-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, H35bvBMf8rw/hzpTKVcHpmOvR4pG5ytMhRnIhcvr+by6ZypHDa43+nyLcy7kHxAK u3qYq3Lt34bawTW/zdzv3A== 0000810663-99-000008.txt : 19990212 0000810663-99-000008.hdr.sgml : 19990212 ACCESSION NUMBER: 0000810663-99-000008 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990211 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOSTON FINANCIAL TAX CREDIT FUND VIII LP CENTRAL INDEX KEY: 0000911568 STANDARD INDUSTRIAL CLASSIFICATION: OPERATORS OF APARTMENT BUILDINGS [6513] IRS NUMBER: 043205879 FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-26522 FILM NUMBER: 99531465 BUSINESS ADDRESS: STREET 1: 101 ARCH ST CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 6174393911 FORMER COMPANY: FORMER CONFORMED NAME: BOSTON FINANCIAL TAX CREDIT FUND VIII DATE OF NAME CHANGE: 19930902 10-Q 1 TC8 12/98 10-Q February 11, 1999 Securities and Exchange Commission Filer Support, Edgar Operation Center, Stop 0-7 6432 General Green Way Alexandria, VA 22312 Boston Financial Tax Credit Fund VIII, A Limited Partnership Report on Form 10-Q for Quarter Ended December 31, 1998 File No. 0-26522 Gentlemen: Pursuant to the requirements of Section 15(d) of the Securities Exchange Act of 1934, filed herewith is a copy of subject report. Very truly yours, /s/Stephen Guilmette Steven Guilmette Assistant Controller TC8-Q3.DOC UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 1998 ------------------------------------- OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ------------- ------------------ Commission file number 0-26522 ------------------ Boston Financial Tax Credit Fund VIII, A Limited Partnership ------------------------------------------------------------------ (Exact name of registrant as specified in its charter) Massachusetts 04-3205879 -------------------------------- ---------------------------------- (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 101 Arch Street, Boston, Massachusetts 02110-1106 ---------------------------------------- --------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (617) 439-3911 ------------------------- Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No . BOSTON FINANCIAL TAX CREDIT FUND VIII (A Limited Partnership) TABLE OF CONTENTS PART I. FINANCIAL INFORMATION Page No. Item 1. Financial Statements Balance Sheets - December 31, 1998 (Unaudited) and March 31, 1998 1 Statements of Operations (Unaudited) - For the Three and Nine Months Ended December 31, 1998 and 1997 2 Statement of Changes in Partners' Equity (Deficiency) (Unaudited) - For the Nine Months Ended December 31, 1998 3 Statements of Cash Flows (Unaudited) - For the Nine Months Ended December 31, 1998 and 1997 4 Notes to Financial Statements (Unaudited) 5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7 PART II - OTHER INFORMATION Items 1-6 8 SIGNATURE 9 BOSTON FINANCIAL TAX CREDIT FUND VIII (A Limited Partnership) BALANCE SHEETS
December 31, March 31, 1998 1998 (Unaudited) Assets ------------- ------------- Cash and cash equivalents $ 213,538 $ 213,966 Investments in Local Limited Partnerships (Note 1) 23,619,828 25,099,334 Marketable securities, at fair value 1,562,948 1,486,224 Organization costs, net of accumulated amortization of $48,333 and $40,833, respectively 1,667 9,167 Other assets 19,150 19,275 ------------- ------------- Total Assets $ 25,417,131 $ 26,827,966 ============= ============= Liabilities and Partners' Equity Liabilities Accounts payable to affiliates $ 414,435 $ 268,817 Accrued expenses 41,525 39,747 ------------- ------------- Total Liabilities 455,960 308,564 ------------- ------------- Commitments General, Initial and Investor Limited Partners' Equity 24,951,638 26,519,501 Net unrealized gains (losses) on marketable securities 9,533 (99) ------------- ------------- Total Partners' Equity 24,961,171 26,519,402 ------------- ------------- Total Liabilities and Partners' Equity $ 25,417,131 $ 26,827,966 ============= =============
The accompanying notes are an integral part of these financial statements. BOSTON FINANCIAL TAX CREDIT FUND VIII (A Limited Partnership) STATEMENTS OF OPERATIONS (Unaudited) For the Three and Nine Months Ended December 31, 1998 and 1997
Three Months Ended Nine Months Ended December 31, December 31, December 31, December 31, 1998 1997 1998 1997 ------------- ------------- -------------- ------------- Revenue: Investment $ 25,890 $ 25,654 $ 74,207 $ 79,099 Other 6,115 3,360 7,565 4,685 ----------- ----------- ------------ ------------ Total Revenue 32,005 29,014 81,772 83,784 ----------- ----------- ------------ ------------ Expenses: Asset management fees, related party 50,765 49,609 152,295 148,827 General and administrative expenses (includes reimbursements to affiliates in the amounts of $55,836 and $68,329 in 1998 and 1997, respectively) 39,111 40,250 96,988 123,056 Amortization 9,986 9,986 29,958 29,958 ----------- ----------- ------------ ------------ Total Expenses 99,862 99,845 279,241 301,841 ----------- ----------- ------------ ------------ Loss before equity in losses of Local Limited Partnership (67,857) (70,831) (197,469) (218,057) Equity in losses of Local Limited Partnerships (Note 1) (440,055) (526,592) (1,370,394) (1,461,531) ----------- ----------- ------------ ------------ Net Loss $ (507,912) $ (597,423) $ (1,567,863) $ (1,679,588) =========== =========== ============ ============ Net Loss allocated: To General Partners $ (5,079) $ (5,974) $ (15,679) $ (16,796) To Limited Partners (502,833) (591,449) (1,552,184) (1,662,792) ----------- ----------- ------------ ------------ $ (507,912) $ (597,423) $ (1,567,863) $ (1,679,588) =========== =========== ============ ============ Net Loss per Limited Partnership Unit (36,497 Units) $ (13.78) $ (16.21) $ (42.53) $ (45.56) =========== =========== =========== ============
The accompanying notes are an integral part of these financial statements. BOSTON FINANCIAL TAX CREDIT FUND VIII (A Limited Partnership) STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY) (Unaudited) For the Nine Months Ended December 31, 1998
Net Initial Investor Unrealized General Limited Limited Gains Partner Partner Partners (Losses) Total ------------- ----------- ------------- ---------- ------------- Balance at March 31, 1998 $ (51,152) $ 100 $ 26,570,553 $ (99) $ 26,519,402 ------------- ----------- ------------- ---------- ------------- Comprehensive Loss: Net Loss (15,679) - (1,552,184) - (1,567,863) Change in net unrealized losses on marketable securities available for sale - - - 9,632 9,632 ------------- ----------- ------------- ---------- ------------- Comprehensive Loss (15,679) - (1,552,184) 9,632 (1,558,231) ------------- ----------- ------------- ---------- ------------- Balance at December 31, 1998 $ (66,831) $ 100 $ 25,018,369 $ 9,533 $ 24,961,171 ============= =========== ============= ========== =============
The accompanying notes are an integral part of these financial statements. BOSTON FINANCIAL TAX CREDIT FUND VIII (A Limited Partnership) STATEMENTS OF CASH FLOWS (Unaudited) For the Nine Months Ended December 31, 1998 and 1997
1998 1997 ------------- ------------- Net cash used for operating activities $ (23,210) $ (114,786) ------------- ------------- Cash flows from investing activities: Investment in Local Limited Partnerships - (451,360) Restricted cash - 503,031 Cash distributions received from Local Limited Partnerships 86,654 51,702 Purchases of marketable securities (975,941) (672,711) Proceeds from sales and maturities of marketable securities 912,069 732,262 ------------- ------------- Net cash provided by investing activities 22,782 162,924 ------------- ------------- Net increase (decrease) in cash and cash equivalents (428) 48,138 Cash and cash equivalents, beginning of period 213,966 273,412 ------------- ------------- Cash and cash equivalents, end of period $ 213,538 $ 321,550 ============= =============
The accompanying notes are an integral part of these financial statements. BOSTON FINANCIAL TAX CREDIT FUND VIII (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS (Unaudited) The unaudited financial statements presented herein have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by generally accepted accounting principles. These statements should be read in conjunction with the financial statements and notes thereto included with the Fund's 10-K for the year ended March 31, 1998. In the opinion of management, these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Fund's financial position and results of operations. The results of operations for the periods may not be indicative of the results to be expected for the year. The Managing General Partner has elected to report results of the Local Limited Partnerships on a 90 day lag basis, because the Local Limited Partnerships report their results on a calendar year basis. Accordingly, the financial information of the Local Limited Partnerships that is included in the accompanying financial statements is as of September 30, 1998 and 1997. 1. Investments in Local Limited Partnerships The Fund has acquired an interest in ten Local Limited Partnerships, which own and operate multi-family housing complexes. The Fund, as Investor Limited Partner, pursuant to the Local Limited Partnership Agreements, has generally acquired a 99% interest in the profits, losses, tax credits, and cash flows from operations of the Local Limited Partnerships, with the exception of Springwood, Hemlock Ridge, Pike Place, and West End Place, which interests are 79.20%, 77%, 90% and 90%, respectively. Another partnership sponsored by an affiliate of the General Partner owns the remaining 19.80% Limited Partner interest in Springwood. Upon dissolution, proceeds will be distributed according to the partnership agreements. The following is a summary of Investments in Local Limited Partnerships at December 31, 1998:
Capital Contributions paid to Local Limited Partnerships $ 29,264,859 Cumulative equity in losses of Local Limited Partnerships (6,419,283) Cumulative cash distributions received from Local Limited Partnerships (170,354) ------------- Investment in Local Limited Partnerships before adjustment 22,675,222 Excess of investment cost over the underlying net assets acquired: Acquisition fees and expenses 1,048,010 Accumulated amortization of acquisition fees and expenses (103,404) ------------- Investments in Local Limited Partnerships $ 23,619,828 =============
The Fund's share of net losses of the Local Limited Partnerships for the nine months ended December 31, 1998 is $1,370,394. BOSTON FINANCIAL TAX CREDIT FUND VIII (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS (continued) (Unaudited) 2. Effect of Recently Issued Accounting Standard In June 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income". The Statement, which is effective for fiscal years beginning after December 15, 1997, requires that the Fund display an amount representing total comprehensive income for the period in its financial statements. The Fund adopted the new standard effective April 1, 1998. BOSTON FINANCIAL TAX CREDIT FUND VIII (A Limited Partnership) MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Liquidity and Capital Resources At December 31, 1998, the Fund had cash and cash equivalents of $213,538 as compared to $213,966 at March 31, 1998. This decrease is attributable to purchases of marketable securities in excess of proceeds from sales and maturities of marketable securities and cash used for operations. These decreases are offset by cash distributions received from Local Limited Partnerships. As of December 31, 1998, approximately $1,321,000 of marketable securities has been designated as Reserves. The Reserves are established to be used for working capital of the Fund and contingencies related to the ownership of Local Limited Partnership interests. Management believes that the interest income earned on Reserves, along with cash distributions received from Local Limited Partnerships, to the extent available, will be sufficient to fund the Fund's ongoing operations. Reserves may be used to fund operating deficits, if the General Partner deems funding appropriate. Since the Fund invests as a limited partner, the Fund has no contractual duty to provide additional funds to Local Limited Partnerships beyond its specified investment. Thus, as of December 31, 1998, the Fund had no contractual or other obligation to any Local Limited Partnership, which had not been paid or provided for, except as disclosed above. In the event a Local Limited Partnership encounters operating difficulties requiring additional funds, the Fund might deem it in its best interest to voluntarily provide such funds, in order to protect its investment. No such event has occurred to date. Cash Distributions No cash distributions were made during the period ended December 31, 1998. It is expected that cash available for distribution, if any, will not be significant in fiscal year 1999. As funds from temporary investments are paid to Local Limited Partnerships, interest earnings on those funds decrease. In addition, some of the properties benefit from some type of federal or state subsidy, and as a consequence, are subject to restrictions on cash distributions. Results of Operations The Fund's results of operations for the three and nine months ended December 31, 1998 resulted in a net loss of $507,912 and $1,567,863, as compared to a net loss of $597,423 and $1,679,588 for the same period in 1997. The decrease in net loss is primarily attributable to a decrease in general and administrative expenses and equity in losses of the Local Limited Partnerships. The decrease of the equity in losses of the Local Limited Partnerships is due to increased occupancy in two of the Local Partnerships during the period ended December 31, 1998. Property Discussions The Fund is invested in ten Local Limited Partnerships which own ten properties located in eight states. Two properties, representing 356 units, underwent rehabilitation, and eight properties, representing 1001 units, are new construction. All of the ten properties are complete, through initial lease-up and operating satisfactorily. Impact of Year 2000 The Managing General Partner has assessed the Fund's exposure to date sensitive computer software programs that may not be operative subsequent to 1999 and has executed a requisite course of action to minimize Year 2000 risk and ensure that neither significant costs nor disruption of normal business operations are encountered. However, due to the inherent uncertainty that all systems of outside vendors or other companies on which the Fund and/or Local Limited Partnerships rely will be compliant, the Fund remains susceptible to consequences of the Year 2000 issue. BOSTON FINANCIAL TAX CREDIT FUND VIII (A Limited Partnership) PART II OTHER INFORMATION Items 1-5 Not applicable Item 6 Exhibits and reports on Form 8-K (a) Exhibits - None (b) Reports on Form 8-K - No reports on Form 8-K were filed during the quarter ended December 31, 1998. BOSTON FINANCIAL TAX CREDIT FUND VIII (A Limited Partnership) SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. DATED: February 11, 1999 BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP By: Arch Street VIII Limited Partnership, its General Partner /s/Randolph G. Hawthorne ------------------------- Randolph G. Hawthorne Managing Director, Vice President and Chief Operating Officer EX-27 2 TCVIII FINANCIAL DATA SCHEDULE FOR Q3 FY99
5 9-MOS MAR-31-1999 DEC-31-1998 213,538 1,562,948 000 000 000 000 000 000 25,417,131 000 000 000 000 000 24,961,171 25,417,131 000 81,772 000 000 279,241 000 000 000 000 000 000 000 000 (1,567,863) (42.53) 000 Total assets include Investments in Local Limited Partnerships of $23,619,828, Organizational costs, net of $1,667 and Other assets of $19,150 Total liability and equity includes Accounts payable to affiliates of $414,435 and Accrued expenses of $41,525 Total revenue includes Investment of $74,207 and Other of $7,565 Other Expenses include Asset Management fees, related party of $152,295, General and administrative of $96,988 and Amortization of $29,958. Net loss includes Equity in losses of Local Limited Partnerships of $1,370,394.
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