realized and tax credits generated per BAC will be reduced to zero.

As of March 31, 2007 and 2006, Investments in Operating Partnerships for Series 17 was $1,286,994 and $1,915,188, respectively. Investments in Operating Partnerships was affected by the way the Fund accounts for these investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the years ended December 31, 2006 and 2005, Series 17 reflects net loss from Operating Partnerships of $(2,821,856) and $(3,085,058), respectively, which includes depreciation and amortization of $4,007,790 and $3,984,108, respectively. The significant increase in net loss in the current year was due to the prior year sale of one Operating Partnership, which is discussed below.

For the years ended March 31, 2007, 2006, and 2005, the net loss for series 17 was $1,182,692, $4,861,581, and $7,393,334, respectively. The major components of these amounts are the Fund’s share of income (losses) from Operating Partnership and the fund management fee. The variances in net income

42

is due to the income (losses) recorded from the dispositions of Operating Partnerships in the prior year.

In an attempt to capitalize on the strong California real estate market, the operating general partner of California Investors VI (Orchard Park) entered into an agreement to sell the property and the transaction closed in June 2003. As part of the purchase agreement, the buyer is required to maintain the property as affordable housing through the end of the tax credit compliance period, and to provide a recapture bond to avoid the recapture of the tax credits that have been taken. Sale proceeds due to Boston Capital Tax Credit Fund I-Series 3 and the Fund’s Series 17, after repayment of advances made to the Operating Partnership, were $453,144 and $31,790, respectively. Of the proceeds received, $352,768 and $24,748, for Series 3 and Series 17, respectively, was distributed to the investors in July 2004. This represented a per BAC distribution of $.122 and $.005 for Series 3 and 17, respectively. The total returned to the investors was distributed based on the number of BACs held by each investor at the time of the sale. The amounts for each series, while different in actual dollars, represent the same percentage of return to each investment limited partnership. The remaining proceeds total of $107,418 was paid to BCAMLP for fees and expenses related to the sale, and partial reimbursement of amounts payable to affiliates. The breakdown of the amount paid to BCAMLP is as follows: $10,000 represents reimbursement of expenses incurred related to sale, which includes due diligence, legal and mailing costs; $50,000 represents the reimbursement of overhead and expenses incurred for overseeing and managing the disposition of the property; and $47,418 represents a partial payment of accrued asset management fees. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnerships’ investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero for Series 3 and $28,682 for Series 17. Accordingly, gains on the sale of the property were recorded as of March 31 2004 by Series 3 and Series 17 of $406,422 and $3,108, respectively. The gains recorded represented the proceeds received by the investment limited partnership, net of their remaining investment balance and their share of the overhead and expense reimbursement. In the prior year ended, March 31, 2006, $46,722 and $3,278 for Series 3 and Series 17, respectively, of the sales proceeds were refunded to BCAMLP to pay accrued asset management fees.

Midland Housing LP (Stratford Place Apartments) is a 53-unit, family/elderly property, located in Midland, MI. The average occupancy for this property has steadily increased over the past three years. In 2005 the property was 84% occupied but improved to average 90% in 2006. Further, as of the first quarter 2007 the property was 94% leased. The operating general partner feels the property will be 100% occupied by June 2007 and the property will then operate above breakeven. The mortgage, real estate taxes and insurance are current.

Green Acres Limited Partnership (Green Acres Estates) is a 48 unit (20 Low-Income Housing Tax Credit units) family property located in West Bath, ME. The final year of tax credits was 2004 and the (LIHTC) compliance period runs through 2008. Occupancy levels diminished to 93% in 2005 and 92% in 2006, resulting in decreased rental income and increased accounts payable. In 2006 bad debt expense decreased 96% due to management’s efforts to more thoroughly screen qualified applicants. The unaudited financial reports indicate that the property is operating below breakeven in 2006 despite the reduced expenses. The first quarter of 2007 ended with 88% occupancy and cash deficit of approximately $7,797. The investment limited partner has requested a work out plan from the operating general partner and its affiliated management company

43

which will provide strategies for improving occupancy and controlling expenditures. Discussions have ensued regarding a request for a rent increase from the local housing authority. All taxes, insurance, and mortgage payments are current. The operating general partner’s obligation to fund operating deficits is unlimited in time and amount.

Palmetto Properties Ltd. (Palmetto Villas) is a 49-unit property located in Palmetto, Florida. The property has historically suffered from low occupancy, high operating expenses, and deferred maintenance issues. Lack of cash flow is also responsible for the reserves being under-funded, from the re-amortization of the debt, and successive rent increases in 2006 and 2007, the Operating Partnership operated above breakeven in 2006, and through the first quarter of 2007. The operating general partner has executed documents to withdraw from the Operating Partnership and admit an affiliate of the management company as the new operating general partner. Rural Development approved the operating general partner transfer in October 2006. In conjunction with the re-amortization of the debt, Rural Development restated the reserve account to bring its status to current during the first quarter of 2007. Operations have improved significantly, and the operating general partner transfer has been approved.

Aspen Ridge Apartments, L.P. (Aspen Ridge Apartments) is a 42-unit development located in Omaha, Nebraska. The property operated with positive cash flow through 1999, although unresolved tax credit compliance issues accumulated, including the receipt of 8823s. Since 2000, ineffective management and the cost of repairing deferred maintenance items in 2002 resulted in the property operating with a substantial negative cash flow. The original general partner is still in place and continues to fund the operating deficits. Over the past seven years, there have been four different management companies retained to manage the property. This inconsistency contributed to the cash flow and compliance problems at the property. On June 1, 2003, management of the property was transferred to Fieldcrest Management. Fieldcrest is an entity related to the operating general partner that was formed to take over the management of the operating general partner’s assets. The operating general partner’s close relationship with the managing agent has encouraged him to provide the resources and cooperation necessary to assure the management company’s success in operating the property effectively. The management company has implemented expense controls and has worked to decrease payables. Occupancy has remained above 90% since 2005 and the first quarter 2007 average occupancy was 97%. The property also refinanced the debt at the beginning of September 2005 and was able to pay some expenses from the proceeds of the refinance. The first quarter 2007 unaudited financial statements show that the property expended cash in January 2007; however, the property made the annual real estate tax payment in that month. Based on the other two months of the first quarter, the property is operating well. Current tenant files have been audited for tax compliance standards and management has found no violations. Past 8823s are being reviewed to determine if any corrections can be made. The investment general partner will continue to monitor occupancy and cash flow closely through monthly reports.

In October 2004, while attempting to capitalize on the strong California real estate market, the operating general partner of California Investors VII (Summit Ridge Apartments/Longhorn Pavilion) entered into an agreement to sell the property and the transaction closed in the first quarter of 2005. As part of the purchase agreement, the buyer is required to maintain the property as affordable housing through the end of the tax credit compliance period, and to provide a recapture bond to avoid the recapture of the tax credits that have been taken. The proceeds to the investment limited partner received in the first quarter 2005 are $919,920, $312,959, $1,459,511, and $1,346,025, for

44

Boston Capital Tax Credit Fund II-Series 12 and Series 14 and the Fund’s Series 15 and Series 17, respectively. Of the total received, $211,638 is for payment of outstanding reporting fees due to an affiliate of the investment partnership, $183,283 is a reimbursement of funds previously advanced to the Operating Partnership by affiliates of the investment partnership and $3,643,494 is the estimated proceeds from the sale of the investment limited partners’ interests. Of the proceeds, $612,758, $206,285, $940,482, and $865,445, for Series 12, Series 14, Series 15, and Series 17, respectively, are estimated to be distributed to the investors, or used to pay non-resident tax withholdings requirements of the State of California. This represents a per BAC distribution of $.206, $.037, $.243, and $.173, for Series 12, Series 14, Series 15, and Series 17, respectively. Of the remaining proceeds, $643,691 were paid to BCAMLP for fees and expenses related to the sale and partial reimbursement for amounts owed to affiliates. The breakdown of amounts paid to BCAMLP is as follows: $51,250 represents the reimbursement of overhead and expenses incurred for overseeing and managing the disposition of the property; $88,274 represents a reimbursement of estimated expenses incurred in connection with the disposition; and $504,167 represents a partial payment of outstanding asset management fees due to BCAMLP. The remaining proceeds of $374,833 will be returned to cash reserves. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnerships. Losses on the sale of the property were recorded by Series 12, Series 14, Series 15 and Series 17 of $(2,113,352), $(690,791), $(3,046,179) and $(2,791,520), respectively, in the quarter ended March 31, 2005. As of December 2005 additional sales proceeds of $99,080 were received and allocated to Series 12, Series 14, Series 15 and Series 17 as follows: $23,128 to Series 12, $7,786 to Series 14, $35,500 to Series 15 and $32,666 to Series 17. These proceeds will be retained by the investment limited partner to improve their reserve balances as well. The gain/(loss) recorded represented the proceeds received by the investment limited partner, net of their remaining investment balance, unreimbursed advances to the Operating Partnership and their share of the overhead and expense reimbursement. In the prior year, March 31, 2006, $11,964, $4,028, $18,362 and $16,897 for Series 12, Series 14, Series 15 and Series 17, respectively, of the sales proceeds were refunded to BCAMLP to pay accrued asset management fees.

Shawnee Housing Associates Limited Partnership (Villa West South V) is a 52-unit development located in Topeka, KS. The management company is an affiliate of the operating general partner. In 2005 the property operated with an average occupancy of 90% and experienced an operating deficit of approximately $31,000. In 2006 occupancy improved slightly to 93%, yet expenses continued to increase. The increase in expenses is largely due to increases in administrative and maintenance costs. Management implemented several evictions of undesirable residents and incurred higher than normal maintenance costs due to turnover work. In the first quarter of 2007, occupancy increased to 97% and the property continues to operate at a deficit. The on-site manager reports occupancy levels have stabilized and without heavy turnover and screening requirements the property will be able to operate within the projected budget. The development’s compliance period ends in December 2007. The operating general partner continues to fund deficits despite an expired guarantee. The mortgage, taxes and insurance payments are all current.

Henson Creek Manor Associates Limited Partnership (Henson Creek Manor) is a 105-unit development located in Fort Washington, MD. In December of 2004 a resident of the complex reported mold in windows of the unit. Inspection Connection was hired to inspect the unit in January 2005. Their report confirmed high humidity levels and the presence of mold in 3 units. Work orders were prepared for the maintenance staff to address moisture

45

condensation and re-caulk the windows in those units. The steps the maintenance staff took did not fully resolve the issue and a contractor was hired in October 2005 to install a pump system that would reduce the excess humidity in the units in an effort to stop mold growth. On October 20, 2005 while the contractor was cutting into the floor to install the pump system, the steel beams that support the units were cut causing structural issues to the units. There were no injuries stemming from the collapse and the contractor’s insurance company is covering the cost of repair. An engineering company that deals with structural damage and mold remediation was hired in mid-March 2006. It took management several months to find a company that deals with both issues. The work to the units has been completed. All units were occupied by the end of January 2007, as all physical issues have been resolved.

Brewer Street Apartments LP (West Oaks Apartments) is a 50 unit family development located in Raleigh, NC. The property operated at a small deficit in 2005 due to insufficient rental rates and high operating expenses. In 2006, the Operating Partnership was able to operate above breakeven as a result of a small rent increase and a reduction in operating expenses. In the first quarter of 2007 a rehabilitation of the property which began in 2006 was completed, helping the property to become more competitive in its market. Through March of 2007, average occupancy remained just below 100% and the property was able to generate cash. Reduced maintenance expenses and continued high occupancy following this rehabilitation are expected to allow Operating Partnership operations to remain above breakeven. All real estate tax, insurance and mortgage payments remain current. The operating general partner’s obligation to fund operating deficits is unlimited in time and amount.

In December 2006, BCTC Fund II – Series 14, the Fund’s Series 17 and Boston Capital Tax Credit Fund IV – Series 20 transferred 33% of their interest in College Greene Rental Associates Limited Partnership to entities affiliated with the operating general partners for their assumption of one third of the outstanding mortgage balance. The cash proceeds received by Series 14, Series 17, and Series 20 were $25,740, $7,920, and $65,340, respectively. Of the proceeds received, $1,950, $799, and $4,951 for Series 14, Series 17, and Series 20, respectively, was paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds received by Series 14, Series 17, and Series 20 of $23,790, $7,320 and $60,390, respectively, were applied against the investment general partner’s investment in the operating partnership in accordance with the equity method of accounting. The remaining 67% investment limited partner interest is anticipated to be transferred as follows: 50% in January 2010 for $150,000 and 17% in February 2011 for $51,000. The future proceeds will be allocated to the investment limited partnerships based on their original equity investments in the operating partnership.

(Series 18). As of March 31, 2007 and 2006, the average Qualified Occupancy for the series was 100%. The series had a total of 34 properties at March 31, 2007, all of which were at 100% Qualified Occupancy.

For the tax years ended December 31, 2006 and 2005, the series, in total, generated $1,676,052 and $2,194,674, respectively, in passive income tax losses that were passed through to the investors and also provided $0.00 and $0.19, respectively, in tax credits per BAC to the investors. Series 17 experienced a decrease in the tax credits generated per BAC from calendar year 2005 to 2006. The Operating Partnerships were allocated tax credits for 10 years. Based on each Operating Partnership’s lease-up, the total credits

46

could be spread over as many as 13 years. In cases where the actual number of years is more than 10, the credits delivered in the early and later years will be less than the maximum allowable per year. The decrease in credits from calendar year 2005 to 2006 results from the fact some of the Operating Partnerships have entered their final years of credit. The decrease in tax credits generated per BAC is expected to continue until all credits have been realized and tax credits generated per BAC will be reduced to zero.

As of March 31, 2007 and 2006, Investments in Operating Partnerships for Series 18 was $92,946 and $726,046, respectively. Investments in Operating Partnerships were affected by the way the Fund accounts for these investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the years ended December 31, 2006 and 2005, Series 18 reflects net loss from Operating Partnerships of $(2,655,109) and $(2,270,257), respectively, which includes depreciation and amortization of $2,677,955 and $2,660,275, respectively.

For the years ended March 31, 2007, 2006, and 2005, the net loss for series 18 was $1,009,403, $1,710,872, and $6,339,698, respectively. The major components of these amounts are the Fund’s share of income (losses) from Operating Partnership and the fund management fee.

Leesville Elderly Apartments LP (Leesville Elderly Apartments) is a 54-unit property located in Leesville, Louisiana. According to the 2006 audited financials, despite high occupancy, the property operated poorly and expended substantial cash due to insufficient rental rates and high administrative and maintenance expenses. Additionally, the reserve account was significantly underfunded. During the first quarter of 2007, average occupancy was 91%. The investment limited partner will continue to work with the operating general partner to monitor the occupancy and operations. All tax, mortgage, and insurance payments are current.

Natchitoches Elderly Apartments LP (Natchitoches Seniors Apartments) is a 32- unit property located in Natchitoches, Louisiana. According to the 2006 audited financials, the property operated below breakeven and expended significant cash due to rental rates and high maintenance and utility expenses. Most of the increased expenses were due to the costs associated with hurricane repairs that were paid for out of operations, as no insurance proceeds were received. During the first quarter of 2007, occupancy at the property increased 1% and remains strong at 97%; however, the Operating Partnership would benefit from a rental increase which management is working on. The investment limited partner will continue to monitor the property’s occupancy and operations, as well as assist management in determining how to keep expenses below state average in an effort to breakeven. All tax, mortgage, and insurance payments are current.

Westminster Meadow L.D.H.A. LP (Westminster Meadow Apartments) is a 64-unit (63 LIHTC, 1 Market) property located in Grand Rapids, MI. In 2005, physical occupancy averaged 83%. In 2006, average physical occupancy declined to 75% with December occupancy of 75%. The market in Grand Rapids, MI has been soft since the beginning of 2004. The operating general partner’s management company, First Centrum Management, took over the property management in February of 2006. In May 2006, First Centrum Management formed a new business plan to increase occupancy and stabilize operations. Primary focus of the plan was networking with local and civic community groups and consistently working to promote the increased residential referral fees. Management also started to

47

run move-in specials including both reduced and free rent for specific apartment types. However, occupancy has been slow to recover due to some employee turnover at the property. In the beginning of the fourth quarter 2006, a new site manager was hired. Since the new site manager stepped in, occupancy has been gradually increasing. In the first quarter 2007, average physical occupancy increased to 85% and as of March the property was 92% occupied. The management is optimistic that once property’s occupancy stabilizes at 93%, the property will be able to breakeven. The mortgage, taxes, insurance and payables are current. The operating general partner continues to fund all operating deficits.

Glen Place Apartments (Glen Place Apartments)is a 35-unit family development located in Duluth, MN. The property operated with an average occupancy of 94% through 2006. Based on the most recent information received, occupancy through March 2007 has been consistent with the prior year average at 93%. The operating expenses continue to stay below the state average. Despite the strong occupancy level, the low rental rates in the area prevented the property from achieving break even operations through the first quarter of 2007. The management agent continues to market the available units by working closely with the housing authority and continuing various marketing efforts to attract qualified residents. The operating general partner continues to financially support the partnership. The mortgage, taxes, insurance and payables are current.

Arch Development, LP, (Arch Apartments) is a 75-unit property located in Boston, Massachusetts, providing low-income housing to homeless, HIV positive and very low income tenants. Average occupancy through the first quarter of 2007 decreased to 84%, but the property continues to operate above break even. Although payables and accrued expenses are lower than in previous years, the balances are still high, as are tenant and subsidy receivables. As of March 31, 2007 the operating general partner has confirmed that water, sewer and real estate tax payments are current with the City of Boston. Management continues to work with the Boston Housing Authority to improve applicant processing and move-in; however, the process is still averaging more than 60 days. Additionally, the Boston Housing Authority’s certification and recertification process is very slow and results in large tenant and subsidy receivables from retroactive rent changes. Currently, the two vacant commercial spaces have not been leased. In December 2005, the commercial spaces were appraised and the resulting report showed higher revenue potential than is currently being realized. The investment general partner is closely monitoring the overall performance of this partnership and will continue to do so until operations have improved and stabilized. The operating general partner has an unlimited guarantee in time and amount.

Bear Creek of Naples (Bear Creek Apartments) is a 120-unit family development located in Naples, Florida. The management company is a related entity to the operating general partner. On September 12, 2005, Florida Housing’s monitoring agency completed an annual management review that noted the full compliance of the resident files. However, they also noted minor physical violations, which had been ongoing and resulted in the issuance of ten 8823’s rendering the entire development out of compliance. Additionally, 24 days following the annual review and prior to the completion of the repair of the minor violations, Hurricane Wilma hit the development and resulted in extensive damage. A letter dated February 28, 2006 from Florida Housing Finance Corporation stated that the property had been “granted relief” until January 17, 2007. As long as the related work is completed and inspected by that date, the 8823’s will be rescinded. Insurance proceeds and available labor were delayed through the second quarter of 2006. Hurricane-related repairs commenced in the summer of 2006 and were completed at year-end 2006,

48

before the date required by Florida Housing, effectively rescinding the previously issued 8823’s. Despite the major renovations to all ten buildings, occupancy averaged 93% throughout 2006 and the property generated substantial cash. Occupancy averaged 92% through the end of the first quarter of 2007.

Chelsea Square Development Limited Partnership (Chelsea Square Apartments) is a 6-unit property located in Chelsea, Massachusetts. The property struggled with occupancy for the first half of 2006, averaging only 83% through June. Occupancy improved in the last quarter of 2006 to 100% and as of the first quarter 2007 the property is still fully occupied. The commercial spaces are also fully occupied and the property operated above breakeven in the first quarter of 2007. The investment general partner is closely monitoring the overall performance of this Operating Partnership and will continue to do so until operations have stabilized. The property’s mortgage and property insurance are current. The operating general partner’s operating deficit guarantee is unlimited as to time and amount.

Parvin’s L.P. (Parvin’s Branch Townhouses) is a 24-unit family property located in Vineland, New Jersey. Tax credit delivery began in 1993 and continued through 2003. The property operated below breakeven in 2005, expending $26,054 of cash mostly due to high debt service. In 2006 the property continued to operate below breakeven as the average occupancy dropped from 98% in 2005 to 89% in 2006. The decline in occupancy is due to management’s difficulty in finding qualified residents for units that were set aside for the homeless. The operating general partner received preliminary approval to convert 3 of these units into section 8 housing. This should improve the occupancy and the cash flow in 2007 for the property. Expenses in 2006 increased 46%, mostly due to a management fee that was not expensed in 2005 as well as a 21% increase in maintenance. The operating general partner continues to fund operating deficits. The taxes, mortgage, and insurance are all current.

Preston Wood Associates, LP is a 62-unit property located in Bentonville, Arkansas. Average occupancy was 71% for 2006 and as a result the property operated below breakeven. Throughout 2006 problem residents were evicted and a minor rehabilitation was begun. The renovation, which consisted of $270,000 of capital improvements, was completed at the end of 2006. The improvements were funded entirely by the operating general partner. The operating general partner believes that Bentonville is a growing community and making the improvements to the property will increase occupancy and improve operations. Due to the removal of problem residents and the plans to improve the property, average occupancy levels increased in the first quarter 2007 to 94%. The investment general partner will continue to monitor occupancy and operations. The operating general partner continues to fund all operating deficits. The mortgage, accounts payable, property taxes, and insurance are all current.

Lathrop Properties, L.P. (Lathrop Properties) is a 24-unit property located in Lathrop, Missouri. Average occupancy through the first quarter of 2007 was 90% and is consistent with the second half of 2006 occupancy averages. The property operated below breakeven in 2006 due to the fluctuating occupancy throughout the year as well as the increased expense of turning over units for move-ins. Also, Rural Development no longer allows the property to withdraw funds for unit turnover costs, which has contributed to the higher maintenance costs. The property manager is currently focusing on marketing and cost-containment to continue stabilization of the property. The investment general partner will continue to monitor occupancy and operations closely until they have stabilized. The mortgage, taxes and insurance are all current.

49

Humboldt I, LP (Briarwood Apartments) is a 20-unit property located in Humboldt, IA. The property operated below breakeven in 2005 due to low occupancy and high maintenance expenses related to resident turnover. Although occupancy improved from 82% in 2005 to average 89% for 2006, the property operated below breakeven for 2006 as well. Higher than budgeted operating expenses resulting from high turnover expense hurt operations as rental income was insufficient to cover increased expenses. In order to fund this deficit, reserves were not funded to required levels. Historical and ongoing challenges cited by management include competition for one bedroom units from a neighboring senior development, past problem tenants that required eviction, difficulty attracting quality tenants, and the poor state of the local economy. Forty percent of the apartments at the property are one bedroom units and historically, these have been the most difficult to fill. Management targets seniors for one-bedroom units through outreach with various housing programs. Management relies heavily on word of mouth and the local housing authority for rental traffic but also runs an ad for the property in a free weekly reminder that is distributed throughout town. Management obtained a rental incentive of a gas card or grocery card for new tenants in the first quarter. Traffic generated by these efforts is strong but needs to be increased. Occupancy averaged 85% in the first quarter of 2007, ending March at 90%. Throughout the fourth quarter of 2006 and the first quarter of 2007, the investment general partner has been in contact with a non-profit organization, the National Affordable Housing Foundation, to transfer the operating general partner interest in this Operating Partnership. The investment limited partner was able to negotiate the transfer of the interest in a transaction which occurred on March 30, 2007. Association with this operating general partner will benefit the Operating Partnership, as they are a local presence and have a good working relationship with Rural Development, and the Iowa Finance Agency. As a condition of the transfer, the Foundation will obtain a conventional loan to fund replacement of two roofs at the property that have had problems with loose shingles. The investment general partner will work closely with the new operating general partner to monitor the replacement of the roofs and to ensure operational improvement and stabilization.

Marengo Park Apartments LP (Marengo Park Apartments) is a 24-unit property located in Marengo Park, IA. The property operated above breakeven in 2005 but a decline in occupancy that began in the fourth quarter of 2005 and dropped to 70% for 2006 resulted in an operating deficit for year end 2006. As a result of low occupancy, the property was unable to fund their September 2006 tax payment. The large decrease in occupancy was the result of a lack of oversight by management. Management had been very slow to evict problem tenants at the property. As a result, the police were called to the site frequently and over time Marengo Park developed a poor reputation. In addition, an August 2006 inspection by Rural Development showed numerous deficiencies in the nine units that were vacant at the time. Several of these units were not rent-ready. Eight of these units had been vacant for at least four months with one sitting vacant for over a year. A new site manager and maintenance technician were hired in mid-September 2006. The new site manager prioritized making all units rent-ready and, as of the end of the fourth quarter, all vacant units were ready for move-in and occupancy increased to 79%, a high for 2006. Throughout the fourth quarter of 2006 and the first quarter of 2007, the investment general partner has been in contact with a non-profit organization, the National Affordable Housing Foundation, to transfer the operating general partner interest in this Operating Partnership. The investment limited partner was able to negotiate the transfer of the interest in a transaction which occurred on March 30, 2007. Association with this operating general partner will benefit the Operating Partnership, as they are a local presence and have a good working relationship with Rural Development and the Iowa Finance Agency. As a condition of the transfer, the

50

Foundation paid the outstanding September 2006 tax bill as well as the March 2007 tax bill. Occupancy through the first quarter of 2007 averaged 79%, ending March at 83%. The tenant base is still less than desirable as a number of tenants were delinquent on their rents at the end of the quarter. Management has tenants on payment plans and plans to evict those who do not comply. Management plans to initiate a stricter tenant screening process and broaden their advertising to generate more traffic going forward. Current efforts include advertising in a local newspaper, distributing flyers, contacting local employers, and offering a gas card or grocery card to new tenants. The investment general partner will work closely with the new operating general partner to monitor the property until occupancy improves and operations stabilize.

Rio Grande Apartments, LTD (Rio Grande Apartments) is a 100-unit property located in Eagle Pass, TX. The property has experienced a drop in occupancy since September 2006. A hail storm hit the property causing significant roof damage, resulting in leaks in approximately 20 of the units, making them uninhabitable. The repair work progressed much slower than was originally anticipated and was completed in early May 2007. It is expected that the property will be 100% occupied by the end of May 2007. Since units were offline during repairs, occupancy averaged 80% during the first quarter of 2007. Due to low occupancy levels the property is operating below breakeven. The investment general partner will continue to monitor the property to ensure that occupancy stabilizes. All taxes, insurance and mortgage payments are current.

(Series 19). As of March 31, 2007 and 2006, the average Qualified Occupancy for the series was 100%. The series had a total of 26 properties at March 31, 2007, all of which were at 100% Qualified Occupancy.

For the tax year ended December 31, 2006 and 2005, the series, in total, generated $2,174,908 and $2,266,709, respectively, in passive income tax losses that were passed through to the investors and also provided $0.02 and $0.44, respectively, in tax credits per BAC to the investors. Series 19 experienced a decrease in the tax credits generated per BAC from calendar year 2005 to 2006. The Operating Partnerships were allocated tax credits for 10 years. Based on each Operating Partnership’s lease-up, the total credits could be spread over as many as 13 years. In cases where the actual number of years is more than 10, the credits delivered in the early and later years will be less than the maximum allowable per year. The decrease in credits from calendar year 2005 to 2006 results from the fact some of the Operating Partnerships have entered their final years of credit. The decrease in tax credits generated per BAC is expected to continue until all credits have been realized and tax credits generated per BAC will be reduced to zero.

As of March 31, 2007 and 2006, Investments in Operating Partnerships for Series 19 was $550,310 and $2,127,018, respectively. Investments in Operating Partnerships are affected by the way the Fund accounts for these investments, the equity method. By using the equity method the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued.

For the years ended December 31, 2006 and 2005, Series 19 reflects net loss from Operating Partnerships of $(3,843,285) and $(2,530,854), respectively, which includes depreciation and amortization of $2,987,209 and $3,157,456, respectively.

For the years ended March 31, 2007, 2006, and 2005, the net loss for series 19 was $2,010,656, $6,459,685, and $7,141,294, respectively. The major

51

components of these amounts are the Fund’s share of income (losses) from Operating Partnerships and the fund management fee.

Hebbronville Apartments, Ltd. (Hebbronville Senior) is a 20-unit property located in Hebbronville, Texas. The property is operating poorly and expended cash due to insufficient rental rates, even though in the first quarter of 2006 rental rates were increased on the one and two-bedroom units. Additionally, it appears that the Operating Partnership is hindered by high debt service on a Rural Development loan, and an underfunding of the reserves account. Overall operating expenses were lower than the state average. During the first quarter of 2007, occupancy decreased 3%, but is high at 97%; this property cannot afford one vacancy. Management continues to work with the Housing Agency and Rural Development to obtain approval for higher rental rate increases; however, currently they have not received approval. The investment limited partner will continue to work with the operating general partner to monitor the occupancy and expenses. All tax, mortgage, and insurance payments are current.

Martindale Apartments, Ltd. (Martindale Apartments) is a 24-unit multifamily property located in Martindale, Texas. According to the 2006 audited financials, the property operated below breakeven and expended cash due to rental rates even though the operating expenses did not increase. A rental increase was placed in effect on September 1, 2006; however, during the first quarter of 2007, occupancy decreased 5% to 88%. The investment limited partner will continue to monitor the property’s occupancy and operations, as well as assist management in determining how to keep expenses below state average in an effort to breakeven. All tax, mortgage, and insurance payments are current.

Carrollton Villa, L.P. (Meadow Ridge Apartments) located in Carrollton, Missouri, has historically operated below breakeven as a result of low occupancy and very low rent levels. Occupancy at the property averaged 70% in 2005 and 88% in 2006. The primary problem is that Carrolton, Missouri, has experienced significant economic decline. All of the major employers have relocated and rent decreases were required to attract potential residents. In an effort to improve occupancy, the property offered one-month free rent for a new resident as well as one-month free rent for resident referrals. They expanded their outreach and advertising to attract potential residents from bordering communities. As a result, occupancy improved significantly and was 97% at the end of the first quarter of 2007 and the property was able to operate above breakeven. The property has also received a grant of $40,000 from the state to enable the property to reduce the rents for the residents but not lose any income. Upon transfer of the operating general partner interests in 2004, the mortgage became a cash flow only mortgage, which has helped to significantly reduce the negative cash flow. The taxes, mortgage and insurance are all current.

Forest Associates Limited (Sharon Apartments) is a 24-unit apartment complex for families located in Forest, OH. In 2005 the property had an occupancy rate of 88%. In the third quarter of 2006 the property reflected an occupancy rate of 83%. The operating general partner changed managing agents effective January 1, 2006 without the approval of the investment general partner. After investigating the change, the previous managing agent informed the investment general partner that they terminated the contract. The new managing agent is working to make all vacant units market ready and is networking with local businesses to attract income qualified applicants. The first quarter financial information for 2007 has been unattainable primarily due to the passing of the operating general partner, on April 23, 2007. The operating general partner’s son is believed to be assuming his father’s duties. The investment general

52

partner will continue to contact the operating general partner and managing agent to obtain income and financial reports. Although no fourth quarter reports are available from the management company, they report no change from the prior period occupancy. The operating general partner continues to fund deficiencies despite an expired guarantee. The compliance period for this property ends in 2009.

Jeremy Associates, LP (Coopers Crossing Apartments) is a 93-unit family development located in Las Colinas, Texas. Average occupancy through the first and second quarters of 2006 was 97%. The investment general partner is working to obtain delinquent occupancy data from the management company, as well as the 2006 financial audit from the auditor. The property operated below breakeven in 2006 due to high operating costs, which are attributed to foundation and stress cracks identified in an engineer’s report conducted in 2003. The report revealed foundation movement in five buildings. Since 2001, much work has been done on the foundation, stair towers, and landings as a result of the movement. Soil testing was done in 2006 and, as a result, the operating general partner has submitted a major capital project proposal of $260,000 for approval. The operating general partner is hopeful that the plan will provide a long-term solution to the issues that have been plaguing the property. While the work is completed, units/building will have to go offline, and lost revenue is expected. The investment general partner will work closely with the operating general partner and monitor the situation as it unfolds. The mortgage, trade payables, property taxes and insurance are current.

Munford Village, Ltd. (Munford Village) is a 24-unit family project in Munford, AL. The economy has declined due to the loss of industry. This has resulted in lower than anticipated rents, rental concessions, and rental delinquency, resulting in low economic occupancy. Physical occupancy continues to fluctuate but the property experienced an average of 98% physical occupancy throughout the first quarter 2007. The property was able to generate cash in January and February 2007 when occupancy was at 100%. In March 2007 occupancy declined to 96% and expenses increased, which caused a deficit. The current rent levels coupled with current concessions is not allowing the property to breakeven. Management has implemented a more stringent resident selection plan and is working to minimize delinquency. The property’s mortgage is current and the replacement reserve is adequately funded. However, the tax and insurance escrow account was under-funded by $1,938, with barely enough cash to cover the accrued tax liability. The operating deficit is being funded with a cash overdraft, which is currently at $38,034. The bank allows an overdraft in an unlimited amount and for an unlimited period without interest charges. The operating deficit guarantee is unlimited in time and amount. The property’s compliance period ends in 2009.

Sherwood Knoll L.P. (Sherwood Knoll Apartments) is a 24-unit project located in Rainsville, Alabama. The 2006 occupancy average was 97% and the property operated with a cash deficit. Occupancy averaged 97% through the first quarter of 2007. The current rent levels are causing the cash deficit and the operating deficit is being funded with a cash overdraft that is currently at $7,755. The replacement reserve is adequately funded. The investment limited partner will continue to work with the operating general partner to find ways to improve operations and position the property to generate revenue. The operating deficit guarantee is unlimited in time and amount. The compliance period for the property ends in 2009.

Tanglewood Park (Willowood Park, LP) is a 130-unit family development located in Lawrenceville, Georgia, approximately 26 miles from downtown Atlanta. Occupancy suffered from overdevelopment of the Georgia market, hitting a low of 78% in July 2005. The related-party management company hired a Vice President of Marketing and this property was one of six on a high priority

53

list. Marketing efforts included outreach at job fairs and to local employers. The company also targeted low-risk evacuees from Hurricane Katrina. Since executing this plan, occupancy rose, averaging 90% in 2006 with a cash deficit of $54,741. The average occupancy in the first quarter of 2007 was 87% but fell to 85% in March due to two shooting incidents that occurred in January 2007. The first incident involved guests of residents while the second involved residents of the property. The three households involved were evicted and the property now has an active courtesy officer. Expenses remained high at $4,584/unit after accounting for expensed improvements. A written stabilization plan has been requested from the regional manager and is expected in the second quarter. A site visit was conducted in April 2007 and the report gave high ratings to management and site control. The operating general partner has continued to fund deficits with $163,175 in advances made to date. Taxes, mortgage and insurance are all current. The compliance period for the property ends in 2009.

54

Contractual Obligations

As of March 31, 2007, the Fund has the following contractual obligations (payments due by period):

Obligation	Total		<1 year			1-3 years		3-5 years		> 5 years
Capital Contributions Payable	$	162,519	$	162,519			—		—		—
Asset Management Fees Payable to Affiliates	$	24,404,262	$	24,404,262	*		—		—		—

* Although currently due, Accrued Asset Management Fees will be paid only to the extent that proceeds from the sale or refinance of an Operating Partnership become available.

Off Balance Sheet Arrangements

None.

Principal Accounting Policies and Estimates

The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which requires the Fund to make various estimates and assumptions. A summary of significant accounting policies is provided in Note A to the financial statements. The following section is a summary of some aspects of those accounting policies that may require subjective or complex judgments and are most important to the portrayal of the Fund’s financial condition and results of operations. The Fund believes that there is a low probability that the use of different estimates or assumptions in making these judgments would result in materially different amounts being reported in the financial statements.

The Fund is required to assess potential impairments to its long-lived assets, which is primarily investments in limited partnerships. The Fund accounts for its investment in limited partnerships in accordance with the equity method of accounting since the Fund does not control the operations of the Operating Partnership.

If the book value of the Fund’s investment in an Operating Partnership exceeds the estimated value derived by management, which generally consists of the remaining future Low-Income Housing Credits allocable to the Fund and the estimated residual value to the Fund, the Fund reduces its investment in the Operating Partnership and includes the reduction in equity in loss of investment of limited partnerships.

55

As of March 31, 2004, the Fund adopted FASB Interpretation No. 46 — Revised (“FIN46R”), “Consolidation of Variable Interest Entities.” FIN 46R provides guidance on when a company should include the assets, liabilities, and activities of a variable interest entity (“VIE”) in its financial statements and when it should disclose information about its relationship with a VIE. A VIE is a legal structure used to conduct activities or hold assets, which must be consolidated by a company if it is the primary beneficiary because it absorbs the majority of the entity’s expected losses, the majority of the expected returns, or both.

Based on the guidance of FIN 46R, the Operating Partnerships in which the Fund invests meet the definition of a VIE. However, management does not consolidate the Fund’s interests in these VIEs under FIN 46R, as it is not considered to be the primary beneficiary. The Fund currently records the amount of its investment in these partnerships as an asset on its balance sheet, recognizes its share of partnership income or losses in the statement of operations, and discloses how it accounts for material types of these investments in its financial statements.

The Fund’s balance in investment in Operating Partnerships, plus the risk of recapture of tax credits previously recognized on these investments, represents its maximum exposure to loss. The Fund’s exposure to loss on these partnerships is mitigated by the condition and financial performance of the underlying properties as well as the strength of the local general partners and their guarantee against credit recapture.

56

Item 7a. Quantitative and Qualitative Disclosure About Market Risk- Not Applicable

Item 8.   Financial Statements and Supplementary Data The information required by this item is contained in Part IV, Item 14 of this Annual Report on Form 10-K.

Item 9.   Changes in and Disagreements with Accountants on Accounting and Financial Disclosure — None

Item 9a. Controls & Procedures

(a)	Evaluation of Disclosure Controls and Procedures
	As of the end of the period covered by this report, the Fund’s general partner, under the supervision and with the participation of the Principal Executive Officer and Principal Financial Officer of C&M Management, Inc., carried out an evaluation of the effectiveness of the Fund’s “disclosure controls and procedures” as defined in the Securities Exchange Act of 1934 Rules 13a-15 and 15d-15. Based on that evaluation, the Principal Executive Officer and Principal Financial Officer have concluded that as of the end of the period covered by this report, the Fund’s disclosure controls and procedures were adequate and effective in timely alerting them to material information relating to the Fund required to be included in the Fund’s periodic SEC filings.
(b)	Changes in Internal Controls
	There were no changes in the Fund’s internal control over financial reporting that occurred during the quarter ended March 31, 2007 that materially affected, or are reasonably likely to materially affect, the Fund’s internal control over financial reporting.

57

PART III

Item 10. Directors, Executive Officers and Corporate Governance (a), (b), (c), (d) and (e)

The Fund has no directors or executives officers of its own. The following biographical information is presented for the partners of the general partners and affiliates of those partners (including Boston Capital Partners, Inc. (“Boston Capital”) with principal responsibility for the Fund’s affairs.

John P. Manning, age 58, is co-founder, and since 1974 has been the President and Chief Executive Officer, of Boston Capital Corporation. As co-founder and CEO of Boston Capital, Mr. Manning’s primary responsibilities include strategic planning, business development and the continued oversight of new opportunities. In addition to his responsibilities at Boston Capital Corporation, Mr. Manning is a proactive leader in the multifamily real estate industry. He served in 1990 as a member of the Mitchell-Danforth Task Force, which reviewed and suggested reforms to the Low Income Housing Tax Credit program. He was the founding President of the Affordable Housing Tax Credit Coalition and is a former member of the board of the National Leased Housing Association. During the 1980s, he served as a member of the Massachusetts Housing Policy Committee as an appointee of the Governor of Massachusetts. In addition, Mr. Manning has testified before the U.S. House Ways and Means Committee and the U.S. Senate Finance Committee on the critical role of the private sector in the success of the Low Income Housing Tax Credit. In 1996, President Clinton appointed him to the President’s Advisory Committee on the Arts at the John F. Kennedy Center for the Performing Arts. In 1998, President Clinton appointed Mr. Manning to the President’s Export Council, the premiere committee comprised of major corporate CEOs that advise the President on matters of foreign trade and commerce. In 2003, he was appointed by Boston Mayor Tom Menino to the Mayors Advisory Panel on Housing. Mr. Manning sits on the Board of Directors of the John F. Kennedy Presidential Library in Boston where he serves as Chairman of the Distinguished Visitors Program. He is also on the Board of Directors of the Beth Israel Deaconess Medical Center in Boston. Mr. Manning is a graduate of Boston College.

Mr. Manning is the managing member of Boston Associates. Mr. Manning is also the principal of Boston Capital Corporation. While Boston Capital is not a direct subsidiary of Boston Capital Corporation, it is under the common control of Mr. Manning.

Richard J. DeAgazio, age 62, has been the Executive Vice President of Boston Capital Corporation, and President of Boston Capital Securities, Inc., Boston Capital’s NASD registered broker/dealer, since 1981. Mr. DeAgazio formerly served on the national Board of Governors of the National Association of Securities Dealers (NASD). He recently served as a member of the National Adjudicatory Council of the NASD. He was the Vice Chairman of the NASD’s District 11 Committee, and served as Chairman of the NASD’s Statutory Disqualification Subcommittee of the National Business Conduct Committee. He also served on the NASD State Liaison Committee, the Direct Participation Program Committee and as Chairman of the Nominating Committee. He is a past President of the Real Estate Securities and Syndication Institute and a founder and past President of the National Real Estate Investment Association, as well as past President of the Real Estate Securities and Syndication Institute (Massachusetts Chapter). Prior to joining Boston Capital Corporation in 1981, Mr. DeAgazio was the Senior Vice President and Director of the Brokerage Division of Dresdner Securities (USA), Inc., an international investment banking firm owned by four major European banks, and was a Vice

58

President of Burgess & Leith/Advest. He has been a member of the Boston Stock Exchange since 1967. He is on the Board of Directors of Cognistar Corporation. He is a leader in the community and serves on the Board of Trustees for Bunker Hill Community College, the Business Leaders Council of the Boston Symphony, Board of Trustees of Junior Achievement of Northern New England and the Board of Advisors for the Ron Burton Training Village, and is on the Board of Corporators of Northeastern University. He graduated from Northeastern University.

Jeffrey H. Goldstein, age 45, is Chief Operating Officer and has been the Director of Real Estate of Boston Capital Corporation since 1996. He directs Boston Capital Corporation’s comprehensive real estate services, which include all aspects of origination, underwriting, due diligence and acquisition. As COO, Mr. Goldstein is responsible for the financial and operational areas of Boston Capital Corporation and assists in the design and implementation of business development and strategic planning objectives. Mr. Goldstein previously served as the Director of the Asset Management division as well as the head of the dispositions and troubled assets group. Utilizing his 16 years experience in the real estate syndication and development industry, Mr. Goldstein has been instrumental in the diversification and expansion of Boston Capital Corporation’s businesses. Prior to joining Boston Capital Corporation in 1990, Mr. Goldstein was Manager of Finance for A.J. Lane & Co., where he was responsible for placing debt on all new construction projects and debt structure for existing apartment properties. Prior to that, he served as Manager for Homeowner Financial Services, a financial consulting firm for residential and commercial properties, and worked as an analyst responsible for budgeting and forecasting for the New York City Council Finance Division. He graduated from the University of Colorado and received his MBA from Northeastern University.

Kevin P. Costello, age 60, is Executive Vice President and has been the Director of Institutional Investing of Boston Capital Corporation since 1992 and serves on the firm’s Executive Committee. He is responsible for all corporate investment activity and has spent over 20 years in the real estate syndication and investment business. Mr. Costello’s prior responsibilities at Boston Capital Corporation have involved the management of the Acquisitions Department and the structuring and distribution of conventional and tax credit private placements. Prior to joining Boston Capital Corporation in 1987, he held positions with First Winthrop, Reynolds Securities and Bache & Company. Mr. Costello graduated from Stonehill College and received his MBA with honors from Rutgers’ Graduate School of Business Administration.

Marc N. Teal, age 43, has been Chief Financial Officer of Boston Capital Corporation since May 2003. Mr. Teal previously served as Senior Vice President and Director of Accounting and prior to that served as Vice President of Partnership Accounting. He has been with Boston Capital Corporation since 1990. In his current role as CFO he oversees all of the accounting, financial reporting, SEC reporting, budgeting, audit, tax and compliance for Boston Capital Corporation, its affiliated entities and all Boston Capital Corporation sponsored programs. Additionally, Mr. Teal is responsible for maintaining all banking and borrowing relationships of Boston Capital Corporation and treasury management of all working capital reserves. He also oversees Boston Capital Corporation’s information and technology areas, including the strategic planning for Boston Capital Corporation and its affiliaties. Prior to joining Boston Capital Corporation in 1990, Mr. Teal was a Senior Accountant for Cabot, Cabot & Forbes, a multifaceted real estate company, and prior to that was a Senior Accountant for Liberty Real Estate Corp. He received a Bachelor of Science Accountancy from Bentley College and a Masters in Finance from Suffolk University.

59

(f)	Involvement in certain legal proceedings.
	None.
(g)	Promoters and control persons.
	None.
(h) and (i)	The Fund has no directors or executive officers and accordingly has no audit committee and no audit committee financial expert. The Fund is not a listed issuer as defined in Regulation 10A-3 promulgated under the Securities Exchange Act of 1934.
	The general partner of the Fund, Boston Capital Associates LP, has adopted a Code of Ethics which applies to the Principal Executive Officer and Principal Financial Officer of C&M Management, Inc. The Code of Ethics will be provided without charge to any person who requests it. Such request should be directed to, Marc N. Teal Boston Capital Corp. One Boston Place Boston, MA 02108.

Item 11. Executive Compensation

          (a), (b), (c), (d) and (e)

The Fund has no officers or directors and no compensation committee. However, under the terms of the Amended and Restated Agreement and Certificate of Limited Partnership of the Fund, the Fund has paid or accrued obligations to the general partner and its affiliates for the following fees during the 2007 fiscal year:

1. An annual fund management fee based on .5 percent of the aggregate cost of all apartment complexes acquired by the Operating Partnerships has been accrued or paid to Boston Capital Asset Management Limited Partnership. The annual fund management fee charged to operations, net of reporting fees received, during the year ended March 31, 2007 was $2,138,666.

2. The Fund has reimbursed an affiliate of the general partner a total of $123,370 for amounts charged to operations during the year ended March 31, 2007. The reimbursement includes postage, printing, travel, and overhead allocations.

3. The Fund had previously recorded and paid $42,527 to BCAMLP in connection with the disposition of certain Operating Partnerships, which were incorrectly referred to as sale prep fees. The payments were actually for reimbursement of overhead and salary expenses incurred by Boston Capital and its affiliates in connection with the disposition of the related Operating Partnerships.

During the prior period, March 31,2006, management of Boston Capital decided to discontinue requesting reimbursement for overheard and salary expenses related to the disposition of assets. Additionally, Boston Capital’s management has decided to reimburse all previous reimbursements for such items by reducing other liabilities due to Boston Capital and its affiliates from the Fund.

60

Item 12. Security Ownership of Certain Beneficial Owners and Management

(a)	Security ownership of certain beneficial owners.
	As of March 31, 2007, 21,996,102 BACs had been issued. The following Series are known to have one investor, Everest Housing, 199 South Los Robles Ave. Suite 200, Pasadena, CA 91101, with holdings in excess of 5% of the total outstanding BACs in the series.

Series	% of BACs held
Series 15		8.24	%
Series 16		10.23	%
Series 17		9.71	%
Series 18		9.32	%
Series 19		9.37	%

(b)	Security ownership of management.
	The general partner has a 1% interest in all profits, losses, credits and distributions of the Fund. The Funds’s response to Item 12(a) is incorporated herein by reference.
(c)	Changes in control.

There exists no arrangement known to the Fund the operation of which may at a subsequent date result in a change in control of the Fund. There is a provision in the Fund’s Partnership Agreement which allows, under certain circumstances, the ability to change control.

The Fund has no compensation plans under which interests in the Fund are authorized for issuance.

Item 13. Certain Relationships and Related Transactions and Director Independence.

(a) Transactions with related persons.

The Fund has no officers or directors. However, under the terms of the Offering, various kinds of compensation and fees are payable to the general partner and its affiliates during the organization and operation of the Fund. Additionally, the general partner will receive distributions from the Fund if there is cash available for distribution or residual proceeds as defined in the Partnership Agreement. The amounts and kinds of compensation and fees are described in the Prospectus, as supplemented, under the caption “Compensation and Fees”, which is incorporated herein by reference. See Note C of Notes to Financial Statements in Item 14 of this Annual Report on Form 10-K for amounts accrued or paid to the general partner and its affiliates during the period from April 1, 1995 through March 31, 2007.

(b)	Review, Approval or Ratification of transactions with related persons.
	The Fund response to Item 13(a) is incorporated herein by reference.
(c)	Transactions with Promoters and certain control persons.
	Not applicable.
(d)	Independence.
	The Fund has no directors.

61

Item 14. Principal Accounting Fees and Services

Fees paid to the Fund’s independent auditors for fiscal year 2007 were comprised of the following

Fee Type	Ser. 15		Ser. 16		Ser. 17		Ser. 18		Ser. 19
Audit Fees	$	29,670	$	29,930	$	23,920	$	18,670	$	15,890
Audit Related Fees		1,250		1,000		1,500		1,250		1,000
Tax Fees		14,510		14,140		11,000		8,590		7,110
All Other Fees		—		—		—		—		—
Total	$	45,430	$	45,070	$	36,420	$	28,510	$	24,000

Fees paid to the Fund’s independent auditors for fiscal year 2006 were comprised of the following

Fee Type	Ser. 15		Ser. 16		Ser. 17		Ser. 18		Ser. 19
Audit Fees	$	28,260	$	28,500	$	22,780	$	17,780	$	15,130
Audit Related Fees		—		—		—		—		—
Tax Fees		13,725		13,200		10,400		7,950		6,550
All Other Fees		—		—		—		—		—
Total	$	41,985	$	41,700	$	33,180	$	25,730	$	21,680

Audit Committee

The Fund has no Audit Committee. All audit services and any permitted non-audit services performed by the Fund’s independent auditors are pre-approved by C&M Management, Inc.

PART IV

Item 15. Exhibits, Financial Statement Schedules, and Reports on Form 8-K

     (a) 1 and 2. Financial Statements and Financial Statement Schedules, filed herein as Exhibit 13 -

Balance Sheets, March 31, 2007 and 2006

Statements of Operations for the years ended March 31, 2007, 2006, and 2005.

Statements of Changes in Partners’ Capital for the years ended March 31, 2007, 2006, and 2005.

62

Statements of Cash Flows for the years ended March 31, 2007, 2006, and 2005.

Notes to Financial Statements March 31, 2007, 2006, and 2005

Sable Chase of McDonough, L.P.

Filed Herein as Exhibit 99.1

Independent Auditors’ Report
Balance Sheets, December 31, 2006 and 2005
Statements of Operations, Years ended December 31, 2006 and 2005
Statements of Cash Flow, Years ended December 31, 2006 and 2005
Statements of Changes in Partners’ Capital, Years ended December 31, 2006 and 2005
Notes to Financial Statements, Years ended December 31, 2006 and 2005

Schedule III — Real Estate and Accumulated Depreciation

Notes to Schedule III

Schedules not listed are omitted because of the absence of the conditions under which they are required or because the information is included in the financial statements or the notes hereto.

(b) 1 Reports on Form 8-K

There were no reports on Form 8-K filed for the period ended March 31, 2007

(c) 1. Exhibits (listed according to the number assigned in the table in Item 601 of Regulation S-K)

Exhibit No. 3 — Organization Documents.

a. Certificate of Limited Partnership of Boston Capital Tax Credit Fund III L.P. (Incorporated by reference from Exhibit 3 to the Fund’s Registration Statement No. 33-42999 on Form S-11 as filed with the Securities and Exchange Commission on September 26, 1991.)

Exhibit No. 4 — Instruments defining the rights of security holders, including indentures.

a. Agreement of Limited Partnership of Boston Capital Tax Credit Fund III L.P. (Incorporated by reference from Exhibit 4 to the Fund’s Registration Statement No. 33-42999 on Form S-11 as filed with the Securities and Exchange Commission on September 26, 1991.)

Exhibit No. 10 — Material contracts.

a. Beneficial Assignee Certificate. (Incorporated by reference from Exhibit 10A to the Fund’s Registration Statement No. 33-42999 on Form S-11 as filed with the Securities and Exchange Commission on September 26, 1991.)

Exhibit No. 13 — Financial Statements.

a. Financial Statement of Boston Capital Tax Credit Fund III L.P., filed herein

63

Exhibit No. 28 — Additional exhibits.

a.	Agreement of Limited Partnership of Branson Christian County (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on April 4, 1994).
b.	Agreement of Limited Partnership of Peachtree L.P. (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on April 4, 1994).
c.	Agreement of Limited Partnership of Cass Partners, L.P. (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on April 7, 1994).
d.	Agreement of Limited Partnership of Sable Chase of McDonough L.P. (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on April 8, 1994).
e.	Agreement of Limited Partnership of Ponderosa Meadows Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on April 12, 1994).
f.	Agreement of Limited Partnership of Hackley-Barclay LDHA (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on April 14, 1994).
g.	Agreement of Limited Partnership of Sugarwood Park (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on May 12, 1994).
h.	Agreement of Limited Partnership of West End Manor of Union Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on May 29, 1994).
i.	Agreement of Limited Partnership of Vista Loma (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on May 31, 1994).
j.	Agreement of Limited Partnership of Palmetto Properties (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on June 16, 1994).
k.	Agreement of Limited Partnership of Jefferson Square (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on June 27, 1994).
l.	Agreement of Limited Partnership of Holts Summit Square (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on June 27, 1994).

64

m.	Agreement of Limited Partnership of Harris Housing (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on July 8, 1994).
n.	Agreement of Limited Partnership of Branson Christian County II (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on September 1, 1994).
o.	Agreement of Limited Partnership of Chelsea Square (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on September 12, 1994).
p.	Agreement of Limited Partnership of Palatine Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on September 21, 1994).
q.	Agreement of Limited Partnership of Mansura Villa II Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on October 19, 1994).
r.	Agreement of Limited Partnership of Haynes House Associates II Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on October 25, 1994).
s.	Agreement of Limited Partnership of Skowhegan Limited Partnership (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on October 28, 1994).
t.	Agreement of Limited Partnership of Mt. Vernon Associates, L.P. (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on November 19, 1994).
u.	Agreement of Limited Partnership of Clinton Estates, L.P. (Incorporated by reference from Registrant’s current report on Form 8-K as filed with the Securities and Exchange Commission on February 1, 1995.)

65

Exhibit No. 23	Consents of experts and counsel.
	Independent Auditor’s Reports for Operating Partnerships, filed herein.

Exhibit No. 31 Certification 302

a.	Certification pursuant to 18 U.S.C. Section 1350, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herein
b.	Certification pursuant to 18 U.S.C. Section 1350, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herein

Exhibit No. 32 Certification 906

a.	Certification pursuant to 18 U.S.C. Section 1350, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herein
b.	Certification pursuant to 18 U.S.C. Section 1350, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herein

66

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.,
Date:		General Partner
July 16, 2007	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:
July 16, 2007	/s/ John P. Manning John P. Manning	Director, President (Principal Executive Officer) C&M Management Inc.; Director, President (Principal Executive Officer) BCTC III Assignor Corp.

DATE:	SIGNATURE:	TITLE:
July 16, 2007	/s/ Marc N. Teal Marc N. Teal	Chief Financial Officer (Principal Financial and Accounting Officer) C&M Management Inc.; Chief Financial Officer (Principal Financial and Accounting Officer) BCTC III Assignor Corp.

67

EX-13

Exhibit 13

FINANCIAL STATEMENTS AND
INDEPENDENT AUDITORS’ REPORT

BOSTON CAPITAL TAX CREDIT FUND III L.P. -
SERIES 15 THROUGH SERIES 19

MARCH 31, 2007 AND 2006

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

March 31, 2007, 2006 and 2005

TABLE OF CONTENTS

	PAGE
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM		F-3
FINANCIAL STATEMENTS
BALANCE SHEETS		F-5
STATEMENTS OF OPERATIONS		F-11
STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)		F-17
STATEMENTS OF CASH FLOWS		F-23
NOTES TO FINANCIAL STATEMENTS		F-29
SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION		F-71
NOTES TO SCHEDULE III

Schedules not listed are omitted because of the absence of the conditions under which they are required or because the information is included in the financial statements or the notes thereto.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners
Boston Capital Tax Credit Fund III L.P.

     We have audited the accompanying balance sheets of Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19, in total and for each series, as of March 31, 2007 and 2006, and the related statements of operations, changes in partners’ capital and cash flows for the total partnership and for each of the series for each of the three years in the period ended March 31, 2007. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We did not audit the financial statements of certain operating limited partnerships which investments represent $728,741 and $1,411,770 of the total partnership assets as of March 31, 2007 and 2006, respectively, and $(593,912), $(1,029,722) and $(1,183,870) of the total partnership loss for the years ended March 31, 2007, 2006 and 2005, respectively; of the assets for Series 15 as of March 31, 2007 and 2006, $289,968 and $470,219, respectively, and of the loss for Series 15 for the years ended March 31, 2007, 2006 and 2005, $(117,013), $(371,366) and $(342,864) respectively; of the assets for Series 16 as of March 31, 2007 and 2006, $0 and $0, respectively, and of the loss for Series 16 for the years ended March 31, 2007, 2006 and 2005, $0, $0, and $(255,186), respectively; of the assets for Series 17 as of March 31, 2007 and 2006, $240,014 and $468,682, respectively, and of the loss for Series 17 for the years ended March 31, 2007, 2006 and 2005, $(202,389), $(350,453) and $(271,167) respectively; of the assets for Series 18 as of March 31, 2007 and 2006, $22,873 and $143,473, respectively, and of the loss for Series 18 for the years ended March 31, 2007, 2006 and 2005, $(120,600), $(120,686) and $(187,413), respectively; and of the assets for Series 19 as of March 31, 2007 and 2006, $175,886 and $329,396, respectively, and of the loss for Series 19 for the years ended March 31, 2007, 2006 and 2005, $(153,510), $(187,217) and $(127,240), respectively. Those statements were audited by other auditors, whose reports have been furnished to us, and our opinion, insofar as it relates to those operating limited partnerships, is based solely on the reports of the other auditors.

      We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal controls over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence

F-3

supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits and the reports of the other auditors provide a reasonable basis for our opinion.

     In our opinion, based on our audits and the reports of the other auditors, the financial statements referred to above present fairly, in all material respects, the financial position of Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19, in total and for each series, as of March 31, 2007 and 2006, and the results of its operations and its cash flows for the total partnership and for each of the series for each of the three years in the period ended March 31, 2007, in conformity with accounting principles generally accepted in the United States of America.

     Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The schedules listed under Item 15(a) in the index are presented for the purpose of complying with the Securities and Exchange Commission’s rules and are not part of the basic financial statements. These schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, based on our audit and the reports of other auditors, fairly state in all material respects the financial data required to be set forth therein in relation to the basic financial statements taken as a whole.

/s/ Reznick Group, P.C.
REZNICK GROUP, P.C.

Bethesda, Maryland
July 16, 2007

F-4

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

BALANCE SHEETS

March 31, 2007 and 2006

	Total
	2007			2006
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	3,419,039		$	7,337,365
OTHER ASSETS
Cash and cash equivalents		1,947,702			3,292,462
Deferred acquisition costs, net of accumulated amortization		809,059			861,443
Other assets		56,367			78,475
	$	6,232,167		$	11,569,745
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	1,145		$	41,411
Accounts payable — affiliates		25,148,800			23,452,067
Capital contributions payable		162,519			162,519
		25,312,464			23,655,997
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 21,996,102 issued to the assignees at March 31, 2007 and 2006		—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 21,996,102 issued and outstanding at March 31, 2007 and 2006		(17,019,215	)		(10,077,051	)
General partner		(2,061,082	)		(2,009,201	)
		(19,080,297	)		(12,086,252	)
	$	6,232,167		$	11,569,745

(continued)

F-5

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

BALANCE SHEETS — CONTINUED

March 31, 2007 and 2006

	Series 15
	2007			2006
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	361,924		$	594,892
OTHER ASSETS
Cash and cash equivalents		1,345,224			1,262,471
Deferred acquisition costs, net of accumulated amortization		118,611			126,263
Other assets		21,367			27,002
	$	1,847,126		$	2,010,628
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	1,145		$	1,145
Accounts payable — affiliates		5,863,264			5,602,855
Capital contributions payable		4,208			4,208
		5,868,617			5,608,208
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 3,870,500 issued to the assignees at March 31, 2007 and 2006		—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,870,500 issued and outstanding at March 31, 2007 and 2006		(3,659,086	)		(3,230,009	)
General partner		(362,405	)		(367,571	)
		(4,021,491	)		(3,597,580	)
	$	1,847,126		$	2,010,628

(continued)

F-6

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

BALANCE SHEETS — CONTINUED

March 31, 2007 and 2006

	Series 16
	2007			2006
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	1,126,865		$	1,974,221
OTHER ASSETS
Cash and cash equivalents		190,149			572,534
Deferred acquisition costs, net of accumulated amortization		164,302			174,902
Other assets		—			—
	$	1,481,316		$	2,721,657
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	—		$	40,266
Accounts payable — affiliates		6,572,789			6,270,924
Capital contributions payable		71,862			71,862
		6,644,651			6,383,052
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 5,429,402 issued to the assignees at March 31, 2007 and 2006		—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,429,402 issued and outstanding at March 31, 2007 and 2006		(4,645,093	)		(3,158,172	)
General partner		(518,242	)		(503,223	)
		(5,163,335	)		(3,661,395	)
	$	1,481,316		$	2,721,657

(continued)

F-7

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

BALANCE SHEETS — CONTINUED

March 31, 2007 and 2006

	Series 17
	2007			2006
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	1,286,994		$	1,915,188
OTHER ASSETS
Cash and cash equivalents		165,814			1,238,050
Deferred acquisition costs, net of accumulated amortization		169,684			180,996
Other assets		30,000			46,473
	$	1,652,492		$	3,380,707
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	—		$	—
Accounts payable — affiliates		6,440,636			6,120,716
Capital contributions payable		67,895			67,895
		6,508,531			6,188,611
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 5,000,000 issued to the assignees at March 31, 2007 and 2006		—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,000,000 issued and outstanding at March 31, 2007 and 2006		(4,386,701	)		(2,350,393	)
General partner		(469,338	)		(457,511	)
		(4,856,039	)		(2,807,904	)
	$	1,652,492		$	3,380,707

(continued)

F-8

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

BALANCE SHEETS — CONTINUED

March 31, 2007 and 2006

	Series 18
	2007			2006
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	92,946		$	726,046
OTHER ASSETS
Cash and cash equivalents		107,343			72,064
Deferred acquisition costs, net of accumulated amortization		130,058			138,449
Other assets		5,000			5,000
	$	335,347		$	941,559
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	—		$	—
Accounts payable — affiliates		3,994,750			3,591,559
Capital contributions payable		18,554			18,554
		4,013,304			3,610,113
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 3,616,200 issued to the assignees at March 31, 2007 and 2006		—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,616,200 issued and outstanding at March 31, 2007 and 2006		(3,330,950	)		(2,331,641	)
General partner		(347,007	)		(336,913	)
		(3,677,957	)		(2,668,554	)
	$	335,347		$	941,559

(continued)

F-9

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

BALANCE SHEETS — CONTINUED

March 31, 2007 and 2006

	Series 19
	2007			2006
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	550,310		$	2,127,018
OTHER ASSETS
Cash and cash equivalents		139,172			147,343
Deferred acquisition costs, net of accumulated amortization		226,404			240,833
Other assets		—			—
	$	915,886		$	2,515,194
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	—		$	—
Accounts payable — affiliates		2,277,361			1,866,013
Capital contributions payable		—			—
		2,277,361			1,866,013
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 4,080,000 issued to the assignees at March 31, 2007 and 2006		—			—
Assignees
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 4,080,000 issued and outstanding at March 31, 2007 and 2006		(997,385	)		993,164
General partner		(364,090	)		(343,983	)
		(1,361,475	)		649,181
	$	915,886		$	2,515,194

See notes to financial statements

F-10

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF OPERATIONS

Years ended March 31, 2007, 2006 and 2005

	Total
	2007			2006			2005
Income
Interest income	$	41,815		$	17,903		$	9,210
Other income		96,772			32,509			15,730
Total income		138,587			50,412			24,940
Share of losses from operating limited partnerships		(1,280,294	)		(3,518,129	)		(12,401,037	)
Expenses
Professional fees		282,015			292,370			210,010
Partnership management fee		2,138,666			2,098,275			1,666,693
Amortization		52,384			52,384			354,082
Impairment loss		1,365,076			11,603,236			18,797,540
General and administrative expenses		208,273			160,338			146,436
		4,046,414			14,206,603			21,174,761
NET LOSS	$	(5,188,121	)	$	(17,674,320	)	$	(33,550,858	)
Net loss allocated to general partner	$	(51,881	)	$	(176,744	)	$	(335,508	)
Net loss allocated to assignees	$	(5,136,240	)	$	(17,497,576	)	$	(33,215,350	)
Net loss per BAC	$	(0.23	)	$	(0.80	)	$	(1.51	)

(continued)

F-11

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF OPERATIONS — CONTINUED

Years ended March 31, 2007, 2006 and 2005

	Series 15
	2007		2006			2005
Income
Interest income	$	15,446	$	6,699		$	2,762
Other income		4,837		175			6,415
Total income		20,283		6,874			9,177
Share of income (losses) from operating limited partnerships		1,006,045		(301,091	)		(3,263,652	)
Expenses
Professional fees		66,443		63,873			45,203
Partnership management fee		393,151		427,061			186,914
Amortization		7,652		7,652			60,550
Impairment loss		—		540,269			1,542,187
General and administrative expenses		42,512		31,324			29,575
		509,758		1,070,179			1,864,429
NET INCOME (LOSS)	$	516,570	$	(1,364,396	)	$	(5,118,904	)
Net income (loss) allocated to general partner	$	5,166	$	(13,644	)	$	(51,189	)
Net income (loss) allocated to assignees	$	511,404	$	(1,350,752	)	$	(5,067,715	)
Net income (loss) per BAC	$	0.13	$	(0.35	)	$	(1.32	)

(continued)

F-12

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF OPERATIONS — CONTINUED

Years ended March 31, 2007, 2006 and 2005

	Series 16
	2007			2006			2005
Income
Interest income	$	6,985		$	3,019		$	2,507
Other income		4,954			2,637			2,253
Total income		11,939			5,656			4,760
Share of losses from operating limited partnerships		(830,125	)		(302,965	)		(1,548,383	)
Expenses
Professional fees		67,919			65,259			44,700
Partnership management fee		555,951			550,166			593,725
Amortization		10,600			10,600			126,268
Impairment loss		—			2,317,370			5,216,286
General and administrative expenses		49,284			37,082			33,026
		683,754			2,980,477			6,014,005
NET LOSS	$	(1,501,940	)	$	(3,277,786	)	$	(7,557,628	)
Net loss allocated to general partner	$	(15,019	)	$	(32,778	)	$	(75,576	)
Net loss allocated to assignees	$	(1,486,921	)	$	(3,245,008	)	$	(7,482,052	)
Net loss per BAC	$	(0.27	)	$	(0.60	)	$	(1.38	)

(continued)

F-13

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF OPERATIONS — CONTINUED

Years ended March 31, 2007, 2006 and 2005

	Series 17
	2007			2006			2005
Income
Interest income	$	12,850		$	6,253		$	2,506
Other income		13,085			5,839			1,210
Total income		25,935			12,092			3,716
Share of losses from operating limited partnerships		(428,223	)		(696,243	)		(3,737,706	)
Expenses
Professional fees		58,291			55,452			40,377
Partnership management fee		465,239			456,419			199,263
Amortization		11,312			11,312			87,588
Impairment loss		199,703			3,620,144			3,301,027
General and administrative expenses		45,859			34,103			31,089
		780,404			4,177,430			3,659,344
NET LOSS	$	(1,182,692	)	$	(4,861,581	)	$	(7,393,334	)
Net loss allocated to general partner	$	(11,827	)	$	(48,616	)	$	(73,933	)
Net loss allocated to assignees	$	(1,170,865	)	$	(4,812,965	)	$	(7,319,401	)
Net loss per BAC	$	(0.23	)	$	(0.96	)	$	(1.46	)

(continued)

F-14

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF OPERATIONS — CONTINUED

Years ended March 31, 2007, 2006 and 2005

	Series 18
	2007			2006			2005
Income
Interest income	$	2,680		$	689		$	533
Other income		70,182			10,855			352
Total income		72,862			11,544			885
Share of losses from operating limited partnerships		(227,177	)		(543,556	)		(1,905,671	)
Expenses
Professional fees		52,884			41,803			48,159
Partnership management fee		354,725			354,643			358,581
Amortization		8,391			8,391			65,247
Impairment loss		404,990			747,347			3,936,899
General and administrative expenses		34,098			26,676			26,026
		855,088			1,178,860			4,434,912
NET LOSS	$	(1,009,403	)	$	(1,710,872	)	$	(6,339,698	)
Net loss allocated to general partner	$	(10,094	)	$	(17,109	)	$	(63,397	)
Net loss allocated to assignees	$	(999,309	)	$	(1,693,763	)	$	(6,276,301	)
Net loss per BAC	$	(0.28	)	$	(0.47	)	$	(1.74	)

(continued)

F-15

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF OPERATIONS — CONTINUED

Years ended March 31, 2007, 2006 and 2005

	Series 19
	2007			2006			2005
Income
Interest income	$	3,854		$	1,243		$	902
Other income		3,714			13,003			5,500
Total income		7,568			14,246			6,402
Share of losses from operating limited partnerships		(800,814	)		(1,674,274	)		(1,945,625	)
Expenses
Professional fees		36,478			65,983			31,571
Partnership management fee		369,600			309,986			328,210
Amortization		14,429			14,429			14,429
Impairment loss		760,383			4,378,106			4,801,141
General and administrative expenses		36,520			31,153			26,720
		1,217,410			4,799,657			5,202,071
NET LOSS	$	(2,010,656	)	$	(6,459,685	)	$	(7,141,294	)
Net loss allocated to general partner	$	(20,107	)	$	(64,597	)	$	(71,413	)
Net loss allocated to assignees	$	(1,990,549	)	$	(6,395,088	)	$	(7,069,881	)
Net loss per BAC	$	(0.49	)	$	(1.57	)	$	(1.73	)

See notes to financial statements

F-16

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)

Years ended March 31, 2007, 2006 and 2005

				General
Total	Assignees			partner			Total
Partners’ capital (deficit), March 31, 2004		40,768,209			(1,496,949	)		39,271,260
Distributions to partners		(132,334	)		—			(132,334	)
Net loss		(33,215,350	)		(335,508	)		(33,550,858	)
Partners’ capital (deficit), March 31, 2005		7,420,525			(1,832,457	)		5,588,068
Net loss		(17,497,576	)		(176,744	)		(17,674,320	)
Partners’ capital (deficit), March 31, 2006		(10,077,051	)		(2,009,201	)		(12,086,252	)
Distributions to partners		(1,805,924	)		—			(1,805,924	)
Net loss		(5,136,240	)		(51,881	)		(5,188,121	)
Partners’ capital (deficit), March 31, 2007	$	(17,019,215	)	$	(2,061,082	)	$	(19,080,297	)

(continued)

F-17

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) — CONTINUED

Years ended March 31, 2007, 2006 and 2005

				General
Series 15	Assignees			partner			Total
Partners’ capital (deficit), March 31, 2004		3,296,025			(302,738	)		2,993,287
Distributions to partners		(107,567	)		—			(107,567	)
Net loss		(5,067,715	)		(51,189	)		(5,118,904	)
Partners’ capital (deficit), March 31, 2005		(1,879,257	)		(353,927	)		(2,233,184	)
Net loss		(1,350,752	)		(13,644	)		(1,364,396	)
Partners’ capital (deficit), March 31, 2006		(3,230,009	)		(367,571	)		(3,597,580	)
Distributions to partners		(940,481	)		—			(940,481	)
Net income		511,404			5,166			516,570
Partners’ capital (deficit), March 31, 2007	$	(3,659,086	)	$	(362,405	)	$	(4,021,491	)

(continued)

F-18

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) — CONTINUED

Years ended March 31, 2007, 2006 and 2005

				General
Series 16	Assignees			partner			Total
Partners’ capital (deficit), March 31, 2004		7,568,888			(394,869	)		7,174,019
Distributions to partners		—			—			—
Net loss		(7,482,052	)		(75,576	)		(7,557,628	)
Partners’ capital (deficit), March 31, 2005		86,836			(470,445	)		(383,609	)
Net loss		(3,245,008	)		(32,778	)		(3,277,786	)
Partners’ capital (deficit), March 31, 2006		(3,158,172	)		(503,223	)		(3,661,395	)
Net loss		(1,486,921	)		(15,019	)		(1,501,940	)
Partners’ capital (deficit), March 31, 2007	$	(4,645,093	)	$	(518,242	)	$	(5,163,335	)

(continued)

F-19

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) — CONTINUED

Years ended March 31, 2007, 2006 and 2005

				General
Series 17	Assignees			partner			Total
Partners’ capital (deficit), March 31, 2004		9,806,740			(334,962	)		9,471,778
Distributions to partners		(24,767	)		—			(24,767	)
Net loss		(7,319,401	)		(73,933	)		(7,393,334	)
Partners’ capital (deficit), March 31, 2005		2,462,572			(408,895	)		2,053,677
Net loss		(4,812,965	)		(48,616	)		(4,861,581	)
Partners’ capital (deficit), March 31, 2006		(2,350,393	)		(457,511	)		(2,807,904	)
Distributions to partners		(865,443	)		—			(865,443	)
Net loss		(1,170,865	)		(11,827	)		(1,182,692	)
Partners’ capital (deficit), March 31, 2007	$	(4,386,701	)	$	(469,338	)	$	(4,856,039	)

(continued)

F-20

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) — CONTINUED

Years ended March 31, 2007, 2006 and 2005

				General
Series 18	Assignees			partner			Total
Partners’ capital (deficit), March 31, 2004		5,638,423			(256,407	)		5,382,016
Distributions to partners		—			—			—
Net loss		(6,276,301	)		(63,397	)		(6,339,698	)
Partners’ capital (deficit), March 31, 2005		(637,878	)		(319,804	)		(957,682	)
Net loss		(1,693,763	)		(17,109	)		(1,710,872	)
Partners’ capital (deficit), March 31, 2006		(2,331,641	)		(336,913	)		(2,668,554	)
Net loss		(999,309	)		(10,094	)		(1,009,403	)
Partners’ capital (deficit), March 31, 2007	$	(3,330,950	)	$	(347,007	)	$	(3,677,957	)

(continued)

F-21

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) — CONTINUED

Years ended March 31, 2007, 2006 and 2005

				General
Series 19	Assignees			partner			Total
Partners’ capital (deficit), March 31, 2004		14,458,133			(207,973	)		14,250,160
Distributions to partners		—			—			—
Net loss		(7,069,881	)		(71,413	)		(7,141,294	)
Partners’ capital (deficit), March 31, 2005		7,388,252			(279,386	)		7,108,866
Net loss		(6,395,088	)		(64,597	)		(6,459,685	)
Partners’ capital (deficit), March 31, 2006		993,164			(343,983	)		649,181
Net loss		(1,990,549	)		(20,107	)		(2,010,656	)
Partners’ capital (deficit), March 31, 2007	$	(997,385	)	$	(364,090	)	$	(1,361,475	)

See notes to financial statements

F-22

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CASH FLOWS

Years ended March 31, 2007, 2006 and 2005

	Total
	2007			2006			2005
Cash flows from operating activities
Net loss	$	(5,188,121	)	$	(17,674,320	)	$	(33,550,858	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Share of losses from operating limited partnerships		1,280,294			3,518,129			12,401,037
Distributions received from operating limited partnerships		30,836			82,150			43,280
Impairment loss		1,365,076			11,603,236			18,797,540
Amortization		52,384			52,384			354,082
Changes in assets and liabilities
Other assets		(7,126	)		85,044			—
Accounts payable and accrued expenses		(40,266	)		40,266			—
Accounts payable — affiliates		1,696,733			1,656,375			2,517,620
Net cash provided by (used in) operating activities		(810,190	)		(636,736	)		562,701
Cash flows from investing activities
Capital contributions paid to operating limited partnerships		—			(500	)		(37,498	)
(Advance)/repayments (to)/from operating limited partnerships		—			—			96,741
Proceeds from disposition of operating limited partnerships		1,271,354			153,501			2,124,534
Net cash provided by (used in) investing activities		1,271,354			153,001			2,183,777
Cash flows from financing activities
Distributions to partners		(1,805,924	)		—			(132,334	)
Net cash provided by (used in) financing activity		(1,805,924	)		—			(132,334	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(1,344,760	)		(483,735	)		2,614,144
Cash and cash equivalents, beginning		3,292,462			3,776,197			1,162,053
Cash and cash equivalents, end	$	1,947,702		$	3,292,462		$	3,776,197

(continued)

F-23

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CASH FLOWS — CONTINUED

Years ended March 31, 2007, 2006 and 2005

	Series 15
	2007			2006			2005
Cash flows from operating activities
Net income (loss)	$	516,570		$	(1,364,396	)	$	(5,118,904	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income (losses) from operating limited partnerships		(1,006,045	)		301,091			3,263,652
Distributions received from operating limited partnerships		—			—			253
Impairment loss		—			540,269			1,542,187
Amortization		7,652			7,652			60,550
Changes in assets and liabilities
Other assets		(4,365	)		(20,635	)		—
Accounts payable and accrued expenses		—			—			—
Accounts payable — affiliates		260,409			124,513			478,228
Net cash provided by (used in) operating activities		(225,779	)		(411,506	)		225,966
Cash flows from investing activities
Capital contributions paid to operating limited partnerships		—			—			(11,998	)
(Advance)/repayments (to)/from operating limited partnerships		—			—			78,284
Proceeds from disposition of operating limited partnerships		1,249,013			36,295			1,106,404
Net cash provided by (used in) investing activities		1,249,013			36,295			1,172,690
Cash flows from financing activities
Distributions to partners		(940,481	)		—			(107,567	)
Net cash provided by (used in) financing activity		(940,481	)		—			(107,567	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		82,753			(375,211	)		1,291,089
Cash and cash equivalents, beginning		1,262,471			1,637,682			346,593
Cash and cash equivalents, end	$	1,345,224		$	1,262,471		$	1,637,682

(continued)

F-24

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CASH FLOWS — CONTINUED

Years ended March 31, 2007, 2006 and 2005

	Series 16
	2007			2006			2005
Cash flows from operating activities
Net loss	$	(1,501,940	)	$	(3,277,786	)	$	(7,557,628	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Share of losses from operating limited partnerships		830,125			302,965			1,548,383
Distributions received from operating limited partnerships		8,385			5,850			52,769
Impairment loss		—			2,317,370			5,216,286
Amortization		10,600			10,600			126,268
Changes in assets and liabilities
Other assets		(6,175	)		110,860			—
Accounts payable and accrued expenses		(40,266	)		40,266			—
Accounts payable — affiliates		301,865			591,979			691,979
Net cash provided by (used in) operating activities		(397,406	)		102,104			78,057
Cash flows from investing activities
Capital contributions paid to operating limited partnerships		—			(500	)		(1,500	)
(Advance)/repayments (to)/from operating limited partnerships		—			—			—
Proceeds from disposition of operating limited partnerships		15,021			84,540			—
Net cash provided by (used in) investing activities		15,021			84,040			(1,500	)
Cash flows from financing activities
Distributions to partners		—			—			—
Net cash provided by (used in) financing activity		—			—			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(382,385	)		186,144			76,557
Cash and cash equivalents, beginning		572,534			386,390			309,833
Cash and cash equivalents, end	$	190,149		$	572,534		$	386,390

(continued)

F-25

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CASH FLOWS — CONTINUED

Years ended March 31, 2007, 2006 and 2005

	Series 17
	2007			2006			2005
Cash flows from operating activities
Net loss	$	(1,182,692	)	$	(4,861,581	)	$	(7,393,334	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Share of losses from operating limited partnerships		428,223			696,243			3,737,706
Distributions received from operating limited partnerships		4,240			1,170			10,857
Impairment loss		199,703			3,620,144			3,301,027
Amortization		11,312			11,312			87,588
Changes in assets and liabilities
Other assets		5,181			(5,181	)		—
Accounts payable and accrued expenses		—			—			—
Accounts payable — affiliates		319,920			194,120			493,650
Net cash provided by (used in) operating activities		(214,113	)		(343,773	)		237,494
Cash flows from investing activities
Capital contributions paid to operating limited partnerships		—			—			—
(Advance)/repayments (to)/from operating limited partnerships		—			—			75,000
Proceeds from disposition of operating limited partnerships		7,320			32,666			1,018,130
Net cash provided by (used in) investing activities		7,320			32,666			1,093,130
Cash flows from financing activities
Distributions to partners		(865,443	)		—			(24,767	)
Net cash provided by (used in) financing activity		(865,443	)		—			(24,767	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(1,072,236	)		(311,107	)		1,305,857
Cash and cash equivalents, beginning		1,238,050			1,549,157			243,300
Cash and cash equivalents, end	$	165,814		$	1,238,050		$	1,549,157

(continued)

F-26

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CASH FLOWS — CONTINUED

Years ended March 31, 2007, 2006 and 2005

	Series 18
	2007			2006			2005
Cash flows from operating activities
Net loss	$	(1,009,403	)	$	(1,710,872	)	$	(6,339,698	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Share of losses from operating limited partnerships		227,177			543,556			1,905,671
Distributions received from (refunded to) operating limited partnerships		933			2,269			(20,664	)
Impairment loss		404,990			747,347			3,936,899
Amortization		8,391			8,391			65,247
Changes in assets and liabilities
Other assets		—			—			—
Accounts payable and accrued expenses		—			—			—
Accounts payable — affiliates		403,191			409,415			442,415
Net cash provided by (used in) operating activities		35,279			106			(10,130	)
Cash flows from investing activities
Capital contributions paid to operating limited partnerships		—			—			—
(Advance)/repayments (to)/from operating limited partnerships		—			—			(56,543	)
Proceeds from disposition of operating limited partnerships		—			—			—
Net cash provided by (used in) investing activities		—			—			(56,543	)
Cash flows from financing activities
Distributions to partners		—			—			—
Net cash provided by (used in) financing activity		—			—			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		35,279			106			(66,673	)
Cash and cash equivalents, beginning		72,064			71,958			138,631
Cash and cash equivalents, end	$	107,343		$	72,064		$	71,958

(continued)

F-27

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

STATEMENTS OF CASH FLOWS — CONTINUED

Years ended March 31, 2007, 2006 and 2005

	Series 19
	2007			2006			2005
Cash flows from operating activities
Net loss	$	(2,010,656	)	$	(6,459,685	)	$	(7,141,294	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Share of losses from operating limited partnerships		800,814			1,674,274			1,945,625
Distributions received from operating limited partnerships		17,278			72,861			65
Impairment loss		760,383			4,378,106			4,801,141
Amortization		14,429			14,429			14,429
Changes in assets and liabilities
Other assets		(1,767	)
Accounts payable and accrued expenses		—			—			—
Accounts payable — affiliates		411,348			336,348			411,348
Net cash provided by (used in) operating activities		(8,171	)		16,333			31,314
Cash flows from investing activities
Capital contributions paid to operating limited partnerships		—			—			(24,000	)
(Advance)/repayments (to)/from operating limited partnerships		—			—			—
Proceeds from disposition of operating limited partnerships		—			—			—
Net cash provided by (used in) investing activities		—			—			(24,000	)
Cash flows from financing activities
Distributions to partners		—			—			—
Net cash provided by (used in) financing activity		—			—			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(8,171	)		16,333			7,314
Cash and cash equivalents, beginning		147,343			131,010			123,696
Cash and cash equivalents, end	$	139,172		$	147,343		$	131,010

(continued)

F-28

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS

March 31, 2007, 2006 and 2005

NOTE A — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Boston Capital Tax Credit Fund III L.P. (the “partnership” or “fund”) was formed under the laws of the State of Delaware on September 19, 1991, for the purpose of acquiring, holding, and disposing of limited partnership interests in operating limited partnerships which were organized to acquire, develop, rehabilitate, operate and own newly constructed, existing or rehabilitated apartment complexes which qualified for the Low-Income Housing Tax Credit established by the Tax Reform Act of 1986. Accordingly, the apartment complexes are restricted as to rent charges and operating methods. Certain of the apartment complexes also qualified for the Historic Rehabilitation Tax Credit for their rehabilitation of a certified historic structure and are subject to the provisions of the Internal Revenue Code relating to the Rehabilitation Investment Credit. The general partner of the fund is Boston Capital Associates III L.P. and the limited partner is BCTC III Assignor Corp. (the “assignor limited partner”).

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 originally registered 20,000,000 BACs at $10 per BAC for sale to the public in one or more series. An additional 2,000,000 BACs at $10 per BAC were registered for sale to the public in one or more series on September 4, 1994. BACs sold in bulk were offered to investors at a reduced cost per BAC.

The BACs issued and outstanding in each series at March 31, 2007 and 2006 are as follows:

Series 15	3,870,500
Series 16	5,429,402
Series 17	5,000,000
Series 18	3,616,200
Series 19	4,080,000
Total	21,996,102

In accordance with the limited partnership agreements, profits, losses, and cash flow (subject to certain priority allocations and distributions) and tax credits are allocated 99% to the assignees and 1% to the general partner.

F-29

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE A — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Investments in Operating Limited Partnerships

The fund accounts for its investments in operating limited partnerships using the equity method, whereby the fund adjusts its investment cost for its share of each operating limited partnership’s results of operations and for any distributions received or accrued. However, the fund recognizes the individual operating limited partnership’s losses only to the extent that the fund’s share of losses of the operating limited partnerships does not exceed the carrying amount of its investment and its advances to operating limited partnerships. Unrecognized losses are suspended and offset against future individual operating limited partnership income.

Under Emerging Issues Task Force (EITF) 98-13, after the investment account is reduced to zero, receivables due from the operating limited partnerships are decreased by the fund’s share of losses and, accordingly, a valuation allowance is recorded against the receivables. Accordingly, the partnership recorded a valuation allowance as follows:

	2007		2006
Series 15	$	169,007	$	159,007
Series 16		14,193		8,018
Series 17		85,401		74,109
Series 18		57,536		57,536
Series 19		2,921		1,154
	$	329,058	$	299,824

A loss in value of an investment in an operating limited partnership other than a temporary decline is recorded as an impairment loss. Impairment is measured by comparing the investment carrying amount to the sum of the total amount of the remaining tax credits allocated to the fund and the estimated residual value of the investment. In addition, deferred acquisition costs related to each investment are evaluated for impairment when an impairment loss has reduced an investment balance to zero. Accordingly, the partnership recorded an impairment loss of $1,365,076, $11,603,236 and $18,797,540 during the years ended March 31, 2007, 2006 and 2005, respectively.

F-30

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE A — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Investments in Operating Limited Partnerships (Continued)

Capital contributions to operating limited partnerships are adjusted by tax credit adjusters. Tax credit adjusters are defined as adjustments to operating limited partnership capital contributions due to reductions in actual tax credits from those originally projected. The fund records tax credit adjusters as a reduction in investment in operating limited partnerships and capital contributions payable.

The operating limited partnerships maintain their financial statements based on a calendar year and the fund utilizes a March 31 year-end. The fund records income and losses from the operating limited partnerships on a calendar year basis which is not materially different from income and losses generated if the operating limited partnerships utilized a March 31 year-end.

The fund records capital contributions payable to the operating limited partnerships once there is a binding obligation to fund a specified amount. The operating limited partnerships record capital contributions from the fund when received.

The fund records certain acquisition costs as an increase in its investment in operating limited partnerships. Certain operating limited partnerships have not recorded the acquisition costs as a capital contribution from the fund. These differences are shown as reconciling items in note C.

As of March 31, 2004, the partnership adopted FASB Interpretation No. 46 — Revised (“FIN 46R”), “Consolidation of Variable Interest Entities.” FIN 46R provides guidance on when a company should include the assets, liabilities, and activities of a variable interest entity (“VIE”) in its financial statements and when it should disclose information about its relationship with a VIE. A VIE is a legal structure used to conduct activities or hold assets, which must be consolidated by a company if it is the primary beneficiary because it absorbs the majority of the entity’s expected losses, the majority of the expected residual returns, or both.

F-31

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE A — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Investments in Operating Limited Partnerships (Continued)

Based on the guidance of FIN 46R, the operating limited partnerships in which the partnership invests in meet the definition of a VIE. However, management does not consolidate the partnership’s interests in these VIEs under FIN 46R, as it is not considered to be the primary beneficiary. The partnership currently records the amount of its investment in these partnerships as an asset in the balance sheets, recognizes its share of partnership income or losses in the statements of operations, and discloses how it accounts for material types of these investments in the financial statements.

The partnership’s balance in investment in operating limited partnerships, plus the risk of recapture of tax credits previously recognized on these investments, represents its maximum exposure to loss. The partnership’s exposure to loss on these partnerships is mitigated by the condition and financial performance of the underlying properties as well as the strength of the local general partners and their guarantee against credit recapture.

Deferred Acquisition Costs

Acquisition costs were deferred until March 31, 1995. As of April 1, 1995, the fund reallocated certain acquisition costs, common to all Series, based on a percentage of equity raised to each Series. Acquisition costs are being amortized on the straight-line method starting April 1, 1995, over 27.5 years (330 months).

Accumulated amortization as of March 31, 2007 and 2006 is as follows:

	2007		2006
Series 15	$	170,559	$	162,907
Series 16		299,129		288,529
Series 17		258,065		246,753
Series 18		184,879		176,488
Series 19		171,648		157,219
	$	1,084,280	$	1,031,896

F-32

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE A — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Deferred Acquisition Costs (Continued)

The amortization of the deferred acquisition costs for each of the ensuing 5 years through March 31, 2012 is estimated to be $52,384 per year.

Selling Commissions and Registration Costs

Selling commissions paid in connection with the public offering are charged against the assignees’ capital upon admission of investors as assignees. Registration costs associated with the public offering are charged against assignees’ capital as incurred.

Income Taxes

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.

Cash Equivalents

Cash equivalents include repurchase agreements and money market accounts having original maturities at date of acquisition of three months or less. The carrying value approximates fair value because of the short maturity of these instruments.

During the ordinary course of business, amounts on deposit may exceed the FDIC-insured limit.

F-33

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE A — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Fiscal Year

For financial reporting purposes, the fund uses a March 31 year-end, whereas for income tax reporting purposes, the fund uses a calendar year. The operating limited partnerships use a calendar year for both financial and income tax reporting.

Net Income (Loss) per Beneficial Assignee Certificate

Net income (loss) per beneficial assignee partnership unit is calculated based upon the number of units outstanding during the year. The number of units in each series at March 31, 2007, 2006 and 2005 are as follows:

Series 15	3,870,500
Series 16	5,429,402
Series 17	5,000,000
Series 18	3,616,200
Series 19	4,080,000
	21,996,102

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

F-34

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE B — RELATED PARTY TRANSACTIONS

During the years ended March 31, 2007, 2006 and 2005, the fund entered into several transactions with various affiliates of the general partner, including Boston Capital Partners, Inc., Boston Capital Services, Inc., Boston Capital Holdings Limited Partnership and Boston Capital Asset Management Limited Partnership, as follows:

Boston Capital Asset Management Limited Partnership is entitled to an annual fund management fee based on .5% of the aggregate cost of all apartment complexes acquired by the operating limited partnerships, less the amount of certain partnership management and reporting fees paid or payable by the operating limited partnerships. The aggregate cost is comprised of the capital contributions made by each series to the operating limited partnerships and 99% of the permanent financing at the operating limited partnership level. The fee is payable without interest as sufficient funds became available from sales or refinancing proceeds from operating limited partnerships. The annual fund management fee charged to operations, net of reporting fees, during the years ended March 31, 2007, 2006 and 2005 by series, is as follows:

	2007		2006		2005
Series 15	$	393,151	$	427,061	$	186,914
Series 16		555,951		550,166		593,725
Series 17		465,239		456,419		199,263
Series 18		354,725		354,643		358,581
Series 19		369,600		309,986		328,210
	$	2,138,666	$	2,098,275	$	1,666,693

F-35

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE B — RELATED PARTY TRANSACTIONS (Continued)

General and administrative expenses incurred by Boston Capital Partners, Inc., Boston Capital Holdings Limited Partnership and Boston Capital Asset Management Limited Partnership during the years ended March 31, 2007, 2006 and 2005 charged to each series’ operations are as follows:

	2007		2006		2005
Series 15	$	27,017	$	32,089	$	18,309
Series 16		28,902		35,683		19,276
Series 17		25,455		31,407		17,809
Series 18		21,244		25,697		14,604
Series 19		20,752		26,096		15,097
	$	123,370	$	150,972	$	85,095

The Partnership had previously recorded and paid BCAMLP in connection with the disposition of certain Operating Partnerships certain amounts which were incorrectly referred to as sales preparation fees. The payments were actually for reimbursement of overhead and salary expenses incurred by Boston Capital and its Affiliates in connection with the disposition three Operating Partnerships.

During the year ended Mach 31, 2006, management of Boston Capital decided to discontinue requesting reimbursement for overheard and salary expenses related to the disposition of assets. Additionally, Boston Capital’s management has decided to reimburse all previous reimbursements for such items by reducing other liabilities due to Boston Capital and its Affiliates from the Partnership. The sales preparation fees reimbursed for Series 15 and Series 17 were $22,352 and $20,175 respectively.

During the year ended Mach 31, 2005, the partnership reimbursed Boston Capital Asset Management Limited Partnership for overhead and salary expenses in connection with the disposition of certain operating limited partnerships in Series 15 and Series 17. During the year ended March 31, 2005, the amount incurred for Series 15 was $18,362 and Series 17 was $16,897.

F-36

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE B — RELATED PARTY TRANSACTIONS (Continued)

Accounts payable — affiliates at March 31, 2007 and 2006 represents fund management fees and an operating limited partnership advance which are payable to Boston Capital Asset Management Limited Partnership. The carrying value of the accounts payable — affiliates approximates fair value.

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS

At March 31, 2007 and 2006, the fund has limited partnership interests in operating limited partnerships which own or are constructing operating apartment complexes. The number of
operating limited partnerships in which the fund has limited partnership interests at March 31, 2007 and 2006 by series are as follows:

	2007		2006
Series 15		63		66
Series 16		61		62
Series 17		47		47
Series 18		34		34
Series 19		26		26
		231		235

F-37

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

During the year end March 31, 2007 the partnership disposed of three operating limited partnerships, sold a portion of its interest in one operating limited partnership, and received additional proceeds from one operating limited partnerships which was disposed of in the prior year. A summary of the dispositions by Series for March 31, 2007 is as follows:

	Operating		Sale of
	Partnership		Underlying		Partnership
	Interest		Operating		Proceeds from		Gain/(Loss) on
	Transferred		Partnership		Disposition		Disposition
Series 15		2		1	$	1,249,013	$	1,185,775
Series 16		1		—		15,021		15,021
Series 17		—		—		7,320		—
Series 18		—		—		—		—
Series 19		—		—		—		—
Total		3		1	$	1,271,354	$	1,200,796

During the year end March 31, 2006 the partnership disposed of two of the operating limited partnerships and received additional proceeds from two operating limited partnerships which were disposed of in the prior year. A summary of the dispositions by Series for March 31, 2006 is as follows:

	Operating		Sale of
	Partnership		Underlying		Partnership
	Interest		Operating		Proceeds from		Gain/(Loss) on
	Transferred		Partnership		Disposition		Disposition
Series 15		—		—	$	36,295	$	36,295
Series 16		—		2		84,540		(23,530	)
Series 17		—		—		32,666		32,666
Series 18		—		—		—		—
Series 19		—		—		—		—
Total		—		2	$	153,501	$	45,431

F-38

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

During the year end March 31, 2005 the partnership disposed of two of the operating limited partnerships. A summary of the dispositions by Series for March 31, 2005 is as follows:

	Operating		Sale of
	Partnership		Underlying		Partnership
	Interest		Operating		Proceeds from		Gain/(Loss) on
	Transferred		Partnership		Disposition		Disposition
Series 15		—		1	$	1,106,404	$	(3,046,179	)
Series 16		—		—		—		—
Series 17		—		1		1,018,130		(2,791,520	)
Series 18		—		—		—		—
Series 19		—		—		—		—
Total		—		2	$	2,124,534	$	(5,837,699	)

Under the terms of the fund’s investment in each operating limited partnership, the fund is required to make capital contributions to the operating limited partnerships. These contributions are payable in installments over several years upon each operating limited partnership achieving specified levels of construction and/or operations.

The contributions payable to operating limited partnerships at March 31, 2007 and 2006 by series are as follows:

	2007		2006
Series 15	$	4,208	$	4,208
Series 16		71,862		71,862
Series 17		67,895		67,895
Series 18		18,554		18,554
Series 19		—		—
	$	162,519	$	162,519

F -39

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The fund’s investments in operating limited partnerships at March 31, 2007 are summarized as follows:

	Total			Series 15			Series 16
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	142,450,069		$	20,222,979		$	35,385,389
Acquisition costs of operating limited partnerships		17,360,869			2,103,832			4,154,447
Syndication costs from operating limited partnerships		(56,632	)		—			—
Cumulative distributions from operating limited partnerships		(1,263,654	)		(16,682	)		(491,707	)
Cumulative impairment loss in investment in operating limited partnerships		(31,880,319	)		(1,902,745	)		(8,134,883	)
Cumulative losses from operating limited partnerships		(123,191,294	)		(20,045,460	)		(29,786,381	)
Investments in operating limited partnerships per balance sheets		3,419,039			361,924			1,126,865
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2007 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2006 (see note A)		(1,078,516	)		(132,937	)		(113,965	)
The fund has recorded acquisition costs at March 31, 2007 which have not been recorded in the net assets of the operating limited partnerships (see note A)		(2,683,933	)		(383,846	)		(582,648	)
Cumulative losses from operating limited partnerships for the three months ended March 31, 1993 which the operating limited partnerships have not included in their capital as of December 31, 1992 due to different year ends (see note A)		2,146,189			422,633			—

F -40

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

	Total			Series 15			Series 16
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A)		(37,868,729	)		(11,800,839	)		(11,145,028	)
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)		738,867			179,711			151,497
Cumulative impairment loss in investment in operating limited partnerships		31,918,158			1,902,745			8,134,883
Other		689,853			(15,397	)		683,314
Equity per operating limited partnerships’ combined financial statements	$	(2,719,072	)	$	(9,466,006	)	$	(1,745,082	)

F -41

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The fund’s investments in operating limited partnerships at March 31, 2007 are summarized as follows:

	Series 17			Series 18			Series 19
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	30,909,526		$	26,416,735		$	29,515,440
Acquisition costs of operating limited partnerships		3,782,255			3,587,531			3,732,804
Syndication costs from operating limited partnerships		—			(56,632	)		—
Cumulative distributions from operating limited partnerships		(131,300	)		(137,877	)		(486,088	)
Cumulative impairment loss in investment in operating limited partnerships		(5,822,328	)		(5,926,733	)		(10,093,630	)
Cumulative losses from operating limited partnerships		(27,451,159	)		(23,790,078	)		(22,118,216	)
Investments in operating limited partnerships per balance sheets		1,286,994			92,946			550,310
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2007 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2006 (see note A)		(710,224	)		(61,783	)		(59,607	)
The fund has recorded acquisition costs at March 31, 2007 which have not been recorded in the net assets of the operating limited partnerships (see note A)		(695,315	)		(387,564	)		(634,560	)
Cumulative losses from operating limited partnerships for the three months ended March 31, 1993 which the operating limited partnerships have not included in their capital as of December 31, 1992 due to different year ends (see note A)		752,440			617,683			353,433

F -42

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

	Series 17			Series 18			Series 19
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A)		(5,912,028	)		(5,214,009	)		(3,796,825	)
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)		59,201			105,595			242,863
Cumulative impairment loss in investment in operating limited partnerships		5,855,208			5,926,733			10,098,589
Other		(7,974	)		6,394			23,516
Equity per operating limited partnerships’ combined financial statements	$	628,302		$	1,085,995		$	6,777,719

F -43

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The fund’s investments in operating limited partnerships at March 31, 2006 are summarized as follows:

	Total			Series 15			Series 16
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters		146,730,517		$	23,053,125		$	36,828,371
Acquisition costs of operating limited partnerships		17,601,230			2,136,641			4,361,999
Syndication costs from operating limited partnerships		(56,632	)		—			—
Cumulative distributions from operating limited partnerships		(1,232,841	)		(16,705	)		(483,322	)
Cumulative impairment loss in investment in operating limited partnerships		(31,386,971	)		(2,082,456	)		(8,826,900	)
Cumulative losses from operating limited partnerships		(124,317,938	)		(22,495,713	)		(29,905,927	)
Investments in operating limited partnerships per balance sheets		7,337,365			594,892			1,974,221
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2006 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2005 (see note A)		(1,078,516	)		(132,937	)		(113,965	)
The fund has recorded acquisition costs at March 31, 2006 which have not been recorded in the net assets of the operating limited partnerships (see note A)		(2,904,726	)		(399,087	)		(788,200	)
Cumulative losses from operating limited partnerships for the three months ended March 31, 1993 which the operating limited partnerships have not included in their capital as of December 31, 1992 due to different year ends (see note A)		2,195,770			472,214			—

F -44

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

	Total			Series 15			Series 16
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A)		(26,853,742	)		(10,800,283	)		(7,437,124	)
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)		739,465			180,309			151,497
Cumulative impairment loss in investment in operating limited partnerships		31,386,972			2,082,456			8,826,900
Other		781,526			12,314			677,382
Equity per operating limited partnerships’ combined financial statements	$	11,604,114		$	(7,990,122	)	$	3,290,711

F -45

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The fund’s investments in operating limited partnerships at March 31, 2006 are summarized as follows:

	Series 17			Series 18			Series 19
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	30,916,846		$	26,416,735		$	29,515,440
Acquisition costs of operating limited partnerships		3,782,255			3,587,531			3,732,804
Syndication costs from operating limited partnerships		—			(56,632	)		—
Cumulative distributions from operating limited partnerships		(127,060	)		(136,944	)		(468,810	)
Cumulative impairment loss in investment in operating limited partnerships		(5,622,625	)		(5,521,743	)		(9,333,247	)
Cumulative losses from operating limited partnerships		(27,034,228	)		(23,562,901	)		(21,319,169	)
Investments in operating limited partnerships per balance sheets		1,915,188			726,046			2,127,018
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2006 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2005 (see note A)		(710,224	)		(61,783	)		(59,607	)
The fund has recorded acquisition costs at March 31, 2006 which have not been recorded in the net assets of the operating limited partnerships (see note A)		(695,315	)		(387,564	)		(634,560	)
Cumulative losses from operating limited partnerships for the three months ended March 31, 1993 which the operating limited partnerships have not included in their capital as of December 31, 1992 due to different year ends (see note A)		752,440			617,683			353,433

F -46

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

	Series 17			Series 18			Series 19
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A)		(4,378,592	)		(3,133,940	)		(1,103,803	)
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)		59,201			105,595			242,863
Cumulative impairment loss in investment in operating limited partnerships		5,622,625			5,521,743			9,333,248
Other		(10,361	)		73,115			29,076
Equity per operating limited partnerships’ combined financial statements	$	2,554,962		$	3,460,895		$	10,287,668

F -47

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2006 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS

	Total			Series 15			Series 16
ASSETS
Buildings and improvements, net of accumulated depreciation	$	298,142,057		$	47,247,271		$	71,416,545
Land		24,949,002			4,226,094			5,020,765
Other assets		37,239,380			9,060,861			9,690,421
	$	360,330,439		$	60,534,226		$	86,127,731
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable	$	314,708,386		$	65,849,535		$	72,792,033
Accounts payable and accrued expenses		15,356,280			700,217			6,352,475
Other liabilities		32,276,672			3,526,284			5,953,276
		362,341,338			70,076,036			85,097,784
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.		(2,719,072	)		(9,466,006	)		(1,745,082	)
Other partners		479,256			(75,804	)		2,775,029
		(2,239,816	)		(9,541,810	)		1,029,947
	$	360,101,522		$	60,534,226		$	86,127,731

F -48

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2006 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS — CONTINUED

	Series 17			Series 18		Series 19
ASSETS
Buildings and improvements, net of accumulated depreciation	$	74,419,890		$	46,842,715	$	58,215,636
Land		6,497,315			3,363,433		5,841,395
Other assets		8,998,113			5,404,593		4,085,392
	$	89,915,318		$	55,610,741	$	68,142,423
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable	$	80,778,638		$	42,934,858	$	52,353,322
Accounts payable and accrued expenses		2,025,202			3,645,530		2,632,856
Other liabilities		10,023,905			6,999,004		5,774,203
		92,827,745			53,579,392		60,760,381
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.		628,302			1,085,995		6,777,719
Other partners		(3,540,729	)		716,437		604,323
		(2,912,427	)		1,802,432		7,382,042
	$	89,915,318		$	55,381,824	$	68,142,423

F -49

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2005 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS

	Total		Series 15			Series 16
ASSETS
Buildings and improvements, net of accumulated depreciation	$	321,081,575	$	53,804,608		$	78,070,091
Land		25,452,842		4,592,814			5,157,885
Other assets		36,965,381		8,937,520			9,941,760
	$	383,499,798	$	67,334,942		$	93,169,736
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable	$	323,320,829	$	71,154,400		$	75,378,295
Accounts payable and accrued expenses		14,547,477		919,138			6,319,980
Other liabilities		31,307,263		3,225,408			5,275,636
		369,175,569		75,298,946			86,973,911
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.		11,604,111		(7,990,122	)		3,290,711
Other partners		2,720,118		26,118			2,905,114
		14,324,229		(7,964,004	)		6,195,825
	$	383,499,798	$	67,334,942		$	93,169,736

F -50

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2005 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS — CONTINUED

	Series 17			Series 18		Series 19
ASSETS
Buildings and improvements, net of accumulated depreciation	$	77,755,113		$	49,085,784	$	62,365,979
Land		6,497,315			3,363,433		5,841,395
Other assets		8,443,631			5,156,585		4,485,885
	$	92,696,059		$	57,605,802	$	72,693,259
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable	$	80,772,183		$	42,760,206	$	53,255,745
Accounts payable and accrued expenses		1,847,829			3,479,979		1,980,551
Other liabilities		10,126,354			6,494,667		6,185,198
		92,746,366			52,734,852		61,421,494
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.		2,554,959			3,460,895		10,287,668
Other partners		(2,605,266	)		1,410,055		984,097
		(50,307	)		4,870,950		11,271,765
	$	92,696,059		$	57,605,802	$	72,693,259

F -51

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2006 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

	Total			Series 15			Series 16
Revenue
Rental	$	58,875,372		$	10,385,426		$	13,183,737
Interest and other		2,480,868			352,578			522,327
		61,356,240			10,738,004			13,706,064
Expenses
Interest		14,519,066			2,133,821			2,767,142
Depreciation and amortization		16,773,001			3,027,505			4,072,542
Taxes and insurance		8,713,562			1,416,420			2,016,633
Repairs and maintenance		12,117,243			2,177,954			2,703,304
Operating expenses		20,677,354			3,547,357			4,780,549
Other expenses		4,584,892			404,447			2,105,022
		77,385,118			12,707,504			18,445,192
NET LOSS	$	(16,028,878	)	$	(1,969,500	)	$	(4,739,128	)
Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(14,323,629	)	$	(1,831,371	)	$	(4,657,480	)
Net loss allocated to other partners	$	(1,705,249	)	$	(138,129	)	$	(81,648	)

* Amounts include $1,661,641, $3,818,509, $1,605,973, $2,090,617, and $2,695,033 for Series 15, Series 16, Series 17, Series 18 and Series 19, respectively, of loss not recognized under the equity method of accounting as described in note A.

F -52

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2006 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS — CONTINUED

	Series 17			Series 18			Series 19
Revenue
Rental	$	15,477,385		$	8,091,504		$	11,737,320
Interest and other		621,849			452,749			531,365
		16,099,234			8,544,253			12,268,685
Expenses
Interest		3,864,164			2,222,943			3,530,996
Depreciation and amortization		4,007,790			2,677,955			2,987,209
Taxes and insurance		2,189,002			1,270,761			1,820,746
Repairs and maintenance		3,518,007			1,786,476			1,931,502
Operating expenses		5,239,042			3,000,433			4,109,973
Other expenses		103,085			240,794			1,731,544
		18,921,090			11,199,362			16,111,970
NET LOSS	$	(2,821,856	)	$	(2,655,109	)	$	(3,843,285	)
Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(2,022,904	)	$	(2,317,794	)	$	(3,494,080	)
Net loss allocated to other partners	$	(798,952	)	$	(337,315	)	$	(349,205	)

* Amounts include $1,661,641, $3,818,509, $1,605,973, $2,090,617, and $2,695,033 for Series 15, Series 16, Series 17, Series 18 and Series 19, respectively, of loss not recognized under the equity method of accounting as described in note A.

F -53

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2005 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

	Total			Series 15			Series 16
Revenue
Rental	$	58,980,939		$	11,077,288		$	13,316,776
Interest and other		3,549,031			1,445,196			509,700
		62,529,970			12,522,484			13,826,476
Expenses
Interest		15,253,869			2,451,939			2,811,681
Depreciation and amortization		17,304,136			3,307,014			4,195,283
Taxes and insurance		8,573,097			1,623,654			2,012,956
Repairs and maintenance		12,262,347			2,530,644			2,848,350
Operating expenses		20,083,851			3,703,850			4,504,372
Other expenses		1,502,119			743,905			178,592
		74,979,419			14,361,006			16,551,234
NET LOSS	$	(12,449,449	)	$	(1,838,522	)	$	(2,724,758	)
Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(11,432,430	)	$	(2,525,834	)	$	(2,632,449	)
Net loss allocated to other partners	$	(1,017,019	)	$	687,312		$	(92,309	)

* Amounts include $2,181,097, $2,353,014, $1,382,534, $1,483,682, and $441,017 for Series 15, Series 16, Series 17, Series 18 and Series 19, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-54

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2005 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS – CONTINUED

	Series 17			Series 18			Series 19
Revenue
Rental	$	14,952,587		$	8,066,043		$	11,568,245
Interest and other		826,975			255,588			511,572
		15,779,562			8,321,631			12,079,817
Expenses
Interest		4,270,237			2,099,231			3,620,781
Depreciation and amortization		3,984,108			2,660,275			3,157,456
Taxes and insurance		1,953,933			1,160,161			1,822,393
Repairs and maintenance		3,437,391			1,581,326			1,864,636
Operating expenses		5,051,351			2,854,792			3,969,486
Other expenses		167,600			236,103			175,919
		18,864,620			10,591,888			14,610,671
NET LOSS	$	(3,085,058	)	$	(2,270,257	)	$	(2,530,854	)
Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(2,131,618	)	$	(2,027,238	)	$	(2,115,291	)
Net loss allocated to other partners	$	(953,440	)	$	(243,019	)	$	(415,563	)

* Amounts include $2,181,097, $2,353,014, $1,382,534, $1,483,682, and $441,017 for Series 15, Series 16, Series 17, Series 18 and Series 19, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-55

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2004 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

	Total			Series 15			Series 16
Revenue
Rental	$	59,366,277		$	11,009,637		$	14,031,581
Interest and other		3,693,610			939,847			518,148
		63,059,887			11,949,484			14,549,729
Expenses
Interest		15,640,453			2,503,274			3,215,239
Depreciation and amortization		17,707,870			3,372,711			4,521,303
Taxes and insurance		8,763,007			1,648,233			2,105,923
Repairs and maintenance		11,825,326			2,379,955			2,834,667
Operating expenses		19,436,889			3,635,801			4,819,223
Other expenses		1,996,566			867,817			238,349
		75,370,111			14,407,791			17,734,704
NET LOSS	$	(12,310,224	)	$	(2,458,307	)	$	(3,184,975	)
Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(11,364,987	)	$	(2,454,426	)	$	(2,729,109	)
Net loss allocated to other partners	$	(945,237	)	$	(3,881	)	$	(455,866	)

* Amounts include $2,236,953, $1,180,726, $711,882, $408,340, and $263,746 for Series 15, Series 16, Series 17, Series 18 and Series 19, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-56

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE C — INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2004 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS — CONTINUED

	Series 17			Series 18			Series 19
Revenue
Rental	$	14,893,243		$	7,820,197		$	11,611,619
Interest and other		1,637,723			234,556			363,336
		16,530,966			8,054,753			11,974,955
Expenses
Interest		4,125,007			2,093,137			3,703,796
Depreciation and amortization		3,999,711			2,653,403			3,160,742
Taxes and insurance		1,949,349			1,139,442			1,920,060
Repairs and maintenance		3,209,192			1,616,588			1,784,924
Operating expenses		4,432,025			2,808,854			3,740,986
Other expenses		215,765			301,539			373,096
		17,931,049			10,612,963			14,683,604
NET LOSS	$	(1,400,083	)	$	(2,558,210	)	$	(2,708,649	)
Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(1,658,068	)	$	(2,314,011	)	$	(2,209,373	)
Net loss allocated to other partners	$	257,985		$	(244,199	)	$	(499,276	)

* Amounts include $2,236,953, $1,180,726, $711,882, $408,340, and $263,746 for Series 15, Series 16, Series 17, Series 18 and Series 19, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-57

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE E — OTHER ASSETS

Other assets include cash advanced to operating limited partnerships at March 31, 2007 and 2006, some of which is to be applied to capital contributions payable when certain criteria have been met. The advances at March 31, 2007 and 2006 by series are as follows:

	2007		2006
Series 15	$	—	$	—
Series 16		—		—
Series 17		30,000		46,473
Series 18		5,000		5,000
Series 19		—		—
	$	35,000	$	51,473

F-58

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE F — RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAX RETURN (Continued)

For income tax purposes, the fund reports using a December 31 year-end. The fund’s net income (loss) for financial reporting and tax return purposes for the year ended March 31, 2007 is reconciled as follows:

	Total			Series 15			Series 16
Net income (loss) for financial reporting purposes	$	(5,188,121	)	$	516,570		$	(1,501,940	)
Operating limited partnership rents received in advance		(5,067	)		(2,271	)		598
Accrued fund management fees not deducted for tax purposes		1,696,733			260,409			301,865
Other		4,765,685			217,652			2,037,702
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(11,871,773	)		(1,661,641	)		(3,818,509	)
Impairment loss in investment in operating limited partnership not deductible for tax purposes		1,365,076			—			—
Excess of tax depreciation over book depreciation on operating limited partnership assets		(1,511,657	)		(295,391	)		(342,288	)
Difference due to fiscal year for book purposes and calendar year for tax purposes		(1,281,684	)		(1,159,999	)		121,317
Loss for tax return purposes, year ended December 31, 2006	$	(12,030,808	)	$	(2,124,671	)	$	(3,201,255	)

F-59

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE F — RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN (Continued)

For income tax purposes, the fund reports using a December 31 year-end. The fund’s net loss for financial reporting and tax return purposes for the year ended March 31, 2007 is reconciled as follows:

	Series 17			Series 18			Series 19
Net loss for financial reporting purposes	$	(1,182,692	)	$	(1,009,403	)	$	(2,010,656	)
Operating limited partnership rents received in advance		(2,517	)		(877	)		—
Accrued fund management fees not deducted for tax purposes		319,920			403,191			411,348
Other		(165,699	)		1,066,261			1,609,769
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(1,605,973	)		(2,090,617	)		(2,695,033	)
Impairment loss in investment in operating limited partnership not deductible for tax purposes		199,703			404,990			760,383
Excess of tax depreciation over book depreciation on operating limited partnership assets		(405,521	)		(218,630	)		(249,827	)
Difference due to fiscal year for book purposes and calendar year for tax purposes		27,749			(247,893	)		(22,858	)
Loss for tax return purposes, year ended December 31, 2006	$	(2,815,030	)	$	(1,692,978	)	$	(2,196,874	)

F-60

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE F — RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN

For income tax purposes, the fund reports using a December 31 year-end. The fund’s net loss for financial reporting and tax return purposes for the year ended March 31, 2006 is reconciled as follows:

	Total			Series 15			Series 16
Net loss for financial reporting purposes	$	(17,674,320	)	$	(1,364,396	)	$	(3,277,786	)
Operating limited partnership rents received in advance		17,397			1,974			2,667
Accrued fund management fees not deducted for tax purposes		1,656,375			124,513			591,979
Other		1,542,570			255,214			24,196
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(7,841,344	)		(2,181,097	)		(2,353,014	)
Impairment loss in investment in operating limited partnership not deductible for tax purposes		11,603,236			540,269			2,317,370
Excess of tax depreciation over book depreciation on operating limited partnership assets		(1,273,533	)		(311,854	)		(213,290	)
Difference due to fiscal year for book purposes and calendar year for tax purposes		(3,359,462	)		(1,599,745	)		(108,739	)
Loss for tax return purposes, year ended December 31, 2005	$	(15,329,081	)	$	(4,535,122	)	$	(3,016,617	)

F-61

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE F — RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN (Continued)

For income tax purposes, the fund reports using a December 31 year-end. The fund’s net loss for financial reporting and tax return purposes for the year ended March 31, 2006 is reconciled as follows:

	Series 17			Series 18			Series 19
Net loss for financial reporting purposes	$	(4,861,581	)	$	(1,710,872	)	$	(6,459,685	)
Operating limited partnership rents received in advance		12,372			384			—
Accrued fund management fees not deducted for tax purposes		194,120			409,415			336,348
Other		1,210,698			10,975			41,487
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(1,382,534	)		(1,483,682	)		(441,017	)
Impairment loss in investment in operating limited partnership not deductible for tax purposes		3,620,144			747,347			4,378,106
Excess of tax depreciation over book depreciation on operating limited partnership assets		(440,608	)		(111,102	)		(196,679	)
Difference due to fiscal year for book purposes and calendar year for tax purposes		(1,623,507	)		(79,306	)		51,835
Loss for tax return purposes, year ended December 31, 2005	$	(3,270,896	)	$	(2,216,841	)	$	(2,289,605	)

F-62

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE F — RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN (Continued)

For income tax purposes, the fund reports using a December 31 year-end. The fund’s net loss for financial reporting and tax return purposes for the year ended March 31, 2005 is reconciled as follows:

	Total			Series 15			Series 16
Net loss for financial reporting purposes	$	(33,550,858	)	$	(5,118,904	)	$	(7,557,628	)
Operating limited partnership rents received in advance		50,001			1,976			34,290
Accrued fund management fees not deducted for tax purposes		2,457,154			478,228			691,980
Other		(230,720	)		333,002			(472,980	)
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(4,924,889	)		(2,247,379	)		(1,180,726	)
Impairment loss in investment in operating limited partnership not deductible for tax purposes		18,797,540			1,542,187			5,216,286
Excess of tax depreciation over book depreciation on operating limited partnership assets		(1,322,612	)		(291,762	)		(259,873	)
Difference due to fiscal year for book purposes and calendar year for tax purposes		4,622,445			2,393,803			(122,434	)
Loss for tax return purposes, year ended December 31, 2004	$	(14,101,939	)	$	(2,908,849	)	$	(3,651,085	)

F-63

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE F — RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN (Continued)

For income tax purposes, the fund reports using a December 31 year-end. The fund’s net loss for financial reporting and tax return purposes for the year ended March 31, 2005 is reconciled as follows:

	Series 17			Series 18			Series 19
Net loss for financial reporting purposes	$	(7,393,334	)	$	(6,339,698	)	$	(7,141,294	)
Operating limited partnership rents received in advance		(5,308	)		696			18,347
Accrued fund management fees not deducted for tax purposes		493,650			381,948			411,348
Other		(193,408	)		97,528			5,138
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(767,575	)		(465,463	)		(263,746	)
Impairment loss in investment in operating limited partnership not deductible for tax purposes		3,301,027			3,936,899			4,801,141
Excess of tax depreciation over book depreciation on operating limited partnership assets		(383,483	)		(166,598	)		(220,896	)
Difference due to fiscal year for book purposes and calendar year for tax purposes		2,302,027			124,307			(75,258	)
Loss for tax return purposes, year ended December 31, 2004	$	(2,646,404	)	$	(2,430,381	)	$	(2,465,220	)

F-64

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE F — RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN (Continued)

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2007, are as follows:

	Total			Series 15			Series 16
Investments in operating limited partnerships — tax return December 31, 2006	$	(16,076,357	)	$	(12,375,095	)	$	(4,003,807	)
Estimated share of loss for the three months ended March 31, 2007		(2,146,189	)		(422,633	)		—
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method		37,868,729			11,800,839			11,145,028
Impairment loss in investment in operating limited partnerships		(31,918,158	)		(1,902,745	)		(8,134,883	)
Historic tax credits		5,325,806			—			1,844,836
Other		10,365,208			3,261,558			275,691
Investments in operating limited partnerships — as reported	$	3,419,039		$	361,924		$	1,126,865

F-65

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE F — RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN (Continued)

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2007, are as follows:

	Series 17			Series 18			Series 19
Investments in operating limited partnerships — tax return December 31, 2006	$	(2,524,577	)	$	(1,846,538	)	$	4,673,660
Estimated share of loss for the three months ended March 31, 2007		(752,440	)		(617,683	)		(353,433	)
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method		5,912,028			5,214,009			3,796,825
Impairment loss in investment in operating limited partnerships		(5,855,208	)		(5,926,733	)		(10,098,589	)
Historic tax credits		1,100,310			2,062,333			318,327
Other		3,406,881			1,207,558			2,213,520
Investments in operating limited partnerships — as reported	$	1,286,994		$	92,946		$	550,310

F-66

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE F — RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN (Continued)

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2006, are as follows:

	Total			Series 15			Series 16
Investments in operating limited partnerships — tax return December 31, 2005	$	(4,655,017	)	$	(10,441,363	)	$	(1,006,268	)
Estimated share of loss for the three months ended March 31, 2006		(2,195,770	)		(472,214	)		—
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method		26,853,742			10,800,283			7,437,124
Impairment loss in investment in operating limited partnerships		(31,386,972	)		(2,082,456	)		(8,826,900	)
Historic tax credits		5,325,806			—			1,844,836
Other		13,395,576			2,790,642			2,525,429
Investments in operating limited partnerships — as reported	$	7,337,365		$	594,892		$	1,974,221

F-67

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE F — RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN (Continued)

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2006, are as follows:

	Series 17			Series 18			Series 19
Investments in operating limited partnerships — tax return December 31, 2005	$	115,725		$	(148,187	)	$	6,825,076
Estimated share of loss for the three months ended March 31, 2006		(752,440	)		(617,683	)		(353,433	)
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method		4,378,592			3,133,940			1,103,803
Impairment loss in investment in operating limited partnerships		(5,622,625	)		(5,521,743	)		(9,333,248	)
Historic tax credits		1,100,310			2,062,333			318,327
Other		2,695,626			1,817,386			3,566,493
Investments in operating limited partnerships — as reported	$	1,915,188		$	726,046		$	2,127,018

F-68

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE G — CASH EQUIVALENTS

On March 31, 2007 and 2006, Boston Capital Tax Credit Fund III L.P. purchased $1,800,000 and $3,200,000 of corporate debt securities under agreements to resell on April 1, 2007 and April 1, 2006, respectively. Interest is earned at rates ranging from 1.8% to 3.0% per annum.

NOTE H — CONTINGENCY

Mt. Vernon Associates, L.P., an operating limited partnership, has been notified by the IRS of certain instances of noncompliance relating to IRC Section 42 requirements. The Operating General Partner has corrected the files to the best of their ability; however, the Investment General Partner is in the process of assessing the situation. On January 9, 2003, the state agency conducted an audit and found one compliance issue, which has been corrected. The Investment General Partner continues to monitor this situation closely; however, it is not possible to determine the final result at this time. Accordingly, no adjustment has been made in the accompanying financial statements.

F-69

Boston Capital Tax Credit Fund III L.P. -
Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS — CONTINUED

March 31, 2007, 2006 and 2005

NOTE I — QUARTERLY FINANCIAL INFORMATION — UNAUDITED

The following is a summary of the results of operations for each of the four quarters for the years indicated:

	First			Second			Third			Fourth
	Quarter			Quarter			Quarter			Quarter
2007
Total revenue	$	7,034		$	83,301		$	29,388		$	18,864
Loss from operations		(577,984	)		(619,681	)		(676,185	)		(2,033,977	)
Share of losses from operating Limited Partnerships		(542,273	)		(479,064	)		(474,736	)		215,779
Net loss		(1,120,257	)		(1,098,745	)		(1,150,921	)		(1,818,198	)
Net loss per BAC		(0.05	)		(0.05	)		(0.05	)		(0.08	)
2006
Total revenue	$	8,096		$	27,531		$	4,877		$	9,908
Loss from operations		(569,200	)		(751,825	)		(641,041	)		(12,194,125	)
Share of losses from operating Limited Partnerships		(1,002,688	)		(960,024	)		(1,095,464	)		(459,953	)
Net loss		(1,571,888	)		(1,711,849	)		(1,736,505	)		(12,654,078	)
Net loss per BAC		(0.07	)		(0.08	)		(0.08	)		(0.57	)
2005
Total revenue	$	3,196		$	10,313		$	2,201		$	9,230
Loss from operations		(548,272	)		(761,696	)		(646,566	)		(19,193,287	)
Share of losses from operating Limited Partnerships		(1,854,448	)		(1,598,316	)		(1,548,450	)		(7,399,823	)
Net loss		(2,402,720	)		(2,360,012	)		(2,195,016	)		(26,593,110	)
Net loss per BAC		(0.11	)		(0.11	)		(0.10	)		(1.20	)

F-70

Boston Capital Tax Credit Fund III LP — Series 15
Schedule III — Real Estate and Accumulated Depreciation
March 31, 2007

							Cost capitalized				Gross amount at
							subsequent to				which carried at
			Initial cost to company				acquisition				close of period
																					Life on which
	Encum-				Buildings and						Buildings and				Accumulated		Date of		Date		depreciation is
Description	brances		Land		improvements		Improvements		Land		improvements		Total		depreciation		construction		acquired		computed
APRIL GARDENS		1,427,307		50,000		1,773,331		27,663		50,000		1,800,994		1,850,994		1,007,256		5/93		9/92	5-27.5 yrs
ARKANSAS CITY		793,801		15,870		1,016,757		0		15,870		1,016,757		1,032,627		509,623		12/94		9/94	5-25 yrs
AUTUMNWOOD		1,261,816		50,000		1,669,609		29,153		50,000		1,698,762		1,748,762		884,944		1/93		8/92	5-27.5 yrs
BARTON VILLAGE		495,194		47,898		683,991		4,787		47,898		688,778		736,676		356,525		3/93		10/92	5-27.5 yrs
BECKWOOD MANOR EIGHT		1,187,119		60,000		1,498,746		19,729		58,000		1,518,475		1,576,475		697,445		8/95		8/94	5-27.5 yrs
BERGEN MANOR		977,364		42,000		1,256,858		79,181		42,000		1,336,039		1,378,039		731,897		7/92		7/92	7-27.5 yrs
BRIDLEWOOD		759,313		42,000		211,635		822,001		42,000		1,033,636		1,075,636		340,684		1/95		1/94	5-27.5 yrs
BRUNSWICK		780,494		69,000		953,553		11,477		69,214		965,030		1,034,244		522,273		9/92		4/92	7-27.5 yrs
BUENA VISTA APTS		1,412,298		75,000		1,767,511		26,858		75,000		1,794,369		1,869,369		1,001,577		1/92		3/92	7-27.5 yrs
CALEXICO SR		1,870,908		213,000		2,047,255		0		213,000		2,047,255		2,260,255		616,713		9/92		9/92	7-27.5 yrs
CHESTNUT HILL		716,914		40,000		904,814		29,088		40,000		933,902		973,902		358,490		9/92		9/92	7-27.5 yrs
CURWENSVILLE		1,175,120		31,338		1,435,553		253,402		31,338		1,688,955		1,720,293		670,552		7/93		9/92	5-27.5 yrs
DEERFIELD		1,195,713		65,400		1,495,473		0		65,400		1,495,473		1,560,873		818,073		6/92		4/92	7-27.5 yrs
EAST MACHIAS		1,008,932		77,963		1,478,171		61,154		77,963		1,539,325		1,617,288		575,783		1/93		9/92	10-40 yrs
EAST PARK		482,803		2,000		980,413		45,737		2,000		1,026,150		1,028,150		507,848		1/94		6/94	5-27.5 yrs
EDGEWOOD		762,143		36,000		967,796		0		36,000		967,796		1,003,796		511,881		8/92		6/92	7-27.5 yrs

F-71

Boston Capital Tax Credit Fund III LP — Series 15
Schedule III — Real Estate and Accumulated Depreciation
March 31, 2007

							Cost capitalized					Gross amount at
							subsequent to					which carried at
			Initial cost to company				acquisition					close of period
																						Life on which
	Encum-				Buildings and							Buildings and				Accumulated		Date of		Date		depreciation is
Description	brances		Land		improvements		Improvements			Land		improvements		Total		depreciation		construction		acquired		computed
FAR VIEW		893,268		100,000		1,066,418		42,476			100,000		1,108,894		1,208,894		410,411		11/92		6/92	10-40 yrs
GRAHAM HOUSING		1,176,270		85,006		2,451,794		12,645			85,006		2,464,439		2,549,445		860,255		6/95		10/94	5-27.5 yrs
GRANTSVILLE		1,442,074		85,099		1,795,971		28,318			85,599		1,824,289		1,909,888		671,828		2/93		5/92	5-27.5 yrs
GREENTREE APTS		665,037		15,000		1,143,223		(317,932	)		15,000		825,291		840,291		485,966		10/75		4/94	5-27.5 yrs
GREENWOOD VIL		652,598		20,123		893,915		8,589			20,123		902,504		922,627		465,538		5/93		8/92	5-27.5 yrs
HARRISONVILLE II		593,028		15,000		744,677		57,139			15,000		801,816		816,816		465,068		11/91		3/92	7-27.5 yrs
HEALDTON		675,004		15,000		868,469		0			15,000		868,469		883,469		286,791		12/94		8/94	5-27.5 yrs
HEARTHSIDE		1,816,135		95,000		2,967,134		(25,779	)		95,000		2,941,355		3,036,355		1,355,528		11/92		4/92	7-27.5 yrs
HERONS LANDING		1,168,522		176,121		1,410,573		47,370			176,121		1,457,943		1,634,064		798,290		10/92		10/92	7-27.5 yrs
HIGGINSVILLE ESTATES		611,027		40,000		738,056		22,165			40,000		760,221		800,221		457,033		3/91		3/92	7-27.5 yrs
INV GROUP OF PAYSON		1,447,011		211,500		1,767,942		0			211,500		1,767,942		1,979,442		539,498		8/92		8/92	7-27.5 yrs
KEARNEY		616,327		30,000		763,159		40,273			30,000		803,432		833,432		464,852		1/92		5/92	7-27.5 yrs
LAKEVIEW		863,544		30,000		1,077,130		(900	)		30,000		1,076,230		1,106,230		586,010		7/92		4/92	7-27.5 yrs
LAURELWOOD		1,038,750		58,500		1,268,491		751			58,500		1,269,242		1,327,742		696,493		2/92		3/92	7-27.5 yrs
LEBANON II		888,416		40,000		1,090,397		31,618			40,189		1,122,015		1,162,204		587,175		2/93		8/92	5-27.5 yrs
LEBANON III		614,320		26,750		766,992		105,672			26,750		872,664		899,414		471,975		2/92		3/92	7-27.5 yrs
LILAC		696,187		36,000		897,897		0			36,000		897,897		933,897		483,935		7/92		6/92	7-27.5 yrs

F-72

Boston Capital Tax Credit Fund III LP — Series 15
Schedule III — Real Estate and Accumulated Depreciation
March 31, 2007

							Cost capitalized				Gross amount at
							subsequent to				which carried at
			Initial cost to company				acquisition				close of period
																					Life on which
	Encum-				Buildings and						Buildings and				Accumulated		Date of		Date		depreciation is
Description	brances		Land		improvements		Improvements		Land		improvements		Total		depreciation		construction		acquired		computed
LIVINGSTON PLAZA		648,889		32,500		868,525		0		32,500		868,525		901,025		438,390		11/93		12/92	5-27.5 yrs
MADISON PARTNERS		1,165,150		47,340		1,452,910		49,924		47,340		1,502,834		1,550,174		718,044		12/94		3/95	5-27.5 yrs
MANNING LANE		1,428,330		73,600		1,771,816		11,077		73,600		1,782,893		1,856,493		931,825		3/93		8/92	5-27.5 yrs
MARSHALL LANE		537,019		20,000		672,691		2,447		20,000		675,138		695,138		356,135		12/92		8/92	5-27.5 yrs
MARYVILLE		698,372		57,000		834,823		56,598		57,000		891,421		948,421		506,012		3/92		5/92	7-27.5 yrs
MONARK VILLAGE		307,918		68,900		570,916		7,468		68,900		578,384		647,284		256,858		3/94		6/94	5-27.5 yrs
N. PRAIRIE		851,840		5,000		1,121,143		33,513		5,000		1,154,656		1,159,656		648,582		5/93		9/92	5-27.5 yrs
OAKGROVE		391,791		5,000		460,291		20,367		5,000		480,658		485,658		286,192		11/91		4/92	7-27.5 yrs
OSAGE		764,462		110,000		2,309,861		84,028		110,000		2,393,889		2,503,889		1,331,034		6/92		4/92	7-27.5 yrs
OSCEOLA		596,640		54,600		797,763		183,416		27,300		981,179		1,008,479		535,925		5/92		5/92	7-27.5 yrs
PDC FIFTY FIVE		1,247,655		50,170		1,576,823		20,341		50,170		1,597,164		1,647,334		795,273		9/93		10/92	5-27.5 yrs
RAINIER		3,494,272		521,000		5,852,852		122,482		521,000		5,975,334		6,496,334		2,355,016		1/93		4/92	5-27.5 yrs
RIDGEVIEW		847,560		42,800		1,027,499		8,637		42,800		1,036,136		1,078,936		575,266		1/92		3/92	7-27.5 yrs
RIO MEMBRES II		752,026		48,938		930,376		30,078		48,938		960,454		1,009,392		378,433		4/92		4/92	7-27.5 yrs
ROLLING BROOK		801,991		35,000		1,006,667		48,183		35,000		1,054,850		1,089,850		592,996		11/92		6/92	7-27.5 yrs

F-73

Boston Capital Tax Credit Fund III LP — Series 15
Schedule III — Real Estate and Accumulated Depreciation
March 31, 2007

							Cost capitalized					Gross amount at
							subsequent to					which carried at
			Initial cost to company				acquisition					close of period
																						Life on which
	Encum-				Buildings and							Buildings and				Accumulated		Date of		Date		depreciation is
Description	brances		Land		improvements		Improvements			Land		improvements		Total		depreciation		construction		acquired		computed
SCHOOL STREET		637,647		127,852		1,353,622		162,881			38,509		1,516,503		1,555,012		920,649		5/92		4/92	5-27.5 yrs
SHENANDOAH		1,429,367		67,500		1,754,599		53,684			67,500		1,808,283		1,875,783		905,928		2/93		8/92	5-27.5 yrs
SHOWBOAT MANOR		772,411		31,200		968,253		28,910			31,200		997,163		1,028,363		557,960		2/92		7/92	5-27.5 yrs
SIOUX FALLS		1,064,605		146,694		2,656,753		85,748			146,694		2,742,501		2,889,195		1,523,568		9/92		5/92	7-27.5 yrs
SUNSET SQUARE		717,697		50,000		896,507		17,450			50,000		913,957		963,957		357,743		8/92		9/92	7-27.5 yrs
TAYLOR MILLS		747,023		24,000		936,166		0			24,000		936,166		960,166		512,125		5/92		4/92	7-27.5 yrs
TIMMONS VILLAGE		605,473		15,000		754,172		6,894			38,500		761,066		799,566		411,314		7/92		5/92	7-27.5 yrs
UNIVERSITY MEADOWS		2,235,469		62,985		3,579,473		74,935			62,985		3,654,408		3,717,393		2,054,073		12/92		6/92	5-28 yrs
VALATIE		1,250,051		30,000		1,712,263		101,355			30,000		1,813,618		1,843,618		983,488		4/93		6/92	7-27.5 yrs
VIRGEN DEL POZO		3,256,068		120,000		4,274,133		234,757			120,000		4,508,890		4,628,890		2,201,337		7/93		8/92	5-27.5 yrs
VILLA DEL MAR		1,427,942		50,000		1,792,888		71,201			50,000		1,864,089		1,914,089		1,076,155		8/92		8/92	7-27.5 yrs
WEEDPATCH		1,913,123		272,000		2,246,927		20,248			272,000		2,267,175		2,539,175		626,800		9/94		1/94	5-50 yrs
WESTERNPORT		1,443,932		18,645		1,833,384		63,007			18,645		1,896,391		1,915,036		948,307		2/93		7/92	5-27.5 yrs
WHITEWATER VILL		510,540		18,542		637,048		5,396			18,542		642,444		660,986		343,305		11/92		8/92	7-27.5 yrs
WOOD PARK POINTE		1,139,515		117,500		1,329,664		(1,318,375	)		117,500		11,289		128,789		9,583		5/92		6/92	5-27.5 yrs
		65,849,535		4,320,334		89,834,512		1,749,285			4,226,094		91,583,797		95,809,891		44,336,526

Since the Operating Partnerships maintain a calendar year end the information reported on this schedule is as of December 31, 2006

There were no carrying costs as of December 31, 2006. The column has been omitted for presentation purposes.

F-74

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 15

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/92				$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		64,786,120
Other		0
				$	64,786,120
Deductions during period:
Cost of real estate sold	$	0
Other		0
					0
Balance at close of period - 3/31/93				$	64,786,120
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		52,271,170
Other		0
				$	52,271,170
Deductions during period:
Cost of real estate sold	$	0
Other		(69,144	)
					(69,144	)
Balance at close of period - 3/31/94				$	116,988,146
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		10,630,188
Improvements, etc		182,886
Other		0
				$	10,813,074
Deductions during period:
Cost of real estate sold	$	0
Other		(927,768	)
					(927,768	)
Balance at close of period - 3/31/95				$	126,873,452

F-75

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 15 (continued)

Balance at close of period - 3/31/95			$	126,873,452
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		7,477,482
Improvements, etc		998,864
Other		0
			$	8,476,346
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/96			$	135,349,798
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		102,413
Improvements, etc		0
Other		0
			$	102,413
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/97			$	135,452,211
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		136,931
Other		0
			$	136,931
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/98			$	135,589,142

F-76

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 15 (continued)

Balance at close of period - 3/31/98				$	135,589,142
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		229,180
Other		0
				$	229,180
Deductions during period:
Cost of real estate sold	$	0
Other		0
					0
Balance at close of period - 3/31/99				$	135,818,322
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		203,110
Other		0
				$	203,110
Deductions during period:
Cost of real estate sold	$	0
Other		0
					0
Balance at close of period - 3/31/00				$	136,021,432
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		215,095
Other		0
				$	215,095
Deductions during period:
Cost of real estate sold	$	0
Other		(500,929	)
					(500,929	)
Balance at close of period - 3/31/01				$	135,735,598

F-77

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 15 (continued)

Balance at close of period - 3/31/01				$	135,735,598
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		422,538
Other		0
				$	422,538
Deductions during period:
Cost of real estate sold	$	0
Other		0
					0
Balance at close of period - 3/31/02				$	136,198,136
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		369,190
Other		0
				$	369,190
Deductions during period:
Cost of real estate sold	$	0
Other		0
					0
Balance at close of period - 3/31/03				$	136,527,326
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		387,486
Other		0
				$	387,486
Deductions during period:
Cost of real estate sold	$	(5,097,684	)
Other		0
					(5,097,684	)
Balance at close of period - 3/31/04				$	131,817,128

F-78

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 15 (continued)

Balance at close of period - 3/31/04				$	131,817,128
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		197,413
Other		(1,322,384	)
				$	(1,124,971	)
Deductions during period:
Cost of real estate sold	$	(26,715,597	)
Other		0
					(26,715,597	)
Balance at close of period - 3/31/05				$	103,976,560
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		208,543
Other		0
				$	208,543
Deductions during period:
Cost of real estate sold	$	0
Other		0
					0
Balance at close of period - 3/31/06				$	104,185,103
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		305,989
Other		(308,679	)
				$	(2,690	)
Deductions during period:
Cost of real estate sold	$	(8,372,522	)
Other		0
					(8,372,522	)
Balance at close of period - 3/31/07				$	95,809,891

F-79

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 15 (continued)

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/92				$	0
Current year expense	$	1,151,027
Balance at close of period - 3/31/93				$	1,151,027
Current year expense	$	4,194,293
Balance at close of period - 3/31/94				$	5,345,320
Current year expense	$	4,646,907
Balance at close of period - 3/31/95				$	9,992,227
Current year expense	$	5,445,282
Balance at close of period - 3/31/96				$	15,437,509
Current year expense	$	4,587,940
Balance at close of period - 3/31/97				$	20,025,449
Current year expense	$	4,427,546
Balance at close of period - 3/31/98				$	24,452,995
Current year expense	$	4,453,997
Balance at close of period - 3/31/99				$	28,906,992
Current year expense	$	4,348,463
Balance at close of period - 3/31/00				$	33,255,455
Current year expense	$	3,625,904
Balance at close of period - 3/31/01				$	36,881,359
Current year expense	$	4,117,724
Balance at close of period - 3/31/02				$	40,999,083
Current year expense	$	4,130,487
Balance at close of period - 3/31/03				$	45,129,570
Current year expense	$	3,943,806
Reduction for real-estate sold		(2,183,384	)
Balance at close of period - 3/31/04				$	46,889,992
Current year expense	$	2,721,013
Reduction for real-estate sold		(7,100,462	)
Balance at close of period - 3/31/05				$	42,510,543
Current year expense	$	3,277,138
Balance at close of period - 3/31/06				$	45,787,681
Current year expense	$	2,672,827
Reduction for real-estate sold		(4,123,982	)
Balance at close of period - 3/31/07				$	44,336,526

F-80

Boston Capital Tax Credit Fund III LP — Series 16
Schedule III — Real Estate and Accumulated Depreciation
March 31, 2007

							Cost
							capitalized
							subsequent			Gross amount at which carried
			Initial cost to company				to acquisition			at close of period
																						Life on which
	Encum-				Buildings and							Buildings and				Accumulated		Date of		Date		depreciation
Description	brances		Land		improvements		Improvements			Land		improvements		Total		depreciation		construction		acquired		is computed
1413 LEAVENWORTH		1,850,486		8,000		2,927,089		634,060			8,000		3,561,149		3,569,149		1,805,292		3/93		12/92	5-27.5 yrs
ANSON		1,244,324		40,202		1,683,348		24,022			40,202		1,707,370		1,747,572		640,109		9/93		12/92	10-40 yrs
AZTEC		986,981		115,000		1,299,311		29,958			115,000		1,329,269		1,444,269		700,466		5/93		5/93	5-27.5 yrs
BENTONIA ELDERLY		815,718		21,000		678,677		400,768			21,000		1,079,445		1,100,445		381,480		2/94		7/93	5-27.5 yrs
BERNICE VILLA		875,998		37,000		1,204,665		50,662			37,000		1,255,327		1,292,327		426,153		10/93		5/93	5-40 yrs
BLAIRSVILLE RENTAL I		738,311		58,377		866,980		41,529			35,000		908,509		943,509		406,016		9/94		12/92	5-27.5 yrs
BLAIRSVILLE RENTAL		722,625		84,359		804,895		61,805			49,500		866,700		916,200		389,568		7/94		12/92	5-27.5 yrs
BLOWING ROCK		496,928		47,500		663,473		22,101			47,500		685,574		733,074		296,175		11/94		12/93	5-27.5 yrs
BRANSON CHRISTIAN I		1,289,867		163,350		2,990,564		38,714			163,350		3,029,278		3,192,628		1,461,610		6/94		3/94	5-27.5 yrs
BRANSON CHRISTIAN II		1,078,246		0		2,497,066		66,846			0		2,563,912		2,563,912		1,217,619		8/94		7/94	5-27.5 yrs
BUTLER RENTAL		723,602		0		937,495		18,103			0		955,598		955,598		464,919		9/93		12/92	7-27.5 yrs
CANTERFIELD		745,078		48,000		934,169		(1,058	)		48,000		933,111		981,111		489,392		1/93		11/92	5-27.5 yrs
CAPE ANN		276,131		18,000		1,833,366		84,955			18,000		1,918,321		1,936,321		903,052		12/93		1/93	7-31.5 yrs
CASS PARTNERS		555,161		45,250		2,026,740		(2,026,740	)		21,000		0		21,000		0		12/93		12/93	5-27.5 yrs
CEDAR TRACE		487,927		18,000		639,500		5,277			18,000		644,777		662,777		358,423		7/93		10/92	5-27.5 yrs
CONCORD ASSOC.		1,075,976		61,532		1,223,133		149,719			129,441		1,372,852		1,502,293		799,028		2/93		2/93	5-27.5 yrs
CLYMER PARK ASSOC		1,409,501		35,800		1,831,813		115,167			35,800		1,946,980		1,982,780		648,695		11/94		12/92	5-27.5 yrs
CUMBERLAND WOOD		1,407,365		114,449		1,780,622		106,400			113,625		1,887,022		2,000,647		606,787		10/94		12/93	6-40 yrs
DAVENPORT HOUSING		3,432,337		223,889		6,598,309		182,874			223,889		6,781,183		7,005,072		3,366,132		2/94		10/93	7-27.5 yrs
DEER RUN		595,588		30,000		1,536,783		0			30,000		1,536,783		1,566,783		782,356		3/93		8/93	5-27.5 yrs
EASTMAN ELDERLY		1,133,367		80,000		1,428,172		26,283			36,900		1,454,455		1,491,355		674,177		10/93		12/92	7-27.5 yrs
FAIRMEADOW APTS		854,470		53,296		1,184,327		44,098			53,296		1,228,425		1,281,721		414,440		7/93		1/93	5-27.5 yrs
FALCON RIDGE		1,006,418		25,000		1,332,798		97,768			25,000		1,430,566		1,455,566		446,643		1/95		4/94	5-27.5 yrs

F-81

Boston Capital Tax Credit Fund III LP — Series 16
Schedule III — Real Estate and Accumulated Depreciation
March 31, 2007

							Cost
							capitalized
							subsequent			Gross amount at which carried
			Initial cost to company				to acquisition			at close of period
																						Life on which
	Encumbr-				Buildings and							Buildings and				Accumulated		Date of		Date		depreciation
Description	ances		Land		improvements		Improvements			Land		improvements		Total		depreciation		construction		acquired		is computed
GIBSON		859,875		30,290		1,138,786		4,519			30,290		1,143,305		1,173,595		424,577		6/93		12/92	5-27.5 yrs
GREENFIELD		534,021		25,000		649,793		26,226			44,530		676,019		720,549		361,600		5/93		1/93	5-27.5 yrs
GREENWOOD		1,416,863		62,076		1,480,776		397,329			190,066		1,878,105		2,068,171		1,064,451		10/93		11/93	5-27.5 yrs
HARMONY HOUSE		1,411,347		57,000		1,764,438		48,905			57,000		1,813,343		1,870,343		696,184		7/93		11/92	5-27.5 yrs
HAYNES HOUSE		2,446,904		685,381		5,956,903		3,340,507			674,499		9,297,410		9,971,909		2,650,306		9/95		8/94	12-40 yrs
HOLLY TREE		858,860		58,900		1,069,733		4,853			58,900		1,074,586		1,133,486		563,751		2/93		11/92	5-27.5 yrs
IDABEL PROP.		1,329,617		50,000		1,791,971		0			50,000		1,791,971		1,841,971		975,765		12/93		4/93	5-25 yrs
ISOLA SQUARE		940,409		22,300		250,691		1,007,726			22,300		1,258,417		1,280,717		406,110		4/94		11/93	7-40 yrs
JOINER ELDERLY		757,930		47,719		1,026,013		52,483			47,719		1,078,496		1,126,215		565,664		6/93		1/93	5-40 yrs
LAWRENCEVILLE MANOR		1,373,516		61,370		1,660,796		73,021			61,370		1,733,817		1,795,187		838,553		7/94		2/94	5-27.5 yrs
LAWTELL MANOR		869,467		45,000		1,201,948		39,254			45,000		1,241,202		1,286,202		427,428		8/93		4/93	7-40 yrs
LOGAN LANE		1,260,529		54,000		1,602,465		(103	)		54,000		1,602,362		1,656,362		830,729		3/93		9/92	5-27.5 yrs
MEADOWS OF SOUTHGATE		2,088,080		252,000		4,575,879		29,130			252,000		4,605,009		4,857,009		1,442,389		5/94		7/93	12-40 yrs
MENDOTA VILLAGE		1,910,695		136,140		2,421,001		22,450			136,140		2,443,451		2,579,591		692,464		5/93		12/92	5-50 yrs
MIDCITY		2,529,447		15,058		6,611,666		18,729			15,058		6,630,395		6,645,453		2,998,412		6/94		9/93	5-27.5 yrs
NEWPORT HOUSING		1,163,365		160,000		1,405,411		232			160,000		1,405,643		1,565,643		516,623		10/93		2/93	5-27.5 yrs
NEWPORT MANOR		917,713		31,908		1,175,109		97,974			31,908		1,273,083		1,304,991		465,417		12/93		9/93	5-40 yrs
PALATINE LP		1,361,848		37,400		1,785,282		88,099			37,400		1,873,381		1,910,781		931,816		5/94		5/94	5-27.5 yrs
SABLE CHASE		4,276,036		502,774		12,248,475		188,880			502,774		12,437,355		12,940,129		5,727,070		12/94		12/93	7-27.5 yrs
ST CROIX COMMONS		899,203		44,681		2,607,046		(657,470	)		44,681		1,949,576		1,994,257		956,847		12/94		10/94	5-27.5 yrs

F-82

Boston Capital Tax Credit Fund III LP — Series 16
Schedule III — Real Estate and Accumulated Depreciation
March 31, 2007

							Cost
							capitalized
							subsequent		Gross amount at which carried
			Initial cost to company				to acquisition		at close of period
																					Life on which
	Encumbr-				Buildings and						Buildings and				Accumulated		Date of		Date		depreciation is
Description	ances		Land		improvements		Improvements		Land		improvements		Total		depreciation		construction		acquired		computed
ST JOSEPH SQ		920,454		37,500		1,167,702		50,789		37,500		1,218,491		1,255,991		412,626		9/93		5/93	5-40 yrs
SIMMESPORT		884,775		60,000		1,171,005		57,851		60,000		1,228,856		1,288,856		438,489		6/93		4/93	7-40 yrs
STONY GROUND		1,379,069		127,380		1,794,961		61,311		129,005		1,856,272		1,985,277		846,486		6/93		12/92	5-27.5 yrs
SUMMERSVILLE		601,025		20,000		774,259		19,262		20,000		793,521		813,521		434,649		6/93		5/93	5-27.5 yrs
TALBOT VILLAGE		685,054		22,300		833,494		6,962		22,300		840,456		862,756		436,320		4/93		8/92	5-27.5 yrs
TCHULA ELDERLY		800,699		20,000		1,071,899		46,207		20,000		1,118,106		1,138,106		388,644		12/93		7/93	5-27.5 yrs
TUOLUMNE CITY		1,550,025		190,000		1,912,157		0		190,000		1,912,157		2,102,157		530,646		8/93		12/92	5-50 yrs
TURTLE CREEK		823,401		23,141		1,113,511		56,058		23,141		1,169,569		1,192,710		435,107		10/93		5/93	7-40 yrs
TWIN OAKS ASSOC		1,408,481		45,000		1,776,674		7,868		45,000		1,784,542		1,829,542		687,290		9/93		12/92	5-27.5 yrs
VICTORIA POINTE		1,401,883		153,865		1,437,570		366,033		128,900		1,803,603		1,932,503		812,880		1/95		10/94	5-27.5 yrs
VISTA LINDA APARTMENTS		2,446,778		143,253		2,961,671		155,181		143,253		3,116,852		3,260,105		1,374,715		12/93		1/93	5-27.5 yrs
WAKEFIELD HOUSING		1,225,080		88,564		1,480,003		50,104		88,564		1,530,107		1,618,671		577,206		2/93		9/92	10-40 yrs
WEST END MANOR		957,415		52,300		1,188,913		10,924		52,300		1,199,837		1,252,137		614,169		5/93		5/93	5-27.5 yrs
WESTCHESTER OAK GROVE		941,526		38,010		2,281,529		83,983		62,164		2,365,512		2,427,676		1,303,652		4/93		12/92	5-27.5 yrs
WESTCHESTER ST JOE		1,107,015		100,000		3,211,620		138,297		100,000		3,349,917		3,449,917		1,739,689		6/93		7/93	5-27.5 yrs
WESTVILLE PROPERTIES		674,614		25,000		912,139		0		25,000		912,139		937,139		508,558		7/93		2/93	5-25 yrs
WILCOX INVESTMENT GROUP		1,070,121		58,500		1,376,329		13,345		58,500		1,389,674		1,448,174		393,906		6/93		1/93	5-50 yrs
WOODLANDS APTS		906,488		30,000		668,555		596,760		30,000		1,265,315		1,295,315		572,193		2/95		9/94	5-27.5 yrs
		72,792,033		4,941,814		118,461,468		6,676,990		5,020,765		125,138,458		130,159,223		53,721,913

Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 2006.

There we no carrying costs as of December 31, 2006. The Column has been omitted for presentation purposes.

F-83

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 16

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/92			$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		4,191,631
Improvements, etc		0
Other		0
			$	4,191,631
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/93			$	4,191,631
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		32,686,042
Improvements, etc		43,162,006
Other		0
			$	75,848,048
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/94			$	80,039,679
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		15,495,343
Improvements, etc		41,448,097
Other		0
			$	56,943,440
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/95			$	136,983,119

F-84

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 16 (continued)

Balance at close of period - 3/31/95				$	136,983,119
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		106,204
Improvements, etc		5,007,023
Other		0
				$	5,113,227
Deductions during period:
Cost of real estate sold	$	0
Other		(675,394	)
					(675,394	)
Balance at close of period - 3/31/96				$	141,420,952
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		97,847
Other		0
				$	97,847
Deductions during period:
Cost of real estate sold	$	0
Other		(1,512,675	)
					(1,512,675	)
Balance at close of period - 3/31/97				$	140,006,124
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		163,080
Other		0
				$	163,080
Deductions during period:
Cost of real estate sold	$	0
Other		0
					0
Balance at close of period - 3/31/98				$	140,169,204

F-85

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 16 (continued)

Balance at close of period - 3/31/98			$	140,169,204
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		240,077
Other		0
			$	240,077
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/99			$	140,409,281
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		618,565
Other		0
			$	618,565
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/00			$	141,027,846
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		281,498
Other		0
			$	281,498
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/01			$	141,309,344

F-86

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 16 (continued)

Balance at close of period - 3/31/01			$	141,309,344
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		291,709
Other		0
			$	291,709
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/02			$	141,601,053
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		472,351
Other		0
			$	472,351
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/03			$	142,073,404
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		561,633
Other		0
			$	561,633
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/04			$	142,635,037

F-87

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 16 (continued)

Balance at close of period - 3/31/04				$	142,635,037
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		639,742
Other		0
				$	639,742
Deductions during period:
Cost of real estate sold	$	0
Other		0
					0
Balance at close of period - 3/31/05				$	143,274,779
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		319,605
Other		0
				$	319,605
Deductions during period:
Cost of real estate sold	$	(8,337,484	)
Other		0
					(8,337,484	)
Balance at close of period - 3/31/06				$	135,256,900
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		690,674
Other		(2,050,990	)
				$	(1,360,316	)
Deductions during period:
Cost of real estate sold	$	(3,737,361	)
Other		0
					(3,737,361	)
Balance at close of period - 3/31/07				$	130,159,223

F-88

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 16 (continued)

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/92				$	0
Current year expense	$	0
Balance at close of period - 3/31/93				$	0
Current year expense	$	1,347,806
Balance at close of period - 3/31/94				$	1,347,806
Current year expense	$	3,630,765
Balance at close of period - 3/31/95				$	4,978,571
Current year expense	$	5,098,416			`
Balance at close of period - 3/31/96				$	10,076,987
Current year expense	$	4,859,372
Balance at close of period - 3/31/97				$	14,936,359
Current year expense	$	4,709,137
Balance at close of period - 3/31/98				$	19,645,496
Current year expense	$	4,715,345
Balance at close of period - 3/31/99				$	24,360,841
Current year expense	$	4,748,152
Balance at close of period - 3/31/00				$	29,108,993
Current year expense	$	4,694,454
Balance at close of period - 3/31/01				$	33,803,447
Current year expense	$	4,524,002
Balance at close of period - 3/31/02				$	38,327,449
Current year expense	$	4,501,163
Balance at close of period - 3/31/03				$	42,828,612
Current year expense	$	4,482,706
Balance at close of period - 3/31/04				$	47,311,318
Current year expense	$	4,397,188
Balance at close of period - 3/31/05				$	51,708,506
Current year expense	$	4,113,191
Reduction for real-estate sold		(3,792,773	)
Balance at close of period - 3/31/06				$	52,028,924
Current year expense	$	3,274,319
Reduction for real-estate sold		(1,581,330	)
Balance at close of period - 3/31/07				$	53,721,913

F-89

Boston Capital Tax Credit Fund III LP — Series 17
Schedule III — Real Estate and Accumulated Depreciation
March 31, 2007

							Cost
							capitalized
							subsequent			Gross amount at which carried
			Initial cost to company				to acquisition			at close of period
																						Life on which
	Encum-				Buildings and							Buildings and				Accumulated		Date of		Date		depreciation
Description	brances		Land		improvements		Improvements			Land		improvements		Total		depreciation		construction		acquired		is computed
ANNADALE HOUSING		12,685,618		226,000		12,180,150		441,485			226,000		12,621,635		12,847,635		4,089,687		6/90		2/89	5-50 yrs
ARTESIA PROPERTIES		1,354,889		30,730		1,865,231		17,964			30,730		1,883,195		1,913,925		890,524		9/94		9/94	5-27.5 yrs
ASPEN RIDGE		942,413		36,000		2,004,059		65,045			36,000		2,069,104		2,105,104		1,028,418		11/93		9/93	5-27.5 yrs
BLADENBORO		981,677		16,000		1,213,015		(26,766	)		16,000		1,186,249		1,202,249		516,748		7/95		3/95	5-27.5 yrs
BREWER ST		1,299,677		0		2,296,514		277,664			0		2,574,178		2,574,178		1,189,508		7/93		6/93	5-27.5 yrs
BRIARWOOD APTS		872,928		38,500		20,850		1,208,985			38,952		1,229,835		1,268,787		382,654		7/93		6/93	5-27.5 yrs
BRIARWOOD VILLAGE		1,098,350		42,594		1,418,259		3,781			42,594		1,422,040		1,464,634		683,424		5/94		10/93	5-27.5 yrs
BRIARWOOD DEKALB		1,040,312		96,000		2,943,443		32,333			96,000		2,975,776		3,071,776		1,007,975		6/94		10/93	5-40 yrs
CAIRO HOUSING		1,040,096		17,000		1,309,062		117,495			17,000		1,426,557		1,443,557		771,776		4/93		5/93	7-27.5 yrs
CAMBRIDGE YMCA		1,650,601		95,200		5,135,233		148,126			95,200		5,283,359		5,378,559		2,622,426		12/93		4/93	5-27.5 yrs
CANEYVILLE PROPERTIES		460,007		36,000		601,775		(13,800	)		36,000		587,975		623,975		305,486		4/93		5/93	5-27.5 yrs
CLINTON ESTATES		717,204		47,533		891,872		70,379			47,533		962,251		1,009,784		449,869		12/94		12/94	5-27.5 yrs
CLOVERPORT PROPERTIES		719,709		21,500		947,659		(7,038	)		21,500		940,621		962,121		480,374		7/93		4/93	5-27.5 yrs
COLLEGE GREEN		3,752,942		225,000		6,774,847		158,826			225,000		6,933,673		7,158,673		3,090,552		8/95		3/95	5-27.5 yrs
CROFTON ASSOC.		771,087		46,511		961,097		17,386			46,511		978,483		1,024,994		335,476		3/93		4/93	5-27.5 yrs
CYPRESS POINT		2,909,908		265,000		4,794,440		388,948			265,000		5,183,388		5,448,388		1,818,926		12/94		2/94	5-27.5 yrs
DEERWOOD VILLAGE		618,005		29,138		804,512		3,582			29,138		808,094		837,232		381,884		7/94		2/94	5-27.5 yrs
DOYLE VILLAGE		1,134,766		100,000		1,435,520		6,304			100,000		1,441,824		1,541,824		692,050		4/94		9/93	5-27.5 yrs
GALLAWAY ASSOC.		1,022,222		35,600		1,307,158		52,425			35,600		1,359,583		1,395,183		458,319		5/93		4/93	5-27.5 yrs
GLENRIDGE		1,988,503		350,000		2,208,213		7,278			350,000		2,215,491		2,565,491		773,313		6/94		6/94	5-27.5 yrs

F-90

Boston Capital Tax Credit Fund III LP — Series 17
Schedule III — Real Estate and Accumulated Depreciation
March 31, 2007

							Cost
							capitalized
							subsequent		Gross amount at which carried
			Initial cost to company				to acquisition		at close of period
																					Life on which
	Encumbr-				Buildings and						Buildings and				Accumulated		Date of		Date		depreciation
Description	ances		Land		improvements		Improvements		Land		improvements		Total		depreciation		construction		acquired		is computed
GREEN ACRES		1,009,451		173,447		1,366,874		95,486		173,447		1,462,360		1,635,807		682,585		11/94		1/95
GREENWOOD PLACE		1,035,857		44,400		299,685		1,182,672		44,400		1,482,357		1,526,757		472,796		8/94		11/93	7-40 yrs
HACKLEY BARCLAY		2,581,914		174,841		4,603,493		338,594		175,000		4,942,087		5,117,087		2,486,213		12/94		12/93	5-27.5 yrs
HENSON CREEK		3,979,968		945,000		7,971,879		57,538		945,000		8,029,417		8,974,417		2,877,613		4/94		5/93	5-27.5 yrs
HICKMAN ASSOC.		513,950		24,000		673,642		11,577		24,000		685,219		709,219		226,090		12/93		11/93	5-27.5 yrs
HOUSTON VILLAGE		651,356		11,500		850,901		3,387		11,500		854,288		865,788		411,081		5/94		12/93	5-27.5 yrs
IVYWOOD		3,621,127		290,542		5,712,656		40,027		290,542		5,752,683		6,043,225		2,915,255		10/93		6/93	5-27.5 yrs
JONESTOWN MANOR		842,475		0		311,764		957,365		36,900		1,269,129		1,306,029		392,720		12/94		12/93	7-40 yrs
LARGO CENTER		4,013,522		1,012,500		7,262,001		82,566		1,012,500		7,344,567		8,357,067		2,432,614		6/94		3/93	5-27.5 yrs
LEE TERRACE		1,444,627		93,246		4,573		1,792,766		93,246		1,797,339		1,890,585		852,360		12/94		2/94	5-27.5 yrs
MIDLAND HOUSING		874,639		60,000		2,422,788		78,199		60,000		2,500,987		2,560,987		1,013,168		6/94		9/93	5-27.5 yrs
MOUNT VERNON		2,323,989		200,000		3,141,984		597,820		200,000		3,739,804		3,939,804		1,585,028		11/94		11/94	5-27.5 yrs
OAKWOOD OF BENNETSVILLE		849,443		60,000		1,074,857		19,996		60,000		1,094,853		1,154,853		545,026		12/93		9/93	5-27.5 yrs
OPELOUSAS POINT		1,336,812		50,000		559,121		1,420,904		50,000		1,980,025		2,030,025		650,043		3/94		11/93	5-27.5 yrs
PALMETTO VILLAS		1,575,059		60,724		2,034,151		15,379		60,724		2,049,530		2,110,254		735,399		4/94		5/94	5-27.5 yrs
PARK PLACE II		1,319,244		112,000		1,408,102		23,884		112,000		1,431,986		1,543,986		669,418		4/94		2/94	7-27.5 yrs
PINEHURST		777,330		24,000		1,033,022		57,125		24,000		1,090,147		1,114,147		542,704		2/94		2/94	5-27.5 yrs
QUAIL VILLAGE		847,108		30,450		1,060,273		2,468		30,450		1,062,741		1,093,191		495,055		2/94		9/93	7-27.5 yrs
SEA BREEZE		1,198,662		94,000		1,515,733		7,276		94,000		1,523,009		1,617,009		690,553		1/95		3/94		N/A
SHAWNEE HOUSING		948,688		182,786		2,347,227		113,423		182,786		2,460,650		2,643,436		1,322,856		10/92		2/93	7-27.5 yrs
SIXTH ST APTS		2,147,001		151,687		1,123,504		3,200,593		162,687		4,324,097		4,486,784		1,500,199		12/94		12/93	5-27.5 yrs
SKOWHEGAN HOUSING		1,478,855		100,000		2,121,472		130,269		100,000		2,251,741		2,351,741		829,807		8/94		9/94	5-27.5 yrs

F-91

Boston Capital Tax Credit Fund III LP — Series 17
Schedule III — Real Estate and Accumulated Depreciation
March 31, 2007

							Cost
							capitalized
							subsequent		Gross amount at which carried
			Initial cost to company				to acquisition		at close of period
																					Life on which
	Encum-				Buildings and						Buildings and				Accumulated		Date of		Date		depreciation
Description	brances		Land		improvements		Improvements		Land		improvements		Total		depreciation		construction		acquired		is computed
SOLEDAD		1,879,484		340,000		2,005,222		0		340,000		2,005,222		2,345,222		548,868		1/94		10/93	5-50 yrs
SUGARWOOD PARK		3,198,654		281,875		5,949,680		41,991		281,875		5,991,671		6,273,546		2,682,587		7/95		4/94	5-27.5 yrs
VOORHEESVILLE		1,064,526		74,600		1,254,914		105,950		74,600		1,360,864		1,435,464		690,184		5/93		7/93	7-27.5 yrs
WAYNSBURG HOUSING		1,449,528		169,200		2,113,822		152,631		18,100		2,266,453		2,284,553		711,110		12/95		7/94	10-40 yrs
WHITE CASTLE		754,455		84,800		948,687		28,816		84,800		977,503		1,062,303		463,429		5/94		6/94	27.5 yrs
		80,778,638		6,599,904		112,284,936		13,529,104		6,497,315		125,814,040		132,311,355		51,394,150

Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 2006.

There we no carrying costs as of December 31, 2006. The Column has been omitted for presentation purposes.

F-92

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 17

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/93				$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		58,662,502
Improvements, etc		0
Other		0
				$	58,662,502
Deductions during period:
Cost of real estate sold	$	0
Other		0
					0
Balance at close of period - 3/31/94				$	58,662,502
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		31,044,766
Improvements, etc		39,965,487
Other		0
				$	71,010,253
Deductions during period:
Cost of real estate sold	$	0
Other		(26,680	)
					(26,680	)
Balance at close of period - 3/31/95				$	129,646,075
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		9,769,183
Improvements, etc		11,596,518
Other		0
				$	21,365,701
Deductions during period:
Cost of real estate sold	$	0
Other		(13,800	)
					(13,800	)
Balance at close of period - 3/31/96				$	150,997,976

F-93

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 17 (continued)

Balance at close of period - 3/31/96				$	150,997,976
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		12,406,150
Improvements, etc		133,058
Other		0
				$	12,539,208
Deductions during period:
Cost of real estate sold	$	0
Other		0
					0
Balance at close of period - 3/31/97				$	163,537,184
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		337,191
Improvements, etc		0
Other		0
				$	337,191
Deductions during period:
Cost of real estate sold	$	0
Other		(1,598,364	)
					(1,598,364	)
Balance at close of period - 3/31/98				$	162,276,011
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		200,765
Other		0
				$	200,765
Deductions during period:
Cost of real estate sold	$	0
Other		0
					0
Balance at close of period - 3/31/99				$	162,476,776

F-94

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 17 (continued)

Balance at close of period - 3/31/99				$	162,476,776
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		292,965
Other		0
				$	292,965
Deductions during period:
Cost of real estate sold	$	0
Other		0
					0
Balance at close of period - 3/31/00				$	162,769,741
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		252,942
Other		0
				$	252,942
Deductions during period:
Cost of real estate sold	$	0
Other		(500,929	)
					(500,929	)
Balance at close of period - 3/31/01				$	162,521,754
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		525,052
Other		0
				$	525,052
Deductions during period:
Cost of real estate sold	$	0
Other		0
					0
Balance at close of period - 3/31/02				$	163,046,806

F-95

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 17 (continued)

Balance at close of period - 3/31/02				$	163,046,806
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		376,998
Other		0
				$	376,998
Deductions during period:
Cost of real estate sold	$	0
Other		0
					0
Balance at close of period - 3/31/03				$	163,423,804
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		638,913
Other		0
				$	638,913
Deductions during period:
Cost of real estate sold	$	(6,249,483	)
Other		0
					(6,249,483	)
Balance at close of period - 3/31/04				$	157,813,234
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		265,229
Other		0
				$	265,229
Deductions during period:
Cost of real estate sold	$	(26,715,597	)
Other		0
					(26,715,597	)
Balance at close of period - 3/31/05				$	131,362,866

F-96

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 17 (continued)

Balance at close of period - 3/31/05			$	131,362,866
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		420,434
Other		0
			$	420,434
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/06			$	131,783,300
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		528,055
Other		0
			$	528,055
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/07			$	132,311,355

F-97

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 17 (continued)

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/93				$	0
Current year expense	$	727,342
Balance at close of period - 3/31/94				$	727,342
Current year expense	$	4,342,560
Balance at close of period - 3/31/95				$	5,069,902
Current year expense	$	4,963,158
Balance at close of period - 3/31/96				$	10,033,060
Current year expense	$	6,281,850
Balance at close of period - 3/31/97				$	16,314,910
Current year expense	$	5,040,935
Balance at close of period - 3/31/98				$	21,355,845
Current year expense	$	5,033,530
Balance at close of period - 3/31/99				$	26,389,375
Current year expense	$	4,909,920
Balance at close of period - 3/31/00				$	31,299,295
Current year expense	$	4,387,090
Balance at close of period - 3/31/01				$	35,686,385
Current year expense	$	4,846,606
Balance at close of period - 3/31/02				$	40,532,991
Current year expense	$	4,739,144
Balance at close of period - 3/31/03				$	45,272,135
Current year expense	$	4,532,137
Reduction for real-estate sold		(2,899,018	)
Balance at close of period - 3/31/04				$	46,905,254
Current year expense	$	3,850,470
Reduction for real-estate sold		(7,100,462	)
Balance at close of period - 3/31/05				$	43,655,262
Current year expense	$	3,875,610
Balance at close of period - 3/31/06				$	47,530,872
Current year expense	$	3,863,278
Balance at close of period - 3/31/07				$	51,394,150

F-98

Boston Capital Tax Credit Fund III LP — Series 18
Schedule III — Real Estate and Accumulated Depreciation
March 31, 2007

							Cost
							capitalized
							subsequent			Gross amount at which carried
			Initial cost to company				to acquisition			at close of period
																						Life on which
	Encum-				Buildings and							Buildings and				Accumulated		Date of		Date		depreciation
Description	brances		Land		improvements		Improvements			Land		improvements		Total		depreciation		construction		acquired		is computed
ARCH DEVELOPMENT		1,667,060		107,387		6,724,849		127,469			112,853		6,852,318		6,965,171		3,008,484		12/94		4/94	7-27.5 yrs
AURORA		1,345,470		65,000		1,704,709		90,061			65,000		1,794,770		1,859,770		933,666		9/93		9/93	5-27.5 yrs
BEAR CREEK		4,940,929		488,011		8,884,145		92,274			491,639		8,976,419		9,468,058		4,596,764		4/95		3/94	5-27.5 yrs
CHATHAM MANOR		1,345,452		75,000		1,727,394		122,216			75,000		1,849,610		1,924,610		935,749		12/93		1/94	5-27.5 yrs
CHELSEA SQUARE		301,393		21,000		939,281		9,200			21,000		948,481		969,481		414,881		12/94		8/94	7-34 yrs
CLARKE SCHOOL		2,421,552		200,000		5,493,464		226,288			200,000		5,719,752		5,919,752		1,774,617		12/94		12/94	5-27.5 yrs
ELLIJAY RENTAL		809,949		48,000		1,000,609		2,336			48,000		1,002,945		1,050,945		367,824		1/95		1/94	40 yrs
EVERGREEN		2,631,020		157,537		4,337,312		623,152			157,537		4,960,464		5,118,001		2,529,093		1/95		8/94	5-27.5 yrs
GLEN PLACE		1,018,680		60,610		3,489,218		(169,758	)		60,610		3,319,460		3,380,070		1,567,766		6/94		4/94	5-27.5 yrs
HARRIS HOUSING		1,526,501		200,000		266,624		2,623,827			160,000		2,890,451		3,050,451		825,837		11/95		6/94	5-27.5 yrs
HUMBOLDT		691,613		40,191		845,252		26,528			40,191		871,780		911,971		397,805		4/95		8/94	5-27.5 yrs
JACKSON HOUSING		838,157		30,250		1,080,272		(7,162	)		30,250		1,073,110		1,103,360		490,819		6/94		1/94	5-27.5 yrs
LAKEVIEW MEADOWS		1,487,824		88,920		2,775,712		81,187			88,920		2,856,899		2,945,819		921,382		5/94		8/93	5-27.5 yrs
LANTHROP PROP		714,885		34,800		931,788		34,388			34,800		966,176		1,000,976		481,984		5/94		4/94	5-27.5 yrs
LEESVILLE ELDERLY		1,293,052		144,000		2,018,242		0			144,000		2,018,242		2,162,242		634,110		6/94		6/94	7-40 yrs
LOCKPORT		982,175		125,000		1,524,202		0			125,000		1,524,202		1,649,202		470,129		9/94		7/94	5-27.5 yrs
MAPLE LEAF		1,073,711		22,860		1,355,390		54,034			22,860		1,409,424		1,432,284		469,405		12/94		8/94	5-27.5 yrs
MARENGO PARK		729,335		50,010		886,695		5,220			50,010		891,915		941,925		437,904		3/94		10/93	5-27.5 yrs
NATCHITOCHES		940,715		50,000		1,634,279		10,000			50,000		1,644,279		1,694,279		495,866		12/94		6/94	7-40 yrs
NEWTON I		785,331		57,500		979,345		4,201			57,500		983,546		1,041,046		457,949		9/94		11/93	5-27.5 yrs

F-99

Boston Capital Tax Credit Fund III LP — Series 18
Schedule III — Real Estate and Accumulated Depreciation
March 31, 2007

							Cost
							capitalized
							subsequent		Gross amount at which carried
			Initial cost to company				to acquisition		at close of period
																					Life on which
	Encum-				Buildings and						Buildings and				Accumulated		Date of		Date		depreciation
Description	brances		Land		improvements		Improvements		Land		improvements		Total		depreciation		construction		acquired		is computed
OSKALOOSA I		468,693		32,000		589,423		1,822		32,000		591,245		623,245		275,670		9/94		11/93	5-27.5 yrs
PARVINS		571,762		41,508		1,741,048		4,742		41,508		1,745,790		1,787,298		848,628		11/93		8/93	5-27.5 yrs
PEACHTREE		1,436,361		157,027		1,617,470		63,098		157,027		1,680,568		1,837,595		940,993		7/93		1/94	5-27.5 yrs
PONDEROSA		1,443,567		82,454		1,903,972		130,592		82,454		2,034,564		2,117,018		700,848		5/94		3/94	5-27.5 yrs
PRESTON WOODS		656,423		66,000		2,515,136		57,108		66,000		2,572,244		2,638,244		1,334,810		12/94		12/93	5-27.5 yrs
RICHMOND MANOR		995,447		54,944		1,285,522		53,368		54,944		1,338,890		1,393,834		650,197		6/94		6/94	5-27.5 yrs
RIO GRANDE		2,070,058		96,480		2,999,680		93,094		96,480		3,092,774		3,189,254		948,145		5/94		6/94	5-27.5 yrs
RIPLEY HOUSING		477,309		14,000		646,850		132,344		14,000		779,194		793,194		122,886		7/94		1/94	5-40 yrs
SAN JOAQUIN		1,763,014		55,000		2,463,181		22,475		55,000		2,485,656		2,540,656		634,217		12/94		3/94	5-50 yrs
TROY ESTATES		663,112		45,000		826,432		115,030		45,000		941,462		986,462		440,308		1/94		12/93	5-27.5 yrs
VIRGINIA AVENUE		1,131,417		121,238		3,510,339		15,654		121,238		3,525,993		3,647,231		1,616,865		10/94		10/94	5-27.5 yrs
VISTA LOMA		1,564,428		267,612		1,600,128		309,585		267,612		1,909,713		2,177,325		633,969		9/94		5/94	5-27.5 yrs
VIVIAN ELDERLY		225,762		45,000		1,668,938		0		45,000		1,668,938		1,713,938		529,737		9/94		7/94	7-40 yrs
WESTMINSTER MEADOWS		1,922,701		250,000		3,605,890		22,684		250,000		3,628,574		3,878,574		1,817,826		11/94		12/93	5-27.5 yrs
		42,934,858		3,394,339		75,572,791		4,977,057		3,363,433		80,549,848		83,913,281		33,707,133

Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 2006.

There we no carrying costs as of December 31, 2006. The Column has been omitted for presentation purposes.

F-100

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 18

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/93			$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		4,002,185
Improvements, etc		0
Other		0
			$	4,002,185
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/94			$	4,002,185
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		42,200,169
Improvements, etc		19,531,960
Other		0
			$	61,732,129
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/95			$	65,734,314
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		16,282,424
Other		0
			$	16,282,424
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/96			$	82,016,738

F-101

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 18 (continued)

Balance at close of period - 3/31/96			$	82,016,738
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		137,752
Other		0
			$	137,752
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/97			$	82,154,490
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		164,466
Other		0
			$	164,466
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/98			$	82,318,956
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		200,573
Other		0
			$	200,573
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/99			$	82,519,529

F-102

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 18 (continued)

Balance at close of period - 3/31/99			$	82,519,529
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		90,225
Other		0
			$	90,225
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/00			$	82,609,754
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		204,609
Other		0
			$	204,609
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/01			$	82,814,363
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		125,890
Other		0
			$	125,890
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/02			$	82,940,253

F-103

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 18 (continued)

Balance at close of period - 3/31/02			$	82,940,253
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		164,756
Other		0
			$	164,756
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/03			$	83,105,009
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		224,824
Other		0
			$	224,824
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/04			$	83,329,833
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		105,841
Other		0
			$	105,841
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/05			$	83,435,674

F-104

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 18 (continued)

Balance at close of period - 3/31/05			$	83,435,674
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		249,305
Other		0
			$	249,305
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/06			$	83,684,979
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		228,302
Other		0
			$	228,302
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/07			$	83,913,281

F-105

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 18 (continued)

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/93			$	0
Current year expense	$	39,475
Balance at close of period - 3/31/94			$	39,475
Current year expense	$	911,009
Balance at close of period - 3/31/95			$	950,484
Current year expense	$	2,835,031
Balance at close of period - 3/31/96			$	3,785,515
Current year expense	$	3,000,815
Balance at close of period - 3/31/97			$	6,786,330
Current year expense	$	2,884,157
Balance at close of period - 3/31/98			$	9,670,487
Current year expense	$	2,798,960
Balance at close of period - 3/31/99			$	12,469,447
Current year expense	$	2,799,855
Balance at close of period - 3/31/00			$	15,269,302
Current year expense	$	2,761,702
Balance at close of period - 3/31/01			$	18,031,004
Current year expense	$	2,752,123
Balance at close of period - 3/31/02			$	20,783,127
Current year expense	$	2,632,895
Balance at close of period - 3/31/03			$	23,416,022
Current year expense	$	2,613,670
Balance at close of period - 3/31/04			$	26,029,692
Current year expense	$	2,598,384
Balance at close of period - 3/31/05			$	28,628,076
Current year expense	$	2,607,686
Balance at close of period - 3/31/06			$	31,235,762
Current year expense	$	2,471,371
Balance at close of period - 3/31/07			$	33,707,133

F-106

Boston Capital Tax Credit Fund III LP — Series 19
Schedule III — Real Estate and Accumulated Depreciation
March 31, 2007

							Cost
							capitalized
							subsequent			Gross amount at which carried
			Initial cost to company				to acquisition			at close of period
																						Life on which
	Encum-				Buildings and							Buildings and				Accumulated		Date of		Date		depreciation
Description	brances		Land		improvements		Improvements			Land		improvements		Total		depreciation		construction		acquired		is computed
ANKENEY HOUSING		3,017,143		217,500		8,144,577		185,262			217,500		8,329,839		8,547,339		2,645,090		3/95		8/94	10-40 yrs
CARROLLTON VILLA		1,340,005		60,015		2,682,843		(2,551,344	)		60,015		131,499		191,514		7,514		3/95		6/94	5-27.5 yrs
CLARKE SCHOOL		2,421,552		200,000		5,493,464		226,288			200,000		5,719,752		5,919,752		1,774,617		12/94		12/94	12-40 yrs
FOREST ASSOCIATES		646,225		13,900		396,391		478,939			13,900		875,330		889,230		577,441		3/78		4/95	5-27.5 yrs
GARDEN GATE\FT WORTH		5,239,537		678,867		2,532,572		6,993,463			678,867		9,526,035		10,204,902		4,248,971		4/95		5/95	5-27.5 yrs
GARDEN GATE\PLANO		6,572,866		689,318		844,673		9,257,998			689,318		10,102,671		10,791,989		4,538,879		3/95		2/94	5-27.5 yrs
HEBBRONVILLE APTS.		498,962		50,711		650,002		20,243			50,711		670,245		720,956		217,661		4/94		12/93	7-40 yrs
HOLLISTER INV GRP		1,693,248		400,000		1,906,641		226,170			400,000		2,132,811		2,532,811		719,521		5/95		3/95	5-50 yrs
HOLTS SUMMIT SQUARE		1,028,137		110,373		524,966		2,049,034			110,373		2,574,000		2,684,373		1,210,472		12/94		6/94	5-27.5 yrs
INDEPENDENCE PROPERTIES		823,930		38,500		503,166		517,210			38,500		1,020,376		1,058,876		342,159		12/94		6/94	5-40 yrs
JEFFERSON SQUARE		2,252,818		385,000		4,548,650		437,203			385,000		4,985,853		5,370,853		1,767,439		8/95		5/94	5-27.5 yrs
JENNY LYNN PROPERTIES		776,786		65,000		958,809		7,000			65,000		965,809		1,030,809		443,102		9/94		1/94	5-27.5 yrs
JEREMY ASSOCIATES		3,281,609		522,890		6,954,516		771,207			522,890		7,725,723		8,248,613		2,520,720		12/95		6/96	5-40 yrs
LONE STAR SR.		591,662		20,492		835,453		0			20,492		835,453		855,945		260,239		5/94		12/93	7-40 yrs
MADISON L.P.		631,547		42,707		810,978		16,276			32,568		827,254		859,822		387,113		10/94		12/93	5-27.5 yrs
MANSURA VILLA		931,162		20,254		301,687		1,029,963			25,000		1,331,650		1,356,650		385,770		8/95		5/94	5-27.5 yrs
MARTINDALE APTS.		644,462		40,270		861,032		29,803			40,270		890,835		931,105		290,053		1/94		12/93	7-40 yrs
MUNFORD VILLAGE		728,020		24,800		980,102		30,577			24,800		1,010,679		1,035,479		339,213		4/94		10/93	5-40 yrs
NORTHPOINTE LP		4,234,697		371,000		9,834,451		1,621			371,000		9,836,072		10,207,072		2,856,608		6/95		7/94	5-27.5 yrs
SAHALE HEIGHTS		825,794		72,000		1,062,350		111			72,000		1,062,461		1,134,461		497,596		6/94		1/94	5-27.5 yrs

F-107

Boston Capital Tax Credit Fund III LP — Series 19
Schedule III — Real Estate and Accumulated Depreciation
March 31, 2007

							Cost
							capitalized
							subsequent			Gross amount at which carried
			Initial cost to company				to acquisition			at close of period
																						Life on which
	Encum-				Buildings and							Buildings and				Accumulated		Date of		Date		depreciation
Description	brances		Land		improvements		Improvements			Land		improvements		Total		depreciation		construction		acquired		is computed
SHERWOOD KNOLL		751,172		45,000		963,996		42,011			45,000		1,006,007		1,051,007		360,438		4/94		10/93	5-40 yrs
SUGARWOOD PARK		3,198,654		281,875		5,949,680		41,991			281,875		5,991,671		6,273,546		2,682,587		7/95		4/94	5-27.5 yrs
SUMMERSET HOUSING		912,736		68,665		1,160,825		(25,664	)		68,665		1,135,161		1,203,826		458,080		11/95		1/94	7-27.5 yrs
VISTA’S ASSOC.		4,616,590		831,600		7,055,338		31,146			831,600		7,086,484		7,918,084		2,522,562		1/95		12/93	5-27.5 yrs
WEDGEWOOD LANE		969,966		85,000		1,106,604		37,185			85,000		1,143,789		1,228,789		407,139		9/94		6/94	5-40 yrs
WILLOWOOD PARK		3,724,042		511,051		6,867,791		187,592			511,051		7,055,383		7,566,434		3,296,222		12/94		11/93	5-27.5 yrs
		52,353,322		5,846,788		73,931,557		20,041,285			5,841,395		93,972,842		99,814,237		35,757,206

     Since the Operating Partnerships maintain a calendar year end, the information reported on this schedule is as of December 31, 2006.

     There we no carrying costs as of December 31, 2006. The Column has been omitted for presentation purposes.

F-108

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 19

Reconciliation of Land, Building & Improvements current year changes

Balance at beginning of period - 4/1/93			$	0
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		9,012,131
Improvements, etc		0
Other		0
			$	9,012,131
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/94			$	9,012,131
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		24,845,235
Improvements, etc		13,156,474
Other		0
			$	38,001,709
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/95			$	47,013,840
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		410,291
Improvements, etc		52,257,570
Other		0
			$	52,667,861
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/96			$	99,681,701

F-109

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 19 (continued)

Balance at close of period - 3/31/96				$	99,681,701
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		7,477,406
Improvements, etc		594,800
Other		0
				$	8,072,206
Deductions during period:
Cost of real estate sold	$	(8,720,704	)
Other		(124,499	)
					(8,845,203	)
Balance at close of period - 3/31/97				$	98,908,704
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		224,896
Other		0
				$	224,896
Deductions during period:
Cost of real estate sold	$	0
Other		0
					0
Balance at close of period - 3/31/98				$	99,133,600
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		228,405
Other		0
				$	228,405
Deductions during period:
Cost of real estate sold	$	0
Other		0
					0
Balance at close of period - 3/31/99				$	99,362,005

F-110

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 19 (continued)

Balance at close of period - 3/31/99			$	99,362,005
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		280,218
Other		0
			$	280,218
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/00			$	99,642,223
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		493,159
Other		0
			$	493,159
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/01			$	100,135,382
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		432,177
Other		0
			$	432,177
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/02			$	100,567,559

F-111

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 19 (continued)

Balance at close of period - 3/31/02			$	100,567,559
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		77,825
Other		0
			$	77,825
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/03			$	100,645,384
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		751,197
Other		0
			$	751,197
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/04			$	101,396,581
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		271,562
Other		0
			$	271,562
Deductions during period:
Cost of real estate sold	$	0
Other		0
				0
Balance at close of period - 3/31/05			$	101,668,143

F-112

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 19 (continued)

Balance at close of period - 3/31/05				$	101,668,143
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		263,864
Other		0
				$	263,864
Deductions during period:
Cost of real estate sold	$	0
Other		0
					0
Balance at close of period - 3/31/06				$	101,932,007
Additions during period:
Acquisitions through foreclosure	$	0
Other acquisitions		0
Improvements, etc		620,739
Other		(2,738,509	)
				$	(2,117,770	)
Deductions during period:
Cost of real estate sold	$	0
Other		0
					0
Balance at close of period - 3/31/07				$	99,814,237

F-113

Notes to Schedule III
Boston Capital Tax Credit Fund III LP — Series 19 (continued)

Reconciliation of Accumulated Depreciation current year changes

Balance at beginning of period - 4/1/93			$	0
Current year expense	$	98,220
Balance at close of period - 3/31/94			$	98,220
Current year expense	$	418,177
Balance at close of period - 3/31/95			$	516,397
Current year expense	$	2,779,948
Balance at close of period - 3/31/96			$	3,296,345
Current year expense	$	2,591,856
Balance at close of period - 3/31/97			$	5,888,201
Current year expense	$	3,087,218
Balance at close of period - 3/31/98			$	8,975,419
Current year expense	$	3,096,686
Balance at close of period - 3/31/99			$	12,072,105
Current year expense	$	3,079,193
Balance at close of period - 3/31/00			$	15,151,298
Current year expense	$	3,106,817
Balance at close of period - 3/31/01			$	18,258,115
Current year expense	$	3,126,263
Balance at close of period - 3/31/02			$	21,384,378
Current year expense	$	2,850,562
Balance at close of period - 3/31/03			$	24,234,940
Current year expense	$	3,332,665
Balance at close of period - 3/31/04			$	27,567,605
Current year expense	$	3,077,499
Balance at close of period - 3/31/05			$	30,645,104
Current year expense	$	3,079,529
Balance at close of period - 3/31/06			$	33,724,633
Current year expense	$	2,032,573
Balance at close of period - 3/31/07			$	35,757,206

F-114

EX-23

Exhibit 23

INDEPENDENT AUDITOR’S REPORT

To the Partners
Bridlewood, Limited Partnership
Horse Cave, Kentucky

I have, audited the accompanying balance sheets of Bridlewood, Limited Partnership, a limited partnership, RHS Project No:20-050-611149839 as of December 31, 2005 and 2004, and the related statements of operations, partners’ capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management My responsibility is to express an opinion on these financial statements based on my audits.

I conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, the U.S. Department of Agriculture, Farmers Home Administration Audit Program, and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that I plant and perform the audits to obtain reasonable assurance abaci whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that the audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Bridlewood Limited Partnership, RHS Project No:20-050-611149839 as of December 31, 2005 and 2004, and the and the results of its operarious and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole, The supplemental information on pages 10 through 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FHA 1930-8) Parts I and II for the year ended December 31, 2005 and 2004, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in my opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, I have also issued a report dated February 1, 2006 on my consideration of Bridlewood, Limited Partnership’s internal control over financial reporting and on my tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of my audit. However, the partnership has determined that it is not required to have, nor was I engaged to perform, an audit of its internal control over financial reporting. My audit included only the consideration of internal control over financial reportin as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, I express no such opinion.

DONALD W. CAUSEY, P.C.
Gadsden, Alabama
February 1, 2006

To the Partners
Chestnut Hill Estates, Ltd,
Altoona, AL

We have audited the accompanying balance sheets of Chestnut Hill Estates, Ltd. A limited partnership, RHS Project No: 01-028-631016355 as of December 31, 2005 and 2004, and the related statements of operations, partners’ capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, the U.S. Department of Agriculture Farmers Home Administration Audit Program, and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Chestnut Hill Estates, Ltd RHA Project No: 01-028-631016355 as of December 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States.

The audits were made for the purse of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 10 through 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts 1 and II for the years ended December 31, 2005 and 2004, is presented for purposes of complying with the requirements of the Plural Housing Services and is also not a required pad of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated February 4, 2006 on our consideration of Chestnut Hill Estates, Ltd.’s, internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. However, the partnership has determined that is not required to have, nor were we engaged to perform, an audit of its intemal control over financial reporting. Our audit included only the consideration of intern controlover financial repenting as a basis for designing audit procedures that are appropriate in the circumstance, but not for the purpose of expressing are opinion on the effectiveness of the partnership s internal controlover financial reporting. Accordingly, we express no such opinion.

DONALD W. CAUSEY & ASSOCIATES
Gadsden, Alabama
February 4, 2006

INDEPENDENT AUDITOR’S REPORT

To the Partners of
Curwensville House Associates
(A Maine Limited Partnership)

     We have audited the accompanying balance sheets of Curwensville House Associates as of December 31, 2005 and 2004, thd the related statements of operations, changes in partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

     We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and performed the audits to obtain reasonable assurance about whether the fnancial statements are free of material misstatement. The Partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideratⁱon of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing are opinion on the effectiveness of the Partnership’s interval control over financial reporting, Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

     In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Curwensville House Associateas of December 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

     In accordance with Government Auditing Standards, we have also issued reports dated March 3, 2006, on our consideration of Curwensville House Associattes’ internal control and on our tests of its compliance with certain provisions of laws, regulation, contracts and grants. Those reports are an integral part of an audit performed in accordance with Government Auditing standards and should be read in conjunction with this report in considering the results of our audits.

     Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompnaying supplementary information is presented for the purposes of additional analysis and is not a required part of the basic financial statements of the Partnership. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole

Dauby O’Connor & Zaleski
March 3, 2006
Carmel, Indiana

INDEPENDENT AUDITOR’S REPORT

To the Partners
Osage Housing Associates Limited Partnership

We have audited the accompanying balance sheets of Osage Housing Associates Limited Partnership as of December 31, 2005 and 2004 and the related statements of operations, partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards required that we plan and perform the audits to obtain reasonable assurances about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor we were engaged to perform, an audit of its intemal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all_. material respects, the financial position of Osage Housing Associates Limited Partnership as of December 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Mayer Hoffmann McCann P.C,
Topeka, Kansas

January 19, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Sioux Falls Housing Associates One Limited Partnership

We have audited the accompanying balance sheets of Sioux Falls Housing Associates One Limited Partnership as of December 31, 2005 and 2004, and the related statements of operations, partners’ equity and cash flows for the years there ended.We^-d statements of operations, partners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor we were engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in: all material respects, the financial position of Sioux Falls Housing Associates One Limited Partnership as of December 2005 and 2004, and the results of its operations ard its cash fiows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Mayer Hoffman & McCann P,C.
Topeka, Kansas
January 2, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Sunset Square I, Limited Partnership
Scottsboro, Alabama

We have audited the accompanying balance sheets of Sunset Square I, Limited Partnership, a limited whip, RHS Project No:01—036-631030935 as of December 31 2005 and 2004, and the related statements of operations, deficit and cash flaws for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generated in the United States of America and Government Auditing Standards issued by the Comptroller of the United States, the U.S. Department of Agriculture, Fanners Home Administration Audit Program, and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence shorting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial staterrlents refbrred to above present ly, in all material respects, the nancial position of Sunset Square I, Limited Partnership RHS Project No: 01-036-631030935 as of December 31, 2005 and 2004, and the results of its operations, and its cash flows for the years then ended in conformitywith accounting principles generally accepted in the United States.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 11 through 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I and 11 for the year ended December 31, 2005 and 2004, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements, Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated January 31, 2006 on our consideration of Sunset Square I, Limited Partnership’s, internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be head in conjunction with this report in considering the results of our audit. However, the partnership has determined that A is not required to have, nor were we engaged to performs, an audit of Airs internal control over financial reporting. Our audit included only the consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion.

DONALD W. CAUSEY & ASSOCIATES
Gadsden, Alabama
January 31, 2006

INDEPENDENT AUDITORS REPORT

To the Partners
Bentonia Elderly, L.P.
Bentonia, Mississippi

We have audited the accompanying balance streets of Bentonia Elderly, L.P.. a limited partnership, RHS Project No: 28-082-00813081 as of December 31, 2005 and 2004, and the related statements of operas,,ons; parmem’ capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of Annerica and Government Auditing Standards issued by the Comptroller General of the United States, the U.S. Department of Agriculture, Farmers Home Administration Audit Program, and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, An audit also includes assessing the accounting principles used and significant estimates unlade by management, as well as evaluating the overall fnrancial statement presentation. We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Bentonia Elderly, L.P, RHS Project No: 28-082-0640813081 as of December 31, 2005 and 2004, and the results of its; operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States.

The audits were raaade for the purpose of funning an opinion on the basic financial statements taken as a whole. The supplemental information on pages 11 through 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housirng Borrower Balance Sheet (Form FmHA 1930-8) Parts I and II for the year ended December 31, 2005 and 2004, is presented for purposes of complying with the requirements of the Rural Dousing Services and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated January 28, 2006 on our consideration of Bentonia Elderly, L.P.’s, internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion.

DONALD W. CAUSEY & ASSOCIATES
Gadsden, Alabama
January 28, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners of
Blairsville Rental Housing, L.L.P.

We have audited the accompanying t: alance sheets of BLAIRSVILLE RENTAL HOUSING, L.L.P USDA Rural Development Case No.11-044-581965564), a limited partnership, as of December 31, 2005 and 2004, and the related statements of operations, changes in partners’ equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States), the standards applicable to financial audits contrained in Government Auditing Standards, issued by the Comptroller General of the United States, and the Audit Program issued in December 1989 by the Rural Development serivces Office of the U.S. Department of Agriculture, formerly known as the Farmers Home Administration. Those standards and the Audit Program require that we plan and perform the audits to obtain: reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, can a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion the financial statements referred to above present fairly, in all material respects, the financial position of BLAIRSVILLE RENTAL HOUSING, L.L.P. as of December 31, 2005 and 2004, and the results of its operations, its changes in partners’ equity (deficit), and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing_Standards, we have also issued our report dated February 28, 2006, on our consideration of BLAIRSVILLE RENTAL HOUSING, L.L.P.’s internal control and our report dated February 28, 2006, and on its compliance with laws and regulations applicable to the financial statements. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

Our audits were made for the purpose of farming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 12 — 15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Habif, Aroget & Wynne, LLP
Atlanta, Georgia
February 28, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners of
Blairsville Rental Housing, L.L.P. II

We have audited the accompanying balance sheets of BL.AIRSVIILLE RENTAL HOUSING, L.L.P. II (USDA Rural Develcpment Case No.11-0144-581965565), a limited partnership, as of_. December 31 2005 and 2004. and the related statements of operations, changes in partners’ equity (deficit), and cash flows for the years their ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion can these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States), the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the Audit Program Rural Development Services Office of the U.S. Department of Agriculture, formerly known as the Farmers Horne Administration. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion the financial statements referred to above present fairly, in all material respects, the financial position of BLAIRSVILLE RENTAL HOUSING, L.L.P, it as of ^-December 31; 2005 and 2004 and the results of its operations, its changes in partners’ equity (deficit), and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 28, 2006, an our consideration of BLAIRSVILLE RENTAL, HOUSING, L.L.P. II’s internal control and our report dated February 28, 2006, and on its compliance with laws and regulations applicable to the financial statements. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 12 — 16 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation. to the basic financial statements taken as a whole.

Habif, Arogeti & Wynne, LLP
Atlanta, Georgia
February 28, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners of
Butler Rental Housing, L.L.P.

We have audited the accompanying balance streets of BUTLER RENTAL HOUSING: L. L, P. (USDA Rural Development Case No.11-033-581955623), a limited partners as of December 31, 2005 and 2004, and the related statements of operations, changes in partners’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the Public Company Accounting Oversight Board (United States), the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller Generai of the United States, and the Audit Program of the Rural Development Services Office of the U.S. Department of Agriculture, formerly known as the Farmers Home Administration. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion can the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of BUTLER RENTAL. HOUSING, L.L.P. as of December 31, 2005 and 2004, and the results of its operations, its changes in partners’ equity (deficit), and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 28, 2006_: on our consideration of BUTLER RENTAL HOUSING, L.L.P.’s internal control and our report dated February 28, 2006, on its compliance with laws and regulations applicable to the financial statements. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 12 — 15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Habif, Arogeti &Wynne
Altanta, Georgia
February 28, 2006

INDEPENDENT AUDITORS REPORT

To the Partners
Davenport Housing Associates Limited Partnership

We have be accompanying balance sheets of Davenport Housing Associate Limited Partnership as of December 31. 2005 and 2004 and the related statements of operations, partners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor we were engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Are audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion,

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Davenport Housing Associates Limited Partnership as of December 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Mayer, Hoffman & McCann
Topeka, Kansas
January 31, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners of
Eastman Elderly Housing, L.L.P.

We have audited the accompanying balance sheets of Davenport Housing Associates Limited Partnership, as of December 31, 2005 and 2004, and the related statements of operations, changes in partners’ equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the_-standards of the Public Company Accounting Oversight Board (United States), the standards applicable to financial statements is contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the Audit Program of the Rural Development Services Office of the U.S. Department of Agriculture, formerly known as the Farmers Home Administration. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position EASTMAN ELDERLY HOUSING, L.L.P. as of December 31, 2005 and 2004, and the results of its operations, its changes in partners’ equity (deficit), and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 28, 2006, on our consideration of EASTMAN ELDERLY DOUSING, L.L.P.’s internal control and our report dated February 28, 2006, on its compliance with laws and regulations applicable to the financial statements. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole, The supplemental information on pages 12 — 16 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion_; is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Habif, Arogenti & Wynne
Atlanta, Georgia
February 28, 2006

INDEPENDENT AUDITOR’S REPORT

To the Partners
Falcon Ridge Apartments,
Ltd. Beatyville, Kentucky

I have audited the accompanying balance sheets of Falcon Ridge Apartments, Ltd. a limited partnership, RHS Project No: 20-065-631023072 as of December 31, 2005 and 2004 and the related state ents of operations, partners^‘ capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership^‘s management. My responsibility is to express an opinion on these financial statements based on y audits.

I conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, the U.S. Department of Agriculture, Farmers Home Administration Audit Program, and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that I plan and perform an audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates trade by management, as well as evaluating the overall financial statement presentation. I believe that the audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Falcon Ridge Apartments, Ltd., RHS Project No: 20-065-631023072 as of December 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with conformity with accounting principles generally accepted in the United States.

The audits were mad: for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 10 through 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-5) Parts I and H for the year ended December 31, 2005 and 2004, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in my opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, I have also issued a report dated February 1, 2006 on my consideration of Falcon Ridge Apartments, Ltd.’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and and should be read in conjunction with this report in considering the results o fmy audit. However, the partnership has determined that it is not required to have, nor was I engaged to perform, an audit of its internal control over financial reporting. My audit included only the consideration of intenral control over financial reporting as a basis for desgning audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of ther partnerhsip’s internal control over financial reporting. Accordingly, I express no such opinion.

DONALD W. CAUSEY & ASSOCIATES P.C.
Gadsden, Alabama
February 1, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Newport Manor, Limited Partnership
Newport, Tennessee

We have audited the accompanying balance sheets of_. Newport Manor, Limited Partners, a limited partnership, RHS Project No: 48-015-631011392 as of December 31, 2005 and 2004, and the related statements of operations, partners’ capital and cash flows for the years then envied. These financial statememts are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, the U.S. Department of Agriculture, Farmers Home Administration Audit Program, and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test oasis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Newport Manor, Limited Partnership, RHS Project No: 48-015-631011392 as of December 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whale. The supplemental information on pages 10 and 11 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I and I1 for the year ended December 31, 2005 and 2004, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated January 29, 2006 on our consideration of Newport Manor, Limited Partnership’s, internal control over financial reporting and on our test_‘s of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. However, the partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included only the consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstance, but not for the purpose of expressing an opinion on the effectiveness of the partnerhsip’s internal control over financial reporting. Accordingly, we express no such opinion.

DONALD W. CAUSEY & ASSOCIATES
Gadsden, Alabama
January 29, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Tchula Elderly, L.P.
Tchula, Mississippi

We have audited the accompanying balance sheets of Tchula Elden L,P. a limited partnership, RHS Project No.: 28-026-6400813082 as of December 31, 2005 and 2004, and of operations, partners^‘ capital and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, the U.S. Department of Agriculture, Farmers Horne Administration Audit Program, and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we playa and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining_, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material, respects, the financial position of Tchula Elderly, L.P., RHS Project No.: 28-026-640813082 as of December 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 10 through 12 is presented for purposes of additional analysis and is not a. required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I and II for the years ended December 31, 2005 and 2004, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whale.

In accordance with Government Auditing Standards, we have also issued a report dated February 23, 2006 on our consideration of Tchula Elderly, L.P.’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read it conjunction with this report in considering the results of our audit. However, the partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included only the consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion.

DONALD W. CAUSEY & ASSOCIATES
Gadsden, Alabama
February 23, 2006

INDEPENDENT AUDITORS REPORT

To the Partners
Sixth Street Partners Limited Partnership

We have audited the accompanying balance sheet of sixth Street Partners Limited Partnership as of December 31, 2005 and the related statemetns of operations, partners’ equity and cash flows for the year then ended. These financial statements are the responsbility of the Parntership’s management. Our responsibilty is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluting the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of our Sixth Street Partners Limited Partnership as of December 31, 2005, and the results of its operations, changes in partners’ equity and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole as of and for the year ended December 31, 2005. The supplemental information on page 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures aplied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole

Mayer Hoffman McCann
Leawood, Kansas
January 18, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Quail Village Limited Partnership

We have audited the accompanying balance sheets of Quail Village Limited Partnership as of December 31, 2004 and 2003, and the related statements of operations, changes in partners’ equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States), the standards applicable to financial statement audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the Audit Program of the Rural Development Serices Office of the U.S. Department of Agriculture, formerly known as the Farmers Home Administration. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatements. The Partnership has deteremined that it is not required to have, nor we were engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of ther partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examing, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting nprinciples used and significant estimates made by management, as well as evaluting the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Quail Village Limited Partnership as of December 31, 2004 and 2003, and the results of its operations, its changes in partners’ equity (deficit), and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 4, 2005, on our consideration of Quail Village Limited Partnerhsip’s internal contol and our report dated February 4, 2005, on its compliance with laws and regulations applicable to the financial statements. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 12-14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Habif, Arogenti & Wynne
Atlanta, Georgia
February 4, 2005

INDEPENDENT AUDITORS’ REPORT

To the Partners
Cambridge Family YMCA Affordable Housing, L.P.
Cambridge, Massachusetts

We have audited the accompanying balance sheets of Cambrdige Family YMCA Affordable Housing, L.P. (“the Partnership”) as of December 31, 2005 and 2004 and the related statements of operations, changes in partners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Partnership has determined that it is not required to have, nor were we engaged to perform an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstance, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluting the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cambridge Family YMCA Affordable Housing, L.P. as of December 31, 2005 and 2004 and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

The supplemental information contained on page 15 is presented fo rthe purpose of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respectes in relation to the basic financial statements taken as a whole.

Brown & Brown
Boston, Massachusetts
February 16, 2006

INDEPENDENT AUDITORS’ REPORT

The Partners
Hackley-Barclay Limited Dividend Housing Association Limited Partnership
(A Michigan Limited Partnership)
Kalamazoo, Michigan

We have audited the accompanying balance sheets of Hackley-Barclay Limited Dividend Housing Association Limited Partnership (A Michigan Limited Partnership), as of December 31, 2005 and 2004, and the related statements of operations, partners’ equity/(deficit) and cash flows for the years then ended. These finanical statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnerhsip’s internal control over financing reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hackley- Barclay Limited Dividend Housing Association Limited Partnership, as of December 31, 2005 and 2004, and the results of its operations, changes in partners’ equity/(deficit) and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made fo rthe purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 17 and 18 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to auditing procedures applied in the audits of the basic financial statements, and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Schoonover, Boyer & Associates
Columbus, Ohio
January 26, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Shawnee Housing Associates Limited Partnership

We have audited the accompanying balance sheets of Shawnee Housing Associates Limited Partnership as of December 31, 2005 and 2004, and the related statements of operations, partners’ equity, and cash flows for the years then ended. These finanical statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these finanical statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor we were engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for desgning audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the partnership’s intenral control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts nad disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by mangement, as well as evaluting the overall financial statements presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Shawnee Housing Associates Limited Partnership as of December 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Mayer Hoffman McCann P.C.
Topeka, Kansas
January 17, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners of
Waynesburg House Associates
(A Maine Limited Partnership)

We have audited the accompanying balance sheets of Waynesburg House Associates as of December 31, 2005 and 2004, and the related statements of operations, changes in partners’ equity (deficit), and cash flows for the years then ended. These financial statemetns are the responsbility of the Partnership’s management. Our responsbility is to express an opinion onthese financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to botain reasonable assurance about whether the financial statements are free of material misstatement. The Partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of intenral control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstance, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s intenral control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluting the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Waynesburg House Associates as of December 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accountign principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued reports dated March 3, 2006, on our consideration of Waynesburg House Associates’ intenral control and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements of the Partnership. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Dauby O’Connor & Zaleski, LLC
March 3, 2005
Carmel, Indiana

INDEPENDENT AUDITORS’ REPORT

To the Partners
Glen Place Apartments Limited Partnership

We have audited the accompanying balance sheet of Glen Place Apartments Limited Partnership as of December 31, 2005, and the related statements of operations, partners’ equity (deficit), and cash flows for the year then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statemetns are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of intenral control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and signficant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statemetns referred toa bove present fairly, in all material respects, the financial position of Glen Place Apartments Limited Partnership, as of December 31, 2005, and the results of its operations, changes in partners’ equity (deficit), and its cash flows for th year then ended in conformity with accounting principles generally accepted in the United States of America.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 13 is presented purpose of additional analysis and is not a required part of the basic financial statemetns. Such information has been subjected to the auditing procedures applied to the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Larson, Allen, Weishair & Co., L.L.P.
Eau Claire, Wisconsin
January 25, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Ellijay Rental Housing, L.L.P

We have audited the accompanying balance sheets of Ellijay Rental Housing, L.L.P. (USDA Rural Development Case No. 10-61-528022315), a limited partnership, as of December 31, 2005 and 2004, and the related statements of operations, changes in partners’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States), the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, and the Audit Program of the Rural Development Service Office of the U.S. Department of Agriculture, formerly known as the Farmers Home Administration. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not requied to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of intenral control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting . Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statemetns. An audit also includes assessing the accounting principles used and signficant estimates made by management, as well as evaluting the overall finacial statement presentation. We believe that our audits provide a reasonable basis for our reporting.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Ellijay Rental Housing, L.L.P., as of December 31,2005 and 2004, and the results of its operations, its changes in partners’ equity (deficit), and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 28, 2006, on our consideration of Ellijay Rental Housing, L.L.P.’s intenral control and our report dated February 28, 2006, on its compliance with laws and regulations applicable to the financial statemetns. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 12-15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Habif, Arogent, & Wynne
Atlanta, Georgia
February 28, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners of
Jackson Housing, L.L.P.

We have audited the accompanying balance sheets of Jackson Housing, L.L.P. (USDA Rural Development Case No. 10-018-582031912), a limited partnership, as of December 31, 2005 and 2004, and the related statements of operations, changes in partners’ equity, and cash flows for th eyears then ended. These financial statemetns are the responsibility of the Partnership’s managemnet. Our responsbility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States), the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the Audit Program issued by the Rural Development Serices Office of the U.S. Department of Agriculture, formerly known as the Farmers Home Administration. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the finacnial statemetns are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and signficant estimates made by management, as well as evaluting the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statement referred to above present fairly, in all material respects, the financial position of Jackson Housing, L.L.P. as of December 31, 2005 and 2004, and the results of its operations, its chagnes in partners’ equity (deficit), and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 28, 2006, on our consideration of Jackson Housing, L.L.P.’s internal control and our report dated February 28, 2006, on its compliance with laws and regulations applicable to the financial statements. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

Our audits were made for the purpose of forming an opinion on the basic financial statemetns taken as a whole. The supplemental information on page 12-15 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such informaiton has been subjected to the auditing procedures applied in the audits of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Habif, Arogenti & Wynne
Atlanta, Georgia
February 28, 2006

INDEPDENT AUDITORS’ REPORT

To the Partners
Leesville Elderly Apartments Partnership
A Louisiana Partnership in Commendam
Mansfield, Louisiana

We have audited the accompanying balance sheets of Leesville Elderly Apartments Partnership, A Louisiana Partnership in Commendam (the Partnership), as of December 31, 2005 and 2004, and the related statements of operations, changes in partners’ equity and cash flows for the years then ended. These financial statemetns are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audits in accordance with the Stadnards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about wehether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financl reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not fo rth epurpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test asis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Leesville Elderly Apartments Partnership, A Louisiana Partnership in Commendam as of December 31, 2005 and 2004, and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United states of America.

Pailet, Meunier and LeBlanc, L.L.P.
Metairie, Louisiana
March 13, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Lockport Elderly Housing Apartments
A Louisiana Partnership in Commendam
Mansfield, Louisiana

We have audited th accompanying balance sheets of Lockport Elderly Housing Apartments, A Louisiana Partnership in Commendam (the Partnership) as of December 31, 2005 and 2004, and the related statements of operations, changes in partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audits in accordance with the Standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in circumstances, but not for the purpose of expressing an opinoin on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and signficant estimates made by management, as well as evaluting the overall financial statement presentation. We believe tha tour audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present failry, in all material respects, the financial position of Lockport Elderly Housing Apartments, A Louisiana Partnership in Commendam as of December 31, 2005 and 2004, and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Pailet, Meunier and LeBlanc, L.L.P.
Metairie, Louisiana
March 21, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Natchitoches Elderly Apartments
A Louisiana Partnership in Commendam
Mansfield, Louisiana

We have audited the accompanying balance sheets of Natchitoches Elderly Apartments, A Lousiana Partnership in Commendam (the Partnership) as of December 31, 2005 and 2004, and the related statements of operations, changes in partners’ equity and cash flows for the years then ended. These financail statements are the responsibility of the Parnterhsip’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audits in accordance with the Standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over circumstances, but not for th e purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Natchitoches Elderly Apartments, A Louisiana Partnerhsip in Commendam as of December 31, 2005 and 2004, and the results of its operations, changes in partners’ equity and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Pailet, Meunier and LeBlanc, L.L.P.
Metairie, Louisiana
March 17, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Vivian Elderly Apartments
A Louisiana Partnership in Commendam
Mansfield, Louisiana

We have audited the accompanying balance sheets of Vivian Elderly Apartments, A Lousiana Partnership in Commendam (the Partnership) as of December 31, 2005 and 2004, and the related statements of operations, changes in partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the Standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and signficant estimates made by management, as well as evaluting the overall financial statement presentation. We believe that our audits provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Vivian Elderly Apartments, A Louisiana Partnership in Commendam as of December 31, 2005 and 2004, and the results of its operations, changes in partners’ equiety and cash flows for the years then ended in conformity with accounting principles generally accepted in the United states of America.

Pailet, Meunier and LeBlanc, L.L.P.
Metairie, Louisiana
March 11, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Ankeny Housing Associates Two Limited Partnership

We have audited the accompanying balance sheets of Ankeny Housing Associates Two Limited Partnership as of December 31, 2005 and 2004, and the related statements of operations, partners’ equity, and cash flows for th years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reaosnable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor we were engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financail reporting as a basis for designing audit procedures that are appropraite in the circumstance, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s intenral control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and signficant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Ankeny Housing Associates Two Limited Partnership as of December 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Mayer, Hoffman, McCann P.C.
Topeka, Kansas
January 31, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Munford Village, Ltd.
Munford, Alabama

We have audited the accompanying balance sheets of Munford Village, Ltd., a limited partnership, RHS Project No: 01-061-631011774 as of December 31, 2005 and 2004, and the related statements of operations, partners’ deficit and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financail statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United states, the U.s. Department of Agriculture, Farmers Home Administration Audit Program, and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and signficant estimates made by management, as well as evaluting the overall financial statement presentation. We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Munford Village, Ltd. RHS Project No: 01-061-631011774 as of December 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United states.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental informationon pages 10 thorugh 13 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmHA 1930-8) Parts I and II for the year ended December 31, 2005 and 2004, is presented for purposes of complying with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements. Such information has been subjected othe audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whoel.

In accordance with Government Auditing Standards, we have also issued a report dated January 23, 2006 on our consideration of Munford Village, Ltd., intenral control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. However, the partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included only the consideration of internal control over financial reporting as a basis for desgning audit procedures that are appropriate in the circumstances, but not fo rthe purpose of expressing an opinion on the effectiveness of the partnership’s intenral control over financial reporting. Accordingly, we express no such opinion.

Donald W. Causey & Associates, P.C.
Gadsden, Alabama
January 23, 2006

INDEPENDENT AUDITORS REPORT

We have audited the accompanying balance sheets of Sherwood Knoll, Limited Partnership, a limited partnership, RHS Project No: 01-025-631032411 as of December 31, 2005 and 2004, and the related statements of operations, partners’ deficit and cash flows for the years then ended. These financial statements are the responsbility of the partnership’s management. Our responsbility is to express an opinion on these financial statements based on our audits.

We conducted the audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States, the U.S. Department of Agriculture, Farmers Home Administration Audit Program, and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and signficant estimates made by management, as well as evaluting the overall financial statement presentation. We believe that the audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sherwood Knoll, Limited Partnership, RHS Project No: 01-025-631032411 as of December 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States.

The audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 11 through 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental information presented in the Multiple Family Housing Borrower Balance Sheet (Form FmhA 1930-8) Parts I and II for th year ended December 31, 2005 and 2004, is presented for purposes of complyin with the requirements of the Rural Housing Services and is also not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all amterial respects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued a report dated January 30, 2006 on our consideration of Sherwood Knoll, Limited Partnership’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. However, the partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included only the consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion.

Donald W. Causey & Associates, P.C.
Gadsden, Alabama
January 30, 2006

INDEPENDENT AUDITORS’ REPORT

To the Partners
Coralville Housing Associates Limited Partnership

We have audited the accompanying balance sheets of Coralville Housing Associates Limited Partnership as of December 31, 2005 and 2004 and the related statements of operations, partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not requried to have, nor we were engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of intenral control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fiarly, in all material respects, the financial position of Coralville Housing Associates Limited Partnership as of December 31, 2005 and 2004 and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Mayer, Hoffman McCann P.C.
Topeka, Kansas
January 30, 2006

INDEPENDENT AUDITORS’ REPORT

TO the Partners
St. Croix Commons Limited Partnership

We have audited the accompanying balance sheet of St. Croix Commons Limited Partnership as of December 31, 2005 and the related statemetns of operations, partners’ equity (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that its is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of intenral control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclsoures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of St. Croix Commons Limited Partnership as of December 31, 2005 and the results of its operations and its cash flows for the year then ended in conformity with accounting principels generally accepted in the United States of America.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 12 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied to the audit of basic financial statements and in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Larson, Allen, Weishair & Co.
Eau Claire, Wisconsin
January 25, 2006

INDEPENDENT AUDITORS’ REPORT

The Partners
The Hearthside II Limited Dividend Housing Association Limited Partnership
(A Michigan Limited Partnership)
Kalamazoo, Michigan

We have audited the accompanying balance sheets of the Hearthside II Limited Dividend Housing Association Limited Partnership (a Michigan Limited Partnership), as of December 31, 2005 and 2004, and the related statements of operations, partners’ equity/(deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that its is not requried to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are apprpriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluting the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Hearthside II Limited Dividend Housing Association Limited Partnership, as of December 31, 2005 and 2004 and the results of its operations, changes in partners’ equity/(deficit) and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 17 and 18 is presented for purposes of additional analysis and is not a rquired part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statemetns and, in our opinion, is fairly stated in all material respcts in relation to the basic financial statements taken as a whole.

Schoonover, Boyer & Associates
Columbus, Ohio
January 26, 2006

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners
Ankeny Housing Associates Two Limited Partnership

We have audited the accompanying balance sheets of Ankeny Housing Associates Two Limited Partnership (“Partnership”) as of December 31, 2006 and 2005, and the related statements of operations, partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the Standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Ankeny Housing Associates Two Limited Partnership as of December 31, 2006 and 2005, and the results of its operations, changes in partners’ equity and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Mayer Hoffman McCann P.C.
Topeka, Kansas

January 30, 2007

To the Partners
Glen Place Apartments Limited Partnership

We have audited the accompanying balance sheets of Glen Place Apartments Limited Partnership as of December 31, 2006 and 2005, and the related statements of operations, partners’ equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Glen Place Apartments Limited Partnership, as of December 31, 2006 and 2005, and the results of its operations, changes in partners’ equity (deficit), and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied to the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

LARSON, ALLEN, WEISHAIR & CO., LLP
Eau Claire, Wisconsin
March 14, 2007

The Partners
The Hearthside II Limited Dividend Housing Association Limited Partnership
(A Michigan Limited Partnership)
Kalamazoo, Michigan

We have audited the accompanying balance sheets of The Hearthside II Limited Dividend Housing Association Limited Partnership (A Michigan Limited Partnership) (“Partnership”), as of December 31, 2006 and 2005, and the related statements of operations, partners’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the Standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The Hearthside II Limited Dividend Housing Association Limited Partnership, as of December 31, 2006 and 2005, and the results of its operations, changes in partners’ equity (deficit) and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 17 and 18 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Columbus, Ohio
February 12, 2007

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners
Osage Housing Associates Limited Partnership

We have audited the accompanying balance sheets of Osage Housing Associates Limited Partnership (“Partnership”) as of December 31, 2006 and 2005, and the related statements of operations, partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the Standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Osage Housing Associates Limited Partnership as of December 31, 2006 and 2005, and the results of its operations, changes in partners’ equity and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Mayer Hoffman McCann P.C.

Topeka, Kansas

January 22, 2007

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners
Shawnee Housing Associates Limited Partnership

We have audited the accompanying balance sheets of Shawnee Housing Associates Limited Partnership (“Partnership”) as of December 31, 2006 and 2005, and the related statements of operations, partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the Standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Shawnee Housing Associates Limited Partnership as of December 31, 2006 and 2005, and the results of its operations, changes in partners’ equity and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Mayer Hoffman McCann P.C.
Topeka, Kansas

January 19, 2007

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners
Sioux Falls Housing Associates One Limited Partnership

We have audited the accompanying balance sheets of Sioux Falls Housing Associates One Limited Partnership (“Partnership”) as of December 31, 2006 and 2005, and the related statements of operations, partners’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the Standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sioux Falls Housing Associates One Limited Partnership as of December 31, 2006 and 2005, and the results of its operations, changes in partners’ equity and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Mayer Hoffman McCann P.C.
Topeka, Kansas

January 29, 2007

INDEPENDENT AUDITORS’ REPORT

To the Partners
Cambridge Family YMCA Affordable Housing, LP

We have audited the accompanying balance sheet of Cambridge Family YMCA Affordable Housing, LP. (the “Partnership”) as of December 31, 2006 and the related statements of operations, changes in partners’ equity, and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements for the Partnership for the year ended December 31, 2005 were audited by other auditors whose report, dated February 16, 2006, expressed an unqualified opinion on those financial statements.

We conducted our audit in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Partnership has determined that it is not required to have, nor were we engaged to perform an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we
express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures hi the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cambridge Family YMCA Affordable Housing, LP as of December 31, 2006 and the results of its operations, changes in partners’ equity, and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

The supplementary information contained on page 15 is presented for the purpose of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Boston, Massachusetts
March 26, 2007

EX-31.A

Exhibit 31.a

I, John P. Manning, certify that:

1.	I have reviewed this annual report on Form 10-K of Boston Capital Tax Credit Fund III L.P.;
2.	Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(c)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 16, 2007	/s/ John P. Manning
	John P. Manning
	Principal Executive Officer

EX-31.B

Exhibit 31.b

I, Marc Teal, certify that:

1.	I have reviewed this annual report on Form 10-K of Boston Capital Tax Credit Fund III L.P.;
2.	Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(c)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 16, 2007	/s/ Marc N. Teal
	Marc N. Teal,
	Principal Financial Officer

EX-32.A

EXHIBIT 32.a

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Boston Capital Tax Credit Fund III L.P. (the “Fund”) on Form 10-K for the period ended March 31, 2007 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John P. Manning, Principal Executive Officer of the general partner of the general partner of the Partnership’s general partner, C&M Management Inc., certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge, after due inquiry:

(1)	The Report fully complies with the requirements of section 13(a)-15 or 15(d)-15 of the Securities and Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Partnership.

Date: July 16, 2007	/s/ John P. Manning
	John P. Manning
	Principal Executive Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Fund and will be retained by the Fund and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.B

EXHIBIT 32.b

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Boston Capital Tax Credit Fund III L.P. (the “Fund”) on Form 10-K for the period ended March 31, 2007 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Marc N. Teal, Principal Financial Officer of the general partner of the general partner of the Partnership’s general partner, C&M Management Inc., certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge, after due inquiry:

(1)	The Report fully complies with the requirements of section 13(a)-15 or 15(d)-15 of the Securities and Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Partnership.

Date: July 16, 2007	/s/ Marc N. Teal
	Marc. N. Teal
	Principal Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Fund and will be retained by the Fund and furnished to the Securities and Exchange Commission or its staff upon request.

EX-99.1

SABLE CHASE OF MCDONOUGH, L.P.

FINANCIAL STATEMENTS

DECEMBER 31, 2006 AND 2005

CONTENTS

	PAGE
Independent Auditors’Report Letter	2
Financial Statements:
Balance Sheets	3 & 4
Statements of Operations	5
Statements of Changes in Partners’ Equity (Deficit)	6
Statements of Cash Flows	7
Notes to the Financial Statements	8-10
Supplemental Information:
Schedules of Expenses	11

	Tama, Budaj & Raab, P.C.
	Certified Public Accountants
ELY TAMA, CPA*	32783 MIDDLEBELT ROAD
JEFFREY F. BUDAJ, CPA	FARMINGTON HILLS, MICHIGAN 48334-1726	MEMBERS
EMIL A. RAAB, CPA
	(248) 626-380O	AMERICAN INSTITUTE OF
BARTON A. LOWEN, CPA	FAX: (248) 626-2276	CERTIFIED PUBLIC ACCOUNTANTS
JOHN W. WEIPERT, CPA** SEAN M. DONOVAN, CPA THOMAS D. MADOUSE, CPA	WWW.TBRCPA.COM	MICHIGAN ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS
*ALSO LICENSED IN FLORIDA      AND SOUTH CAROLINA **ALSO LICENSED IN FLORIDA		FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SOUTH CAROLINA ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS

Independent Auditors’ Report

To the Partners of

     SABLE CHASE OF MCDONOUGH, L.P.

     We have audited the accompanying balance sheets of SABLE CHASE OF MCDONOUGH, L.P. as of December 31, 2006 and 2005, and the related statements of operations, changes in partners’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the General Partner and management of the Partnership. Our responsibility is to express an opinion on these financial statements based on our audits.

     We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

     In our opinion, the financial statements referred to above present fairly in all material respects, the financial position of SABLE CHASE OF MCDONOUGH, L.P., as of December 31, 2006 and 2005, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

     Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information is presented for the purpose of additional analysis and is not a required part of the basic financial statements. This supplemental information is the responsibility of the Partnership’s management. Such information has been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole.

January 26, 2007

 2

SABLE CHASE OF MCDONOUGH, L.P.
(A GEORGIA LIMITED PARTNERSHIP)

BALANCE SHEETS
DECEMBER 31, 2006 AND 2005

	2006			2005
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	58,908		$	115,900
Accounts receivable		7,408			39,500
Management fee receivable		7,105			6,010
Prepaid expenses and other current assets		1,000			1,000
TOTAL CURRENT ASSETS		74,421			162,410
RESTRICTED DEPOSITS AND FUNDED RESERVES
Tenants’ security deposits		28,650			37,400
Real estate tax and insurance escrow		17,187			25,366
Operating reserve		225,244			274,472
Replacement reserve escrow		351,244			566,686
Insurance escrow		-0-			137,653
TOTAL RESTRICTED DEPOSITS AND FUNDED RESERVES		622,325			1,041,577
RENTAL PROPERTY
Buildings and components		11,675,165			11,611,611
Furniture and equipment		762,190			767,221
		12,437,355			12,378,832
Less accumulated depreciation		(5,727,070	)		(5,408,379	)
		6,710,285			6,970,453
Land		502,774			502,774
NET RENTAL PROPERTY		7,213,059			7,473,227
OTHER ASSETS
Deferred loan costs (net of amortization)		27,677			33,966
	$	7,937,482		$	8,711,180

The accompanying notes are an integral part of these financial statements. 3

SABLE CHASE OF MCDONOUGH, L.P.
(A GEORGIA LIMITED PARTNERSHIP)

BALANCE SHEETS
DECEMBER 31, 2006 AND 2005

	2006			2005
LIABILITIES AND EQUITY (DEFICIT)
CURRENT LIABILITIES
Current maturities of long-term debt	$	131,890		$	123,931
Accounts payable		50,036			13,158
Accrued interest		26,027			26,027
TOTAL CURRENT LIABILITIES		207,953			163,116
DEPOSITS AND PREPAYMENT LIABILITIES
Tenants, security deposits		28,650			'37,400
LONG-TERM LIABILITIES
Mortgages payable		4,250,009			4,373,940
Less current maturities		(131,890	)		(123,931	)
TOTAL LONG-TERM LIABILITIES		4,118,119			4,250,009
TOTAL LIABILITIES		4,354,722			4,450,525
PARTNERS’ EQUITY (DEFICIT)		3,582,760			4,260,655
	$	7,937,482		$	8,711,180

The accompanying notes are an integral part of these financial statements. 4

SABLE CHASE OF MCDONOUGH, L.P.

STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005

	2006			2005
Revenues:
Rental	$	1,049,986		$	1,227,762
Laundry		6,661			7,103
Security deposits earned		24,473			22,188
Other		45,309			92,757
TOTAL REVENUES		1,126,429			1,349,810
Expenses
Maintenance and operating		248,616			221,791
Utilities		178,062			167,474
Administrative		258,844			248,302
Taxes and insurance		192,887			151,123
Interest		308,870			315,600
Depreciation and amortization		435,558			441,114
TOTAL EXPENSES		1,622,837			1,545,404
INCOME (LOSS) FROM RENTAL OPERATIONS		(496,408	)		(195,594	)
Other income and (expenses):
Interest income		27,156			20,725
Gain (loss) on disposition of rental property		(151,793	)		-0-
Partnership management and reporting fees		(10,665	)		-0-
Gain (loss) from involuntary conversion		(46,185	)		46,185
TOTAL OTHER INCOME AND (EXPENSES)		(181,487	)		66,910
NET INCOME (LOSS)	$	(677,895	)	$	(128,684	)

The accompanying notes are an integral part of these financial statements. 5

SABLE CHASE OF MCDONOUGH, L.P.

STATEMENTS OF CHANGES IN PARTNERS’ EQUITY (DEFICIT)
FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005

				General			Limited
	Total			Partner(s)			Partner(s)
Partners’ equity (deficit) -January 1, 2005	$	4,389,339		$	229,526		$	4,159,813
Net income (loss)		(128,684	)		(1,287	)		(127,397	)
Partners’ equity (deficit) -December 31, 2005		4,260,655			228,239			4,032,416
Net income (loss)		(677,895	)		(6,779	)		(671,116	)
Partners’ equity (deficit) - December 31, 2006	$	3,582,760		$	221,460		$	3,361,300

The accompanying notes are an integral part of these financial statements. 6

SABLE CHASE OF MCDONOUGH, L.P.

STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005

	2006			2005
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(677,895	)	$	(128,684	)
Adjustments to reconcile net income (loss) to net cash provided by (used by) operating activities:
Depreciation and amortization		435,558			441,114
(Gain) loss on disposition of rental property		151,793			-0-
(Gain) loss from involuntary conversion		46,185			(46,185	)
Changes in:
Accounts receivable		32,092			(23,758	)
Management fee receivable		(1,095	)		(6,010	)
Tenants’ security deposits		-0-			3,150
Tax and insurance escrow		8,179			2,131
Operating reserve		49,228			(4,329	)
Accounts payable		36,878			(26,218	)
Accrued expenses		-0-			(587	)
TOTAL ADJUSTMENTS		758,818			339,308
NET CASH PROVIDED BY (USED BY) OPERATING ACTIVITIES		80,923			210,624
CASH FLOWS FROM INVESTING ACTIVITIES:
Deposits to reserve for replacements		215,442			(61,192	)
Purchase of rental property		(320,894	)		(2,053	)
Gain (loss) from involuntary conversion		(46,185	)		46,185
NET CASH PROVIDED BY (USED BY) INVESTING ACTIVITIES		(151,637	)		(17,060	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on mortgage loans		(123,931	)		(116,614	)
Insurance escrow from hurricane		137,653			(137,653	)
NET CASH PROVIDED BY (USED BY) FINANCING ACTIVITIES		13,722			(254,267	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(56,992	)		(60,703	)
CASH AND CASH EQUIVALENTS — BEGINNING OF YEAR		115,900			176,603
CASH AND CASH EQUIVALENTS — END OF YEAR	$	58,908		$	115,900
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for interest	$	308,870		$	316,187

The accompanying notes are an integral part of these financial statements. 7

SABLE CHASE OF MCDONOUGH, L.P.

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005

A.	ORGANIZATION
	The Partnership was formed as a Limited Partnership under the laws of the State of Georgia on May 1, 1992, for the purpose of acquiring land, owning, constructing and operating a 225 unit multi-family rental housing project.
B.	SIGNIFICANT ACCOUNTING POLICIES

     Accounting Method

The accompanying financial statements have been prepared on the accrual basis of accounting.

     Rental Income

Rental income is recognized as rentals become due. Rental payments received in advance are deferred until earned. All leases between the Partnership and the tenants of the property are operating leases.

     Property and Equipment

Buildings improvements and equipment are being depreciated on various methods over 5 to 27.5 years for both financial statement and income tax accounting purposes. Expenditures for maintenance and repairs are charged to expense as incurred.

     Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

     Cash and Cash Equivalents

For the purposes of the statement of cash flows, the Partnership considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents.

C.	INCOME TAXES
	No income tax provision has been included in the financial statements because income or loss of the Partnership is required to be reported by the respective partners on their income tax returns.

 8

SABLE CHASE OF MCDONOUGH, L.P.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005

D.	MORTGAGES PAYABLE
	The first mortgage payable to Mass Mutual Life Insurance Company is nonrecourse and is collateralized by a first mortgage on the rental property. This mortgage bears interest at 8.45% per annum. The proceeds were used to refinance the First Union National Bank of Florida loan.

$33,289 payable monthly until the principal and interest are fully paid except that the final installment shall be due and payable on December 1, 2020.

The second mortgage payable to Georgia Housing and Finance Authority, under the HOME Program, provided non-interest bearing construction financing of $1,000,000. The construction loan was converted to permanent financing in 1995. The note is collateralized by a deed to secure debt on the partnership rental property, subordinate to Mass Mutual Life Insurance Company’s lien on the property.

$2,778 is payable monthly until 2035, when unpaid principal becomes due.

Maturities of the notes payable are as follows for the years ended December 31:

	First Mortgage		Second Mortgage
2007	$	98,557	$	33,333
2008		107,215		33,333
2009		116,634		33,333
2010		126,880		33,333
2011		138,027		33,333
Thereafter		3,018,251		477,780
	$	3,605,564	$	644,445

	The liability of the Partnership is limited to the underlying value of the real estate collateral.
E.	TRANSACTIONS WITH RELATED PARTIES
	An affiliate performs rental, administrative and accounting services for SABLE CHASE OF MCDONOUGH, L.P. in its capacity as managing agent of the Project for which the affiliate received $72,693 in 2006 and $79,204 in 2005.
	The Partnership is committed to pay a non-cumulative annual fee of $28,125 to its General Partner for management services and a non-cumulative annual fee of $10,665 to an affiliate of the Limited Partner for reporting services if and when sufficient cash flow, as defined in the partnership agreement is available. The Partnership paid management and reporting fees of $0 to the General Partner in the year 2006 and $0 in the year 2005. The Partnership paid reporting fees of $10,665 for the year 2006 and $0 for 2005 to an affiliate of the Limited Partner.
	The General Partner is obligated through the terms of the Partnership, to advance funds to the Partnership to cover deficits that may arise, as defined in the partnership agreement.

 9

SABLE CHASE OF MCDONOUGH, L.P.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005

F.	CONCENTRATION OF CREDIT RISK
	The Partnership has funds exceeding $100,000 in a single financial institution, which exceeds the FDIC insurable limits.
G.	VULNERABILITY DUE TO CERTAIN CONCENTRATIONS
	The Partnership’s operations are concentrated in the multi-family real estate market. In addition, the Partnership operates in a heavily regulated environment. The operations of the Partnership are subject to the administrative directives, rules and regulations of federal, state and local regulatory agencies. Such administrative directives rules and regulations are subject to change by acts of or administrative changes mandated by these regulatory agencies. Such changes occur with little notice or inadequate funding to pay for the related cost, including the additional administrative burden, to comply with a change.
H.	GAIN FROM INVOLUNTARY CONVERSION
	The Project sustained tornado damage in 2004 and carries commercial insurance to cover the damages. Funds were being held in escrow by the mortgage company, Mass Mutual Life Insurance Company, and were disbursed in 2006. During 2006 and 2005, the Project received proceeds from the insurance company of $0 and $137,653, respectively. In 2006 the Project spent $286,438, of which $240,253 was capitalized for roof replacement. In 2005, $91,488 was spent for other repairs relating to the damage. The net amount of ($46,185) for 2006 and $46,185 for 2005 is reported in the Statement of Operations under the caption Gain (loss) from involuntary conversion. As of December 31, 2006, the Project has completed all the repairs.
I.	TAXABLE INCOME (LOSS)
	A reconciliation of financial statement net income (loss) to taxable income (loss) of the Partnership for the years ended December 31, 2006 and 2005 is as follows:

	2006			2005
Financial statement net income (loss)	$	(677,895	)	$	(128,684	)
Adjustments:
Gain from involuntary conversion		46,185			(46,185	)
Taxable income (loss)	$	(631,710	)	$	(174,869	)

 10

SABLE CHASE OF MCDONOUGH, L.P.

SCHEDULES OF EXPENSES
FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005

	2006		2005
MAINTENANCE AND OPERATING
Repairs - payroll	$	62,544	$	81,440
- supply		50,311		25,505
- contract		9,625		14,262
Painting and decorating		14,759		13,924
Grounds		45,283		22,464
Services		54,921		49,381
Furniture and furnishing replacement		11,173		14,817
	$	248,616	$	221,791
UTILITIES
Electricity	$	34,807	$	25,570
Internet service		995		1,327
Water		61,270		59,571
Sewer		52,526		51,854
Fuel		1,784		1,695
Garbage and trash removal		26,680		27,458
	$	178,062	$	167,474
ADMINISTRATIVE
Site management payroll	$	65,501	$	64,775
Management fee		72,693		79,204
Auditing		7,612		5,092
Legal		22,985		3,851
Advertising		22,984		24,839
Telephone		5,476		6,142
Office supplies		25,965		24,425
Health insurance		14,078		14,682
Payroll taxes		14,512		13,807
Homeowner incentive		1,650		4,310
Workmen’s compensation		5,388		7,175
	$	258,844	$	248,302
TAXES AND INSURANCE
Real estate taxes	$	113,264	$	108,385
Other taxes, licenses and permits		1,197		1,495
Property and liability insurance		78,426		41,243
	$	192,887	$	151,123

The accompanying notes are an integral part of these financial statements. 11