497 1 a2068286z497.txt 497 NY FEBRUARY 1, 2002 SUPPLEMENT NO. 2 TO PROSPECTUS FOR BOSTON CAPITAL TAX CREDIT FUND IV L.P. DATED AUGUST 1, 2001 (SUPPLEMENT OFFERING BCTC IV SERIES 42 AND IDENTIFYING CERTAIN ANTICIPATED INVESTMENTS) This Supplement is part of, and should be read in conjunction with, Boston Capital's Prospectus. Capitalized terms used herein but not defined have the meanings ascribed to them in the Prospectus. SERIES 42'S PURPOSE-- - To invest in other limited partnerships that will each develop, own and operate an apartment complex used as low and moderate-income housing. TERMS OF OFFERING-- - Series 42 is offering at least 250,000 ($2.5 million) and up to 3,500,000 ($35 million) Beneficial Assignee Certificates that are the equivalent of limited partnership interests in Series 42; - the price of the certificates is $10 each with a minimum investment of $5,000; - this offering will end no later than July 31, 2002; and - your money will be held in escrow until at least 250,000 certificates are sold. SERIES 42'S INVESTORS WILL RECEIVE-- - federal housing tax credits; - tax losses that can offset passive income from any other investments; and - profits, if any, from the sale of the apartment complexes. PRIOR PERFORMANCE OF BOSTON ASSOCIATES AND ITS AFFILIATES Boston Capital Tax Credit Fund IV L.P. (the "Fund") has issued other series in other offerings--Series 20 to Series 41. The Fund has issued a total of 66,567,867 certificates, raised $665,345,760 and admitted 71,184 investors within Series 20 through 41. See "Prior Performance of Boston Associates and Its Affiliates" in the Prospectus for information about Series 20 through 38. NEW LEGISLATIVE DEVELOPMENTS On December 15, 2000, the United States Congress passed a bill which revised certain provisions of the federal housing tax credit. When the initial legislation was enacted in 1986 creating the federal housing tax credit, the tax credit allocable to each state per year was limited to an amount of $1.25 for each resident in the state. Among the many provisions in this bill, was an 1 increase of the $1.25 cap on the federal housing tax credit to $1.75 per state resident. The increase is in two steps--to $1.50 in 2001 and to $1.75 in 2002. Thereafter, this legislation calls for an automatic adjustment indexed for inflation beginning in 2003. This means that through bi-partisan support, additional incentives should be available to finance the construction and rehabilitation of housing for low and moderate income people. INVESTMENT OBJECTIVES AND ACQUISITION POLICIES Series 42's principal business is to invest, as a limited partner, in other limited partnerships (the "Operating Partnerships"), each of which will develop, own and operate an apartment complex which is expected to qualify for federal housing tax credits in order to achieve the investment goals set forth in the Prospectus. The attainment of Series 42's investment objectives will depend on many factors, including the ability of Boston Associates to select suitable investments on a timely basis, the timely completion and successful management of such investments and future economic conditions in the United States. Accordingly, there can be no assurance that Series 42 will meet its investment objectives. ANTICIPATED INVESTMENTS Series 42 expects to invest in the ten Operating Partnerships described below. Each Operating Partnership will use a significant part of the funds invested by Series 42 to pay fees to the Operating General Partners. See the table entitled "Terms of Investment in Operating Partnerships" in this Supplement. While Boston Associates believes that Series 42 is reasonably likely to acquire interests in the apartment complexes described below, it may not be able to do so. Before any acquisition is made, Boston Associates will complete its due diligence review as to the Operating Partnership and its apartment complex. This process will include the review and analysis of information concerning, among other matters, market competition and environmental factors. If any significant adverse information is obtained by Boston Associates, either action will be taken to mitigate the adverse factor(s), or the acquisition will not be made. It is also possible that the acquisition terms may differ significantly from those described below. Accordingly, investors should not rely on the ability of Series 42 to invest in these apartment complexes or under the described investment terms in deciding whether to invest in Series 42. If Series 42 raises the entire $35 million, the anticipated acquisition of the Operating Partnership interests, described below, will represent approximately 75% of the total money which Series 42 currently expects to spend. 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Because Series 42 is currently in the offering phase, it has no material assets or any operating history. Series 42 expects to acquire interests in the following 10 Operating Partnerships, which will develop, own and operate apartment complexes, 8 of which are to be newly constructed and 2 of which are to be rehabilitated: OPERATING GENERAL PARTNERSHIP PARTNER(S) --------------------------------- -------------------------- 1. Amherst Elderly L.P. Great Bridge Properties (the "Amherst Partnership") Sougehan Valley Interfaith New Construction Housing Corporation 2. Bellamy Mills L.P. Great Bridge Properties (the "Bellamy Mills Partnership") Property Rehabilitation 3. Crittenden County Partners L.P. Park Plaza III, LLC (the "Crittenden Partnership") New Construction 4. Dorchester Court LDHA L.P. Royal Castle (the "Dorchester Court Partnership") New Construction 5. Harbor Pointe II/MHT LDHA L.P. MHT Properties XV (the "Harbor Pointe Partnership") New Construction 6. Lynnelle Landing L.P. Douglas E. Pauley (the "Lynnelle Landing Partnership") New Construction 7. Center Street Urban Renewal Association Conifer Realty, LLC (the "Merchantville Senior Housing Partnership") New Construction 8. Schoolhouse Apartments L.P. Wabuck Development (the "Schoolhouse Partnership") Company New Construction 9. Signature Station L.P. Universal Development (the "Signature Station Partnership") Corporation New Construction 10. Strawberry Lane L.P. Conifer Realty, LLC (the "Strawberry Lane Partnership") Property Rehabilitation None of the Operating General Partners or the management companies are affiliated with Boston Associates. Permanent mortgage loan financing for the apartment complexes will be provided from a variety of sources. Boston Associates believes that each of the apartment complexes will have adequate property insurance. The tables included in this Supplement describe in greater detail information concerning the apartment complexes and the anticipated terms of investment in each Operating Partnership. The priority return base for Series 42 is $1.00 per certificate (10%). The priority return base is the level of return that investors must receive before Boston Associates may receive a 5% share in the proceeds from the sale or refinancing of apartment complexes. In establishing the priority return base, Boston Associates does not represent that Series 42 is expected to provide this level of return to investors. Boston Associates will receive fees and compensation for services prior to investors receiving the priority return. 3
INFORMATION CONCERNING THE APARTMENT COMPLEXES OPERATING BASIC GOVERNMENT PERMANENT MORTGAGE ANNUAL ANNUAL PARTNERSHIP LOCATION NUMBER MONTHLY ASSISTANCE MORTGAGE INTEREST RESERVE MANAGEMENT MANAGEMENT NAME OF PROPERTY OF UNITS RENTS(1) ANTICIPATED LOAN RATE AMOUNT AGENT FEE ----------------------------------------------------------------------------------------------------------------------------------- 1. Amherst Amherst, 42 $607- HOME Investment New Hampshire 7% $12,600 Stewart Property 5.72% of net Partnership New Hampshire $1,100 1BR Partnership Housing Finance Management rental income $752- Program(2) Authority $1,275 2BR $3,040,000(2) 2. Bellamy Mills Dover, 30 $466 1BR HOME Investment Boston Capital 7.75% $9,000 Stewart Property 6% of net Partnership New Hampshire $556- Partnerships Finance, LLC Management rental income $798 2BR Program(3b) $770,000(3a) State of New 5.72% Hampshire $550,000(3b) 3. Crittenden West Memphis, 24 $346- Federal Housing AmSouth Bank 7.25% $4,800 Park 4% of net Partnership Arkansas $555 3BR Tax Credits $810,000(4) Management, Inc. rental income 4. Dorchester Port Huron 131 $432- Federal Housing Independent Bank 8% $26,000 Sterling 4% of net Court Township, $620 1BR Tax Credits $3,900,000(5) Management rental income Partnership Michigan $504- $650 2BR $599- $650 3BR 5. Harbor Pointe Benton 72 $303- Federal Housing Boston Capital 8% $14,400 Southeastern 6.23% of net Partnership Township, $430 1BR Tax Credits Finance, LLC Michigan rental income Michigan $364- $1,660,000(6) Housing, LLC $510 2BR 6. Lynnelle Charleston, 56 $363- U.S. Department West Virginia 7% $11,198 Encore 6.25% of net Landing West Virginia $405 1BR of Agriculture Housing Management rental income Partnership $465 2BR 538 Rural Development Fund Housing $525 3BR Guarantee Loan $1,443,096(7a) Program(7a) West Virginia 2% Housing Development Fund $170,000(7b)
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OPERATING BASIC GOVERNMENT PERMANENT MORTGAGE ANNUAL ANNUAL PARTNERSHIP LOCATION NUMBER MONTHLY ASSISTANCE MORTGAGE INTEREST RESERVE MANAGEMENT MANAGEMENT NAME OF PROPERTY OF UNITS RENTS(1) ANTICIPATED LOAN RATE AMOUNT AGENT FEE ----------------------------------------------------------------------------------------------------------------------------------- 7. Merchantville Merchantville, 74 $481- New Jersey Boston Capital 7.75% $22,200 Realty 5.99% of net Senior Housing New Jersey $800 1BR Department of Finance, LLC Corporation rental income Partnership $572- Community $1,862,978(8a) Affairs(8b) $1,000 2BR HOME Investment State of 0% Partnerships New Jersey Program(8c) $2,085,900(8b) City of 0% Merchantville $550,000(8c) 8. Schoolhouse Corbin, 40 $320 2BR Federal Housing Federal Home 2% $10,000 Homeland Inc. 5% of net Partnership Kentucky $367 3BR Tax Credits Loan Bank rental income $589,000(9) 9. Signature Lithonia, 262 $625- Federal LIHTC; Georgia 5.73% $78,600 Signature 5% of net Station Georgia $700 1BR Georgia State Department of Management, Inc. rental income Partnership $725- LIHTC Community Affairs $800 2BR $17,000,000(10) $830- $935 3BR 10.Strawberry Clayton, 71 $270- Federal Housing Clayton Housing 7% $20,920 Conifer Realty 6% of net Lane New York $544 1BR Tax Credits Authority Association rental income Partnership $299 2BR $469,482(11a) Clayton Housing 1% Authority $722,897(11b) Development 4% Authority of the North County $400,000(11c) Clayton Housing 6% Authority $683,992(11d)
-------------- (1) Exclusive of utilities, unless indicated otherwise. (2) The terms of the Amherst Partnership's anticipated permanent first mortgage loan in the amount of $3,040,000 are expected to include a term of 40 years, an interest rate of 7% and payments of principal and interest on the basis of a 40-year amortization schedule. 5 (3) (a) The terms of the Bellamy Mills Partnership's anticipated permanent first mortgage loan in the amount of $770,000 are expected to include a term of 30 years, an interest rate of 7.75% and payments of principal and interest on the basis of a 30-year amortization schedule. (b) The terms of the Bellamy Mills Partnership's anticipated permanent second mortgage loan in the amount of $550,000 are expected to include a term of 30 years, an interest rate of 5.72% and payments of principal and interest on the basis of a 30-year amortization schedule. (4) The terms of the Crittenden Partnership's anticipated permanent first mortgage loan in the amount of $810,000 are expected to include a term of 30 years, an interest rate of 7.25% and payments of principal and interest on the basis of a 30-year amortization schedule. (5) The terms of the Dorchester Court Partnership's anticipated permanent first mortgage loan in the amount of $3,900,000 are expected to include a term of 30 years, an interest rate of 8% and payments of principal and interest on the basis of a 30-year amortization schedule. (6) The terms of the Harbor Pointe Partnership's anticipated permanent first mortgage loan in the amount of $1,660,000 are expected to include a term of 30 years, an interest rate of 8% and payments of principal and interest on the basis of a 30-year amortization schedule. (7) (a) The terms of the Lynnelle Landing Partnership's anticipated permanent first mortgage loan in the amount of $1,443,096 are expected to include a term of 30 years, an interest rate of 7% and payments of principal and interest on the basis of a 30-year amortization schedule. (b) The terms of the Lynnelle Landing Partnership's anticipated permanent second mortgage loan in the amount of $170,000 are expected to include a term of 20 years, an interest rate of 2% and payments of principal and interest on the basis of a 20-year amortization schedule. (8) (a) The terms of the Merchantville Senior Housing Partnership's anticipated permanent first mortgage loan in the amount of $1,862,978 are expected to include a term of 30 years, an interest rate of 7.75% and payments of principal and interest on the basis of a 30-year amortization schedule. (b) The terms of the Merchantville Senior Housing Partnership's anticipated permanent second mortgage loan in the amount of $2,085,900 are expected to include a term of 30 years, an interest rate of 0% and payments of principal and interest on the basis of a 30-year amortization schedule. (c) The terms of the Merchantville Senior Housing Partnership's anticipated permanent third mortgage loan in the amount of $550,000 are expected to include a term of 30 years, an interest rate of 0% and payments of principal and interest on the basis of a 30-year amortization schedule. (9) The terms of the Schoolhouse Partnership's anticipated permanent first mortgage loan in the amount of $589,000 are expected to include a term of 30 years, an interest rate of 2% and payments of principal and interest on the basis of a 30-year amortization schedule. (10) The terms of the Signature Station Partnership's anticipated permanent first mortgage loan in the amount of $17,000,000 are expected to include a term of 30 years, an interest rate of 5.73% and payments of principal and interest on the basis of a 30-year amortization schedule. (11) (a) The terms of the Strawberry Lane Partnership's anticipated permanent first mortgage loan in the amount of $469,482 are expected to include a term of 30 years, an interest rate of 7% and payments of principal and interest on the basis of a 50-year amortization schedule. (b) The terms of the Strawberry Lane Partnership's anticipated permanent second mortgage loan in the amount of $722,897 are expected to include a term of 35 years, an interest rate of 1% and payments of principal and interest on the basis of a 50-year amortization schedule. (c) The terms of the Strawberry Lane Partnership's anticipated permanent third mortgage loan in the amount of $400,000 are expected to include a term of 15 years, an interest rate of 4% and payments of principal and interest on the basis of a 50-year amortization schedule. (d) The terms of the Strawberry Lane Partnership's anticipated permanent fourth mortgage loan in the amount of $683,992 are expected to include a term of 30 years, an interest rate of 6% and payments of principal and interest on the basis of a 50-year amortization schedule. 6
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS OWNERSHIP INTEREST(%) ANNUAL PROFITS, FUND'S DEVELOPMENT PARTNERSHIP ASSET LOSSES, OPERATING APPROXIMATE FEE/OTHER MANAGEMENT MANAGEMENT BCTC IV CREDIT/NET GENERAL OPERATING OPERATING AVERAGE ANNUAL DISTRIBUTIONS FEE FEE PARTNERSHIP CAPITAL CASH FLOW/ PARTNER DEFICIT PARTNERSHIP'S ANTICIPATED TO OPERATING TO OPERATING TO BOSTON NAME CONTRIBUTION BACKEND CONTRIBUTION GUARANTEE CREDIT BASE FEDERAL CREDIT GP GP CAPITAL ------------------------------------------------------------------------------------------------------------------------------------ 1. Amherst $558,011 99.99/10/40 $100,000 Unlimited in $1,916,435 $67,451 $381,000 $2,500 $2,500 Partnership amount for 3 Years 2. Bellamy Mills $2,545,280 99.99/10/40 $100 $300,000 in $3,821,502 $311,803 $360,000 $2,500 $2,500 Partnership the aggregate for 3 years after Rental Achievement 3. Crittenden $1,223,897 99.90/10/20 $100 Unlimited $1,910,203 $156,910 $189,247 $10,000 $5,000 Partnership through Rental Achievement. Upon Rental Achievement and fixed rate financing, $75,000 for 3 years 4. Dorchester $5,613,829 99.99/20/40 $100 $500,000 in $9,042,603 $748,653 $1,000,000 $3,500 $3,500 Court the aggregate Partnership for 3 years after Rental Achievement 5. Harbor Pointe $2,013,704 99.99/30/30 $100 Unlimited for $3,229,328 $264,456 $380,319 $2,700 $2,700 Partnership 5 years 6. Lynnelle $2,042,494 99.99/50/50 $48,000 $144,000 in $3,403,275 $279,041 $571,485 $16,000 $2,000 Landing the aggregate Partnership for 3 years after Rental Achievement
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OWNERSHIP INTEREST(%) ANNUAL PROFITS, FUND'S DEVELOPMENT PARTNERSHIP ASSET LOSSES, OPERATING APPROXIMATE FEE/OTHER MANAGEMENT MANAGEMENT BCTC IV CREDIT/NET GENERAL OPERATING OPERATING AVERAGE ANNUAL DISTRIBUTIONS FEE FEE PARTNERSHIP CAPITAL CASH FLOW/ PARTNER DEFICIT PARTNERSHIP'S ANTICIPATED TO OPERATING TO OPERATING TO BOSTON NAME CONTRIBUTION BACKEND CONTRIBUTION GUARANTEE CREDIT BASE FEDERAL CREDIT GP GP CAPITAL ------------------------------------------------------------------------------------------------------------------------------------ 7. Merchantville $3,104,568 99.99/10/40 $100 Unlimited in $5,027,667 $403,191 $495,000 $5,000 $5,000 Senior Housing duration and Partnership amount 8. Schoolhouse $2,525,871 99.00/20/20 $100 $150,000 in $3,972,800 $324,787 $268,000 $2,000 $2,000 Partnership the aggregate for 3 years after Rental Achievement 9. Signature $2,873,612 99.90/20/20 $100 $350,000 in $11,782,467 $413,685 $2,370,000 $250,000 $25,000 Station the aggregate Partnership for 3 years after Rental Achievement 10. Strawberry $672,823 99.99/90/90 $100 $376,000 in $2,157,108 $86,259 $301,257 $5,400 $3,000 Lane the aggregate Partnership for 5 years after Rental Achievement
8 THE AMHERST PARTNERSHIP (AMHERST ELDERLY APARTMENTS) Amherst Elderly Apartments is a 42-unit apartment complex for senior citizens which is being constructed in Amherst, New Hampshire. Amherst Elderly Apartments will consist of 34 one-bedroom units and 8 two-bedroom units contained in 2 buildings. The complex will offer a community room, recreation room and central laundry facilities. Individual units will contain a refrigerator, range, dishwasher, disposal, air conditioning, wall-to-wall carpeting, cable television hook-up and an emergency call system. Construction of Amherst Elderly Apartments began in December, 2001. The Operating General Partners anticipate that construction completion and occupancy will occur as follows: NUMBER OF UNITS COMPLETION NUMBER OF UNITS RENT-UP -------------------------------------------------------------------------------- 4 February, 2002 18 January, 2003 4 March, 2002 6 February, 2003 4 April, 2002 6 March, 2003 4 May, 2002 6 April, 2003 4 June, 2002 6 May, 2003 4 July, 2002 4 August, 2002 4 September, 2002 4 October, 2002 4 November, 2002 2 December, 2002 THE BELLAMY MILLS PARTNERSHIP (BELLAMY MILLS APARTMENTS) Bellamy Mills Apartments is an existing 30-unit apartment complex for families which is to be rehabilitated at 50 Mill Street in Dover, New Hampshire. Bellamy Mills Apartments will consist of 6 one-bedroom units and 24 two-bedroom units contained in 1 building. The complex will offer central laundry facilities. Individual units will contain a refrigerator, range, air conditioning and cable television hook-up. Rehabilitation of Bellamy Mills Apartments is anticipated to begin in March, 2002. The Operating General Partner anticipates that completion of rehabilitation and occupancy will occur as follows: NUMBER OF UNITS COMPLETION NUMBER OF UNITS RENT-UP -------------------------------------------------------------------------------- 8 September, 2002 8 January, 2003 8 October, 2002 8 February, 2003 8 November, 2002 8 March, 2003 6 December, 2002 6 April, 2003 9 THE CRITTENDEN PARTNERSHIP (PARK PLAZA IV APARTMENTS) Park Plaza IV Apartments is a 24-unit apartment complex for families which is to be constructed on Frontage Road in West Memphis, Arkansas. Park Plaza IV Apartments will consist of 24 three-bedroom units contained in 3 buildings. The complex will offer a pool and recreation room. Individual units will contain a refrigerator, range, dishwasher, washer/dryer hook-ups, air conditioning and a patio. Construction of Park Plaza IV Apartments is anticipated to begin in March, 2002. The Operating General Partner anticipates that construction completion and occupancy will occur as follows: NUMBER OF UNITS COMPLETION NUMBER OF UNITS RENT-UP -------------------------------------------------------------------------------- 8 May, 2002 8 November, 2002 16 June, 2002 16 December, 2002 THE DORCHESTER COURT PARTNERSHIP (DORCHESTER COURT APARTMENTS) Dorchester Court Apartments is a 131-unit apartment complex for families which is being constructed on New Hampshire Avenue in Port Huron Township, Michigan. Dorchester Court Apartments will consist of 49 one-bedroom units, 66 two-bedroom units and 16 three-bedroom units contained in 4 buildings. The complex will offer a community room, pool, recreation room, individual storage units and central laundry facilities. Individual units will contain a refrigerator, range, dishwasher, disposal, air conditioning, wall-to-wall carpeting, cable television hook-up and a patio or porch. Construction of Dorchester Court Apartments began in January, 2002. The Operating General Partner anticipates that construction completion and occupancy will occur as follows: NUMBER OF UNITS COMPLETION NUMBER OF UNITS RENT-UP -------------------------------------------------------------------------------- 8 March, 2002 10 July, 2002 8 April, 2002 10 August, 2002 8 May, 2002 10 September, 2002 8 June, 2002 2 October, 2002 8 July, 2002 43 January, 2003 8 August, 2002 7 February, 2003 8 September, 2002 7 March, 2003 8 October, 2002 7 April, 2003 8 November, 2002 7 May, 2003 14 December, 2002 7 June, 2003 15 January, 2003 7 July, 2003 15 February, 2003 7 August, 2003 15 March, 2003 7 September, 2003 10 THE HARBOR POINTE PARTNERSHIP (HARBOR POINTE II APARTMENTS) Harbor Pointe II Apartments is a 72-unit apartment complex for senior citizens which is being constructed in Benton Township, Michigan. Harbor Pointe II Apartments will consist of 18 one-bedroom units and 54 two-bedroom units contained in 1 building. The complex will offer a community room and central laundry facilities. Individual units will contain a refrigerator, range, dishwasher, disposal, air conditioning, wall-to-wall carpeting, cable television hook-up and an emergency call system. Construction of Harbor Pointe II Apartments began in September, 2001. The Operating General Partner anticipates that construction completion and occupancy will occur as follows: NUMBER OF UNITS COMPLETION NUMBER OF UNITS RENT-UP -------------------------------------------------------------------------------- 8 August, 2002 8 September, 2002 8 September, 2002 8 October, 2002 8 October, 2002 8 November, 2002 8 November, 2002 8 December, 2002 8 December, 2002 8 January, 2003 8 January, 2003 8 February, 2003 8 February, 2003 8 March, 2003 8 March, 2003 8 April, 2003 8 April, 2003 8 May, 2003 THE LYNNELLE LANDING PARTNERSHIP (LYNNELLE LANDING APARTMENTS) Lynnelle Landing Apartments is a 56-unit apartment complex for families which is being constructed on Amanita Drive in Charleston, West Virginia. Lynnelle Landing Apartments will consist of 8 one-bedroom units, 40 two-bedroom units and 8 three-bedroom units contained in 7 buildings. The complex will offer a computer room, playground, tot lots, individual storage units and central laundry facilities. Individual units will contain a refrigerator, range, dishwasher, disposal and air conditioning. Construction of Lynnelle Landing Apartments began in January, 2002. The Operating General Partner anticipates that construction completion and occupancy will occur as follows: NUMBER OF UNITS COMPLETION NUMBER OF UNITS RENT-UP -------------------------------------------------------------------------------- 20 May, 2002 20 October, 2002 20 June, 2002 20 November, 2002 16 July, 2002 16 December, 2002 11 THE MERCHANTVILLE SENIOR HOUSING PARTNERSHIP (MERCHANTVILLE SENIOR HOUSING APARTMENTS) Merchantville Senior Housing Apartments is a 74-unit apartment complex for senior citizens which is to be constructed on South Chestnut and Center Streets in Merchantville, New Jersey. Merchantville Senior Housing Apartments will consist of 62 one-bedroom units and 12 two-bedroom units contained in 1 building. The complex will offer central laundry facilities. Individual units will contain a refrigerator, range, dishwasher, disposal, air conditioning, wall-to-wall carpeting, cable television hook-up and an emergency call system. Construction of Merchantville Senior Housing Apartments is anticipated to begin in April, 2002. The Operating General Partner anticipates that construction completion and occupancy will occur as follows: NUMBER OF UNITS COMPLETION NUMBER OF UNITS RENT-UP -------------------------------------------------------------------------------- 9 November, 2002 9 April, 2003 9 December, 2002 9 May, 2003 8 January, 2003 8 June, 2003 8 February, 2003 8 July, 2003 8 March, 2003 8 August, 2003 8 April, 2003 8 September, 2003 8 May, 2003 8 October, 2003 8 June, 2003 8 November, 2003 8 July, 2003 8 December, 2003 THE SCHOOLHOUSE PARTNERSHIP (SCHOOLHOUSE APARTMENTS) Schoolhouse Apartments is a 40-unit apartment complex for families which is being constructed in Corbin, Kentucky. Schoolhouse Apartments will consist of 36 two-bedroom units and 4 three-bedroom units contained in 4 buildings. The complex will offer a community room, playground and central laundry facilities. Individual units will contain a refrigerator, range, dishwasher, air conditioning and washer and dryer hook-ups. Construction of Schoolhouse Apartments began in December, 2001. The Operating General Partner anticipates that construction completion and occupancy will occur as follows: NUMBER OF UNITS COMPLETION NUMBER OF UNITS RENT-UP -------------------------------------------------------------------------------- 10 April, 2002 10 August, 2002 15 May, 2002 15 October, 2002 15 June, 2002 15 December, 2002 12 THE SIGNATURE STATION PARTNERSHIP (ALEXANDER AT STONECREST APARTMENTS) Alexander at Stonecrest Apartments is a 262-unit apartment complex for families which is being constructed on Rock Chapel Road in Lithonia, Georgia. Alexander at Stonecrest Apartments will consist of 94 one-bedroom units, 112 two-bedroom units and 56 three-bedroom units contained in 9 buildings. The complex will offer a community room, recreation room and central laundry facilities. Individual units will contain a refrigerator, range, dishwasher, disposal, air conditioning, wall-to-wall carpeting, cable television hook-up and a patio or porch. Construction of Alexander at Stonecrest Apartments began in December, 2001. The Operating General Partner anticipates that construction completion and occupancy will occur as follows: NUMBER OF UNITS COMPLETION NUMBER OF UNITS RENT-UP -------------------------------------------------------------------------------- 18 June, 2002 13 October, 2002 18 July, 2002 13 November, 2002 20 August, 2002 13 December, 2002 24 September, 2002 14 January, 2003 25 October, 2002 15 February, 2003 25 November, 2002 14 March, 2003 25 December, 2002 14 April, 2003 25 January, 2003 14 May, 2003 25 February, 2003 14 June, 2003 25 March, 2003 14 July, 2003 14 April, 2003 14 August, 2003 18 May, 2003 14 September, 2003 14 October, 2003 14 November, 2003 68 December, 2003 13 THE STRAWBERRY LANE PARTNERSHIP (CLAYTON PHASE I AND II APARTMENTS) Clayton Phase I and II Apartments is an existing 71-unit apartment complex for senior citizens which is being rehabilitated on Strawberry Lane in Clayton, New York. Clayton Phase I and II Apartments will consist of 67 one-bedroom units and 4 two-bedroom units contained in 1 building. The complex will offer central laundry facilities. Individual units will contain a refrigerator, range and an emergency call system. Rehabilitation of Clayton Phase I and II Apartments began in October, 2001. The Operating General Partner anticipates that completion of rehabilitation and occupancy will occur as follows: NUMBER OF UNITS COMPLETION NUMBER OF UNITS RENT-UP -------------------------------------------------------------------------------- 16 August, 2002 16 September, 2002 18 September, 2002 18 October, 2002 19 October, 2002 19 November, 2002 18 November, 2002 18 December, 2002 14