Item 1. Business
Boston Financial Qualified Housing Limited Partnership (the "Partnership") is a limited partnership formed on January 22, 1987 under the Uniform Limited Partnership Act of the State of Delaware. The Partnership's partnership agreement ("Partnership Agreement") authorized the sale of up to 50,000 units of Limited Partnership Interest ("Units") at $1,000 per Unit, adjusted for certain discounts. The Partnership raised $49,963,740 ("Gross Proceeds"), net of discounts of $36,260, through the sale of 50,000 Units. Such amounts exclude five unregistered Units previously acquired for $5,000 by the Initial Limited Partner, which is also one of the General Partners. The offering of Units terminated on April 29, 1988.
The Partnership is engaged solely in the business of real estate investment. Accordingly, a presentation of information about industry segments is not applicable and would not be material to an understanding of the Partnership's business taken as a whole. On October 27, 1995, an affiliate of the Partnership's Managing General Partners, BF Harbour View, Inc., became the Local General Partner of Hughes Apartments, Ltd. ("Hughes"), a Local Limited Partnership in which the Partnership has invested. As a result, the Partnership is deemed to have control over Hughes and commencing on November 1, 1995, the accompanying financial statements are presented in combined form to conform with the required accounting treatment under generally accepted accounting principles. This change only affects the presentation of the Partnership's financial condition and operating results, not the business of the Partnership.
The Partnership has invested as a limited partner in other limited partnerships ("Local Limited Partnerships") which own and operate residential apartment complexes ("Properties"), all of which benefit from some form of federal, state or local assistance programs and which qualify for the low-income housing tax credits ("Tax Credits") that were added to the Internal Revenue Code (the "Code) by the Tax Reform Act of 1986. The investment objectives of the Partnership include the following: (i) to provide current tax benefits in the form of Tax Credits which qualified limited partners may use to offset their federal income tax liability; (ii) to preserve and protect the Partnership's capital; (iii) to provide limited cash distributions from property operations which are not expected to constitute taxable income during the expected duration of the Partnership's operations; and (iv) to provide cash distributions from sale or refinancing transactions. There cannot be any assurance that the Partnership will attain any or all of these investment objectives.
Table A on the following page lists the properties owned by the Local Limited Partnerships in which the Partnership has invested. Item 7 of this Report contains other significant information with respect to such Local Limited Partnerships. As required by applicable rules, the terms of the acquisition of Local Limited Partnership interests have been described in supplements to the Prospectus and collected in three post-effective amendments to the Registration Statement and in two Form 8-K filings listed in Part IV of this Report on Form 10-K (collectively, the "Acquisition Reports"); such descriptions are incorporated herein by this reference.
TABLE A
SELECTED LOCAL LIMITED PARTNERSHIP DATA Properties owned by Date Local Limited Interest Partnerships Location Acquired - --------------------- --------------------- -------------
Barrington Manor Fargo, ND 12/31/87 Bingham Bingham, ME 12/30/87 Birmingham Randolph, ME 12/30/87 Bittersweet Randolph, MA 10/27/87 Boulevard Commons Chicago, IL 07/14/88 Brentwood Manor II Nashua, NH 01/20/89 Cass House/Roxbury Hills Boston, MA 06/08/88 Chestnut Lane Newnan, GA 08/01/88 Coronado Courts Douglas, AZ 12/18/87 Country Estates Glennville, GA 03/01/88 600 Dakota Wahpeton, ND 10/01/88 Delmar Gillette, WY 10/01/88 Duluth Sioux Falls, SD 10/01/88 Elmore Hotel Great Falls, MT 12/22/87 Graver Inn Fargo, ND 12/31/87 Hazel-Winthrop Chicago, IL 12/30/87 Heritage Court Dundalk, MD 01/20/89 Hughes Mandan, ND 12/31/87 Lakeview Heights Clearfield, UT 12/30/87 Logan Plaza New York, NY 05/10/88 New Medford Hotel Medford, OR 12/22/87 Heritage View New Sweden, ME 12/30/87 Pebble Creek Arlington, TX 06/20/88 Hillcrest III Perryville, MO 03/31/89 Pine Village Pine Mountain, GA 03/01/88 Rolling Green Edmond, OK 09/30/87 Sierra Pointe Las Vegas, NV 09/01/87 Sierra Vista Aurora, CO 09/30/87 Talbot Village Talbotton, GA 03/01/88 Terrace Oklahoma City, OK 11/20/87 Trenton Salt Lake City, UT 12/30/87 Verdean Gardens New Bedford, MA 05/31/88 Willowpeg Village Rincon, GA 03/01/88 Windsor Court Aurora, CO 12/30/87
* The Partnership's interest in profits and losses of each Local Limited Partnership arising from normal operations is 99%, with the exception of Hazel-Winthrop, Logan Plaza and Boulevard Commons, in which the Partnership has a 98% interest, a 98.99% interest and a 98.974% interest. Profits and losses arising from sale or refinancing transactions are allocated in accordance with the respective Local Limited Partnership Agreements.
Although the Partnership's investments in Local Limited Partnerships are not subject to seasonal fluctuations, the Partnership's equity in losses of Local Limited Partnerships, to the extent it reflects the operations of individual properties, may vary from quarter to quarter based upon changes in occupancy and operating expenses as a result of seasonal factors.
Under the terms of the Partnership Agreement, the Partnership initially designated 5% of the Gross Proceeds from the sale of Units as a reserve for working capital of the Partnership and contingencies related to ownership of Local Limited Partnership interests. The Managing General Partner may increase or decrease such reserves from time to time, as it deems appropriate. As of March 31, 1996, the Managing General Partner has designated approximately $2,043,000 of cash, cash equivalents and marketable securities as such reserve. Approximately $264,000 has been paid for legal fees and related expenses in connection with the Mod Rehab issue as previously reported. Additionally, the Partnership has paid approximately $152,000 of tax credit adjusters to certain Local Limited Partnerships as a result of their generating higher than expected Tax Credits to be passed through to investors. Also, legal fees relating to various property issues totaling approximately $66,000 have been paid from reserves.
The Partnership's primary source of working capital is investment income earned on the reserves. Additionally, the Partnership expects to receive distributions from cash flows from operations of its Local Limited Partnership interests in future years. It is expected that these sources of funds will provide adequate working capital to the Partnership.
Each Local Limited Partnership has, as its general partners ("Local General Partners"), one or more individuals or entities not affiliated with the Partnership or its General Partners. In accordance with the partnership agreements under which such entities are organized ("Local Limited Partnership Agreements"), the Partnership depends on the Local General Partners for the management of each Local Limited Partnership. As of March 31, 1996, the following Local Limited Partnerships have a common Local General Partner or affiliated group of Local General Partners accounting for the specified percentage of the original investment in Local Limited Partnerships: (i) Rolling Green, Sierra Vista, Terrace, Windsor, and Sierra Point Limited Partnerships, representing 29.7%, have Phillip Abrams Ventures, Inc. and PWD, Inc., as Local General Partners; (ii) Graver Inn, Barrington Manor, Hughes, 600 Dakota and Duluth Limited Partnerships, representing 4.35%, have Jerry L. Meide and RABB, Inc. as General Partners; (iii) New Medford and Oregon Landmark Limited Partnerships, representing 6.65%, have WHP Holdings, Inc. as the Local General Partner; (iv) Delmar, Trenton and Lakeview Heights Limited Partnerships, representing 2.58%, have PSC Real Estate, Inc. and J. Michael Queenan & Associates, Inc. (which is a corporation controlled by J. Michael Queenan) as Local General Partners; (v) Bingham, Birmingham, and New Sweden Limited Partnerships, representing 1.95%, have Charles B. Mattson and Todd Mattson as Local General Partners; (vi) Cass House and Verdean Gardens Limited Partnerships, representing 12.4%, have Cruz Development Corporation as Local General Partners; and (vii) Willowpeg Village, Pine Village, Glennville, Talbot Village and Chestnut Lane Limited Partnership, representing 2.73% have Michael G. Kistler and William E. Johnson as General Partners. The Local General Partners of the remaining Local Limited Partnerships are identified in the Acquisition Reports, which are incorporated herein by reference.
The Properties owned by Local Limited Partnerships in which the Partnership has invested are, and will continue to be, subject to competition from existing and future apartment complexes in the same areas. The continued success of the Partnership will depend on many outside factors, most of which are beyond the control of the Partnership and which cannot be predicted at this time. Such factors include general economic and real estate market conditions, both on a national basis and in those areas where the Properties are located, the availability and cost of borrowed funds, real estate tax rates, operating expenses, energy costs, and government regulations. In addition, other risks inherent in real estate investment may influence the ultimate success of the Partnership, including (i) possible reduction in rental income due to an inability to maintain high occupancy levels or adequate rental levels, (ii) possible adverse changes in general economic conditions and adverse local conditions, such as competitive overbuilding, or a decrease in employment or adverse changes in real estate laws, including building codes, and (iii) the possible future adoption of rent control legislation which would not permit increased costs to be passed on to the tenants in the form of rent increases, or which would suppress the ability of the Local Limited Partnerships to generate operating cash flow. Since all of the Properties benefit from some form of government
assistance, the Partnership is subject to the risks inherent in that area including decreased subsidies, difficulties in finding suitable tenants and obtaining permission for rent increases. In addition, any Tax Credits allocated to investors with respect to a Property are subject to recapture to the extent that the Property or any portion thereof ceases to qualify for the Tax Credits. Other future changes in federal and state income tax laws affecting real estate ownership or limited partnerships could have a material and adverse affect on the business of the Partnership.
The Partnership is managed by 29 Franklin Street, Inc., the Managing General Partner of the Partnership. The other General Partner of the Partnership is Franklin 29 Limited Partnership. To economize on direct and indirect payroll costs, the Partnership, which does not have any employees, reimburses The Boston Financial Group Limited Partnership, an affiliate of the General Partner, for certain expenses and overhead costs. A complete discussion of the management of the Partnership is set forth in Item 10 of this Report.
Item 2.
Item 2. Properties
The Partnership owns limited partnership interests in thirty-four Local Limited Partnerships which own and operate Properties, all of which benefit from some form of federal, state or local assistance programs which qualify for the Tax Credits added to the Code by the Tax Reform Act of 1986. The Partnership's ownership interest in each Local Limited Partnership is generally 99%, except for Hazel-Winthrop, Logan Plaza and Boulevard Commons, where the Partnership's ownership interest is 98.99%, 98% and 98.974%, respectively, of each.
Each of the Local Limited Partnerships has received an allocation of Tax Credits by its relevant state tax credit agency. In general, the Tax Credit runs for ten years from the date the Property is placed in service. The required holding period (the "Compliance Period") of the Properties is fifteen years. During these fifteen years, the Properties must satisfy rent restrictions, tenant income limitations and other requirements, as promulgated by the Internal Revenue Service, in order to maintain eligibility for the Tax Credit at all times during the Compliance Period. Once a Local Limited Partnership has become eligible for the Tax Credits, it may lose such eligibility and suffer an event of recapture if its Property fails to remain in compliance with the requirements. To date, none of the Local Limited Partnerships have suffered an event of recapture of Tax Credits.
In addition, some of the Local Limited Partnerships have obtained one or a combination of different types of loans such as: i) below market rate interest loans; ii) loans provided by a redevelopment agency of the town or city in which the property is located at favorable terms; and iii) or loans that have repayment terms that are based on a percentage of cash flow.
The schedules on the following pages provide certain key information on the Local Limited Partnership interests acquired by the Partnership.
*FmHA This subsidy, which is authorized under Section 515 of the Housing Act of 1949, can be one or a combination of different types of financing. For instance, FmHA may provide 1) direct below-market-rate mortgage loans for rural rental housing; 2) mortgage interest subsidies which effectively lower the interest rate of the loan to 1%; 3) a rental assistance subsidy to tenants which allows them to pay no more than 30% of their monthly income as rent with the balance paid by the federal government; or 4) a combination of any of the above.
Section 8 This subsidy, which is authorized under Section 8 of Title II of the Housing and Community Development Act of 1974, allows qualified low-income tenants to pay 30% of their monthly income as rent with the balance paid by the federal government.
One Local Limited Partnership, Boulevard Commons, invested in by the Partnership represents more than 10% of the total capital contributions to be made to Local Limited Partnerships by the Partnership. Boulevard Commons is a 212-unit rehabilitation apartment complex with six buildings located in Chicago, Illinois.
Boulevard Commons is financed by a first mortgage at 10% interest, insured by the U.S. Department of Housing and Urban Development ("HUD"), and was refinanced at 8.875% on April 6, 1995. Principal and interest payments of $74,916 commenced June 1, 1995 and continue to May 1, 2035. In addition to this, there is a junior mortgage payable to the City of Chicago which bears interest at 3% per annum. The maturity date of this note is the later of July 1, 2030, or the retirement of the FHA insured mortgage.
The duration of the leases for occupancy in the Properties described above is six to twelve months. The Managing General Partner believes the Properties described herein are adequately covered by insurance.
Additional information required under this Item, as it pertains to the Partnership, is contained in Items 1, 7, and 8 of this Report.
Item 3.
Item 3. Legal Proceedings
The Partnership is not a party to any pending legal or administrative proceeding, and to the best of its knowledge, no legal or administrative proceeding is threatened or contemplated against it.
Item 4.
Item 4. Submission of Matters to a Vote of Security Holders
None.
PART II
Item 5.
Item 5. Market for the Registrant's Units and Related Security Holder Matters
There is no public market for the Units, and it is not expected that a public market will develop. If a Limited Partner desires to sell Units, the buyer of those Units will be required to comply with the minimum purchase and retention requirements and investor suitability standards imposed by applicable federal or state securities laws and the minimum purchase and retention requirements imposed by the Partnership. The price to be paid for the Units, as well as the commissions to be received by any participating broker-dealers, will be subject to negotiation by the Limited Partner seeking to sell his Units. Units will not be redeemed or repurchased by the Partnership.
The Partnership Agreement does not impose on the Partnership or its General Partners any obligation to obtain periodic appraisals of assets or to provide Limited Partners with any estimates of the current value of Units.
As of March 31, 1996, there were 3,330 record holders of Units of the Partnership.
Cash distributions, when made, are paid annually. No cash distributions were paid during the years ended March 31, 1996, 1995 and 1994.
Item 6.
Item 6. Selected Financial Data
The following table sets forth selected financial information regarding the Partnership's financial position and operating results. This information should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations and the Financial Statements and Notes thereto, which are included in Items 7 and 8 of this Report.
(A) Total assets include the net investment in Local Limited Partnerships.
(B) Income tax information is as of December 31, the year end of the Partnership for income tax purposes. The Low-Income Housing Tax Credit per Limited Partnership Unit for 1995, 1994, 1993, 1992 and 1991, represents the amount distributed to individual investors based upon 50,000 outstanding Units. Corporate investors received Low-Income Housing Tax Credits of $161.23, $158.40, $158.11, $157.89 and 158.40 per Unit in 1995, 1994, 1993, 1992 and 1991, respectively.
(C) The cash distribution represents a return of capital.
(D) March 31, 1996 revenue includes $28,827 of rental and other revenues from Hughes Apartments that is included in the combined revenue of the Statement of Operations.
March 31, 1996 equity in losses of Local Limited Partnerships does not include $13,329 of losses from Hughes Apartments that have been combined with the Partnership's loss in the Statements of Operations
March 31, 1996 cash and cash equivalents, and marketable securities include $26,084 of cash equivalents from Hughes Apartments that has been combined with the Partnership in the Balance Sheet.
Item 7.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
Liquidity and Capital Resources
At March 31, 1996, the Partnership cash and cash equivalents of $678,567 compared with $308,216 at March 31, 1995. The increase is attributable to cash distributions received from Local Limited Partnerships and proceeds from the sales and maturities of securities in excess of cash expenditures for the purchase of marketable securities, partially offset by cash used for operations.
At March 31, 1996, approximately $2,043,000 of cash, cash equivalents and marketable securities has been designated as reserves. The reserves were established to be used for working capital of the Partnership and contingencies related to the ownership of Local Limited Partnership interests. Reserves may be used to fund Partnership operating deficits, if the Managing General Partner deems funding appropriate.
Since the Partnership invests as a limited partner, the Partnership has no contractual duty to provide additional funds to Local Limited Partnerships beyond its specified investment. Thus, at March 31, 1996, the Partnership 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 Partnership's management might deem it in its best interests to provide such funds, voluntarily, in order to protect its investment. No such event has occurred to date.
Cash Distributions
No cash distributions to Limited Partners were made during the three years ended March 31, 1996. In the event that distributions are received from Local Limited Partnerships, the Managing General Partner has decided that such amounts will be used to increase reserves. No assurance can be given as to the amounts of future distributions from the Local Limited Partnerships since many of the Properties benefit from some type of federal or state subsidy, and as a consequence, are subject to restrictions on cash distributions. Therefore, it is expected that only a limited amount of cash will be distributed to investors from this source in the future.
Results of Operations
1996 versus 1995
The Partnership's results of operations for the year ended March 31, 1996 resulted in a net loss of $2,278,003, as compared to a net loss of $3,142,627 for the same period in 1995. The improved net loss position is primarily attributable to the Mod Rehab Settlement, which resulted in reimbursement of legal costs incurred by the Partnership on behalf of the Mod Rehab Program Properties, as well as an increase in investment revenue due to improved market conditions and an adjustment to the reserve for valuation of investments in Local Limited Partnerships.
1995 versus 1994
The Partnership's operating results for the year ended March 31, 1995 resulted in a net loss of $3,142,627, as compared to a net loss of $3,048,198 for the same period in 1994. The slight increase is primarily attributable to an increase in the provision for valuation of Investments in the Local Limited Partnerships and a decline in investment income resulting from lower investment rates. These increases were partially offset by a decline in equity in losses of Local Limited Partnerships.
The increase in the adjustment to reserve for valuation of Investments in Local Limited Partnerships is the result of a $273,000 reserve against the Partnership's investment in one Local Limited Partnership. Partially offsetting this amount is a decrease in the reserve amount related to 2225 New York Avenue, L.P. equal to the loss incurred during the year ended December 31, 1994.
The equity in losses of Local Limited Partnerships decreased for the year ended March 31, 1995, as compared with the same period in 1994 primarily as a result of an increase in rental income in 1994 and a decrease in depreciation as assets become or approach being fully depreciated.
Effect of recently issued Accounting Standard
The Financial Accounting Standards Board has issued Statement of Accounting Standards No. 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of, which is effective for fiscal years beginning after December 15, 1995. This standard requires that long-lived assets be reviewed for recoverability. Impairment losses are recognized when future cash flows or other benefits are less than the carrying amount of the asset. The Partnership plans to adopt the new standard for its year ending March 31, 1997, however, it is not expected to have a significant effect on financial position or results of operations.
Low-Income Housing Tax Credits
The 1995, 1994 and 1993 Low-Income Housing Tax Credits per Unit for individuals were $151.31, $148.55 and $148.11, respectively. The 1995, 1994 and 1993 Low-Income Housing Tax Credits per Unit for corporations were $161.23, $158.40 and $158.11, respectively. The Tax Credits per Limited Partnership Unit stabilized in 1991 at approximately $148.00 per Unit for individuals and $158.00 per Unit for corporations. The credits are expected to remain stable for the two years subsequent to 1995 and then they are expected to decrease as certain properties reach the end of the ten-year credit period.
Property Discussions
Limited Partnership interests have been acquired in thirty-four Local Limited Partnerships which own and operate rental properties located in nineteen states. Fourteen of the properties with 774 apartments were newly constructed and twenty of the properties with 2,091 apartments were rehabilitated. All of the properties have completed construction or rehabilitation and initial rent-up.
Most of the thirty-four Local Limited Partnerships have stabilized operations. The majority of these stabilized properties are operating at break-even or generating operating cash flow.
A number of properties are experiencing operating difficulties and cash flow deficits due to a variety of reasons. The Local General Partners of those properties have funded operating deficits through project expense loans, subordinated loans or payments from operating escrows. In certain instances where the Local General Partners have stopped funding deficits because their obligation to do so has expired or otherwise, the Managing General Partner is working with the Local General Partners to increase operating income, reduce expenses or refinance the debt at lower interest rates in order to improve cash flow.
At Pebble Creek, continued deficits caused by high security and repair costs, and high turnover has resulted in a mortgage default. An affiliate of the Managing General Partner had become actively involved in discussions with the bondholder on a workout plan to refinance the mortgage and address the mortgage default and deferred maintenance issues. Despite these efforts, the loan has recently been assigned to HUD. Because of the level of Section 8 subsidy, only state and local housing agencies, or qualified non-profits will be able to bid on the mortgage. As previously reported, the Local General Partners have expressed their desire to sell their ownership interests in the property. However, they are not actively pursuing such a sale. The carrying value of the Partnership's investment in this Local Limited Partnership is zero at March 31, 1996.
Cass House and Verdean Gardens, Massachusetts properties which share a common Local General Partner, continue to operate below break even in a slow rental market. The SHARP subsidy agreements for both properties were renegotiated in 1992 and provided additional subsidies. However, since the properties continue to operate at a deficit and Verdean Gardens requires maintenance work, the Local General Partner has applied for further
subsidies. The restructuring for Cass House closed in June 1996; the closing for Verdean Gardens is expected to occur by September 1996. Both restructurings will require contributions from Partnership reserves. Under the existing subsidy agreements, the Local General Partner has been supporting the properties' operations through deferred management fees and guarantees or letters of credit. The carrying value of the Partnership's investment in these Local Limited Partnerships is zero at March 31, 1996.
At Hughes Apartments, located in Mandan, North Dakota, rental losses due to flood damage resulted in a mortgage default. Effective October 27, 1995, an affiliate of the Partnership's Managing General Partner replaced the Local General Partner. Construction to repair the damaged units is ongoing, and occupancy has increased partly because the local Housing Authority has reinstated Hughes on their resident referral list. The Managing General Partner negotiated a forbearance agreement with the lender which included an infusion of additional capital to cure the default and fund capital repairs. A portion of the capital repairs will be funded from Partnership reserves.
It was previously reported that an affiliate of The Boston Financial Group Limited Partnership had been negotiating to purchase the Local General Partner interests in five properties in which the Partnership has invested in (collectively, the "Colorado Partnerships") from Phillip Abrams Ventures, Inc. and PDW, Inc., the current Local General Partners. It now appears that this transaction will not occur. Instead, the Local General Partner will retain their interests in the Colorado Partnerships and Boston Financial will continue to act as property manager for these properties.
Inflation and Other Economic Factors
Inflation had no material impact on the operations or financial condition of the Partnership for the years ended March 31, 1996, 1995 and 1994.
Item 8.
Item 8. Financial Statements and Supplementary Data
Information required under this Item is submitted as a separate section of this Report. See Index on page hereof.
Item 9.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
On November 10, 1995, the firm of Arthur Andersen LLP was dismissed as the principal accountant to audit the registrant's financial statements. Reports on the financial statements of the registrant by Arthur Andersen LLP for the years ending March 31, 1995 and 1994, respectively, did not contain any adverse opinion or disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope, or accounting principles. The decision to change accountants was approved by the Board of Directors of the General Partner of the registrant.
During the years ending March 31, 1995 and 1994, respectively, and for the subsequent interim period, April 1, 1995 through November 10, 1995, there were no disagreements with Arthur Andersen LLP on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure.
The firm of Coopers & Lybrand L.L.P. has been engaged as principal accountant to audit the registrant's financial statements.
PART III
Item 10.
Item 10. Directors and Executive Officers of the Registrant
The Managing General Partner of the Partnership is 29 Franklin Street, Inc., a Massachusetts corporation (the "Managing General Partner" or "Franklin, Inc."), an affiliate of The Boston Financial Group Limited Partnership ("Boston Financial"), a Massachusetts limited partnership. George Fantini, Jr., a Vice President of the Managing General Partner resigned his position effective June 30, 1995.
The Managing General Partner was incorporated in January 1987. William E. Haynsworth is the Chief Operating Officer of the Managing General Partner, and had the primary responsibility for evaluating, selecting and negotiating investments for the Partnership. The Investment Committee of the Managing General Partner approved all investments. The names and positions of the principal officers and the directors of the Managing General Partner are set forth below.
Name Position
Georgia Murray Managing Director, Treasurer and Chief Financial Officer Fred N. Pratt, Jr. Managing Director William E. Haynsworth Managing Director, Vice President and Chief Operating Officer Paul F. Coughlan Vice President Peter G. Fallon, Jr. Vice President Donna C. Gibson Vice President Randolph G. Hawthorne Vice President A. Harold Howell Vice President
The other General Partner of the Partnership is Franklin 29 Limited Partnership, a Massachusetts limited partnership ("Franklin L.P.") that was organized in January 1987. The General Partners of Franklin L.P. are Messrs. Pratt, Hawthorne, Coughlan and Fallon.
The Managing General Partner provides day-to-day management of the Partnership. Compensation is discussed in Item 11
Item 11. Management Remuneration
Neither the directors or officers of Franklin, Inc., nor the partners of Franklin L.P., nor any other individual with significant involvement in the business of the Partnership receives any current or proposed remuneration from the Partnership.
Item 12.
Item 12. Security Ownership of Certain Beneficial Owners and Management
No person is known to the Partnership to be the beneficial owner of more than 5% of the outstanding Units.
The equity securities registered by the Partnership under Section 12(g) of the Act consist of 50,000 Units, all of which have been sold to the public. Holders of Units are permitted to vote on matters affecting the Partnership only in certain unusual circumstances and do not generally have the right to vote on the operation or management of the Partnership.
As of March 31, 1996, Franklin L.P. owns five (unregistered) Units not included in the 50,000 Units sold to the public.
Except as described in the preceding paragraph, neither Franklin, Inc., Franklin L.P., Boston Financial, nor any of their executive officers, directors, partners, or affiliates is the beneficial owner of any Units. None of the foregoing persons possesses a right to acquire beneficial ownership of Units.
The Partnership does not know of any existing arrangement that might at a later date result in a change in control of the Partnership.
Item 13.
Item 13. Certain Relationships and Related Transactions
The Partnership was required to pay certain fees to and reimburse certain expenses of the Managing General Partner or its affiliates (including Boston Financial) in connection with the organization of the Partnership and the offering of Units. The Partnership is also required to pay certain fees to and reimburse certain expenses of the Managing General Partner or its affiliates (including Boston Financial) in connection with the administration of the Partnership and its acquisition and disposition of investments in Local Limited Partnerships. In addition, the General Partners are entitled to certain Partnership distributions under the terms of the Partnership Agreement. Also, an affiliate of the General Partners will receive up to $10,000 from the sale or refinancing proceeds of each Local Limited Partnership, if it is still a limited partner at the time of such transaction. All such fees, expenses and distributions paid in the three years ended March 31, 1996 are described below and in the sections of the Prospectus entitled "Estimated Use of Proceeds", "Management Compensation and Fees" and "Profits and Losses for Tax Purposes, Tax Credits and Cash Distributions". Such sections are incorporated herein by reference. In addition, Boston Financial Property Management, an affiliate of the Managing General Partner, serves as property management agent for one of the properties in which the Partnership invested.
The Partnership is permitted to enter into transactions involving affiliates of the Managing General Partner, subject to certain limitations established in the Partnership Agreement as follows:
Organizational fees and expenses and selling expenses
In accordance with the Partnership Agreement, the Partnership was required to pay certain fees to and reimburse expenses of the General Partners and others in connection with the organization of the Partnership and the offering of its Limited Partnership Units. As of March 31, 1996, selling commissions, fees and accountable expenses related to the sale of the Units totaling $6,164,983 have been charged directly to Limited Partners' equity. In connection therewith, $3,963,740 of selling expenses and $2,201,243 of offering expenses incurred on behalf of the Partnership have been paid to an affiliate of the General Partner. The Partnership has capitalized an additional $50,000 of organizational costs which was reimbursed to an affiliate of the General Partner. These costs are fully amortized as of March 31, 1996. Total organization and offering expenses exclusive of selling commissions and underwriting advisory fees did not exceed 5.5% of the Gross Proceeds and organizational and offering expenses, inclusive of selling commissions and underwriting advisory fees, did not exceed 15.0% of the Gross Proceeds. No organizational fees and expenses and selling expenses were paid during the three years ended March 31, 1996.
Acquisition fees and expenses
In accordance with the Partnership Agreement, the Partnership was required to pay acquisition fees to and reimburse acquisition expenses of the Managing General Partner or its affiliates for selecting, evaluating, structuring, negotiating, and closing the Partnership's investments in Local Limited Partnerships. Acquisition fees total 8% of the gross offering proceeds. Acquisition expenses include such expenses as legal fees and expenses, travel and communications expenses, costs of appraisals, and accounting fees and expenses. As of March 31, 1996, acquisition fees totaling $4,000,000 for the closing of the Partnership's Local Limited Partnership Investments have been paid to an affiliate of the Managing General Partner. Acquisition expenses totaling $770,577 at March 31, 1996 were incurred and have been reimbursed to an affiliate of the Managing General Partner. No acquisition fees or expenses were paid during the three years ended March 31, 1996.
Salaries and benefits expense reimbursements
An affiliate of the Managing General Partner is reimbursed for the cost of the Partnership's salaries, benefits and administrative expenses. The reimbursements are based upon the size and complexity of the Partnership's operations. Reimbursements made in each of the three years ended March 31, 1996 are as follows:
1996 1995 1994 ------------- ------------ --------- Salaries and benefits expense reimbursements $ 146,464 $135,847 $119,268
Property Management Fees
Boston Financial Property Management ("BFPM"), an affiliate of the Managing General Partner, currently manages four of the five properties owned by the Colorado Partnerships. The property management fee charged to each property is equal to 5% of property gross revenues. BFPM earned fees in each of the three years ended March 31, 1996 are as follows
1996 1995 1994 ------------- ------------ ---------
Property Management Fees $ 181,269 $189,800 $186,882
Cash distributions paid to the General Partners
In accordance with the Partnership Agreement, the General Partners of the Partnership, Franklin, Inc. and Franklin Limited Partnership, receive 1% of cash distributions made to partners.
No cash distributions were paid to the General Partners in each of the three years ended March 31, 1996.
Additional information concerning cash distributions and other fees paid or payable to the Managing General Partner and its affiliates and the reimbursement of expenses paid or payable to Boston Financial and its affiliates during each of the three years ended March 31, 1996 is presented in Note 5 to the Financial Statements.
PART IV
Item 14.
Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K
(a)(1) and (a)(2) Documents filed as a part of this Report
In response to this portion of Item 14, the financial statements, financial statement schedule, and the auditors' reports relating thereto, are submitted as a separate section of this Report. See Index on page hereof.
The reports of auditors of the Local Limited Partnerships relating to the audits of the financial statements of such Local Limited Partnerships appear in Exhibit (28)(1) of this Report.
All other financial statement schedules and exhibits for which provision is made in the applicable accounting regulation of the Securities and Exchange Commission are not required under related instructions or are inapplicable, and therefore have been omitted.
(a)(3)(b)Reports on Form 8-K No Reports on Form 8-K were filed during the quarter ended March 31, 1996.
(a)(3)(c) Exhibits
Page Number or Number and Description in Accordance with Incorporation Item 601 of Regulation S-K by Reference to
28. Additional Exhibits
(a) 28.1 Reports of Other Independent Auditors
(b) Audited financial statements of Local Limited Partnerships
1. Boulevard Commons
(a)(3)(d) None.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
By:29 Franklin Street, Inc. its Managing General Partner
By: /s/William E. Haynsworth Date: June 28, 1996 William E. Haynsworth, Managing Director, Vice President and Chief Operating Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the Managing General Partner of the Partnership and in the capacities and on the dates indicated:
By: /s/William E. Haynsworth Date: June 28, 1996 William E. Haynsworth, Managing Director, Vice President and Chief Operating Officer
By: /s/Fred N Pratt, Jr. Date: June 28, 1996 Fred N Pratt, Jr., A Managing Director
Item 8. Financial Statements and Supplementary Data
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP (A Limited Partnership)
Annual Report on Form 10-K For the Year Ended March 31, 1996 Index
Page No.
Report of Independent Accountants For the year ended March 31, 1996 For the years ended March 31, 1995 and 1994
Combined Financial Statements
Combined Balance Sheets - March 31, 1996 and 1995
Combined Statements of Operations - Years Ended March 31, 1996, 1995 and 1994
Combined Statements of Changes in Partners' Equity (Deficiency) Years Ended March 31, 1996, 1995 and 1994
Combined Statements of Cash Flows - Years Ended March 31, 1996, 1995 and 1994
Notes to Combined Financial Statements
Financial Statement Schedule:
Schedule III - Real Estate and Accumulated Depreciation
See also Index to Exhibits on Page K-25 for the financial statements of the Local Limited Partnerships included as a separate exhibit in this Annual Report on Form 10-K.
Other schedules have been omitted as they are either not required or the information required to be presented therein is available elsewhere in the financial statements and the accompanying notes and schedules.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of Boston Financial Qualified Housing Limited Partnership:
We have audited the accompanying combined balance sheet of Boston Financial Qualified Housing Limited Partnership (A Limited Partnership) as of March 31, 1996 and the related combined statements of operations, changes in partners' equity (deficiency) and cash flows and the financial statement schedule listed in Item 14(a) of this Report on Form 10-K, for the year ended March 31, 1996. These financial statements and financial statement schedule are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and the financial statement schedule based on our audit. As of March 31, 1996, 74% of total assets, and for the year ended March 31, 1996, 99% of equity in losses of Local Limited Partnerships, reflected in the financial statements of the Partnership, relate to Local Limited Partnerships for which we did not audit the financial statements. The financial statements of these Local Limited Partnerships were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to those investments in Local Limited Partnerships, is based solely on the reports of other auditors.
We conducted our audit in accordance with generally accepted auditing standards. 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 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 audit provides a reasonable basis for our opinion.
In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the financial position of Boston Financial Qualified Housing Limited Partnership, as of March 31, 1996, and the results of its operations and its cash flows for the year ended March 31, 1996, in conformity with generally accepted accounting principles. In addition, in our opinion, the financial statement schedule referred to above, when considered in relation to the basic financial statements taken as a whole, presents fairly, in all material respects, the information required to be included therein.
Coopers & Lybrand L.L.P. Boston, Massachusetts June 19, 1996
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners Boston Financial Qualified Housing Limited Partnership:
We have audited the accompanying balance sheet of Boston Financial Qualified Housing Limited Partnership (A Limited Partnership) as of March 31, 1995 and the related combined statements of operations, changes in partners' equity (deficiency) and cash flows for the each of the two 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 did not audit certain of the financial statements of the Local Limited Partnerships for each of the two years ended March 31, 1995, the investments in which are recorded using the equity method of accounting (see Note 2). The investments in these partnerships represent 79% of the Partnership's assets as of March 31, 1995 and the equity in their losses represent 100% of the equity in loss of the Local Limited Partnerships for each of the two years ended March 31, 1995. Those financial statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to those investments in Local Limited Partnerships, is based solely on the reports of other auditors.
We conducted our audits in accordance with generally accepted auditing standards. 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 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 and the reports of other auditors, provide a reasonable basis for our opinion.
In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the financial position of Boston Financial Qualified Housing Limited Partnership as of March 31, 1995, and the results of its operations and its cash flows for each of the two years then ended in conformity with generally accepted accounting principles.
Arthur Andersen LLP Boston, Massachusetts June 16, 1995
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP (A Limited Partnership)
COMBINED BALANCE SHEETS - March 31, 1996 and 1995
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP (A Limited Partnership)
COMBINED STATEMENTS OF OPERATIONS For The Years Ended March 31, 1996, 1995 AND 1994
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP (A Limited Partnership)
COMBINED STATEMENTS OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY) For the Years Ended March 31, 1996, 1995 AND 1994
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP (A Limited Partnership)
COMBINED STATEMENTS OF CASH FLOWS For the Years Ended March 31, 1996, 1995 AND 1994
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP (A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS
1. Organization
Boston Financial Qualified Housing Limited Partnership (the "Partnership") was formed on January 22, 1987 under the laws of the State of Delaware for the primary purpose of investing, as a limited partner, in other limited partnerships ("Local Limited Partnerships"), each of which own and operate apartment complexes benefiting from some form of federal, state or local assistance program and each of which qualify for low-income housing tax credits. The Partnership's objectives are to (i) provide current tax benefits in the form of tax credits which qualified investors may use to offset their federal income tax liability, (ii) preserve and protect the Partnership's capital, (iii) provide limited cash distributions from property operations which are not expected to constitute taxable income during Partnership operations, and iv) provide cash distributions from sale or refinancing transactions. The General Partners of the Partnership are 29 Franklin Street Inc., which serves as the Managing General Partner and Franklin 29 Limited Partnership, which serves as the Initial Limited Partner. Both of the General Partners are affiliates of The Boston Financial Group Limited Partnership ("Boston Financial"). The fiscal year of the Partnership ends on March 31.
The Partnership's partnership agreement ("Partnership Agreement") authorized the sale of up to 50,000 units of Limited Partnership Interest ("Units") at $1,000 per Unit, adjusted for certain discounts. The Partnership raised $49,963,740 ("Gross Proceeds"), net of discounts of $36,260, through the sale of 50,000 Units. Such amounts exclude five unregistered Units previously acquired for $5,000 by the Initial Limited Partner, which is also one of the General Partners. The offering of Units terminated on April 29, 1988.
Generally, profits, losses, tax credits and cash flows from operations are allocated 99% to the Limited Partners and 1% to the General Partners. Net proceeds from a sale or refinancing will be allocated 95% to the Limited Partners and 5% to the General Partners after certain priority payments.
Under the terms of the Partnership Agreement, the Partnership originally designated 5% of Gross Proceeds from the sale of Units as a reserve for working capital of the Partnership and contingencies related to ownership of Local Limited Partnership interests. The Managing General Partner may increase or decrease such amounts from time to time, as it deems appropriate. As of March 31, 1996, the Managing General Partner has designated approximately $2,043,000 of cash, cash equivalents and marketable securities as such reserve.
2. Significant Accounting Policies
Basis of Presentation and Combination
The Partnership accounts for its investments in Local Limited Partnerships, with the exception of Hughes Apartments, using the equity method of accounting. Under the equity method, the investment is carried at cost, adjusted for changes in the net assets and for cash distributions from the Local Limited Partnerships; equity in income or loss of the Local Limited Partnerships is included currently in the Partnership's operations. Under the equity method, a Limited Partnership investment will not be carried below zero. To the extent that equity losses are incurred when a Local Limited Partnership's respective asset value has been reduced to a zero balance, the losses will be suspended to be used against future income. Also, when a Local Limited Partnership with a carrying value of zero distributes cash to the Partnership, that distribution is recorded as revenue on the books of the Partnership in the accompanying financial statements.
Excess investment costs over the underlying net assets acquired have arisen from acquisition fees paid and expenses reimbursed to an affiliate of the Partnership. These fees and expenses, which are part of the Partnership's Investments in Local Limited Partnerships, are being amortized on a straight-line basis over 35 years.
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP (A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
2. Significant Accounting Policies (continued)
In connection with the Partnership's fiscal year-end of March 31, the General Partner has decided to report the results of the Local Limited Partnerships on a 90-day lag basis. Accordingly, the financial information of the Local Limited Partnerships that is included in the accompanying Combined Financial Statements is as of December 31, 1995, 1994, and 1993.
On October 27, 1995, an affiliate of the Partnership's Managing General Partners, BF Harbour View, Inc., became the Local General Partner of Hughes Apartments, Ltd. ("Hughes"), a Local Limited Partnership in which the Partnership has invested. Since the Local General Partner of Hughes is an affiliate of the Partnership, these combined financial statements include all activity of Hughes Apartments, Ltd. from November 1, 1995 through December 31, 1995. All significant intercompany balances and transactions have been eliminated.
The Partnership has elected to report the results of Hughes on a 90-day lag basis, consistent with the presentation of the financial information of all Local Limited Partnerships.
The Partnership recognizes a decline in the carrying value of its investment in Local Limited Partnerships when there is evidence of a non-temporary decline in the recoverable amount of the investment.
The Partnership, as a limited partner in the Local Limited Partnerships, is subject to risks inherent in the ownership of property which are beyond its control, such as fluctuations in occupancy rates and operating expenses, variations in rental schedules, proper maintenance and continued eligibility for tax credits. If the cost of operating a property exceeds the rental income earned thereon, the Partnership may deem it in its best interest to voluntarily provide funds in order to protect its investment. There is a possibility that the estimates relating to reserves for non-temporary declines in the carrying value of investments in Local Limited Partnerships may be subject to material near term adjustments.
It was previously reported that an affiliate of The Boston Financial Group Limited Partnership had been negotiating to purchase the Local General Partner interests in five properties in which the Partnership has invested (collectively, the "Colorado Partnerships") from Phillip Abrams Ventures, Inc. and PDW, Inc., the current Local General Partners. It now appears that this transaction will not occur. Instead, the Local General Partners will retain their interests in the Colorado Partnerships and Boston Financial will continue to act as property manager for these properties.
Cash Equivalents
Cash equivalents consist of short-term money market instruments with original maturities of 90 days or less at acquisition and approximate fair value.
Marketable Securities
Marketable securities consist primarily of U.S. Treasury instruments and various asset-backed investment vehicles. On March 31, 1994, the Partnership adopted Statement of Financial Accounting Standards No. 115 - Accounting for Certain Investments in Debt and Equity Securities. Under this statement, the Partnership's investments in securities are classified as "Available for Sale" securities and reported at fair value as reported by the brokerage firm at which the securities are held. Realized gains and losses from the sales of securities are based on the specific identification method. Unrealized gains and losses are excluded from earnings and reported as a separate components of partners' equity.
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP (A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
2. Significant Accounting Policies (continued)
Effect of recently issued Accounting Standard
The Financial Accounting Standards Board has issued Statement of Financial Accounting Standards No. 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of, which is effective for fiscal years beginning after December 15, 1995. This standard requires that long-lived assets be reviewed for recoverability. Impairment losses are recognized when future cash flows or other benefits are less than the carrying amount of the asset. The Partnership plans to adopt the new standard for its year ending March 31, 1997, however, it is not expected to have a significant effect on financial position or results of operations.
Deferred Charges
Bond financing costs incurred in connection with financing the construction of Hughes has been capitalized and are being amortized over the 25-year term of the bonds, using the straight line method of amortization.
Rental Property
Real estate and personal property of Hughes is carried at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures 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.
Rental Income
Rental income, principally from short term leases on apartment units, is recognized as income as rentals become due.
Income Taxes
No provision for income taxes has been made as the liability for such taxes is the obligation of the partners of the Partnership.
Reclassifications
Certain amounts in the prior year financial statements have been reclassified herein to conform with the current year presentation.
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP (A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
3. Marketable Securities
A summary of marketable securities is as follows:
The contractual maturities at March 31, 1996 are as follows:
Actual maturities may differ from contractual maturities because some borrowers have the right to call or prepay obligations. Proceeds from sales and maturities were approximately $1,653,000 and $3,094,000 for the years ended March 31, 1996 and 1995, respectively. Included in investment income are gross gains of $16,733 and gross losses of $7,263 which were realized on these sales for the year ended March 31, 1996 and gross gains of $1,349 and gross losses of $47,710 which were realized on the sales for the year ended March 31, 1995.
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP (A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
4. Investments in Local Limited Partnerships
The Partnership has acquired interests in thirty-three Local Limited Partnerships, excluding Hughes, which own and operate multi-family housing complexes, all of which are government-assisted. The Partnership, as Investor Limited Partner pursuant to the various Local Limited Partnership Agreements, which contain certain operating and distribution restrictions, has generally acquired a 99% interest in the profits, losses, tax credits and cash flows from operations of each of the Local Limited Partnerships. Upon dissolution, proceeds will be distributed according to each respective partnership agreement.
The following is a summary of Investments in Local Limited Partnerships at March 31, 1996 1995 and 1994. The 1996 summary excludes Hughes.
The 1995, 1994 and 1993 financial statements of 2225 New York Avenue, LTD ("2225 New York Avenue"), a Local Limited Partnership in which the Partnership invested, were prepared assuming that 2225 New York Avenue will continue as a going concern. 2225 New York Avenue, which owns Pebble Creek in Arlington, Texas, incurred significant net losses in 1995, 1994 and 1993, has severe liquidity problems and recurring cash deficits. Pebble Creek did operate at break-even in 1993, however, the Property continues to have high maintenance expenses. These factors, among others, raise substantial doubt as to 2225 New York Avenue's ability to continue as a going concern. As such, the Partnership provided a reserve for valuation of $1,885,841 against its investment in 2225 New York Avenue at March 31, 1992. This reserve has been adjusted in the financial statements to reflect the Partnership's share of the net losses of 2225 New York Avenue for the years ended December 31, 1993 through 1995. Equity in losses of Local Limited Partnerships for the years ended March 31, 1996, 1995, and 1994 includes $500,670, $218,983 and $237,332, respectively, related to 2225 New York Ave. The reserve for valuation of investments in Local Limited Partnerships has been reduced by these amounts. As a result, these losses have no effect on the Partnership's Net Loss.
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP (A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
4. Investments in Local Limited Partnerships (continued)
The Partnership has also provided a reserve for valuation for a portion of its investment in one other Local Limited Partnership, Graver Inn, because there is evidence of a non-temporary decline in the recoverable amount of the investment.
Summarized financial information, as of December 31, 1995, 1994, and 1993 (due to the Partnership's policy of reporting financial information of its Local Limited Partnership interests on a 90 day lag basis) of the Local Limited Partnerships, excluding Hughes in 1996, of all Local Limited Partnerships in which the Partnership has invested as of that date is as follows:
Summarized Balance Sheets - as of December 31,
Summarized Income Statements - for the year ended December 31,
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP (A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
4. Investments in Local Limited Partnerships (continued)
For the years ended March 31, 1996, 1995 and 1994, the Partnership has not recognized $2,500,759, $2,453,775 and $2,239,067, respectively, in equity in losses relating to eleven Local Limited Partnerships where cumulative equity in losses and cumulative distributions exceeded its total investments.
The Partnership's deficit as reflected by the Local Limited Partnerships of $8,764,328 differs from the Partnership's Investments in Local Limited Partnerships before adjustment of $3,437,643 principally because: a) the Partnership has not recognized $9,589,820 of equity in losses relating to Local Limited Partnerships whose cumulative equity in losses exceeded their total investments; b) purchase price paid to original Limited Partners by the Partnership have not been reflected in the balance sheets of certain Local Limited Partnerships and c) cash distributions paid to the Partnership during the quarter ended March 31, 1996 are not reflected in the equity of certain Local Limited Partnerships at December 31, 1995.
5. Transactions with Affiliates
An affiliate of the Managing General Partner is reimbursed for the actual cost of the Partnership's operating expenses. Included in general and administrative expenses for the years ended March 31, 1996, 1995 and 1994 is $146,464, $135,847 and $119,268, respectively, that has been paid or is payable by the Partnership as reimbursement for salaries and benefits.
Boston Financial Property Management ("BFPM"), an affiliate of the Managing General Partner, currently manages Sierra Vista, Windsor Court, Rolling Green and Terrace, four properties in which the Partnership has invested. The property management fee charged to each property is equal to 5% of property gross revenues. Included in operating expenses in the summarized income statements in Note 4 to the Financial Statements is $181,269, $189,800 and $186,882 of fees earned by BFPM for the years ended December 31, 1995, 1994 and 1993, respectively.
6. Rental Property
Real estate and personal property belonging to Hughes Apartments are recorded at cost, the components of which are as follows at December 31, 1995:
Land $ 29,008 Building and improvements 1,425,374 Equipment and furnishings 26,817 ----------- 1,481,199 Less accumulated depreciation (345,831) ----------- Total $ 1,135,368 ===========
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP (A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
7. Bonds Payable
Hughes Apartments Limited Partnership financed the construction of the project through the sale of 25 year Industrial Development Revenue Bonds ("the Bonds") by the city of Mandan, North Dakota and leased the property from the city for rental equal to the sum of the annual principal payment and semiannual interest payments on the Bonds. The Bonds bear interest at 9.75%. The leased property is included as an asset of the Partnership and the bonds have been recorded as a direct obligation of the Partnership.
The bond financing documents require that a portion of the bond proceeds be deposited in a bond reserve trust account and that only interest income on the account can be used for operations. The funds can be withdrawn only by the bond trustee in the event that there is insufficient cash in the bond account to pay the annual bond payments. If the bond trustee does draw on the bond reserve trust account, the amount withdrawn must be replaced or Hughes Apartments, LP will be considered in default on the remaining outstanding bonds. The bond trustee has withdrawn funds from this account in 1995 and 1994. The amounts withdrawn have not been replaced, and consequently, Hughes Apartments, LP is in default of its lease agreement.
Effective October 27, 1995, an affiliate of the Partnership's Managing General Partner replaced the Local General Partner and successfully negotiated a Forbearance Agreement with the trustee whereby the mortgage arrears and capital repairs would be funded from Partnership and bond reserves.
Principal payments due under the terms of the financing agreement are as follows:
1996 $ 117,975 1997 117,975 1998 117,975 1999 117,975 2000 117,975 Thereafter 620,125 ----------- 1,210,000 Less current portion 117,975 ---------- $1,092,025 ========== Based on the unique terms of this financiing, management believes it is not practicable to estimate the fair value of this arrangement.
The balances in the Trust accounts required to be maintained pursuant to the bond financing documents, at December 31, 1995 are as follows:
Bond reserve trust $ 42,618 Bond trust 27,522 ----------- $ 70,140 ============ The Bond reserve trust account consists of investments in U.S. Treasury notes, which are considered held to maturity and are due in January 1999. Investment cost as of December 31, 1995 and 1994 are $42,618 and $101,937, respectively. Fair value as of December 31, 1995 and 1994 are $46,378 and $99,755, respectively. Unrealized gains of $3,760 in 1995 and unrealized losses as of $2,182 in 1994 have not been recognized as the notes will be held to maturity.
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP (A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
8. Federal Income Taxes
A reconciliation of the loss reported in the Combined Statements of Operations for the years ended March 31, 1996, 1995 and 1994 to the loss reported for federal income tax purposes is as follows:
The carrying value of the Partnership's Investment in Local Limited Partnerships is approximately $17,856,000 greater for financial reporting purposes than for tax return purposes because (i) the equity in losses of the Local Limited Partnerships is approximately $9,053,000 greater for tax purposes because of accelerated tax depreciation methods used; (ii) the Partnership has not recognized approximately $9,590,000 of equity in losses of the Local Limited Partnerships for financial reporting purposes; (iii) the Partnership has provided a provision for valuation of approximately $788,000 against two of its investments in Local Limited Partnerships for financial reporting purposes; (iv) the amortization of acquisition fees for tax purposes exceeds financial reporting purposes by approximately $316,000; and (v) approximately $334,000 of cash distributions received from Local Limited Partnerships during the lag period January 1, 1996 to March 31, 1996. The carrying value of the Partnership's other assets and liabilities is the same for financial reporting and tax return purposes.
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP (A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
9. Supplemental Combining Schedules
(A) March 31, 1996. (B) December 31, 1995.
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP (A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
9. Supplemental Combining Schedules (continued)
(A) For the year ended March 31, 1996. (B) For the two months ended December 31, 1995 - see Note 2.
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP (A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
9. Supplemental Combining Schedules (continued)
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP (A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
9. Supplemental Combining Schedules (continued)
(A) For the year ended March 31, 1996. (B) For the two months ended December 31, 1995 - See Note 2.
Boston Financial Qualified Housing Limited Partnership Schedule III - Real Estate and Accumulated Depreciation of Property owned by Local Limited Partnerships in which Registrant has invested at March 31, 1996
(1) The aggregate cost for Federal Income Tax purposes is approximately $ 148,016,716.
* Mortgage notes payable generally represent non-recourse financing of low-income housing projects payable with terms of up to 40 years with interest payable at rates ranging from 9.75% to 12%. The Partnership has not guaranteed any of these mortgage notes payable.
Boston Financial Qualified Housing Limited Partnership Schedule III - Real Estate and Accumulated Depreciation of Property owned by Local Limited Partnerships in which Registrant has invested at March 31, 1996 (continued)
Summary of property owned and accumulated depreciation:
Annual Report on form 10-K For The Year Ended March 31, 1996 Reports of Independent Auditors
[Letterhead]
[LOGO] Haran & Associates Ltd Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To the Partners HUD Field Office Director BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois Chicago, Illinois
We have audited the accompanying balance sheet of BOULEVARD COMMONS LIMITED PARTNERSHIP, Project No. 071-35592, as of December 31, 1995 and the related statements of profit and loss, changes in partners' equity and statement of 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 generally accepted auditing standards and generally accepted Government Auditing Standards for financial and compliance audits issued by the Comptroller General of the United States. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. 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 audit provided a reasonable basis for our opinion.
In our opinion the financial statements referred to in the first paragraph present fairly, in all material respects, the financial position of BOULEVARD COMMONS LIMITED PARTNERSHIP as of December 31, 1995, and its profit or loss, changes in partners' equity, and its cash flows for the year then ended in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated January 19, 1996 on our consideration of BOULEVARD COMMONS LIMITED PARTNERSHIP's internal control structure and reports dated January 19, 1996 on its compliance with specific requirements applicable to Major HUD Programs and specific requirements applicable to Affirmative Fair Housing.
The accompanying supplementary information included in this report (shown on pages 16 through 20) 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 same auditing procedures applied in the audit of the basic financial statements and, in our opinion, are presented fairly in all material respects in relation to the basic financial statements taken as a whole.
/s/ HARAN & ASSOCIATES LTD
HARAN & ASSOCIATES LTD Certified Public Accountants Wilmette, Illinois Illinois Certificate No. 060-002892 Federal Identification No. 36-3097692 Audit Partner: James E. Haran (708) 853-2580 January 19, 1996
[Letterhead]
[LOGO] Haran & Associates Ltd Certified Public Accountants Business Consultants
INDEPENDENT AUDITOR'S REPORT
To the Partners HUD Field Office Director BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois Chicago, Illinois
We have audited the accompanying balance sheet of BOULEVARD COMMONS LIMITED PARTNERSHIP, Project No. 071-35592, as of December 31, 1994 and the related statements of profit and loss, changes in partners' equity and statement of 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 generally accepted auditing standards and generally accepted Government Auditing Standards for financial and compliance audits issued by the Comptroller General of the United States. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. 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 audit provided a reasonable basis for our opinion.
As more fully described in the notes to the financial statements, the Partnership has expensed construction period interest and real estate taxes associated with the building. In our opinion, construction period interest and taxes should be capitalized and depreciated over the life of the building to conform with generally accepted accounting principles. In addition, the Project recognized depreciation for the building over a shorter useful life than would be allowable under generally accepted accounting principles. The effects on the financial statements of the preceding practices are not reasonably determinable.
In our opinion, except for the effects of the matters discussed in the preceding paragraph, the financial statements referred to in the first paragraph present fairly, in all material respects, the financial position of BOULEVARD COMMONS LIMITED PARTNERSHIP as of December 31, 1994, and its profit or loss, changes in partners' equity, and its cash flows for the year then ended in conformity with generally accepted accounting principles. The supporting data included in this report (shown on pages 15 through 19) has been subjected to the same auditing procedures applied in the audit of the basic financial statements and, in our opinion, are presented fairly in all material respects in relation to the basic financial statements taken as a whole.
/s/ HARAN & ASSOCIATES LTD
HARAN & ASSOCIATES LTD Certified Public Accountants Wilmette, Illinois Illinois Certificate No. 060-002892 Federal Identification No. 36-3097692 Audit Partner: James E. Haran (708) 853-2580 January 25, 1995
[Letterhead]
[LOGO] Haran & Associates Ltd Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To the Partners HUD Field Office Director BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois Chicago, Illinois
We have audited the accompanying balance sheet of BOULEVARD COMMONS LIMITED PARTNERSHIP, Project No. 071-35592, as of December 31, 1993 and the related statements of profit and loss, changes in partners' equity and statement of 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 generally accepted auditing standards and generally accepted Government Auditing Standards for financial and compliance audits issued by the Comptroller General of the United States. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. 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 audit provided a reasonable basis for our opinion.
As more fully described in the notes to the financial statements, the Partnership has expensed construction period interest and real estate taxes associated with the building. In our opinion, construction period interest and taxes should be capitalized and depreciated over the life of the building to conform with generally accepted accounting principles. In addition, the Project recognized depreciation for the building over a shorter useful life than would be allowable under generally accepted accounting principles. The effects on the financial statements of the preceding practices are not reasonably determinable.
In our opinion, except for the effects of the matters discussed in the preceding paragraph, the financial statements referred to in the first paragraph present fairly, in all material respects, the financial position of BOULEVARD COMMONS LIMITED PARTNERSHIP as of December 31, 1993, and its profit or loss, changes in partners' equity, and its cash flows for the year then ended in conformity with generally accepted accounting principles. The supporting data included in this report (shown on pages 15 through 19) has been subjected to the same auditing procedures applied in the audit of the basic financial statements and, in our opinion, are presented fairly in all material respects in relation to the basic financial statements taken as a whole.
/s/ HARAN & ASSOCIATES LTD
HARAN & ASSOCIATES LTD Certified Public Accountants Wilmette, Illinois Illinois Certificate No. 060-002892 Federal Identification No. 36-3097692 Audit Partner: James E. Haran (708) 853-2580 January 25, 1994
[Letterhead]
GELFOND HOCHSTADT PANGBURN & CO. A Professional Corporation Certified Public Accountants and Business Consultants Suite 2500 1600 Broadway Denver, CO 80202-4925 (303) 831-5000/Fax: (303) 831-5032 A member of Horwath International [Logo] HORWATH
INDEPENDENT AUDITORS' REPORT
To the Partners of Sundance Housing Associates, Ltd. Denver, Colorado
We have audited the accompanying balance sheet of Sundance Housing Associates, Ltd., a limited partnership (the "Partnership"), HUD Project No. 101-36614, as of December 31, 1995, and the related statements of profit and loss, changes in partners' equity (deficiency) and cash flow 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 generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 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 Sundance Housing Associates, Ltd., HUD Project No. 101-36614 as of December 31, 1995, and the results of its operations and the changes in its partners' equity and its cash flows for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards and the Consolidated Audit Guide for Audits and HUD Programs issued by the U.S. Department of Housing and Urban Development, we have also issued a report dated January 22, 1996 on our consideration of the Partnership's internal control structure and reports dated January 22, 1996 on its compliance with specific requirements applicable to Major HUD programs and specific requirements applicable to Affirmative Fair Housing.
Our audit was conducted for the pupose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplementary information required by HUD shown on pages 13 to 18 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 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.
/s/ Gelfond Hochstadt Pangburn & Co.
Gelfond Hochstadt Pangburn & Co. January 22, 1996
[Letterhead]
GELFOND HOCHSTADT PANGBURN & CO. A Professional Corporation Certified Public Accountants and Business Consultants Suite 2500 1600 Broadway Denver, CO 80202-4925 (303) 831-5000/Fax: (303) 831-5032 A member of Horwath International [Logo] HORWATH
INDEPENDENT AUDITORS' REPORT
To the Partners of Sundance Housing Associates, Ltd. Denver, Colorado
We have audited the accompanying balance sheet of Sundance Housing Associates, Ltd., a limited partnership (the "Partnership"), HUD Project No. 101-36614, as of December 31, 1994, and the related statements of profit and loss, changes in partners' equity (deficiency) and cash flow 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 generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 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 Sundance Housing Associates, Ltd., HUD Project No. 101-36614 as of December 31, 1994, and the results of its operations and the changes in its partners' equity and its cash flows for the year then ended, in conformity with generally accepted accounting principles.
/s/ Gelfond Hochstadt Pangburn & Co.
Gelfond Hochstadt Pangburn & Co. January 20, 1995
[Letterhead]
GELFOND HOCHSTADT PANGBURN STARK & CO. A Professional Corporation Certified Public Accountants and Business Consultants A member of Horwath International Suite 2100 370 Seventeenth Street Denver, CO 80202 (303) 595-4000/Fax: (303) 825-7132 [Logo] HORWATH
INDEPENDENT AUDITORS' REPORT
To the Partners of Sundance Housing Associates, Ltd. Denver, Colorado
We have audited the accompanying balance sheet of Sundance Housing Associates, Ltd. (a limited partnership), HUD Project No. 101-36614, as of December 31, 1993, and the related statements of profit and loss, 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.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 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 Sundance Housing Associates, Ltd., HUD Project No. 101-36614 as of December 31, 1993, and the results of its operations and the changes in its partners' equity and its cash flows for the year then ended, in conformity with generally accepted accounting principles.
/s/ Gelfond Hochstadt Pangburn Stark & Co.
Gelfond Hochstadt Pangburn Stark & Co. February 7, 1994
[Letterhead]
[Pyramid logo]
ARONSON, FETRIDGE & WEIGLE A Professional Corporation Certified Public Accountants and Management Consultants
Independent Auditor's Report
The Partners HUD Field Office Director 2225 NEW YORK AVENUE, LTD. 1600 Thockmorton T/A PEBBLE CREEK APARTMENTS P.O. Box 2905 11781 Lee Jackson Highway, #320 Fort Worth, Texas 76113-2905 Fairfax, Virginia 22033
We have audited the Balance Sheet of 2225 NEW YORK AVENUE, LTD. (A Limited Partnership) T/A PEBBLE CREEK APARTMENTS, FHA Project No. 113-36607 as of December 31, 1995, and the related Statements of Profit and Loss, Partners' Capital 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 generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 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 2225 NEW YORK AVENUE, LTD. T/A PEBBLE CREEK APARTMENTS, FHA Project No. 113-36607 as of December 31, 1995, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles.
The accompany financial statements have been prepared assuming that 2225 NEW YORK AVENUE, LTD. T/A PEBBLE CREEK APARTMENTS, FHA Project No. 113-36607 will continue as a going concern. As discussed in Note 6 to the financial statements, the Partnership has incurred substantial losses from operations, had negative working capital at December 31, 1995, and was three months delinquent on mortgage payments. These factors raise substantial doubt about the Partnership's ability to continue as a going concern. Management's plan in regard to these matters are also described in Note 6. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Our audit was conducted for the pupose of forming an opinion on the basic financial statements taken as a whole. The supporting data required by HUD shown on pages 13 21 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.
/s/ Aronson, Fetridge & Weigle
[Letterhead]
[Pyramid logo]
ARONSON, FETRIDGE & WEIGLE A Professional Corporation Certified Public Accountants and Management Consultants
Independent Auditor's Report
The Partners HUD Field Office Director 2225 NEW YORK AVENUE, LTD. 1600 Thockmorton T/A PEBBLE CREEK APARTMENTS P.O. Box 2905 11781 Lee Jackson Highway, #320 Fort Worth, Texas 76113-2905 Fairfax, Virginia 22033
We have audited the Balance Sheet of 2225 NEW YORK AVENUE, LTD. (A Limited Partnership) T/A PEBBLE CREEK APARTMENTS, FHA Project No. 113-36607 as of December 31, 1994, and the related Statements of Profit and Loss, Partners' Capital 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 generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 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 2225 NEW YORK AVENUE, LTD. T/A PEBBLE CREEK APARTMENTS, FHA Project No. 113-36607 as of December 31, 1994, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles.
The accompany financial statements have been prepared assuming that 2225 NEW YORK AVENUE, LTD. T/A PEBBLE CREEK APARTMENTS, FHA Project No. 113-36607 will continue as a going concern. As discussed in Note 6 to the financial statements, the Partnership has incurred substantial losses from operations, had negative working capital at December 31, 1994, and was three months delinquent on mortgage payments. These factors raise substantial doubt about the Partnership's ability to continue as a going concern. Management's plan in regard to these matters are also described in Note 6. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/ Aronson, Fetridge & Weigle
[Letterhead]
[Pyramid logo]
ARONSON, FETRIDGE & WEIGLE A Professional Corporation Certified Public Accountants and Management Consultants
Independent Auditor's Report
The Partners HUD Field Office Director 2225 NEW YORK AVENUE, LTD. 1600 Thockmorton (A Limited Partnership) P.O. Box 2905 T/A PEBBLE CREEK APARTMENTS Fort Worth, Texas 76113-2905 11781 Lee Jackson Highway, #320 Fairfax, Virginia 22033
We have audited the Balance Sheet of 2225 NEW YORK AVENUE, LTD. (A Limited Partnership) T/A PEBBLE CREEK APARTMENTS, FHA Project No. 113-36607 as of December 31, 1993, and the related Statements of Profit and Loss, Changes in Partners' Capital 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 generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 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 2225 NEW YORK AVENUE, LTD. T/A PEBBLE CREEK APARTMENTS, FHA Project No. 113-36607 as of December 31, 1993, and the results of its operations and its cash flow for the year then ended in conformity with generally accepted accounting principles.
Independent Auditor's Report (Continued)
The accompanying financial statements have been prepared assuming that 2225 NEW YORK AVENUE, LTD. T/A PEBBLE CREEK APARTMENTS, FHA Project No. 113-36607 will continue as a going concern. As discussed in Note 6 to the financial statements, the Partnership's excess of current liabilities over current assets and its net loss raise substantial doubt about the Partnership's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 6. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/ Aronson, Fetridge & Weigle
Aronson, Fetridge & Weigle Rockville, Maryland January 19, 1994
[Letterhead]
[LOGO] ZINER & COMPANY, P.C. CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners of Cass House Associates Limited Partnership
We have audited the accompanying balance sheet (MHFA Forms F.C.-3A & -3B) of Cass House Associates Limited Partnership (a Massachusetts limited partnership) (Project No. 84-057-S) as of December 31, 1995, and the related statements of changes in partners' equity (deficit), operations (MHFA Form F.C.-2A) and cash flows (MHFA Forms F.C.-4A, -4B & -4C) for the year then ended. These financial statements are the responsibility of the general partners. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. 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 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 the general partners, 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 Cass House Associates Limited Partnership as of December 31, 1995, and the results of its operations, its cash flows and changes in partners' equity (deficit) for the year then ended in conformity with generally accepted accounting principles.
The accompanying financial statements have been prepared assuming that the Partnership will continue as a going concern. As discussed in Note H to the financial statements, the Partnership has suffered recurring losses from operations and has a net working capital deficiency, which raises substantial doubt about its ability to continue in existence. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/ Ziner & Company, P.C.
January 23, 1996
[Letterhead]
[LOGO] ZINER & COMPANY, P.C. CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners of Cass House Associates Limited Partnership
We have audited the accompanying balance sheet (MHFA Forms F.C.-3A & -3B) of Cass House Associates Limited Partnership (a Massachusetts limited partnership) (Project No. 84-057-S) as of December 31, 1994, and the related statements of changes in partners' deficit, operations (MHFA Form F.C.-2A) and cash flows (MHFA Forms F.C.-4A, -4B & -4C) for the year then ended. These financial statements are the responsibility of the general partners. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. 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 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 the general partners, 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 Cass House Associates Limited Partnership as of December 31, 1994, and the results of its operations, its cash flows and changes in partners' deficit for the year then ended in conformity with generally accepted accounting principles.
The accompanying financial statements have been prepared assuming that the Partnership will continue as a going concern. As discussed in Note I to the financial statements, the Partnership has suffered recurring losses from operations and has a net working capital deficiency, which raises substantial doubt about its ability to continue in existence. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/ Ziner & Company, P.C.
January 23, 1995
[Letterhead]
[LOGO] ZINER & COMPANY, P.C. CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners of Cass House Associates Limited Partnership
We have audited the accompanying balance sheet (MHFA Forms F.C.-3A & -3B) of Cass House Associates Limited Partnership (a Massachusetts limited partnership) (Project No. 84-057-S) as of December 31, 1993, and the related statements of changes in partners' deficit, operations (MHFA Form F.C.-2A) and cash flows (MHFA Forms F.C.-4A, -4B & -4C) for the year then ended. These financial statements are the responsibility of the general partners. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. 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 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 the general partners, 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 Cass House Associates Limited Partnership as of December 31, 1993, and the results of its operations, its cash flows and changes in partners' deficit for the year then ended in conformity with generally accepted accounting principles.
The accompanying financial statements have been prepared assuming that the Partnership will continue as a going concern. As discussed in Note I to the financial statements, the Partnership has suffered recurring losses from operations and has a net working capital deficiency, which raises substantial doubt about its ability to continue in existence. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/ Ziner & Company, P.C.
January 27, 1994
[LOGO] ZINER & COMPANY, P.C. CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners of Verdean Gardens Associates Limited Partnership
We have audited the accompanying balance sheet (MHFA Forms F.C.-3A & -3B) of Verdean Gardens Associates Limited Partnership (a Massachusetts limited partnership) (Project No. 84-082-S) as of December 31, 1995, and the related statements of changes in partners' equity (deficiency) (MHFA Form F.C.-3C) operations (MHFA Form F.C.-2A) and cash flows (MHFA Forms F.C.-4A, -4B & -4C) for the year then ended. These financial statements are the responsibility of the general partners. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. 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 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 the general partners, 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 Verdean Gardens Associates Limited Partnership as of December 31, 1995, and the results of its operations, its cash flows and its changes in partners' equity (deficiency) for the year then ended in conformity with generally accepted accounting principles.
The accompanying financial statements have been prepared assuming that the Partnership will continue as a going concern. As discussed in Note H to the financial statements, the Partnership has suffered recurring losses from operations and has a net working capital deficiency, which raises substantial doubt about its ability to continue in existence. The general partners' plans regarding these matters are also discussed in Note H. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/ Ziner & Company, P.C.
January 26, 1996
[Letterhead]
[LOGO] ZINER & COMPANY, P.C. CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners of Verdean Gardens Associates Limited Partnership
We have audited the accompanying balance sheet (MHFA Forms F.C.-3A & -3B) of Verdean Gardens Associates Limited Partnership (a Massachusetts limited partnership) (Project No. 84-082-S) as of December 31, 1994, and the related statements of changes in partners' equity (deficiency) (MHFA Form F.C.-3C) operations (MHFA Form F.C.-2A) and cash flows (MHFA Forms F.C.-4A, -4B & -4C) for the year then ended. These financial statements are the responsibility of the general partners. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. 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 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 the general partners, 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 Verdean Gardens Associates Limited Partnership as of December 31, 1994, and the results of its operations, its cash flows and its changes in partners' deficit for the year then ended in conformity with generally accepted accounting principles.
/s/ Ziner & Company, P.C.
January 27, 1995
[Letterhead]
[LOGO] ZINER & COMPANY, P.C. CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners of Verdean Gardens Associates Limited Partnership
We have audited the accompanying balance sheet (MHFA Forms F.C.-3A & -3B) of Verdean Gardens Associates Limited Partnership (a Massachusetts limited partnership) (Project No. 84-057-N) as of December 31, 1993, and the related statements of changes in partners' deficit, operations (MHFA Form F.C.-2A) and cash flows (MHFA Forms F.C.-4A, -4B & -4C) for the year then ended. These financial statements are the responsibility of the general partners. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. 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 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 the general partners, 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 Verdean Gardens Associates Limited Partnership as of December 31, 1993, and the results of its operations, its cash flows and its changes in partners' deficit for the year then ended in conformity with generally accepted accounting principles.
/s/ Ziner & Company, P.C.
January 28, 1994
[Letterhead]
ROBERT STEPHENSON An Accountancy Corporation 515 N. Sepulveda Blvd., Suite A Manhattan Beach, California 90266 (310) 318-1592
Partners Medford Hotel Associates Limited Partnership
I have audited the balance sheet of Medford Hotel Associates Limited Partnership (an Oregon limited partnership) as of December 31, 1995 and the related statements of operations, partnership capital, and cash flows for the year 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 audit.
I conducted my audit in accordance with generally accepted auditing standards and with generally accepted Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that I 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 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 my audit provides 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 Medford Hotel Associates Limited Partnership at December 31, 1995 and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, I have also issued a report dated February 15, 1996 on my consideration of Medford Hotel Associates Limited Partnership's internal control structure and a report dated February 15, 1996 on its compliance with laws and regulations.
The accompanying supplementary information (shown on pages 14 and 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 my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
/s/ Robert Stephenson
Manhattan Beach, California February 15, 1996
[Letterhead]
ROBERT STEPHENSON An Accountancy Corporation 515 N. Sepulveda Blvd., Suite A Manhattan Beach, California 90266 (310) 318-1592
Partners HUD Field Office Director Medford Hotel Associates Limited Partnership Portland, Oregon
I have audited the balance sheet of Medford Hotel Associates Limited Partnership (an Oregon limited partnership) as of December 31, 1994 and the related statements of operations, partnership capital, and cash flows for the year 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 audit.
I conducted my audit in accordance with generally accepted auditing standards and with generally accepted government auditing standards for financial and compliance audits issued by the Comptroller General of the United States. Those standards require that I 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 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 my audit provides 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 Medford Hotel Associates Limited Partnership at December 31, 1994 and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles.
/s/ Robert Stephenson
Manhattan Beach, California February 13, 1995 EIN 95-3497150
[Letterhead]
ROBERT STEPHENSON An Accountancy Corporation 515 N. Sepulveda Blvd., Suite A Manhattan Beach, California 90266 (310) 318-1592
Partners HUD Field Office Director Medford Hotel Associates Limited Partnership Portland, Oregon
I have audited the balance sheet of Medford Hotel Associates Limited Partnership (an Oregon limited partnership) as of December 31, 1993 and the related statements of operations, partnership capital, and cash flows for the year 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 audit.
I conducted my audit in accordance with generally accepted auditing standards and with generally accepted government auditing standards for financial and compliance audits issued by the Comptroller General of the United States. Those standards require that I 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 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 my audit provides 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 Medford Hotel Associates Limited Partnership at December 31, 1993 and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles.
/s/ Robert Stephenson
Manhattan Beach, California February 17, 1994 EIN 95-3497150
[Letterhead]
ROBERT STEPHENSON An Accountancy Corporation 515 N. Sepulveda Blvd., Suite A Manhattan Beach, California 90266 (310) 318-1592
Partners Oregon Landmark-Three Limited Partnership
I have audited the balance sheet of Oregon Landmark-Three Limited Partnership (an Oregon limited partnership) as of December 31, 1995 and the related statements of operations, deficit in partnership capital, and cash flows for the year 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 audit.
I conducted my audit in accordance with generally accepted auditing standards and with generally accepted government auditing standards for financial and compliance audits issued by the Comptroller General of the United States. Those standards require that I 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 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 my audit provides 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 Oregon Landmark-Three Limited Partnership at December 31, 1995 and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, I have also issued a report dated February 15, 1996 on my consideration of Oregon Landmark-Three Limited Partnership's internal control structure and a report dated February 15, 1996 on its compliance with laws and regulations.
The accompanying supplementary information (shown on pages 14 and 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 my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
/s/ Robert Stephenson
Manhattan Beach, California February 15, 1995
[Letterhead]
ROBERT STEPHENSON An Accountancy Corporation 515 N. Sepulveda Blvd., Suite A Manhattan Beach, California 90266 (310) 318-1592
Partners HUD Field Office Director Oregon Landmark-Three Limited Partnership Denver, Colorado
I have audited the balance sheet of Oregon Landmark-Three Limited Partnership (an Oregon limited partnership) as of December 31, 1994 and the related statements of operations, deficit in partnership capital, and cash flows for the year 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 audit.
I conducted my audit in accordance with generally accepted auditing standards and with generally accepted government auditing standards for financial and compliance audits issued by the Comptroller General of the United States. Those standards require that I 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 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 my audit provides 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 Oregon Landmark-Three Limited Partnership at December 31, 1994 and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles.
/s/ Robert Stephenson
Manhattan Beach, California February 15, 1995 EIN 95-3497150
[Letterhead]
ROBERT STEPHENSON An Accountancy Corporation 515 N. Sepulveda Blvd., Suite A Manhattan Beach, California 90266 (310) 318-1592
Partners HUD Field Office Director Oregon Landmark-Three Limited Partnership Denver, Colorado
I have audited the balance sheet of Oregon Landmark-Three Limited Partnership (an Oregon limited partnership) as of December 31, 1993 and the related statements of operations, deficit in partnership capital, and cash flows for the year 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 audit.
I conducted my audit in accordance with generally accepted auditing standards and with generally accepted government auditing standards for financial and compliance audits issued by the Comptroller General of the United States. Those standards require that I 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 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 my audit provides 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 Oregon Landmark-Three Limited Partnership at December 31, 1993 and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles.
/s/ Robert Stephenson
Manhattan Beach, California February 14, 1994 EIN 95-3497150
INDEPENDENT ACCOUNTANTS' REPORT
To the Partners of Trenton Apartments, Ltd.
We have audited the accompanying balance sheet of Trenton Apartments, Ltd. (a limited partnership) (HUD Project No. 105-94006) as of December 31, 1995 and the related statements of profit and loss, partners' equity and cash flows for the year then ended. These financial statements are the responsibility of the Project's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 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 Trenton Apartments, Ltd. (a limited partnership) (HUD Project No. 105-94006) as of December 31, 1995, and the results of its operations and changes in partners' equity and cash flows for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards and the Consolidated Audit Guide for Audits of HUD Programs issued by the U.S. Department of Housing and Urban Development, we have also issued a report dated January 16, 1996, on our consideration of Trenton Apartments, Ltd. (a limited partnership) (HUD Project No. 105-94006) internal control structure and reports dated January 16, 1996, on its compliance with specific requirements applicable to major HUD programs, and specific requirements applicable to Affirmative Fair Housing.
Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supporting information included in the report (shown on pages 14 to 20) are presented for the purposes of additional analysis and are not a required part of the basic statement of Trenton Apartments, Ltd. (a limited partnership) (HUD Project No. 105-94006). 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 financial statements taken as a whole.
/s/ Lake, Hill & Company
Lake, Hill & Company
Salt Lake City, Utah January 16, 1996
INDEPENDENT ACCOUNTANTS' REPORT
To the Partners of Trenton Apartments, Ltd.
We have audited the accompanying balance sheet of Trenton Apartments, Ltd. (a limited partnership) (HUD Project No. 105-94006) as of December 31, 1994 and the related statements of profit and loss, partners' equity and cash flows for the year then ended. These financial statements are the responsibility of the Project's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 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 Trenton Apartments, Ltd. (a limited partnership) (HUD Project No. 105-94006) as of December 31, 1994, and the results of its operations and changes in partners' equity and cash flows for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supporting information included in the report (shown on pages 13 to 19) are presented for the purposes of additional analysis and are not a required part of the basic statement of Trenton Apartments, Ltd. (a limited partnership) (HUD Project No. 105-94006). 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 financial statements taken as a whole.
/s/ Lake, Hill & Company
Lake, Hill & Company
Salt Lake City, Utah January 24, 1995
INDEPENDENT ACCOUNTANTS' REPORT
To the Partners of Trenton Apartments, Ltd.
We have audited the accompanying balance sheet of HUD Project No. 105-94006 of the Trenton Apartments, Ltd. (a limited partnership) as of December 31, 1993 and the related statements of profit and loss, partners' equity and cash flows for the year then ended. These financial statements are the responsibility of the Project's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 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 HUD Project No. 105-94006 as of December 31, 1993, and the results of its operations and changes in partners' equity and cash flows for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supporting information included in the report (shown on pages 13 to 20) are presented for the purposes of additional analysis and are not a required part of the basic statement of HUD Project No. 105-94006. 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 financial statements taken as a whole.
/s/ Lake, Hill & Company
Lake, Hill & Company
Salt Lake City, Utah February 1, 1994
INDEPENDENT ACCOUNTANTS' REPORT
To the Partners of Lakeview Heights Apartments, Ltd.
We have audited the accompanying balance sheet of Lakeview Heights Apartments, Ltd. (a limited partnership) (HUD Project No. 105-94007) as of December 31, 1995 and the related statements of profit and loss, partners' equity and cash flows for the year then ended. These financial statements are the responsibility of the Project's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 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 Lakeview Heights Apartments, Ltd. (a limited partnership) (HUD Project No. 105-94007) as of December 31, 1995, and the results of its operations and changes in partners' equity and cash flows for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards and the Consolidated Audit Guide for Audits of HUD Programs issued by the U.S. Department of Housing and Urban Development, we have also issued a report dated January 25, 1996, on our consideration of Lakeview Heights Apartments, Ltd. (a limited partnership) (HUD Project No. 105-94007) internal control structure and reports dated January 25, 1996, on its complience with specific requirements applicable to major HUD programs, and specific requirements applicable to Affirmative Fair Housing.
Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supporting information included in the report (shown on pages 15 to 21) are presented for the purposes of additional analysis and are not a required part of the basic statements of Lakeview Heights Apartments, Ltd. (a limited partnership) (HUD Project No. 105-94007). 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 financial statements taken as a whole.
/s/ Lake, Hill & Company
Lake, Hill & Company
Salt Lake City, Utah January 25, 1996
INDEPENDENT ACCOUNTANTS' REPORT
To the Partners of Lakeview Heights Apartments, Ltd.
We have audited the accompanying balance sheet of Lakeview Heights Apartments, Ltd. (a limited partnership) (HUD Project No. 105-94007) as of December 31, 1994 and the related statements of profit and loss, partners' equity and cash flows for the year then ended. These financial statements are the responsibility of the Project's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 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 Lakeview Heights Apartments, Ltd. (a limited partnership) (HUD Project No. 105-94007) as of December 31, 1994, and the results of its operations and changes in partners' equity and cash flows for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supporting information included in the report (shown on pages 13 to 19) are presented for the purposes of additional analysis and are not a required part of the basic statements of Lakeview Heights Apartments, Ltd. (a limited partnership) (HUD Project No. 105-94007). 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 financial statements taken as a whole.
/s/ Lake, Hill & Company
Lake, Hill & Company
Salt Lake City, Utah January 24, 1995
INDEPENDENT ACCOUNTANTS' REPORT
To the Partners of Lakeview Heights Apartments, Ltd.
We have audited the accompanying balance sheet of HUD Project No. 105-94007 of the Lakeview Heights Apartments, Ltd. (a limited partnership) as of December 31, 1993 and the related statements of profit and loss, partners' equity and cash flows for the year then ended. These financial statements are the responsibility of the Project's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 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 HUD Project No. 105-94007 as of December 31, 1993, and the results of its operations and changes in partners' equity and cash flows for the year then ended, in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supporting information included in the report (shown on pages 13 to 20) are presented for the purposes of additional analysis and are not a required part of the basic statement of HUD Project No. 105-94007. 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 financial statements taken as a whole.
/s/ Lake, Hill & Company
Lake, Hill & Company
Salt Lake City, Utah January 26, 1994
[LETTERHEAD] [Logo] Reznick Fedder & Silverman Certified Public Accountants * Business Consultants
INDEPENDENT AUDITORS' REPORT
To the Partners Windsor Court Housing Associates, Ltd.
We have audited the accompanying balance sheet of Windsor Court Housing Associates, Ltd. (a Limited Partnership) as of December 31, 1995, and the related statements of profit and loss (on HUD Form No. 92410), partners' 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 generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the 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 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 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 Windsor Court Housing Associates, Ltd. (a Limited Partnership) as of December 31, 1995, and the results of its operations, changes in partners' deficit and cash flows for the year then ended, in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 20 through 25 is presented for the 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.
In accordance with Government Auditing Standards, we have also issued reports dated February 21, 1996, on our consideration of Windsor Court Housing Associates, Ltd.'s internal control structure and on its compliance with specific requirements applicable to major HUD programs, affirmative fair housing, and laws and regulations applicable to the financial statements.
/s/ Reznick Fedder & Silverman
Boston, Massachusetts Federal Employer February 21, 1996 Identification Number: 52-1088612
Audit Principal: Phillip A. Weitzel
[Letterhead]
[Logo] Coopers Coopers & Lybrand L.L.P. &Lybrand a professional services firm
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of Windsor Court Housing Associates, Ltd. (a Limited Partnership):
We have audited the accompanying balance sheet of Windsor Court Housing Associates, Ltd. (a Limited Partnership), HUD Project No. 101-36615, as of December 31, 1994 and the related statements of profit and loss, partners' equity (deficiency), 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 generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 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 Windsor Court Housing Associates, Ltd. (a Limited Partnership), HUD Project No. 101-36615, as of December 31, 1994 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles.
As discussed in Note 5 to the financial statements, in connection with the 1993 Section 8 Moderate Rehabilitation Program audit, HUD has asserted that the Partnership violated certain requirements related to the displacement and relocation of tenants while the project was undergoing renovation. HUD estimates that it is entitled to recoup approximately $1,959,000 in past subsidy payments and to reduce future subsidy payments by approximately $4,442,000 over the remainder of the HAP contract. Without these subsidies, the Partnership may not be able to continue to operate as a going concern. HUD has not yet attempted to enforce its position, but should HUD do so, the Partnership has asserted that it intends to vigorously contest the matter. The ultimate outcome of this threatened litigation cannot presently be determined. Accordingly, no provision for potential loss regarding this matter has been reflected in the accompanying financial statements.
/s/ Coopers & Lybrand L.L.P.
Boston, Massachusetts February 1, 1995
[Letterhead]
[Logo] Coopers certified public &Lybrand accountants
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of Windsor Court Housing Associates, Ltd. (a Limited Partnership):
We have audited the accompanying balance sheet of Windsor Court Housing Associates, Ltd. (a Limited Partnership), HUD Project No. 101-36615, as of December 31, 1993 and the related statements of profit and loss, partners' equity (deficiency), 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 generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 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 Windsor Court Housing Associates, Ltd. (a Limited Partnership), HUD Project No. 101-36615, as of December 31, 1993 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles.
As discussed in Note 5 to the financial statements, in connection with the Section 8 Moderate Rehabilitation Program audit, HUD has asserted that the Partnership violated certain requirements related to the displacement and relocation of tenants while the project was undergoing renovation. HUD estimates that it is entitled to recoup approximately $1,959,000 in past subsidy payments and to reduce future subsidy payments by approximately $4,442,000 over the remainder of the HAP contract. HUD has not yet attempted to enforce its position, but should HUD do so, the Partnership intends to vigorously contest the matter. The ultimate outcome of this threatened litigation cannot presently be determined. Accordingly, no provision for potential loss regarding this matter has been reflected in the financial statements.
/s/ Coopers & Lybrand L.L.P.
Boston, Massachusetts February 1, 1994
[LETTERHEAD] [Logo] Reznick Fedder & Silverman Certified Public Accountants * Business Consultants
INDEPENDENT AUDITORS' REPORT
To the Partners Terrace Housing Associates, Ltd.
We have audited the accompanying balance sheet of Terrace Housing Associates, Ltd. as of December 31, 1995, and the related statements of profit and loss (on HUD Form No. 92410), partners' 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 generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the 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 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 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 Terrace Housing Associates, Ltd. as of December 31, 1995, and the results of its operations, the changes in partners' deficit and cash flows for the year then ended, in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 21 through 27 is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the portion marked "unaudited", on which we express no opinion 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.
In accordance with Government Auditing Standards, we have also issued reports dated February 23, 1996, on our consideration of Terrace Housing Associates, Ltd.'s internal control structure and on its compliance with specific requirements applicable to major HUD programs, affirmative fair housing, and laws and regulations applicable to the financial statements.
/s/ Reznick Fedder & Silverman
Boston, Massachusetts Federal Employer February 21, 1996 Identification Number: 52-1088612
Audit Principal: Phillip A. Weitzel
[Letterhead]
[Logo] Coopers Coopers & Lybrand L.L.P. &Lybrand a professional services firm
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of Terrace Housing Associates, Ltd. (a Limited Partnership):
We have audited the accompanying balance sheet of Terrace Housing Associates, Ltd. (a Limited Partnership), HUD Project No. 117-36608, as of December 31, 1994, and the related statements of profit and loss, partners' equity (deficiency), 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 generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the 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 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 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 Terrace Housing Associates, Ltd. (a Limited Partnership), HUD Project No. 117-36608 as of December 31, 1994, and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles.
/s/ Coopers & Lybrand L.L.P.
Boston, Massachusetts February 1, 1995
[Letterhead]
[Logo] Coopers certified public accountants &Lybrand
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of Terrace Housing Associates, Ltd. (a Limited Partnership):
We have audited the accompanying balance sheet of Terrace Housing Associates, Ltd. (a Limited Partnership), HUD Project No. 117-36608, as of December 31, 1993 and the related statements of profit and loss, partners' equity (deficiency), 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 generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the 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 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 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 Terrace Housing Associates, Ltd. (a Limited Partnership), HUD Project No. 117-36608 as of December 31, 1993, and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles.
As discussed in Note 5 to the financial statements, in connection with the Section 8 Moderate Rehabilitation Program audit, the HUD Inspector General of Audit has directed the Oklahoma City Housing Authority to reduce initial base and contract rents and recover excess subsidies paid by HUD to the Project retroactively to November 1, 1987. The total effect of these directives is estimated to be $1,500,000. No provision for the potential rent reduction has been made in the accompanying financial statements.
/s/ Coopers & Lybrand L.L.P.
Boston, Massachusetts February 1, 1994
[LETTERHEAD] [Logo] Reznick Fedder & Silverman Certified Public Accountants * Business Consultants
INDEPENDENT AUDITORS' REPORT
To the Partners Rolling Green Housing Associates, Ltd.
We have audited the accompanying balance sheet of Rolling Green Housing Associates, Ltd. as of December 31, 1995, and the related statements of profit and loss (on HUD Form No. 92410), partners' 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 generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the 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 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 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 Rolling Green Housing Associates, Ltd. as of December 31, 1995, and the results of its operations, the changes in partners' deficit and cash flows for the year then ended, in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 20 through 25 is presented for the 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.
In accordance with Government Auditing Standards, we have also issued reports dated February 13, 1996, on our consideration of Rolling Green Housing Associates, Ltd.'s internal control structure and on its compliance with specific requirements applicable to major HUD programs, affirmative fair housing, and laws and regulations applicable to the financial statements.
/s/ Reznick Fedder & Silverman
Boston, Massachusetts Federal Employer February 13, 1996 Identification Number: 52-1088612
Audit Principal: Phillip A. Weitzel
[Letterhead]
[Logo] Coopers Coopers & Lybrand L.L.P. &Lybrand a professional services firm
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of Rolling Green Housing Associates, Ltd. (a Limited Partnership):
We have audited the accompanying balance sheet of Rolling Green Housing Associates, Ltd. (a Limited Partnership), HUD Project No. 117-36603, as of December 31, 1994 and the related statements of profit and loss, partners' equity (deficiency), and cash flows for the year then ended. These financial statements are the responsibility of the General Partners of the Partnership. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 the General Partners of the Partnership, 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 Rolling Green Housing Associates, Ltd. (a Limited Partnership), HUD Project No. 117-36603, as of December 31, 1994 and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles.
/s/ Coopers & Lybrand L.L.P.
Boston, Massachusetts February 1, 1995
[Letterhead]
[Logo] Coopers certified public accountants &Lybrand
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of Rolling Green Housing Associates, Ltd. (a Limited Partnership):
We have audited the accompanying balance sheet of Rolling Green Housing Associates, Ltd. (a Limited Partnership), HUD Project No. 117-36603, as of December 31, 1993 and the related statements of profit and loss, partners' equity (deficiency), and cash flows for the year then ended. These financial statements are the responsibility of the General Partners of the Partnership. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 the General Partners of the Partnership, 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 Rolling Green Housing Associates, Ltd. (a Limited Partnership), HUD Project No. 117-36603, as of December 31, 1993 and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles.
As discussed in Note 5 to the financial statements, in connection with the Section 8 Moderate Rehabilitation Program audit, the HUD Inspector General of Audit has directed the Oklahoma Housing Finance Authority to reduce initial base and contract rents and recover excess subsidies paid by HUD to the project retroactively to July 6, 1987. The total effect of these directives is estimated to be $940,000. No provision for the potential rent reduction has been made in the accompanying financial statements.
/s/ Coopers & Lybrand L.L.P.
Boston, Massachusetts February 1, 1994
[LETTERHEAD] [Logo] Reznick Fedder & Silverman Certified Public Accountants * Business Consultants
INDEPENDENT AUDITORS' REPORT
To the Partners Sierra Vista Housing Associates, Ltd.
We have audited the accompanying balance sheet of Sierra Vista Housing Associates, Ltd. as of December 31, 1995, and the related statements of profit and loss (on HUD Form No. 92410), partners' 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 generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the 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 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 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 Sierra Vista Housing Associates, Ltd. as of December 31, 1995, and the results of its operations, the changes in partners' deficit and cash flows for the year then ended, in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 21 through 27 is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the portion marked "unaudited", on which we express no opinion, 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.
In accordance with Government Auditing Standards, we have also issued reports dated February 23, 1996, on our consideration of Sierra Vista Housing Associates, Ltd. 's internal control structure and on its compliance with specific requirements applicable to major HUD programs, affirmative fair housing, and laws and regulations applicable to the financial statements.
/s/ Reznick Fedder & Silverman
Boston, Massachusetts Federal Employer February 23, 1996 Identification Number: 52-1088612
Audit Principal: Phillip A. Weitzel
[Letterhead]
[Logo] Coopers Coopers & Lybrand L.L.P. &Lybrand a professional services firm
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of Sierra Vista Housing Associates, Ltd. (a Limited Partnership):
We have audited the accompanying balance sheet of Sierra Vista Housing Associates, Ltd. (a Limited Partnership), HUD Project No. 125-94004, as of December 31, 1994, and the related statements of profit and loss, partners' equity (deficiency), 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 generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 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 Sierra Vista Housing Associates, Ltd. (a Limited Partnership), HUD Project No. 125-94004, as of December 31, 1994, and the results of its operations and cash flows for the year then ended, in conformity with generally accepted accounting principles.
As discussed in Note 5 to the financial statements, in connection with the 1993 Section 8 Moderate Rehabilitation Program audit, HUD has asserted that the Partnership violated certain requirements related to the displacement and relocation of tenants while the project was undergoing renovation. HUD estimates that it is entitled to recoup approximately $4,143,000 in past subsidy payments and to reduce future subsidy payments by approximately $9,516,000 over the remainder of the HAP contract. Without these subsidies, the Partnership may not be able to continue to operate as a going concern. HUD has not yet attempted to enforce its position, but should HUD do so, the Partnership has asserted that it intends to vigorously contest the matter. The ultimate outcome of this threatened litigation cannot presently be determined. Accordingly, no provision for potential loss regarding this matter has been reflected in the financial statements.
/s/ Coopers & Lybrand L.L.P.
Boston, Massachusetts February 1, 1995
[Letterhead]
[Logo] Coopers certified public accountants &Lybrand
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of Sierra Vista Housing Associates, Ltd. (a Limited Partnership):
We have audited the accompanying balance sheet of Sierra Vista Housing Associates, Ltd. (a Limited Partnership), HUD Project No. 125-94004, as of December 31, 1993, and the related statements of profit and loss, partners' equity (deficiency), 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 generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 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 Sierra Vista Housing Associates, Ltd. (a Limited Partnership), HUD Project No. 125-94004, as of December 31, 1993, and the results of its operations and cash flows for the year then ended, in conformity with generally accepted accounting principles.
As discussed in Note 5 to the financial statements, in connection with the Section 8 Moderate Rehabilitation Program audit, the HUD Inspector General of Audit has asserted that the contract rents of the project should be reduced by approximately $253,000 over the contract term. In addition, HUD has asserted that the Partnership violated certain requirements related to the displacement and relocation of tenants while the project was undergoing renovation. In connection with this issue, HUD has asserted that it is entitled to recoup approximately $4,143,000 in past subsidy payments and to reduce future subsidy payments by approximately $9,516,000 over the remainder of the HAP contract. HUD has not yet attempted to enforce its positions, but should HUD do so, the Partnership intends to vigorously contest these matters. The ultimate outcome of this threatened litigation cannot presently be determined. Accordingly, no provision for potential loss regarding these matters has been reflected in the financial statements.
/s/ Coopers & Lybrand L.L.P.
Boston, Massachusetts February 1, 1994
[Letterhead]
[Logo] VMcHC&S Vroman, McGowen, Hurst, Clark & Smith, P.C. Certified Public Accountants and Business Advisors
INDEPENDENT AUDITOR'S REPORT
To the Partners Coronado Courts Limited Partnership
We have audited the accompanying balance sheets of Coronado Courts Limited Partnership, HUD Project No. 123- 36605, as of December 31, 1995 and 1994, and the related statements of profit and loss, 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 our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 Coronado Courts Limited Partnership as of December 31, 1995 and 1994, and the results of its operations, changes in partners' capital and cash flows for the years then ended in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards and the Consolidated Audit Guide for Audits of HUD Programs issued by the U.S. Department of Housing and Urban Development, we have also issued a report dated February 1, 1996, on our consideration of the Partnership's internal control structure and reports dated February 1, 1996, on its complience with specific requirements applicable to major HUD programs, and specific requirements applicable to Affirmative Fair Housing.
Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental information (shown in Section II) is presented for the purpose of additional analysis and is not a required part of the basic financial statements of Coronado Courts Limited 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.
/s/ Vroman, McGowen, Hurst, Clark & Smith, P.C.
Des Moines, Iowa February 1, 1996
Other Auditor Information: Lead Auditor - Michael W. McNichols Federal I.D. Number - 42-1104473
[Letterhead]
[Logo] VMcHC&S Vroman, McGowen, Hurst, Clark & Smith, P.C. Certified Public Accountants and Business Advisors
INDEPENDENT AUDITOR'S REPORT
To the Partners Coronado Courts Limited Partnership
We have audited the accompanying balance sheets of Coronado Courts Limited Partnership, HUD Project No. 123- 36605, as of December 31, 1994 and 1993, and the related statements of profit and loss, 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 our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 Coronado Courts Limited Partnership as of December 31, 1994 and 1993, and the results of its operations, changes in partners' capital and cash flows for the years then ended in conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental information (shown on pages 13 to 18) is presented for the purpose of additional analysis and is not a required part of the basic financial statements of Coronado Courts Limited 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.
/s/ Vroman, McGowen, Hurst, Clark & Smith, P.C.
Des Moines, Iowa February 10, 1995
Other Auditor Information: Lead Auditor - Michael W. McNichols Federal I.D. Number - 42-1104473
[Letterhead]
[LOGO] Freedberg & Garlick, P.C. Certified Public Accountants Wellesley Office Park 55 William Street Wellesley, Massachusetts 02181-4003 617-239-3400, FAX 239-1140 Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Partners of MB Bittersweet Associates Limited Partnership (a Massachusetts Limited Partnership) Boston, Massachusetts
We have audited the accompanying balance sheet of MB Bittersweet Associates Limited Partnership, MHFA Project No. 84-051-S, as of December 31, 1995, and the related statements of operations, partners' equity (deficiency) 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 generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the 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 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 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 MB Bittersweet Associates Limited Partnership as of December 31, 1995, and the results of its operations, changes in partners' equity (deficiency) and its cash flows for the year then ended in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards. we have also issued reports dated February 13, 1996 on our consideration of MB Bittersweet Associates Limited Partnership's internal control structure and on its compliance with laws and regulations.
/s/ Freedberg & Garlick, P.C.
February 13, 1996
[Letterhead]
[LOGO] Freedberg & Garlick, P.C. Certified Public Accountants Wellesley Office Park 55 William Street Wellesley, Massachusetts 02181-4003 617-239-3400, FAX 239-1140 Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Partners of MB Bittersweet Associates Limited Partnership (a Massachusetts Limited Partnership) Boston, Massachusetts
We have audited the accompanying balance sheet of MB Bittersweet Associates Limited Partnership, MHFA Project No. 84-051-S, as of December 31, 1994, and the related statements of operations, partners' equity (deficiency) 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 generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the 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 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 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 MB Bittersweet Associates Limited Partnership as of December 31, 1994, and the results of its operations, changes in partners' equity (deficiency) and its cash flows for the year then ended in conformity with generally accepted accounting principles.
/s/ Freedberg & Garlick, P.C.
February 14, 1995
[Letterhead]
[LOGO] Freedberg & Garlick, P.C. Certified Public Accountants Wellesley Office Park 55 William Street Wellesley, Massachusetts 02181-4003 617-239-3400, FAX 239-1140 Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Partners of MB Bittersweet Associates Limited Partnership (a Massachusetts Limited Partnership) Boston, Massachusetts
We have audited the accompanying balance sheet of MB Bittersweet Associates Limited Partnership, MHFA Project No. 84-051-S, as of December 31, 1993, and the related statements of operations, partners' equity (deficiency) 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 generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the 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 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 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 MB Bittersweet Associates Limited Partnership as of December 31, 1993, and the results of its operations, changes in partners' equity (deficiency) and its cash flows for the year then ended in conformity with generally accepted accounting principles.
/s/ Freedberg & Garlick, P.C.
February 10, 1994
[Letterhead]
[LOGO] Charles Bailly & Company P.L.L.P. Certified Public Accountants * Consultants
INDEPENDENT AUDITOR'S REPORT
The Partners Hughes Apartments Limited Partnership Wahpeton, North Dakota
We have audited the accompanying balance sheets of Hughes Apartments Limited Partnership as of December 31, 1995 and 1994, 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 generally accepted auditing standards. 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 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 Hughes Apartments Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
The accompanying financial statements have been prepared assuming that the Partnership will continue as a going concern. As discussed in Note 9 to the financial statements, the Partnership was unable to pay all of the required bond payments which raises substantial doubt about the Partnership's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota February 19, 1996
[Letterhead]
[LOGO] Charles Bailly & Company P.L.L.P. Certified Public Accountants * Consultants
INDEPENDENT AUDITOR'S REPORT
The Partners Hughes Apartments Limited Partnership Wahpeton, North Dakota
We have audited the accompanying balance sheets of Hughes Apartments Limited Partnership as of December 31, 1994 and 1993, 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 generally accepted auditing standards. 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 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 Hughes Apartments Limited Partnership as of December 31, 1994 and 1993, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
The accompanying financial statements have been prepared assuming that the Partnership will continue as a going concern. As discussed in Note 9 to the financial statements, the Partnership was unable to pay real estate taxes, or all of the required bond payments which raises substantial doubt about the Partnership's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota January 18, 1995
[Letterhead]
[LOGO] Charles Bailly & Company P.L.L.P. Certified Public Accountants * Consultants
INDEPENDENT AUDITOR'S REPORT
The Partners 600 Dakota Properties Limited Partnership Wahpeton, North Dakota
We have audited the accompanying balance sheets of 600 Dakota Properties Limited Partnership as of December 31, 1995 and 1994, 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 generally accepted auditing standards. 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 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 600 Dakota Properties Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota January 22, 1996
[Letterhead]
[LOGO] Charles Bailly & Company P.L.L.P. Certified Public Accountants * Consultants
INDEPENDENT AUDITOR'S REPORT
The Partners 600 Dakota Properties Limited Partnership Wahpeton, North Dakota
We have audited the accompanying balance sheets of 600 Dakota Properties Limited Partnership as of December 31, 1994 and 1993, 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 generally accepted auditing standards. 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 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 600 Dakota Properties Limited Partnership as of December 31, 1994 and 1993, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota January 17, 1995
[Letterhead]
[LOGO] Charles Bailly & Company P.L.L.P. Certified Public Accountants * Consultants
INDEPENDENT AUDITOR'S REPORT
The Partners Duluth Limited Partnership Wahpeton, North Dakota
We have audited the accompanying balance sheet of Duluth Limited Partnership, FHA Project Number 091-10505 REF, as of December 31, 1995, and the related statements of profit and loss, 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.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the 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 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 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 Duluth Limited Partnership as of December 31, 1995, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards and the Consolidated Audit Guide for Audits of HUD Programs issued by the U.S. Department of Housing and Urban Development, we have also issued a report dated January 22, 1996, on our consideration of Duluth Limited Partnership's internal control structure and reports dated January 22, 1996, on its compliance with specific requirements applicable to nonmajor HUD program transactions and specific requirements applicable to Affirmative Fair Housing.
Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information is presented for the 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.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota January 22, 1996
[Letterhead]
[LOGO] Charles Bailly & Company P.L.L.P. Certified Public Accountants * Consultants
INDEPENDENT AUDITOR'S REPORT
The Partners Duluth Limited Partnership Wahpeton, North Dakota
We have audited the accompanying balance sheet of Duluth Limited Partnership, FHA Project Number 091-10505 REF, as of December 31, 1994, and the related statements of profit and loss, 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.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the 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 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 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 Duluth Limited Partnership as of December 31, 1994, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information is presented for the 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.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota January 18, 1995
[Letterhead]
Charles Bailly & Company P.L.L.P. Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To the Partners Duluth Limited Partnership Wahpeton, North Dakota
We have audited the accompanying balance sheet of Duluth Limited Partnership, FHA Project Number 091-10505 REF, as of December 31, 1993, and the related statements of profit and loss, partners' equity and cash flows for the year then ended. These financial statements are the responsibility of the Project's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the 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 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 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 Duluth Limited Partnership as of December 31, 1993, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information is presented for the 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.
/s/ Charles Bailly & Company
Fargo, North Dakota January 10, 1994
[Letterhead]
[LOGO] Charles Bailly & Company P.L.L.P. Certified Public Accountants * Consultants
INDEPENDENT AUDITOR'S REPORT
The Partners Barrington Manor Limited Partnership Wahpeton, North Dakota
We have audited the accompanying balance sheets of Barrington Manor Limited Partnership as of December 31, 1995 and 1994, 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 generally accepted auditing standards. 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 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 Barrington Manor Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota January 17, 1996
[Letterhead]
[LOGO] Charles Bailly & Company P.L.L.P. Certified Public Accountants * Consultants
INDEPENDENT AUDITOR'S REPORT
The Partners Barrington Manor Limited Partnership Wahpeton, North Dakota
We have audited the accompanying balance sheets of Barrington Manor Limited Partnership as of December 31, 1994 and 1993, 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 generally accepted auditing standards. 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 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 Barrington Manor Limited Partnership as of December 31, 1994 and 1993, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota January 16, 1995
[Letterhead]
[LOGO] Charles Bailly & Company P.L.L.P. Certified Public Accountants * Consultants
INDEPENDENT AUDITOR'S REPORT
The Partners Graver Inn Limited Partnership Wahpeton, North Dakota
We have audited the accompanying balance sheets of Graver Inn Limited Partnership as of December 31, 1995 and 1994, 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 generally accepted auditing standards. 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 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 Graver Inn Limited Partnership as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota January 17, 1996
[Letterhead]
[LOGO] Charles Bailly & Company P.L.L.P. Certified Public Accountants * Consultants
INDEPENDENT AUDITOR'S REPORT
The Partners Graver Inn Limited Partnership Wahpeton, North Dakota
We have audited the accompanying balance sheets of Graver Inn Limited Partnership as of December 31, 1994 and 1993, 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 generally accepted auditing standards. 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 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 Graver Inn Limited Partnership as of December 31, 1994 and 1993, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota January 16, 1995
[Letterhead]
David C. Moja, C.P.A., P.C. P.O. Box 14212 5 Oglethorpe Professional Blvd. Savannah, Georgia 31416 (912)354-4141
INDEPENDENT AUDITORS' REPORT
To the General Partners of Chestnut Lane Limited Partnership
We have audited the accompanying balance sheets of Chestnut Lane Limited Partnership (a Georgia Limited Partnership) as of December 31, 1995 and December 31, 1994, 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 generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 Chestnut Lane Limited Partnership (a Georgia Limited Partnership) as of December 31, 1995 and December 31, 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the portion marked "unaudited", on which we express no opinion, has been subjected to the procedures applied in the audits of the basic financial statements and, in our opinion, is fairly presented in all material respects in relation to the basic financial statements taken as a whole.
/s/ David C. Moja
David C. Moja, C.P.A., P.C.
March 12, 1996 Savannah, Georgia
[Letterhead]
David C. Moja, C.P.A., P.C. P.O. Box 14212 5 Oglethorpe Professional Blvd. Savannah, Georgia 31416 (912)354-4141
INDEPENDENT AUDITORS' REPORT
To the General Partners of Chestnut Lane Limited Partnership
We have audited the accompanying balance sheets of Chestnut Lane Limited Partnership (a Georgia Limited Partnership) as of December 31, 1994 and December 31, 1993, 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 generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 Chestnut Lane Limited Partnership (a Georgia Limited Partnership) as of December 31, 1994 and December 31, 1993, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the portion marked "unaudited", on which we express no opinion, has been subjected to the procedures applied in the audits of the basic financial statements and, in our opinion, is fairly presented in all material respects in relation to the basic financial statements taken as a whole.
/s/ David C. Moja
David C. Moja, C.P.A., P.C.
March 3, 1995 Savannah, Georgia
[Letterhead]
David C. Moja, C.P.A., P.C. P.O. Box 14212 5 Oglethorpe Professional Blvd. Savannah, Georgia 31416 (912)354-4141
INDEPENDENT AUDITORS' REPORT
To the General Partners of Glennville Properties
We have audited the accompanying balance sheets of Glennville Properties (a Georgia Limited Partnership) as of December 31, 1995 and December 31, 1994, 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 generally accepted auditing standards. 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 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 Glennville Properties (a Georgia Limited Partnership) as of December 31, 1995 and December 31, 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the portion marked "unaudited", on which we express no opinion, has been subjected to the procedures applied in the audits of the basic financial statements and, in our opinion, is fairly presented in all material respects in relation to the basic financial statements taken as a whole.
/s/ David C. Moja
David C. Moja, C.P.A., P.C.
March 11, 1996 Savannah, Georgia
[Letterhead]
David C. Moja, C.P.A., P.C. P.O. Box 14212 5 Oglethorpe Professional Blvd. Savannah, Georgia 31416 (912)354-4141
INDEPENDENT AUDITORS' REPORT
To the General Partners of Glennville Properties
We have audited the accompanying balance sheets of Glennville Properties (a Georgia Limited Partnership) as of December 31, 1994 and December 31, 1993, 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 generally accepted auditing standards. 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 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 Glennville Properties (a Georgia Limited Partnership) as of December 31, 1994 and December 31, 1993, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the portion marked "unaudited", on which we express no opinion, has been subjected to the procedures applied in the audits of the basic financial statements and, in our opinion, is fairly presented in all material respects in relation to the basic financial statements taken as a whole.
/s/ David C. Moja
David C. Moja, C.P.A., P.C.
March 3, 1995 Savannah, Georgia
[Letterhead]
David C. Moja, C.P.A., P.C. P.O. Box 14212 Savannah, Georgia 31416 (912)354-4141
INDEPENDENT AUDITORS' REPORT
To the General Partners of Pine Village Limited Partnership
We have audited the accompanying balance sheets of Pine Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1995 and December 31, 1994, 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 generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 Pine Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1995 and December 31, 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the portion marked "unaudited", on which we express no opinion, has been subjected to the procedures applied in the audits of the basic financial statements and, in our opinion, is fairly presented in all material respects in relation to the basic financial statements taken as a whole.
/s/ David C. Moja
David C. Moja, C.P.A., P.C.
March 12, 1996 Savannah, Georgia
[Letterhead]
David C. Moja, C.P.A., P.C. P.O. Box 14212 Savannah, Georgia 31416 (912)354-4141
INDEPENDENT AUDITORS' REPORT
To the General Partners of Pine Village Limited Partnership
We have audited the accompanying balance sheets of Pine Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1994 and December 31, 1993, 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 generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 Pine Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1994 and December 31, 1993, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the portion marked "unaudited", on which we express no opinion, has been subjected to the procedures applied in the audits of the basic financial statements and, in our opinion, is fairly presented in all material respects in relation to the basic financial statements taken as a whole.
/s/ David C. Moja
David C. Moja, C.P.A., P.C.
March 3, 1995 Savannah, Georgia
[Letterhead]
David C. Moja, C.P.A., P.C. P.O. Box 14212 Savannah, Georgia 31416 (912)354-4141
INDEPENDENT AUDITORS' REPORT
To the General Partners of Talbot Village Limited Partnership
We have audited the accompanying balance sheets of Talbot Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1995 and December 31, 1994, 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 generally accepted auditing standards. 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 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 Talbot Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1995 and December 31, 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the portion marked "unaudited", on which we express no opinion, has been subjected to the procedures applied in the audits of the basic financial statements and, in our opinion, is fairly presented in all material respects in relation to the basic financial statements taken as a whole.
/s/ David C. Moja
David C. Moja, C.P.A., P.C.
March 11, 1996 Savannah, Georgia
[Letterhead]
David C. Moja, C.P.A., P.C. P.O. Box 14212 5 Oglethorpe Professional Blvd. Savannah, Georgia 31416 (912)354-4141
INDEPENDENT AUDITORS' REPORT
To the General Partners of Talbot Village Limited Partnership
We have audited the accompanying balance sheets of Talbot Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1994 and December 31, 1993, 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 generally accepted auditing standards. 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 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 Talbot Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1994 and December 31, 1993, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the portion marked "unaudited", on which we express no opinion, has been subjected to the procedures applied in the audits of the basic financial statements and, in our opinion, is fairly presented in all material respects in relation to the basic financial statements taken as a whole.
/s/ David C. Moja
David C. Moja, C.P.A., P.C.
March 3, 1995 Savannah, Georgia
[Letterhead]
David C. Moja, C.P.A., P.C. P.O. Box 14212 Savannah, Georgia 31416 (912)354-4141
INDEPENDENT AUDITORS' REPORT
To the General Partners of Willowpeg Village Limited Partnership
We have audited the accompanying balance sheets of Willowpeg Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1995 and December 31, 1994, 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 generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 Willowpeg Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1995 and December 31, 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the portion marked "unaudited", on which we express no opinion, has been subjected to the procedures applied in the audits of the basic financial statements and, in our opinion, is fairly presented in all material respects in relation to the basic financial statements taken as a whole.
/s/ David C. Moja
David C. Moja, C.P.A., P.C.
March 12, 1996 Savannah, Georgia
[Letterhead]
David C. Moja, C.P.A., P.C. P.O. Box 14212 5 Oglethorpe Professional Blvd. Savannah, Georgia 31416 (912)354-4141
INDEPENDENT AUDITORS' REPORT
To the General Partners of Willowpeg Village Limited Partnership
We have audited the accompanying balance sheets of Willowpeg Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1994 and December 31, 1993, 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 generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 Willowpeg Village Limited Partnership (a Georgia Limited Partnership) as of December 31, 1994 and December 31, 1993, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for the portion marked "unaudited", on which we express no opinion, has been subjected to the procedures applied in the audits of the basic financial statements and, in our opinion, is fairly presented in all material respects in relation to the basic financial statements taken as a whole.
/s/ David C. Moja
David C. Moja, C.P.A., P.C.
March 3, 1995 Savannah, Georgia
[Letterhead]
[Logo] macdonaldpage Certified Public Accountants 30 Long Creek Drive South Portland, Maine 04106 (207) 774-5701 P.O. Box 2389 Augusta, Maine 04338 (207) 621-0330
Independent Auditors' Report
February 14, 1996 Bingham Family Housing Associates (a Limited Partnership) 224 Maine Avenue Gardiner, Maine
We have audited the accompanying balance sheet of Bingham Family Housing Associates (a Limited Partnership) as of December 31, 1995, and the related statements of profit and loss, changes in partners' capital 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 generally accepted auditing standards. 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 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 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 Bingham Family Housing Associates (a Limited Partnership) as of December 31, 1995, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting standards.
/s/ Macdonald Page & Co.
Certified Public Accountants
[Letterhead]
[Logo] macdonaldpage Certified Public Accountants 30 Long Creek Drive South Portland, Maine 04106 (207) 774-5701 P.O. Box 2389 Augusta, Maine 04338 (207) 621-0330
Independent Auditors' Report
February 10, 1995 Bingham Family Housing Associates (a Limited Partnership) 224 Maine Avenue Gardiner, Maine
We have audited the accompanying statement of assets, liabilities and partners' capital--income tax basis of Bingham Family Housing Associates (a Limited Partnership) as of December 31, 1994, and the related statements of revenue and expenses--income tax basis, changes in partners' capital--income tax basis, and cash flows--income tax basis 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 generally accepted auditing standards. 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 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 audit provides a reasonable basis for our opinion.
As described in Note 1, these financial statements were prepared on the basis of accounting the Partnership uses for income tax purposes, which is a comprehensive basis of accounting other than generally accepted accounting principles.
In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities and partners' capital of Bingham Family Housing Associates (a Limited Partnership) as of December 31, 1994, and its revenue and expenses, changes in partners' capital, and cash flows for the year then ended on the basis of accounting described in Note 1.
/s/ Macdonald Page & Co.
Certified Public Accountants
[Letterhead]
[Logo] macdonaldpage Certified Public Accountants 30 Long Creek Drive South Portland, Maine 04106 (207) 774-5701 P.O. Box 2389 Augusta, Maine 04338 (207) 621-0330
Independent Auditors' Report
February 18, 1994 Bingham Family Housing Associates (a Limited Partnership) 224 Maine Avenue Gardiner, Maine
We have audited the accompanying statement of assets, liabilities and partners' capital--income tax basis of Bingham Family Housing Associates (a Limited Partnership) as of December 31, 1993, and the related statements of revenue and expenses--income tax basis, changes in partners' capital--income tax basis, and cash flows--income tax basis 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 generally accepted auditing standards. 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 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 audit provides a reasonable basis for our opinion.
As described in Note 1, these financial statements were prepared on the basis of accounting the Partnership uses for income tax purposes, which is a comprehensive basis of accounting other than generally accepted accounting principles.
In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities and partners' capital of Bingham Family Housing Associates (a Limited Partnership) as of December 31, 1993, and its revenue and expenses, changes in partners' capital, and cash flows for the year then ended on the basis of accounting described in Note 1.
/s/ Macdonald, Page & Co.
Certified Public Accountants
[Letterhead]
[Logo] macdonaldpage Certified Public Accountants 30 Long Creek Drive South Portland, Maine 04106 (207) 774-5701 P.O. Box 2389 Augusta, Maine 04338 (207) 621-0330
Independent Auditors' Report
February 14, 1996 Birmingham Housing Associates (a Limited Partnership) 224 Maine Avenue Gardiner, Maine
We have audited the accompanying balance sheet of Birmingham Housing Associates (a Limited Partnership) as of December 31, 1995, and the related statements of profit and loss, changes in partners' capital 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 generally accepted auditing standards. 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 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 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 Birmingham Housing Associates (a Limited Partnership) as of December 31, 1995, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting standards.
/s/ Macdonald Page & Co.
Certified Public Accountants
[Letterhead]
[Logo] macdonaldpage Certified Public Accountants 30 Long Creek Drive South Portland, Maine 04106 (207) 774-5701 P.O. Box 2389 Augusta, Maine 04338 (207) 621-0330
Independent Auditors' Report
February 10, 1995 Birmingham Housing Associates (a Limited Partnership) 224 Maine Avenue Gardiner, Maine
We have audited the accompanying statement of assets, liabilities and partners' capital--income tax basis of Birmingham Housing Associates (a Limited Partnership) as of December 31, 1994, and the related statements of revenue and expenses--income tax basis, changes in partners' capital--income tax basis, and cash flows--income tax basis 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 generally accepted auditing standards. 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 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 audit provides a reasonable basis for our opinion.
As described in Note 1, these financial statements were prepared on the basis of accounting the Partnership uses for income tax purposes, which is a comprehensive basis of accounting other than generally accepted accounting principles.
In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities and partners' capital of Birmingham Housing Associates (a Limited Partnership) as of December 31, 1994, and its revenue and expenses, changes in partners' capital, and cash flows for the year then ended on the basis of accounting described in Note 1.
/s/ Macdonald Page & Co.
Certified Public Accountants
[Letterhead]
[Logo] macdonaldpage Certified Public Accountants 30 Long Creek Drive South Portland, Maine 04106 (207) 774-5701 P.O. Box 2389 Augusta, Maine 04338 (207) 621-0330
Independent Auditors' Report
February 18, 1994 Birmingham Housing Associates (a Limited Partnership) 224 Maine Avenue Gardiner, Maine
We have audited the accompanying statement of assets, liabilities and partners' capital--income tax basis of Birmingham Housing Associates (a Limited Partnership) as of December 31, 1993, and the related statements of revenue and expenses--income tax basis, changes in partners' capital--income tax basis, and cash flows--income tax basis 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 generally accepted auditing standards. 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 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 audit provides a reasonable basis for our opinion.
As described in Note 1, these financial statements were prepared on the basis of accounting the Partnership uses for income tax purposes, which is a comprehensive basis of accounting other than generally accepted accounting principles.
In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities and partners' capital of Birmingham Housing Associates (a Limited Partnership) as of December 31, 1993, and its revenue and expenses, changes in partners' capital, and cash flows for the year then ended on the basis of accounting described in Note 1.
/s/ Macdonald, Page & Co.
Certified Public Accountants
[Letterhead]
[Logo] macdonaldpage Certified Public Accountants 30 Long Creek Drive South Portland, Maine 04106 (207) 774-5701 P.O. Box 2389 Augusta, Maine 04338 (207) 621-0330
Independent Auditors' Report
February 14, 1996 New Sweden Housing Associates (a Limited Partnership) 224 Maine Avenue Gardiner, Maine
We have audited the accompanying balance sheet of New Sweden Housing Associates (a Limited Partnership) as of December 31, 1995, and the related statements of profit and loss, changes in partners' capital 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 generally accepted auditing standards. 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 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 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 New Sweden Housing Associates (a Limited Partnership) as of December 31, 1995, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting standards.
/s/ Macdonald Page & Co.
Certified Public Accountants
[Letterhead]
[Logo] macdonaldpage Certified Public Accountants 30 Long Creek Drive South Portland, Maine 04106 (207) 774-5701 P.O. Box 2389 Augusta, Maine 04338 (207) 621-0330
Independent Auditors' Report
February 10, 1995 New Sweden Housing Associates (a Limited Partnership) 224 Maine Avenue Gardiner, Maine
We have audited the accompanying statement of assets, liabilities and partners' capital--income tax basis of New Sweden Housing Associates (a Limited Partnership) as of December 31, 1994, and the related statements of revenue and expenses--income tax basis, changes in partners' capital--income tax basis, and cash flows--income tax basis 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 generally accepted auditing standards. 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 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 audit provides a reasonable basis for our opinion.
As described in Note 1, these financial statements were prepared on the basis of accounting the Partnership uses for income tax purposes, which is a comprehensive basis of accounting other than generally accepted accounting principles.
In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities and partners' capital of New Sweden Housing Associates (a Limited Partnership) as of December 31, 1994, and its revenue and expenses, changes in partners' capital, and cash flows for the year then ended on the basis of accounting described in Note 1.
/s/ Macdonald Page & Co.
Certified Public Accountants
[Letterhead]
[Logo] macdonaldpage Certified Public Accountants 30 Long Creek Drive South Portland, Maine 04106 (207) 774-5701 P.O. Box 2389 Augusta, Maine 04338 (207) 621-0330
Independent Auditors' Report
February 18, 1994 New Sweden Housing Associates (a Limited Partnership) 224 Maine Avenue Gardiner, Maine
We have audited the accompanying statement of assets, liabilities and partners' capital--income tax basis of New Sweden Housing Associates (a Limited Partnership) as of December 31, 1993, and the related statements of revenue and expenses--income tax basis, changes in partners' capital--income tax basis, and cash flows--income tax basis 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 generally accepted auditing standards. 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 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 audit provides a reasonable basis for our opinion.
As described in Note 1, these financial statements were prepared on the basis of accounting the Partnership uses for income tax purposes, which is a comprehensive basis of accounting other than generally accepted accounting principles.
In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities and partners' capital of New Sweden Housing Associates (a Limited Partnership) as of December 31, 1993, and its revenue and expenses, changes in partners' capital, and cash flows for the year then ended on the basis of accounting described in Note 1.
/s/ Macdonald, Page & Co.
Certified Public Accountants
[Letterhead]
[LOGO] Haran & Associates Ltd Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To the Partners HUD Field Office Director HAZEL-WINTHROP APARTMENTS Chicago, Illinois Chicago, Illinois
We have audited the accompanying balance sheets of HAZEL-WINTHROP APARTMENTS, Project No. 071-35522-PM, as of December 31, 1995 and 1994, and the related statements of profit and loss, changes in partners' equity, and statement of 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 generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. These 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 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 provided 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 HAZEL-WINTHROP APARTMENTS, as of December 31, 1995 and 1994, and its profit and loss, changes in partners' equity, and its cash flows for the years then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated January 26, 1996, on our consideration of HAZEL-WINTHROP APARTMENTS internal control structure and reports dated January 26, 1996, on its complience with specific requirements applicable to Affirmative Fair Housing, and specific requirements applicable to Nonmajor HUD programs.
The accompanying supplementary information (shown on pages 15 to 20) is presented for purposes of additional analysis and is not part of the basic financial statements. Such information has been subjected to the same 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.
/s/ Haran & Associates Ltd
HARAN & ASSOCIATES LTD Certified Public Accountants Wilmette, Illinois Illinois Certificate No. 060-002892 Federal Identification No. 36-3097692 Audit Partner: James E. Haran (708) 853-2580
January 26, 1996
[Letterhead]
Russell Novak & Company Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Partners Hazel-Winthrop Apartments Chicago, Illinois
We have audited the accompanying balance sheets of F.H.A. Project No. 071-35522-PM Hazel-Winthrop Apartments (an Illinois Limited Partnership) as of December 31, 1993 and 1992, and the related statements of income, 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 generally accepted auditing standards and government auditing standards, issued by the Comptroller General of the 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 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 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 F.H.A. Project No. 071-35522-PM Hazel-Winthrop Apartments as of December 31, 1993 and 1992, and the results of its operations, changes in partners' equity, and cash flows for the years then ended in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The supporting data included in the report (shown on pages 12 through 17) are presented for the purposes of additional analysis and are not a required part of the financial statements of F.H.A. Project No. 071-35522-PM Hazel-Winthrop Apartments. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly presented in all material respects in relation to the financial statements taken as a whole.
/s/ Russell Novak and Company
February 4, 1994 Chicago, Illinois
BILLIE J. BURNETT, CPA 5 Benton Drive Nashua, NH 03060 (603) 883-4230
To The Partners Michael J. Dobens Limited Partnership I
I have audited the accompanying balance sheets of Michael J. Dobens Limited Partnership I as of December 31, 1995 and 1994, and the related statements of income, partners' equity and cash flows for the years then ended. The financial statements are the responsibility of the Partnership's management. My responsibility is to express an opinion on these financial statements based on my audit.
I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I 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 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 my 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 Michael J. Dobens Limited Partnership I as of December 31, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
/s/ Billie J. Burnett
Billie J. Burnett February 7, 1996
BILLIE J. BURNETT, CPA 5 Benton Drive Nashua, NH 03060 (603) 883-4230
To The Partners Michael J. Dobens Limited Partnership I
I have audited the accompanying balance sheets of Michael J. Dobens Limited Partnership I as of December 31, 1994 and 1993, and the related statements of income, partners' equity and cash flows for the years then ended. The financial statements are the responsibility of the Partnership's management. My responsibility is to express an opinion on these financial statements based on my audit.
I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I 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 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 my 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 Michael J. Dobens Limited Partnership I as of December 31, 1994 and 1993, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
/s/ Billie J. Burnett
Billie J. Burnett February 9, 1995
[Letterhead]
Marks Shron & Company, LLP Certified Public Accountants 111 Great Neck Road * Great Neck * New York 11021 (516) 466-6550 * FAX (516) 466-5649
Independent Auditors' Report on Financial Statements
To the Partners of Logan Plaza Associates
We have audited the accompanying Balance Sheets of Logan Plaza Associates as of December 31, 1995 and 1994, and the related statements of income, 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 audit.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 audit provides a reasonable basis for our opinion.
As discussed in Note 3 to financial statements, 1995 the Partnership changed its method of computing depreciation to conform with generally accepted accounting principals.
In accordance with Government Auditing Standards and the Consolidated Audit Guide for Audits of HUD Programs issued by the U.S. Department of Housing and Urban Development Office of Inspector General in July 1993, we have also issued a report dated January 24, 1996, on our consideration of the Partnership's internal control structure, on its compliance with specific requirements applicable to major HUD programs, and on its compliance with specific requirements applicable to Affirmative Fair Housing.
Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying information shown on pages 14 to 23 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 audit of the basic financial statements and, in our opinion, except for the effects of the item discussed above, the additional information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.
/s/ Marks Shron & Company
January 24, 1996
[Letterhead]
Marks Shron & Company, LLP Certified Public Accountants 111 Great Neck Road * Great Neck * New York 11021 (516) 466-6550 * FAX (516) 466-5649
Independent Auditors' Report on Financial Statements
To the Partners of Logan Plaza Associates
We have audited the accompanying Balance Sheet of Logan Plaza Associates, A Limited Partnership, Project No. 012-36606-PM(42), as of December 31, 1994 and 1993, and the related statements of Profit and Loss (on HUD Form No. 92410), 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 generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the 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 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 audit provides a reasonable basis for our opinion.
As more fully described in Note 2 to the financial statements, the Partnership's method of computing depreciation is in accordance with reporting for Federal income tax purposes which is not in accordance with generally accepted accounting principles. The information needed to quantify the effects of this item (these items) on the financial position, results of operations, and cash flows of the Partnership is not reasonably determinable from the Partnership's accounts and records and, therefore, has not been presented.
In our opinion, except for the effects of the item(s) discussed in the preceding paragraph, the financial statements referred to above present fairly, in all material respects, the financial position of Logan Plaza Associates at December 31, 1994 and 1993 and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supporting data required by HUD, as referred to in the Table of Contents, is presented for purposes of additional analysis and to comply with HUD reporting requirements 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, except for the effects of the item(s) discussed above, the additional information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.
/s/ Marks Shron & Company
January 19, 1995
[Letterhead]
Michael Sczekan & Co., P.C. Certified Public Accountants 7936 East Arapahoe Court, Suite 2800 Englewood, Colorado 80112 Telephone (303) 770-3356 Facsimile (303) 770-3357
INDEPENDENT AUDITOR'S REPORT
To the Owner of Chief-Loan Management Delmar Housing Associates Limited Partnership Continental Wingate Associates Denver, Colorado Boston, Massachusetts
We have audited the accompanying Balance Sheet of Delmar Housing Associates Limited Partnership, FHA Project Number 109-94004 REF, as of December 31, 1995, and the related statements of profit and loss, changes in project equity and cash flows for the year then ended. These financial statements are the responsibility of the Project's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the 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 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 Delmar Housing Associates Limited Partnership, as of December 31, 1995 and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated February 23, 1996, on our consideration of Delmar Housing Associates Limited Partnership's internal control structure and a report dated February 23, 1996, on its compliance with laws and regulations.
Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The supporting data included in the report on pages 16 through 23 is presented for the purposes of additional analysis and are not a required part of the financial statements of Delmar Housing Associates Limited Partnership. Such information has been subjected to the same auditing procedures applied in the examination of the basic financial statements and, in our opinion, are presented fairly in all material respects in relation to the financial statements taken as a whole.
Respectfully submitted,
/s/ Michael Sczekan & Co.
Michael Sczekan & Co., P.C. Certified Public Accountants
Englewood, Colorado February 23, 1996
[Letterhead]
Michael Sczekan & Co., P.C. Certified Public Accountants 7936 East Arapahoe Court, Suite 2800 Englewood, Colorado 80112 Telephone (303) 770-3356 Facsimile (303) 770-3357
INDEPENDENT AUDITOR'S REPORT
To the Owner of Chief-Loan Management Delmar Housing Associates Limited Partnership Continental Wingate Associates Denver, Colorado Boston, Massachusetts
We have audited the accompanying Balance Sheet of Delmar Housing Associates Limited Partnership, FHA Project Number 109-94004 REF, as of December 31, 1994, and the related statements of profit and loss, changes in project equity and cash flows for the year then ended. These financial statements are the responsibility of the Project's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States, and the Consolidated Audit Guide, issued by the U.S. Department of Housing and Urban Development, Office of Inspector General in July, 1993. 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 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 Delmar Housing Associates Limited Partnership, as of December 31, 1994 and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The supporting data included in the report on pages 16 through 22 are presented for the purposes of additional analysis and are not a required part of the financial statements of Delmar Housing Associates Limited Partnership. Such information has been subjected to the same auditing procedures applied in the examination of the basic financial statements and, in our opinion, are presented fairly in all material respects in relation to the financial statements taken as a whole.
Respectfully submitted,
/s/ Michael Sczekan & Co.
Michael Sczekan & Co., P.C. Certified Public Accountants
Englewood, Colorado February 2, 1995
[Letterhead]
Michael Sczekan & Co., P.C. Certified Public Accountants 8801 East Hampden Avenue, Suite 200 Denver, Colorado 80231 (303) 751-4656 Fax (303) 745-1156
INDEPENDENT AUDITOR'S REPORT
To the Partners of Chief-Loan Management Delmar Housing Associates Limited Partnership Continental Wingate Associates Denver, Colorado Boston, Massachusetts
We have audited the accompanying Balance Sheet of Delmar Housing Associates Limited Partnership, FHA Project Number 109-94004 REF, as of December 31, 1993, and the related statements of profit and loss, changes in project 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.
We conducted our audit in accordance with generally accepted government auditing standards, Governmental Auditing Standards issued by the Comptroller General of the United States, and the Consolidated Audit Guide, issued by the U.S. Department of Housing and Urban Development, Office of Inspector General in July, 1993.
In our opinion, the balance sheet referred to above present fairly, in all material respects, the balance sheet of Delmar Housing Associates Limited Partnership, as of December 31, 1993, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The supporting data included in the report on pages 16 through 22 are presented for the purposes of additional analysis and are not a required part of the financial statements of HUD project Number 109-94004 REF. Such information has been subjected to the same auditing procedures applied in the examination of the basic financial statements and, in our opinion, are presented fairly in all material respects in relation to the financial statements taken as a whole.
Respectfully submitted,
/s/ Michael Sczekan & Co.
Michael Sczekan & Co., P.C. Certified Public Accountants
Denver, Colorado February 25, 1994
[Letterhead]
[Logo] Reznick Fedder & Silverman Certified Public Accountants * Business Consultants A Professional Corporation 217 East Redwood Street * Suite 1900 * Baltimore, MD 21202-3316 * (410) 727-4340 * Fax (410) 727-0460
INDEPENDENT AUDITORS' REPORT
To the Partners Heritage Court Limited Partnership
We have audited the accompanying balance sheet of Heritage Court Limited Partnership as of December 31, 1995, and the related statements of profit and loss (on HUD Form No. 92410), 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.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the 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 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 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 Heritage Court Limited Partnership as of December 31, 1995, and the results of its operations, changes in partners' equity and cash flows for the year then ended, in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 20 through 29 is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for that portion marked "unaudited," on which we express no opinion, 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.
In accordance with Government Auditing Standards, we have also issued a report dated January 16, 1996, on our consideration of Heritage Court Limited Partnership's internal control structure and on its compliance with specific requirements applicable to CDA programs, affirmative fair housing, and laws and regulations applicable to the financial statements.
/s/ Reznick Fedder & Silverman
Baltimore, Maryland Federal Employer January 16, 1996 Identification Number: 52-1088612 Audit Principal: William T. Riley, Jr.
[Letterhead]
[Logo] Reznick Fedder & Silverman Certified Public Accountants * Business Consultants A Professional Corporation 217 East Redwood Street * Suite 1900 * Baltimore, MD 21202-3316 * (410) 727-4340 * Fax (410) 727-0460
INDEPENDENT AUDITORS' REPORT
To the Partners Heritage Court Limited Partnership
We have audited the accompanying balance sheet of Heritage Court Limited Partnership as of December 31, 1994, and the related statements of profit and loss (on HUD Form No. 92410), 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.
We conducted our audit in accordance with generally accepted auditing standards. 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 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 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 Heritage Court Limited Partnership as of December 31, 1994, and the results of its operations, changes in partners' equity and cash flows for the year then ended, in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 19 through 27 is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for that portion marked "unaudited," on which we express no opinion, 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.
/s/ Reznick Fedder & Silverman
Baltimore, Maryland January 9, 1995
[Letterhead]
Reznick Fedder & Silverman Certified Public Accountants * Business Consultants A Professional Corporation 217 East Redwood Street * Suite 1900 * Baltimore, MD 21202-3316 (410) 727-4340 * Fax (410) 727-0460
INDEPENDENT AUDITORS' REPORT
To the Partners Heritage Court Limited Partnership
We have audited the accompanying balance sheet of Heritage Court Limited Partnership, CDA Project No.: 27.04.002, as of December 31, 1993, and the related statements of profit and loss (on HUD Form No. 92410), 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.
We conducted our audit in accordance with generally accepted auditing standards. 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 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 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 Heritage Court Limited Partnership, CDA Project No.: 27.04.0002, as of December 31, 1993, and the results of its operations, changes in partners' equity and cash flows for the year then ended, in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information on pages 19 through 27 is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Such information, except for that portion marked "unaudited," on which we express no opinion, 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.
/s/ Reznick Fedder & Silverman
Baltimore, Maryland January 14, 1994
MUELLER & WALLA, P.C. Certified Public Accountants 10714 Manchester Road Suite 202 Kirkwood, Missouri 63122 (314) 822-6575
ACCOUNTANTS' COMPILATION REPORT
The Partners Perryville Associates I, L.P. St. Louis, Missouri
We have compiled the accompanying balance sheet of Perryville Associates I, L.P. (a limited Partnership) as of December 31, 1995, and the related statements of operations, partners' capital, and cash flows for the year then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certificate Public Accounts.
A compilation is limited to presenting in the form of financial statements information that is the representation of management. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other form of assurance on them.
The financial statements for the year ended December 31, 1994, were audited by us, and we expressed an unqualified opinion on them in our report dated February 6, 1995, but we have not performed any auditing procedures since that date.
/s/Mueller & Walla, P.C.
Mueller & Walla, P.C. Certified Public Accountants
February 9, 1996
[Letterhead]
MUELLER & WALLA, P.C. Certified Public Accountants 10714 Manchester Road Suite 202 Kirkwood, Missouri 63122 (314) 822-6575
INDEPENDENT AUDITORS' REPORT
The Partners Perryville Associates I, L.P. St. Louis, Missouri
We have audited the accompanying balance sheet of Perryville Associates I, L.P. (a limited partnership) as of December 31, 1994, and the related statements of operations, partners' capital, 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 generally accepted auditing standards. 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 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 audit provides a reasonable basis for our opinion.
In our opinion, the 1994 financial statements referred to above present fairly, in all material respects, the financial position of Perryville Associates I, L.P. as of December 31, 1994, and the results of its operations, changes in partners' capital and cash flows for the year then ended in conformity with generally accepted accounting principles.
The 1993 financial statements were compiled by us and our report thereon, dated January 19, 1994, stated that we did not audit or review those financial statements and, accordingly, expressed no opinion or other form of assurance on them.
/s/ Mueller & Walla, P.C.
Mueller & Walla, P.C. Certified Public Accountants
February 6, 1995
[Letterhead]
MUELLER & WALLA, P.C. Certified Public Accountants 10714 Manchester Road Suite 201 Kirkwood, Missouri 63122 (314) 822-6575
ACCOUNTANTS' COMPILATION REPORT
The Partners Perryvillle Associates I, L.P. St. Louis, Missouri
We have audited the accompanying balance sheet of Perryville Associates I, L.P. (a limited partnership) as of December 31, 1993, and the related statements of operations, partners' capital, and cash flows for the year then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants.
A compilation is limited to presenting in the form of financial statements information that is the representation of management. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other form of assurance on them.
The financial statements for the year ended December 31, 1992, were audited by other accountants, and they expressed an unqualified opinion on them in their report dated January 21, 1993, but they have not performed any auditing procedures since that date.
/s/ Mueller & Walla, P.C.
Mueller & Walla, P.C. Certified Public Accountants
January 19, 1994
Annual Report on Form 10-K For The Year Ended March 31, 1996 Audited Financial Statements of Local Limited Partnerships
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
REPORT ON FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 1995
BOULEVARD COMMONS LIMITED PARTNERSHIP PROJECT NO. 071-35592
PAGE
AUDITOR'S REPORT 2
FINANCIAL STATEMENTS
Balance Sheet 3-4
Statement of Profit and Loss (HUD-92410) 5-6
Statement of Changes in Partners' Equity 7
Statement of Cash Flows 8-10
Notes to Financial Statements 11-15
SUPPORTING DATA 16-20
AUDITOR'S COMMENTS ON COMPLIANCE Major HUD Program 21
AUDITOR'S COMMENTS ON INTERNAL CONTROL 22-23
AUDITOR'S COMMENTS ON AFFIRMATIVE FAIR HOUSING 24
CERTIFICATE OF GENERAL PARTNERS 25
CERTIFICATE OF MANAGEMENT AGENT 26
INDEPENDENT AUDITOR'S REPORT
To the Partners HUD Field Office Director BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois Chicago, Illinois
We have audited the accompanying balance sheet of BOULEVARD COMMONS LIMITED PARTNERSHIP, Project No. 071-35592, as of December 31, 1995, and the related statements of profit and loss, changes in partners' equity and statement of 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 generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. 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 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 BOULEVARD COMMONS LIMITED PARTNERSHIP, as of December 31, 1995, and its profit or loss, changes in partners' equity, and its cash flows for the year then ended in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated January 19, 1996 on our consideration of BOULEVARD COMMONS LIMITED PARTNERSHIP's internal control structure and reports dated January 19, 1996 on its compliance with specific requirements applicable to Major HUD Programs and specific requirements applicable to Affirmative Fair Housing.
The accompanying supplementary information (shown on pages 16 to 20) 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 statement and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.
HARAN & ASSOCIATES LTD Certified Public Accountants Wilmette, Illinois Illinois Certificate No. 060-002892 Federal Certification No. 36-3097692 Audit Partner: James E. Haran (847)853-2580
January 19, 1996
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592 BALANCE SHEET DECEMBER 31, 1995
A S S E T S
The accompanying notes are an integral part of this statement.
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592 BALANCE SHEET (CONTINUED) DECEMBER 31, 1995
LIABILITIES AND PARTNERS' EQUITY
The accompanying notes are an integral part of this statement.
Statement of Profit U. S. Department of Housing
and Loss and Urban Development Office Of Housing Federal Housing Commissioner OMB Approval No. 2502-0052(Exp 1/31/95) Public Reporting Burden for this collection of information is estimated to average 1.0 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Reports Management Officer, Office of Information, Policies and Systems, U.S. Department of Housing and Urban Development, Washington, D.C. 20410-3600 and to the Office of Management and Budget, Paperwork Reduction Project (2502-0052), Washington, D.C. 20503. Do not send this completed form to either of these addresses.
For Month/Period Project No. 071-35592 Project Name BOULEVARD COMMONS LIMITED Beginning 1/01/95 Ending 12/31/95 PARTNERSHIP
The accompanying notes are an integral part of this statement. Page 1 of 2
*All amounts must be rounded to the nearest dollar; $.50 and form HUD-92410 (7/91)over, round up - $.49 and below, round down. ref Handbook 4370.2
Warning:HUD will prosecute false claims and statements. Conviction may result in criminal and/or Civil penalties.(U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729,3802)
Miscellaneous or other income and expenses Sub-account Groups. If miscellaneous or other income and/or expense sub-accounts (5190,5290,5490,5990,6390,6590,6729,6890 and 7190) exceed the Account Groupings by 10% or more, attach a separate schedule describing or explaining the miscellaneous income or expense.
Part II 1. Total principal payments required under the mortgage, even if payments under a Workout Agreement are less or more than those required under the mortgage. $ 22,907 2. Replacement Reserve deposits required by the Regulatory Agreement or Amendments thereto, even if payments may be temporarily suspended or waived. $ 47,880 3. Replacement or Painting Reserve releases which are included as expense items on this Profit and Loss statement. $ NONE 4. Project Improvement Reserve Releases under the Flexible Subsidy Program that are included as expense items on this Profit and Loss Statement. $ NONE - --------------------------------------------------------------------------------
The accompanying notes are an integral part of this statement. Page 2 of 2
ref Handbook 4370.2
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592 STATEMENT OF CHANGES IN PARTNERS' EQUITY FOR THE YEAR ENDED DECEMBER 31, 1995
The accompanying notes are an integral part of this statement.
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1995
The accompanying notes are an integral part of this statement.
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592 STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 1995
The accompanying notes are an integral part of this statement.
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592 STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 1995
NONCASH INVESTING AND FINANCING TRANSACTIONS A bank maintains an escrow account on behalf of the Project for the payment of development fees and amounts due to a general partner. The transactions in the accounts for the year were as follows:
The Partnership refinanced its 10% mortgage on April 6, 1995 as follows:
DISCLOSURE OF ACCOUNTING POLICY For purposes of the statement of cash flows, the Partnership considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.
The accompanying notes are an integral part of this statement.
BOULEVARD COMMONS LIMITED PARTNERSHIP PROJECT NO. 071-35592 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Partnership was organized as a limited partnership formed June 15, 1987 and amended July 13, 1988. Its purpose is to acquire an interest in six buildings located in Chicago, Illinois, and to renovate and operate thereon two hundred-twelve units of low income housing under Section 221(d)(4) of the National Housing Act. Such projects are regulated by HUD as to rent charges and operating methods. The regulatory agreement limits annual distributions of net operating receipts to "surplus cash" available at the end of each year.
The following significant accounting policies have been followed in the preparation of the financial statements:
Deferred loan costs consist of fees for obtaining the HUD Insured Mortgage Loan and are being amortized on the straight-line method over the life of the original mortgage loan. Refinancing costs are being amortized over the life of the new loan. Unamortized permanent loan fees applicable to the original permanent loan were amortized in entirety in the current year. This resulted in additional amortization expense of $457,529 for the year.
Organization costs associated with the formation of the Partnership were amortized using the straight-line method over five years.
No income tax provision has been included in the financial statements since income or loss of the Partnership is required to be reported by the respec- tive partners on their income tax returns.
Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported revenues and expenses. Actual results could vary from the estimates that were used.
The Partnership maintains cash balances at a bank where accounts are insured by the F.D.I.C. for up to $100,000. Balances in excess of insured limits totalled approximately $60,543 at December 31, 1995.
DEVELOPMENT AGREEMENT/ESCROW DEPOSITS
The Partnership has entered into a Development Agreement with Prairie Parc Corp. (Developer) an affiliate of the General Partners.
For its services in connection with development of the Project and the supervision of the construction and rehabilitation of the improvements, the developer shall be entitled to receive the aggregate amount of $2,448,865 payable as follows:
BOULEVARD COMMONS LIMITED PARTNERSHIP PROJECT NO. 071-35592 NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1995
DEVELOPMENT AGREEMENT/ESCROW DEPOSITS (Cont'd)
Of the $2,448,865 received by the developer, $1,718,800 was deposited by the developer into escrow.
The scheduled source and (use) of funds to be deposited into escrow with American National Bank is as follows:
Deposit required by developer $1,718,800
Payment to developer at the later of final closing or determination of the annual low income housing credit (659,400)
Payment to developer at the later of breakeven date or 95% occupancy date (259,400)
Operating reserve (800,000)
Final closing and the determination of the low income housing credit have both been achieved, thus $659,400 was disbursed to the developer during 1990.
The break-even date and 95% occupancy were achieved, thus $259,400 was disbursed to the developer during 1991.
The operating reserve, if not required to fund a net deficit, will be maintained on the following schedule: Required Year End Reserve -------- --------- December 31, 1990 $ 800,000 December 31, 1991 640,000 December 31, 1992 480,000 December 31, 1993 320,000 December 31, 1994 160,000 December 31, 1995 -
During 1994 $160,000 was disbursed to the developer from the operating reserve. Consequently, $480,000 of additional reserve releases are available to the developer as of December 31, 1995.
All interest after escrow fees are to be given to the developer.
BOULEVARD COMMONS LIMITED PARTNERSHIP PROJECT NO. 071-35592 NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1995
MORTGAGE NOTES PAYABLE
The 10% mortgage was refinanced on April 6, 1995. The new 8.875% mortgage payable is insured by HUD. The apartment project is pledged as collateral for the note. Principal and interest payments of $74,916 commenced June 1, 1995 and continue to May 1, 2035.
As part of the refinancing the remaining balance of the original permanent mortgage placement fees were amortized in entirety in the year ended December 31, 1995. This resulted in an additional amortization expense of $457,529.
Under agreements with the mortgage lender and HUD, the Partnership is required to make monthly escrow deposits for taxes, insurance, and replacement of project assets, and is subject to restrictions as to operating policies, rental charges and operating expenditures.
At December 31, 1995, the following amounts were held in escrow:
Property tax escrow $ 47,005 Property insurance escrow 39,443 Mortgage insurance escrow 28,063 Cash replacement reserve 91,651 --------
Total $206,163 ========
The annual principal reduction for each of the next five years is as follows:
1996 $ 28,896 1997 31,349 1998 34,248 1999 37,414 2000 40,873
The liability of the Partnership under the mortgage note is limited to the under-lying value of the real estate collateral.
The junior mortgage payable to the City of Chicago bears interest at 3% per annum and matures at the later of July 1, 2030 or retirement of the FHA insured mortgage. Interest and principal are due in a lump sum upon maturity.
MANAGEMENT AND RENTAL
The Partnership has entered into a management agreement with Prairie Management Corporation for the year ending December 31, 1995. The management fee is equal to 5.7% of gross monthly collections.
A contract with the Department of Housing and Urban Development for Housing Assistance Payments is currently in effect. Under terms of the contracts, a rent subsidy is to be paid under Section 8 of the National Housing Act. Also under the terms of the contracts, the annual rent charged to the tenants is limited to 30% of annual income.
BOULEVARD COMMONS LIMITED PARTNERSHIP PROJECT NO. 071-35592 NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1995
MANAGEMENT AGENT ADVANCES
In connection with the refinancing of the first mortgage, Prairie Management Corporation advanced an initial loan of $319,364 which bears interest at 8.5%. The principal balance has been paid down to $62,250 at December 31, 1995.
SUPERVISORY MANAGEMENT FEE
Prairie Parc Corp., an affiliate of the General Partners, is the Supervisory Management Agent. It shall be entitled to a non-cumulative Supervisory Management Fee equal to the lessor of 4% of the gross revenue or 75% of any cash flow after the priority distribution of $21,200 is paid to the Investor Limited Partner. Both the Supervisory Management Fee and the priority distribution are payable only out of surplus cash as defined by the Regulatory Agreement. In no event shall the management fee and supervisory management fee exceed 11% of gross revenues of the project in any fiscal year.
PARTNERSHIP REPORTING FEE
The Investor Limited Partner shall receive an annual $5,000 fee to reimburse it for its cost of providing reports. The fee is payable only out of surplus cash, capital contributions or project expense loans.
PRIORITY DISTRIBUTION
The priority distribution was amended effective with the refinancing under which the Investor Limited Partner is to receive 99% of the surplus cash until it has received an annual amount equal to $21,200.
CASH FLOW (DEFICIT)
The following is a summary of cash flow at December 31, 1995 as defined by the Limited Partnership Agreement:
Net (loss) $(797,892) ------- Additions: Depreciation $ 560,271 Amortization 475,739 Interest 94,542 Mortgage insurance 7,290 Increase in accrued property taxes 21,282 Increase in prepaid insurance 944 Increase in accrued interest payable 12,328 Increase in accrued management fee 15,827 ---------
Total additions $1,188,223 ---------
BOULEVARD COMMONS LIMITED PARTNERSHIP PROJECT NO. 071-35592 NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1995
BOULEVARD COMMONS LIMITED PARTNERSHIP PROJECT NO. 071-35592 SUPPORTING DATA REQUIRED BY HUD FOR THE YEAR ENDED DECEMBER 31, 1995
The accompanying notes are an integral part of this statement.
BOULEVARD COMMONS LIMITED PARTNERSHIP PROJECT NO. 071-35592 SUPPORTING DATA REQUIRED BY HUD FOR THE YEAR ENDED DECEMBER 31, 1995
COMPENSATION OF PARTNERS During the calendar year 1995, the partners of Boulevard Commons Limited Partnership did not receive any compensation from rental activities.
SCHEDULE OF UNAUTHORIZED DISTRIBUTIONS None
DISTRIBUTIONS PAID TO PARTNERS Distributions to partners $ NONE ===========
ACCOUNTS AND NOTES RECEIVABLE - OTHER None
ACCOUNTS AND NOTES PAYABLE - OTHER None
The General Partners of BOULEVARD COMMONS LIMITED PARTNERSHIP have no identity of interest with any suppliers of the Project with the exception that the Partnership entered into a management agreement with Prairie Management Corporation, an affiliate of a general partner, for management of the Project.
CHANGES IN OWNERSHIP INTEREST None
The accompanying notes are an integral part of this statement.
U.S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
HOUSING-FEDERAL HOUSING COMMISSIONER OFFICE OF MULTIFAMILY HOUSING MANAGEMENT AND OCCUPANCY COMPUTATION OF SURPLUS CASH, DISTRIBUTIONS AND RESIDUAL RECEIPTS
PROJECT NAME: BOULEVARD COMMONS FISCAL PERIOD ENDED: PROJECT NUMBER: 071-35592 LIMITED PARTNERSHIP 12/ 31 / 95 PART A - COMPUTE SURPLUS CASH
The accompanying notes are an integral part of this statement. HUD-93486 12-80
BOULEVARD COMMONS LIMITED PARTNERSHIP PROJECT NO. 071-35592 SUPPORTING DATA REQUIRED BY HUD (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 1995
CHANGES IN FIXED ASSETS
* Roof Repairs
The accompanying notes are an integral part of this statement.
BOULEVARD COMMONS LIMITED PARTNERSHIP PROJECT NO. 071-35592 SUPPORTING DATA REQUIRED BY HUD FOR THE YEAR ENDED DECEMBER 31, 1995
SCHEDULE OF FUNDS IN FINANCIAL INSTITUTIONS AS OF DECEMBER 31, 1995:
A. Funds Held by Mortgagor, Regular Operating Account:
1. American National Bank (Checking) * $ 128,733 2. American National Bank (Savings, 3.15%) * 530 ----------- Operating Account $ 129,263
B. Funds Held by Mortgagor in Trust, Tenant Security Deposit:
1. American National Bank (Savings, 3.15%) 31,280 -----------
Total Funds Held by Mortgagor $ 160,543 -----------
C. Fund Held by Mortgagee:
1. Mortgage Escrow + $ 114,512 2. Replacement Reserve + 91,651 -----------
Total Funds Held by Mortgagee $ 206,163 -----------
TOTAL FUNDS IN FINANCIAL INSTITUTIONS $ 366,706 ===========
* Balances confirmed by American National Bank and Trust Company of Chicago + Balances confirmed by Heitman Financial Services, Inc.
The accompanying notes are an integral part of this statement.
[LETTERHEAD] [LOGO]
BOULEVARD COMMONS LIMITED PARTNERSHIP PROJECT NO. 071-35592
SUPPLEMENTARY DATA COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR HUD PROGRAMS
To the Partners HUD Field Office Director BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois Chicago, Illinois
We have audited the financial statements of BOULEVARD COMMONS LIMITED PARTNERSHIP, Project No. 071-35592, as of and for the year ended December 31, 1995 and have issued our report thereon dated January 19, 1996.
We have also audited BOULEVARD COMMONS LIMITED PARTNERSHIP's compliance with the specific program requirements governing federal financial reporting, mortgage status, replacement reserve, security deposits, cash receipts and disbursements, distributions to owners, tenant applications, eligibility, and recertification, and management functions that are applicable to its major HUD-assisted programs for the year ended December 31, 1995. The management of BOULEVARD COMMONS LIMITED PARTNERSHIP is responsible for compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.
We conducted our audits in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the Consolidated Audit Guide for Audits of HUD Programs (the "Guide") issued by the U.S. Department of Housing and Urban Development, Office of Inspector General in July 1993. Those standards and the Guide require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about BOULEVARD COMMONS LIMITED PARTNERSHIP's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, BOULEVARD COMMONS LIMITED PARTNERSHIP complied, in all material respects with the requirements described above that are applicable to its major HUD assisted programs, for the year ended December 31, 1995.
This report is intended for the information of the audit committee, management, and the Department of Housing and Urban Development. However, this report is a matter of public record and its distribution is not limited.
/s/ Haran & Assocoates LTD HARAN & ASSOCIATES LTD Certified Public Accountants Wilmette, Illinois Illinois Certificate No. 060-002892 Federal Certification No. 36-3097692 Audit Partner: James E. Haran (847)853-2580 January 19, 1996
[LETTERHEAD] [LOGO]
BOULEVARD COMMONS LIMITED PARTNERSHIP PROJECT NO. 071-35592
SUPPLEMENTARY DATA INTERNAL CONTROL
To the Partners HUD Field Office Director BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois Chicago, Illinois
We have audited the financial statements of BOULEVARD COMMONS LIMITED PARTNERSHIP, Project No. 071-35592, as of and for the year ended December 31, 1995 and have issued our report thereon dated January 19, 1996. We have also audited BOULEVARD COMMONS LIMITED PARTNERSHIP's compliance with requirements applicable to the major HUD-assisted programs and have issued our report thereon dated January 19, 1996.
We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States and the Consolidated Audit Guide for Audits of HUD Programs (the "Guide"), issued by he U.S. Department of Housing and Urban Development, Office of the Inspector General in July 1993. Those standards and the Guide require that we plan and perform the audit to obtain reasonable assurance about whether BOULEVARD COMMONS LIMITED PARTNERSHIP complied with laws and regulations, noncompliance with which would be material to a major HUD-assisted programs.
The management of BOULEVARD COMMONS LIMITED PARTNERSHIP is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles and that HUD-assisted programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.
In planning and performing our audits, we obtained an understanding of the design of relevant internal control structure policies and procedures and determined whether they had been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements of BOULEVARD COMMONS LIMITED PARTNERSHIP and on its compliance with specific requirements applicable to its major HUD-assisted programs and to report on the internal control structure in accordance with the provisions of the Guide and not to provide any assurance on the internal control structure.
[LETTERHEAD] [LOGO]
BOULEVARD COMMONS LIMITED PARTNERSHIP PROJECT NO. 071-35592
SUPPLEMENTARY DATA INTERNAL CONTROL (CONTINUED)
We performed tests of controls, as required by the Guide, to evaluate the effectiveness of the design and operation of the internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with specific requirements applicable to BOULEVARD COMMONS LIMITED PARTNERSHIP's major HUD-assisted programs. Our procedures were less in scope than would be necessary to render an opinion on internal control structure policies and procedures. Accordingly, we do not express such an opinion.
Our consideration of the internal control structure policies and procedures used in administering major HUD-assisted programs would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a major HUD-assisted program may occur and not be detected within a timely period by employees in the normal course of internal control structure and its operations that we consider to be material weaknesses as defined above.
This report is intended for the information of the audit committee, management, and the Department of Housing and Urban Development. However, this report is a matter of public record and its distribution is not limited.
/s/Haran & Associates LTD HARAN & ASSOCIATES LTD Certified Public Accountants Wilmette, Illinois Illinois Certificate NO. 060-002892 Federal Certification No. 36-3097692 Audit Partner: James E. Haran (847)853-2580
January 19, 1996
[LETTERHEAD] [LOGO]
BOULEVARD COMMONS LIMITED PARTNERSHIP PROJECT NO. 071-35592
SUPPLEMENTARY DATA AFFIRMATIVE FAIR HOUSING
To the Partners HUD Field Office Director BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois Chicago, Illinois
We have audited the financial statements of BOULEVARD COMMONS LIMITED PARTNERSHIP, Project No. 071-35592, as of and for the year ended December 31, 1995, and have issued our report thereon dated January 19, 1996.
We have applied procedures to test BOULEVARD COMMONS LIMITED PARTNERSHIP's compliance with the Affirmative Fair Housing requirements applicable to its HUD-assisted programs, for the year ended December 31, 1995.
Our procedures were limited to the applicable compliance requirement described in the Consolidated Audit Guide for Audits of HUD programs issued by the U.S. Department of Housing and Urban Development, Office of Inspector general in July 1993. Our procedures were substantially less in scope than an audit, the objective of which would be the expression of an opinion on BOULEVARD COMMONS LIMITED PARTNERSHIP's compliance with the Affirmative Fair Housing requirements. Accordingly, we do not express such an opinion.
The results of the test disclosed no instances of noncompliance that are required to be reported herein under the Guide.
This report is intended for the information of the audit committee, management, and the Department of Housing and Urban Development. However, this report is a matter of public record and its distribution is not limited.
/s/ Haran & Associates LTD HARAN & ASSOCIATES LTD Certified Public Accountants Illinois Certificate No. 060-002892 Federal Certification No. 36-3097692 Audit partner: James E. Haran (847)853-2580
January 19, 1996
BOULEVARD COMMONS LIMITED PARTNERSHIP PROJECT NO. 071-35592
EMPLOYER IDENTIFICATION NUMBER 36-3539155
CERTIFICATE OF GENERAL PARTNERS
We hereby certify that we have examined the accompanying
financial statements and supporting data for BOULEVARD
COMMONS LIMITED PARTNERSHIP and, to the best of our
knowledge and belief, the same is complete and accurate.
BOULEVARD COMMONS LIMITED PARTNERSHIP
By__________________________________________ Robert C. King
Title General Partner
Date January 19, 1996
By__________________________________________
Title General Partner
Date January 19, 1996
BOULEVARD COMMONS LIMITED PARTNERSHIP PROJECT NO. 071-35592
CERTIFICATE OF MANAGEMENT AGENT
I hereby certify that I have examined the accompanying
financial statements and supporting data for BOULEVARD
COMMONS LIMITED PARTNERSHIP and, to the best of my
knowledge and belief, the same is complete and accurate.
PRAIRIE MANAGEMENT CORPORATION MANAGEMENT AGENT
By__________________________________________ Robert C. King
Title President
Date January 19, 1996