EXHIBIT (a)(1)(iii)
To Holders Of Units Of Boston Financial Qualified Housing Tax Credits L.P. II
Re: Offer to Purchase Units for $65 Per Unit
Dear Unit Holder:
Enclosed is an Offer To Purchase up to 3,300 units (“Units”) of limited partnership interests in Boston Financial Qualified Housing Tax Credits L.P. II (the “Partnership”) at a cash purchase price of $65 per Unit, without interest, less the amount of distributions made to you after the date of the Offer and less any transfer fees imposed by the Partnership for each transfer, which the Partnership advises us are $10 per Unit, (with a $100 minimum fee and a $250 maximum fee).
Please consider the following points, which are discussed in greater detail in the accompanying Offer to Purchase:
• | The price offered for the Units is $65 in CASH, less any Distributions made after the date of this Offer and any transfer fees charged by the Partnership. |
|
|
• | The Offer to Purchase is higher than the last highest secondary market trade of Units we are aware of. According to the Direct Investments Spectrum and any mini-tenders we’re aware of, during the most recently reported trading period from October 1, 2005 through November 31, 2005, trades have ranged from $40.00 per Unit to $63.00 per Unit. The Offer also allows Unit Holders to dispose of their Units without incurring the sales commissions (that may be up to 10% with a minimum of $150-$200) associated with sales arranged through brokers or other intermediaries. |
|
|
• | Tax credits have expired. The Partnership has indicated that there are no more tax credits remaining. |
|
|
• | Accelerated Loss. The cash purchase price plus the estimated value of the current year tax loss totals $4021. Unit Holders who sell will receive an accelerated tax year benefit. |
|
|
• | Sale of all your Units will not result in the loss of tax credits previously taken. Unit Holders who sell all of their Units will also eliminate the need to file Form K-1 information for the Partnership with their federal tax returns for years after the Partnership's confirmation of the transfer of Units. |
|
|
We urge you to read the Offer to Purchase completely and to return your completed Agreement of Transfer and Letter of Transmittal promptly (yellow form) in the envelope provided.
The Offer is scheduled to expire on April 7, 2006. For answers to any questions you might have regarding these materials or our Offer, or assistance in the procedures for accepting our Offer and tendering your Units, please contact us at (816) 877-0892.
March 6, 2006
Very truly yours,
Paco Development, L.L.C.
_________________________
1Assumes a combined federal/state capital gains tax rate of 36% and that prior Partnership losses have not been utilized. Each Unit Holder should check with their tax advisor as an individual tax rates and circumstances will vary.