-----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, WVRj1Z1sd0YfaChvMc1/LBoXYWv3UBQ/nyr9tz8SrF8Xfya5JLwqLEFn8xjJo5zt SFobHHN8tvLVyqyBbNvzGQ== 0000810663-01-500036.txt : 20010815 0000810663-01-500036.hdr.sgml : 20010815 ACCESSION NUMBER: 0000810663-01-500036 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010630 FILED AS OF DATE: 20010814 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: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-26522 FILM NUMBER: 1712469 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 10QSB 1 tc8q102.txt TC VIII Q1 2002 August 14 , 2001 Securities and Exchange Commission 450 Fifth Street, N.W. Washington, D.C. 20549 Re: Boston Financial Tax Credit Fund VIII, A Limited Partnership Report on Form 10-QSB for the Quarter Ended June 30, 2001 File Number 0-26522 Dear Sir/Madam: 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 Stephen Guilmette Assistant Controller TC8-Q1.DOC UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB (Mark One) [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2001 ---------------------------------------- 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 Sheet (Unaudited) - June 30, 2001 1 Statements of Operations (Unaudited) - For the Three Months Ended June 30, 2001 and 2000 2 Statement of Changes in Partners' Equity (Deficiency) (Unaudited) - For the Three Months Ended June 30, 2001 3 Statements of Cash Flows (Unaudited) - For the Three Months Ended June 30, 2001 and 2000 4 Notes to the Financial Statements (Unaudited) 5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 6 PART II - OTHER INFORMATION Items 1-6 8 SIGNATURE 9 BOSTON FINANCIAL TAX CREDIT FUND VIII (A Limited Partnership) BALANCE SHEET June 30, 2001 (Unaudited)
Assets Cash and cash equivalents $ 144,062 Marketable securities, at fair value 1,106,364 Investments in Local Limited Partnerships (Note 1) 18,750,544 Other assets 16,770 --------------- Total Assets $ 20,017,740 ============== Liabilities and Partners' Equity Accounts payable to affiliate $ 518,179 Accrued expenses 36,658 --------------- Total Liabilities 554,837 -------------- General, Initial and Investor Limited Partners' Equity 19,444,920 Net unrealized gains on marketable securities 17,983 -------------- Total Partners' Equity 19,462,903 -------------- Total Liabilities and Partners' Equity $ 20,017,740 ==============
The accompanying notes are an integral part of these financial statements. BOSTON FINANCIAL TAX CREDIT FUND VIII (A Limited Partnership) STATEMENTS OF OPERATIONS For the Three Months Ended June 30, 2001 and 2000 (Unaudited)
2001 2000 ------------- ------------- Revenue: Investment $ 21,702 $ 23,768 Other 550 785 ------------- ------------- Total Revenue 22,252 24,553 ------------- ------------- Expenses: Asset management fees, related party 54,446 52,679 General and administrative (includes reimbursements to an affiliate in the amounts of $14,165 and $27,367 in 2001 and 2000, respectively) 33,229 41,797 Provision for valuation of investments in Local Limited Partnerships 242,851 - Amortization 7,486 7,486 ------------- ------------- Total Expenses 338,012 101,962 ------------- ------------- Loss before equity in losses of Local Limited Partnerships (315,760) (77,409) Equity in losses of Local Limited Partnerships (Note 1) (464,692) (474,664) ------------- ------------- Net Loss $ (780,452) $ (552,073) ============= ============= Net Loss allocated: General Partners $ (7,804) $ (5,521) Limited Partners (772,648) (546,552) ------------- ------------- $ (780,452) $ (552,073) ============= ============= Net Loss per Limited Partnership Unit (36,497 Units) $ (21.17) $ (14.98) ============= ==============
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) For the Three Months Ended June 30, 2001 (Unaudited)
Initial Investor Net General Limited Limited Unrealized Partner Partner Partners Gains Total ----------- --------- -------------- ----------- ------------- Balance at March 31, 2001 $ (114,094) $ 100 $ 20,339,366 $ 22,705 $ 20,248,077 ----------- --------- -------------- ----------- ------------- Comprehensive Loss: Change in net unrealized gains on marketable securities available for sale - - - (4,722) (4,722) Net Loss (7,804) - (772,648) - (780,452) ----------- --------- -------------- ----------- ------------- Comprehensive Loss (7,804) - (772,648) (4,722) (785,174) ----------- --------- -------------- ----------- ------------- Balance at June 30, 2001 $ (121,898) $ 100 $ 19,566,718 $ 17,983 $ 19,462,903 =========== ========= ============== =========== =============
The accompanying notes are an integral part of these financial statements. BOSTON FINANCIAL TAX CREDIT FUND VIII (A Limited Partnership) STATEMENTS OF CASH FLOWS For the Three Months Ended June 30, 2001 and 2000 (Unaudited)
2001 2000 ------------- ------------- Net cash provided by (used for) operating activities $ (63,465) $ 5,421 Net cash provided by (used for) investing activities 126,949 (23,641) ------------- ------------- Net increase (decrease) in cash and cash equivalents 63,484 (18,220) Cash and cash equivalents, beginning 80,578 188,645 ------------- ------------- Cash and cash equivalents, ending $ 144,062 $ 170,425 ============= =============
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-QSB and do not include all of the information and note disclosures required by accounting principles generally accepted in the United States. These statements should be read in conjunction with the financial statements and notes thereto included with the Fund's Form10-KSB for the year ended March 31, 2001. 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 of the Fund has elected to report results of the Local Limited Partnerships of which the Fund has a limited on a 90 day lag basis because the Local Limited Partnerships report their results on a calendar year basis. Accordingly, the financial information about the Local Limited Partnerships that is included in the accompanying financial statements is as of March 31, 2001 and 2000. 1. Investments in Local Limited Partnerships The Fund uses the equity method to account for its limited partner interests in ten Local Limited Partnerships which own and operate multi-family housing complexes. Upon dissolution of the Local Limited Partnerships, proceeds will be distributed according to the partnership agreements. The following is a summary of investments in Local Limited Partnerships at June 30, 2001:
Capital contributions and advances paid to Local Limited Partnerships $ 29,685,621 Cumulative equity in losses of Local Limited Partnerships (10,812,253) Cumulative cash distributions received from Local Limited Partnerships (571,812) ------------- Investments in Local Limited Partnerships before adjustments 18,301,556 Excess of investment costs over the underlying net assets acquired: Acquisition fees and expenses 1,048,010 Accumulated amortization of acquisition fees and expenses (178,260) ------------- Investments in Local Limited Partnerships prior to reserve for valuation 19,171,306 Reserve for valuation of investments in Local Limited Partnerships (420,762) ------------- Investments in Local Limited Partnerships $ 18,750,544 =============
The Fund has provided a reserve for valuation for its investments in certain Local Limited Partnerships because there is evidence of non-temporary declines in the recoverable amount of these investments. The Fund's share of net losses of the Local Limited Partnerships for the three months ended June 30, 2001 is $464,692. BOSTON FINANCIAL TAX CREDIT FUND VIII (A Limited Partnership) MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Certain matters discussed herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Fund intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements and is including this statement for purposes of complying with these safe harbor provisions. Although the Fund believes the forward-looking statements are based on reasonable assumptions, the Fund can give no assurance that its expectations will be attained. Actual results and timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including, without limitation, general economic and real estate conditions and interest rates. Liquidity and Capital Resources At June 30, 2001, the Fund had cash and cash equivalents of $144,062, as compared to $80,578 at March 31, 2001. This increase is primarily attributable to proceeds from sales of marketable securities and cash distributions received from Local Limited Partnerships. This increase is partially offset by advances paid to Local Limited Partnerships to fund property operations. At June 30, 2001, approximately $712,000 of cash, cash equivalents and 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 of the Local Limited Partnerships 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 June 30, 2001, the Fund had no contractual or other obligation to any Local Limited Partnership which had not been paid or provided for. 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. As of June 30, 2001, the Fund advanced approximately $421,000 to Local Limited Partnerships to fund operating deficits. Cash Distributions No cash distributions were made during the three months ended June 30, 2001. Results of Operations For the three months ended June 30, 2001, the Fund's operations resulted in a net loss of $780,452, as compared to $552,073 for the three months ended June 30, 2000. The increase in net loss is primarily attributable to an increase in provision for valuation of investments in Local Limited Partnerships. The increase in the Fund's net loss is partially offset be a decrease in equity in losses of Local Limited Partnerships. The decrease to equity in losses of Local Limited Partnerships for the three months ended June 30, 2001, as compared to the same period in 2000, is primarily attributable to an increase in rental and other income for certain Local Limited Partnerships. BOSTON FINANCIAL TAX CREDIT FUND VIII (A Limited Partnership) MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) Property Discussions The Fund's investment portfolio consists of limited partnership interests in 10 Local Limited Partnerships, each of which own and operate a multi-family apartment complex. A majority of the Properties have stabilized operations and operate above break-even. A few Properties generate cash flow deficits that the Local General Partners of those Properties fund through project expenses loans, subordinated loans or operating escrows. However, some properties have persistent operating difficulties that could either: i) have an adverse impact on the Fund's liquidity; ii) result in their foreclosure or iii) result in the Managing General Partner deeming it appropriate for the Fund to dispose of its interest in the Local Limited Partnership. Also, the Managing General Partner, in the normal course of the Fund's business, may desire to dispose certain Local Limited Partnerships. The following Property discussion focuses only on such Properties. Live Oaks Plantation, located in West Palm Beach, Florida, has historically generated operating deficits due to difficulty in attracting and maintaining quality tenants. In addition, the Property's curb appeal has diminished due to the deferral of certain maintenance and repair projects. During October 2000, the Local General Partner indicated a desire to transfer its interest in the Local Limited Partnership to a replacement Local General Partner. The General Partner believes that it would be in the best interests of the Property to replace the Local General Partner. Accordingly, the General Partner has been working with the Local General Partner to identify an acceptable replacement. In conjunction with the potential transfer, the Local General Partner agreed to replace his affiliated on-site management company, and in February 2001, a new on-site management company began managing Property operations. The new management company has taken steps to improve property operations. It is possible that the Fund may advance a material amount of Reserves to the Local Limited Partnership to fund capital improvements and deferred maintenance expenses. Further, Live Oaks Plantation is undergoing an audit by the Internal Revenue Service ("IRS"). The audit focus's on the tax treatment of certain items, such as land improvements, impact fees, utility fees and developer fees. We believe that the IRS wants to allocate some, or all, of these costs to land rather than to the buildings. Since land cannot be included in eligible basis and is not depreciable, tax credits and losses may be at risk. As a result of the IRS audit, negotiations to replace the Local General Partner have been delayed. The Fund has implemented policies and practices for assessing potential impairment of its investments in Local Limited Partnerships. The investments are analyzed by real estate experts to determine if impairment indicators exist. If so, the carrying value is compared to the undiscounted future cash flows expected to be derived from the asset. If a significant impairment in carrying value exits, a provision to write down the asset to fair value will be recorded in the Fund's financial statements. 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 June 30, 2001. 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: August 14 , 2001 BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP By: Arch Street VIII Limited Partnership, its General Partner /s/Jenny Netzer ------------------------------------ Jenny Netzer Principal, Head of Housing and Community Investment -----END PRIVACY-ENHANCED MESSAGE-----