FORM 10-QSB--QUARTERLY OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
QUARTERLY OR TRANSITIONAL REPORT
U. S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 30, 1998
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from.........to.........
Commission file number 0-10255
SHELTER PROPERTIES I
(Exact name of small business issuer as specified in its charter)
South Carolina 57-0707398
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
55 Beattie Place, Post Office Box 1089
Greenville, South Carolina 29602
(Address of principal executive offices)
(864) 239-1000
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports ), and (2) has been
subject to such filing requirements for the past 90 days.
Yes X . No .
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
a)
SHELTER PROPERTIES I
CONSOLIDATED BALANCE SHEET
(in thousands, except unit data)
(Unaudited)
September 30, 1998
Assets
Cash and cash equivalents $ 2,174
Receivables and deposits 314
Restricted escrows 849
Other assets 276
Investment properties:
Land $ 1,428
Buildings and related personal property 18,808
20,236
Less accumulated depreciation (14,063) 6,173
$ 9,786
Liabilities and Partners' Deficit
Liabilities
Accounts payable $ 58
Tenant security deposit liabilities 136
Accrued property taxes 138
Distribution payable 800
Other liabilities 266
Mortgage notes payable 11,394
Partners' Deficit
General partners $ (56)
Limited partners (15,000 units
issued and outstanding) (2,950) (3,006)
$ 9,786
See Accompanying Notes to Consolidated Financial Statements
b)
SHELTER PROPERTIES I
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per unit data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
Revenues:
Rental income $ 1,247 $ 1,200 $ 3,722 $ 3,523
Other income 79 67 231 229
Total revenues 1,326 1,267 3,953 3,752
Expenses:
Operating 584 580 1,640 1,741
General and administrative 49 42 163 125
Depreciation 163 160 473 465
Interest 237 240 713 721
Property taxes 84 63 210 189
Total expenses 1,117 1,085 3,199 3,241
Net income $ 209 $ 182 $ 754 $ 511
Net income allocated
to general partners (1%) $ 2 $ 2 $ 7 $ 5
Net income allocated
to limited partners (99%) 207 180 747 506
$ 209 $ 182 $ 754 $ 511
Net income per limited
partnership unit $ 13.80 $ 12.01 $ 49.80 $ 33.74
Distribution per limited
partnership unit $ 52.80 $ -- $105.67 $ 83.87
See Accompanying Notes to Consolidated Financial Statements
c)
SHELTER PROPERTIES I
CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' DEFICIT
(in thousands, except unit data)
(Unaudited)
Limited
Partnership General Limited
Units Partners Partners Total
Original capital contributions 15,000 $ 2 $15,000 $15,002
Partners' deficit at
December 31, 1997 15,000 $ (48) $(2,112) $(2,160)
Distributions to partners -- (15) (1,585) (1,600)
Net income for the nine months
ended September 30, 1998 -- 7 747 754
Partners' deficit at
September 30, 1998 15,000 $ (56) $(2,950) $(3,006)
See Accompanying Notes to Consolidated Financial Statements
d)
SHELTER PROPERTIES I
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Nine Months Ended
September 30,
1998 1997
Cash flows from operating activities:
Net income $ 754 $ 511
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 473 465
Amortization of discounts and loan costs 66 66
Change in accounts:
Receivables and deposits (121) (23)
Other assets 14 (21)
Accounts payable (157) 16
Tenant security deposit liabilities 7 (2)
Accrued property taxes 132 52
Other liabilities (10) (9)
Net cash provided by operating activities 1,158 1,055
Cash flows from investing activities:
Property improvements and replacements (309) (438)
Withdrawals from (deposits to) restricted escrows 199 (139)
Net cash used in investing activities (110) (577)
Cash flows from financing activities:
Payments on mortgage notes payable (102) (94)
Distributions to partners (800) (1,258)
Loan costs paid -- (12)
Net cash used in financing activities (902) (1,364)
Net increase (decrease) in cash and cash equivalents 146 (886)
Cash and cash equivalents at beginning of period 2,028 2,792
Cash and cash equivalents at end of period $ 2,174 $ 1,906
Supplemental disclosure of cash flow information:
Cash paid for interest $ 647 $ 655
Supplemental disclosure of non-cash information:
Distribution to partners $ 800 $ --
See Accompanying Notes to Consolidated Financial Statements
e)
SHELTER PROPERTIES I
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements of Shelter
Properties I Limited Partnership (the "Partnership") have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-QSB and Article 310(b) of
Regulation S-B. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of Shelter Realty I Corporation (the
"Corporate General Partner"), all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included.
Operating results for the three and nine month periods ended September 30, 1998,
are not necessarily indicative of the results that may be expected for the
fiscal year ending December 31, 1998. For further information, refer to the
consolidated financial statements and footnotes thereto included in the
Partnership's annual report on Form 10-KSB for the year ended December 31, 1997.
Certain reclassifications have been made to the 1997 information to conform to
the 1998 presentation.
PRINCIPLES OF CONSOLIDATION
The consolidated financial statements of the Partnership include its one 99.99%
owned Partnership. The Partnership may remove the General Partner of the
consolidated partnership, therefore, the consolidated partnership is controlled
and consolidated by the Partnership. All significant interpartnership balances
have been eliminated.
NOTE B - RECONCILIATION OF CASH FLOWS
The following is a reconciliation of the subtotal on the accompanying statements
of cash flows captioned "net cash provided by operating activities" to "net cash
used in operations," as defined in the Partnership Agreement. However, "net
cash used in operations" should not be considered an alternative to net income
as an indicator of the Partnership's operating performance or to cash flows as a
measure of liquidity.
Nine Months Ended
September 30,
(in thousands)
1998 1997
Net cash provided by operating activities $1,158 $1,055
Payments on mortgage notes payable (102) (94)
Property improvements and replacements (309) (438)
Change in restricted escrows, net 199 (139)
Changes in reserves for net operating
Liabilities 135 (13)
Additional reserves (1,081) (371)
Net cash used in operations $ -- $ --
At September 30, 1998 and 1997, the Corporate General Partner believed it to be
in the best interest of the Partnership to reserve an additional $1,081,000 and
$371,000, respectively, to fund continuing capital improvements and maintenance
items at the four properties. Such additional reserves insure adequate
liquidity to fund the on-going capital projects at the various properties.
NOTE C - TRANSACTIONS WITH AFFILIATED PARTIES
The Partnership has no employees and is dependent on the Corporate General
Partner and its affiliates for the management and administration of all
partnership activities. Affiliates of the Corporate General Partner provide
property management and asset management services to the Partnership. The
Partnership Agreement provides for payments to affiliates for services and as
reimbursement of certain expenses incurred by affiliates on behalf of the
Partnership. The following transactions with the Corporate General Partner and
its affiliates were incurred in 1998 and 1997.
Nine Months Ended
September 30,
1998 1997
(in thousands)
Property management fees (included in operating expenses) $195 $184
Reimbursement for services of affiliates (included in
operating, general and administrative expenses and
investment properties) (1) 106 90
Due to general partners 101 101
(1) Included in "Reimbursements for services of affiliates" for both 1998 and
1997 is approximately $8,000 of reimbursements for construction oversight
costs.
During 1992 a liability of approximately $101,000 was incurred to the general
partners for sales commissions earned. Pursuant to the Partnership Agreement,
this liability can not be paid until certain levels of return are received by
the limited partners. As of September 30, 1998, the level of return to the
limited partners has not been met.
For the period of January 1, 1997 to August 31, 1997, the Partnership insured
its properties under a master policy through an agency affiliated with the
Corporate General Partner with an insurer unaffiliated with the Corporate
General Partner. An affiliate of the Corporate General Partner acquired, in the
acquisition of a business, certain financial obligations from an insurance
agency which was later acquired by the agent who placed the master policy. The
agent assumed the financial obligations to the affiliate of the Corporate
General Partner, which receives payments on these obligations from the agent.
The amount of the Partnership's insurance premiums accruing to the benefit of
the affiliate of the Corporate General Partner by virtue of the agent's
obligations is not significant.
On July 21, 1998, an affiliate of the Corporate General Partner (the
"Purchaser") commenced a tender offer for limited partnership interests in the
Partnership. The Purchaser offered to purchase up to 2,400 of the outstanding
units of limited partnership interest in the Partnership, at $625 per unit, net
to the seller in cash. During August 1998, the tender offer was completed and
the Purchaser acquired 1,145 units of limited partnership interest in the
Partnership representing approximately 7.6% of the total outstanding units of
limited partnership interest.
NOTE D - TRANSFER OF CONTROL; SUBSEQUENT EVENT
On October 1, 1998, Insignia Financial Group, Inc. completed its merger with and
into Apartment Investment and Management Company ("AIMCO"), a publicly traded
real estate investment trust, with AIMCO being the surviving corporation (the
"Insignia Merger"). As a result of the Insignia Merger, AIMCO acquired control
of the Corporate General Partner. In addition, AIMCO also acquired
approximately 51% of the outstanding common shares of beneficial interest of
Insignia Properties Trust ("IPT"), the sole shareholder of the Corporate General
Partner. Also, effective October 1, 1998 IPT and AIMCO entered into an
Agreement and plan of Merger pursuant to which IPT is to be merged with and into
AIMCO or a subsidiary of AIMCO (the "IPT Merger"). The IPT Merger requires the
approval of the holders of a majority of the outstanding IPT Shares.
AIMCO has agreed to vote all of the IPT Shares owned by it in favor of the IPT
Merger and has granted an irrevocable limited proxy to unaffiliated
representatives of IPT to vote the IPT Shares acquired by AIMCO and its
subsidiaries in favor of the IPT Merger. As a result of AIMCO's ownership and
its agreement, the vote of no other holder of IPT is required to approve the
merger. The Corporate General Partner does not believe that this transaction
will have a material effect on the affairs and operations of the Partnership.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
The Partnership's investment properties consists of four apartment complexes.
The following table sets forth the average occupancy of the properties for the
nine months ended September 30, 1998 and 1997:
Average Occupancy
Property 1998 1997
Quail Hollow Apartments
West Columbia, South Carolina 96% 93%
Windsor Hills Apartments
Blacksburg, Virginia 95% 94%
Heritage Pointe Apartments
(Formerly Rome Georgian Apartments)
Rome, Georgia 89% 90%
Stone Mountain West Apartments
Stone Mountain, Georgia 95% 96%
Results of Operations
The Corporate General Partner attributes the increase in occupancy at Quail
Hollow to interior upgrades in the apartments units. The increase is also
attributable to roof repairs and replacements and parking lot seal coating which
have improved the appearance of the complex.
The Partnership's net income for the three and nine month periods ended
September 30, 1998, was approximately $209,000 and $754,000, respectively,
compared to net income of approximately $182,000 and $511,000, respectively, for
the three and nine month periods ended September 30, 1997. The increase in net
income is due to an increase in rental income and a decrease in operating
expenses, partially offset by an increase in general and administrative expenses
and property taxes. Rental income increased due to an increase in occupancy at
Quail Hollow Apartments as discussed above along with average rental rate
increases at all properties. Operating expenses decreased primarily due to a
decrease in maintenance expense. Maintenance expense decreased due to the
installation of more efficient plumbing fixtures at Windsor Hills, moisture
barriers under several buildings at Heritage Pointe and interior building
improvements and painting at Heritage Pointe, in the first and second quarters
of 1997. General and administrative expenses increased due to property
valuations performed on the properties and an increase in General Partner
reimbursements. Property taxes increased during 1998 due to the unsuccessful
appeal for a lower tax rate at the Stone Mountain West Apartments
Included in maintenance expense in 1998 and 1997 is approximately $56,000 and
$72,000, respectively, of major repairs and maintenance comprised of exterior
building improvements, major landscaping, and parking lot repairs.
As part of the ongoing business plan of the Partnership, the Corporate General
Partner monitors the rental market environments of its investment properties to
assess the feasibility of increasing rents, maintaining or increasing occupancy
levels and protecting the Partnership from increases in expenses. As part of
this plan, the Corporate General Partner attempts to protect the Partnership
from the burden of inflation-related increases in expenses by increasing rents
and maintaining a high overall occupancy level. However, due to changing market
conditions which can result in the use of rental concessions and rental
reductions to offset softening market conditions, there is no guarantee that the
Corporate General Partner will be able to sustain such a plan.
Liquidity and Capital Resources
At September 30, 1998, the Partnership reported cash and cash equivalents of
approximately $2,174,000 compared to approximately $1,906,000 at September 30,
1997. The net increase in cash and cash equivalents for the nine months ended
September 30, 1998 is approximately $146,000. The net decrease in cash and cash
equivalents for the nine months ended September 30, 1997 is approximately
$886,000. Net cash provided by operating activities increased as a result of an
increase in net income, as discussed above, an increase in accrued taxes as a
result of the loss of appeal for a lower tax rate at Stone Mountain West.
Partially offsetting these changes is an increase in accounts receivable and
deposits and a decrease in accounts payable as a result of the timing of
receipts and payments. Net cash used in investing activities decreased due to
an increase in withdrawals from restricted escrows and a decrease in property
improvements and replacements. Net cash used in financing activities decreased
as a result of the timing of payments of distributions to partners.
As required by the 1996 refinancings of Quail Hollow, Heritage Pointe and Stone
Mountain West, certain capital improvements and maintenance will be performed in
1998. These projects include repaving and restriping the parking lots,
resurfacing the pools, exterior painting, floor covering replacement, appliance
replacement and various ADA conversions. These projects will be funded out of
the capital reserve accounts. As of September 30, 1998 these projects are in
process and are in various stages of completion. The Partnership has no material
capital programs scheduled to be performed in 1998 at Windsor Hills, although
certain routine capital and maintenance expenditures have been budgeted. These
expenditures will be incurred only if cash is available from operations or
reserves.
The sufficiency of existing liquid assets to meet future liquidity and capital
expenditure requirements is directly related to the level of capital
expenditures required at the various properties to adequately maintain the
physical assets and other operating needs of the Partnership and to comply with
federal, state, and local legal and regulatory requirements. Such assets are
currently thought to be sufficient for any near-term needs of the Partnership.
The Corporate General Partner is currently assessing the need for capital
improvements at each of the Partnership's properties. To the extent that
additional capital improvements are required, the Partnership's distributable
cash flow, if any, may be adversely effected at least in the short term. The
mortgage indebtedness of approximately $11,394,000, net of discount, is
amortized over varying periods with required balloon payments ranging from
November 15, 2002 to November 1, 2003. The Corporate General Partner will
attempt to refinance such indebtedness or sell the properties prior to such
maturity date. If the properties cannot be refinanced or sold for a sufficient
amount, the Partnership will risk losing such properties through foreclosure.
During the nine months ended September 30, 1998, the Partnership made a
distribution of approximately $793,000 to the limited partners and $7,000 to
the general partners. Included in these amounts is approximately $6,000 of
witholding taxes paid on behalf of the nonresident partners to the state of
South Carolina related to the taxable income generated from Quail Hollow in
1997. The Partnership made a cash distribution from operations during October
1998 of approximately $792,000 to the limited partners and $8,000 to the
general partners, which was accrued in the third quarter of 1998.
During the nine months ended September 30, 1997, the Partnership made a
distribution of approximately $1,250,000. In addition, withholding taxes in the
amount of approximately $8,000 were paid on behalf of the partners to the State
of South Carolina. Future cash distributions will depend on the levels of net
cash generated from operations, refinancings, property sales and the
availability of cash reserves. The Partnership's distribution policy will be
reviewed on a quarterly basis. There can be no assurance, however, that the
Partnership will generate sufficient funds from operations to permit further
distributions to its partners in 1998 or subsequent periods.
Transfer of Control; Subsequent Event
On October 1, 1998, Insignia Financial Group, Inc. completed its merger with and
into Apartment Investment and Management Company ("AIMCO"), a publicly traded
real estate investment trust, with AIMCO being the surviving corporation (the
"Insignia Merger"). As a result of the Insignia Merger, AIMCO acquired control
of the Corporate General Partner. In addition, AIMCO also acquired
approximately 51% of the outstanding common shares of beneficial interest of
Insignia Properties Trust ("IPT"), the sole shareholder of the Corporate General
Partner. Also, effective October 1, 1998 IPT and AIMCO entered into an
Agreement and plan of Merger pursuant to which IPT is to be merged with and into
AIMCO or a subsidiary of AIMCO (the "IPT Merger"). The IPT Merger requires the
approval of the holders of a majority of the outstanding IPT Shares.
AIMCO has agreed to vote all of the IPT Shares owned by it in favor of the IPT
Merger and has granted an irrevocable limited proxy to unaffiliated
representatives of IPT to vote the IPT Shares acquired by AIMCO and its
subsidiaries in favor of the IPT Merger. As a result of AIMCO's ownership and
its agreement, the vote of no other holder of IPT is required to approve the
merger. The Corporate General Partner does not believe that this transaction
will have a material effect on the affairs and operations of the Partnership.
Year 2000
GENERAL DESCRIPTION OF THE YEAR 2000 ISSUE AND THE NATURE AND EFFECTS OF THE
YEAR 2000 ON INFORMATION TECHNOLOGY (IT) AND NON-IT SYSTEMS
The Year 2000 Issue is the result of computer programs being written using two
digits rather than four to define the applicable year. The Partnership is
dependent upon the Corporate General Partner and its affiliates for management
and administrative services ("Managing Agent"). Any computer programs or
hardware that have date-sensitive software or embedded chips may recognize a
date using "00" as the year 1900 rather than the year 2000. This could result
in a system failure or miscalculations causing disruptions of operations,
including, among other things, a temporary inability to process transactions,
send invoices, or engage in similar normal business activities.
The Managing Agent has determined that it will be required to modify or replace
significant portions of its software and certain hardware so that those systems
will properly utilize dates beyond December 31, 1999. The Managing Agent
presently believes that with modifications or replacements of existing software
and certain hardware, the Year 2000 Issue can be mitigated. However, if such
modifications and replacements are not made, or are not completed timely, the
Year 2000 Issue could have a material impact on the operations of the Managing
Agent and the Partnership.
STATUS OF PROGRESS IN BECOMING YEAR 2000 COMPLIANT
The Managing Agent's plan to resolve the Year 2000 Issue involves the following
four phases: assessment, remediation, testing and implementation. To date, the
Managing Agent has fully completed its assessment of all information systems
that could be significantly affected by the Year 2000, and has begun the
remediation, testing and implementation phase on both hardware and software
systems. Assessments are continuing in regards to embedded systems in operating
equipment. The Managing Agent anticipates having all phases complete by June 1,
1999.
In addition to the areas the Partnership is relying on the Managing Agent to
verify compliance with, the Partnership has certain operating equipment,
primarily at the property sites, which needed to be evaluated for Year 2000
compliance. The focus of the Corporate General Partner was to the security
systems, elevators, heating-ventilation-air-conditioning systems, telephone
systems and switches, and sprinkler systems. The Corporate General Partner is
currently engaged in the identification of all non-compliant operational
systems, and is in the process of estimating the costs associated with any
potential modifications or replacements needed to such systems in order for them
to be Year 2000 compliant. It is not expected that such costs would have a
material adverse affect upon the operations of the Partnership.
RISK ASSOCIATED WITH THE YEAR 2000
The Corporate General Partner believes that the Managing Agent has an effective
program in place to resolve the Year 2000 issue in a timely manner and has
appropriate contingency plans in place for critical applications that could
affect the Partnership's operations. To date, the Corporate General Partner
is not aware of any external agent with a Year 2000 issue that would materially
impact the Partnership's results of operations, liquidity or capital resources.
However, the Corporate General Partner has no means of ensuring that external
agents will be Year 2000 compliant. The Corporate General Partner does not
believe that the inability of external agents to complete their Year 2000
resolution process in a timely manner will have a material impact on the
financial position or results of operations of the Partnership. However, the
effect of non-compliance by external agents is not readily determinable.
Other
Certain items discussed in this quarterly report may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995 (the "Reform Act") and as such may involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the Partnership to be materially different from any future
results, performance or achievements expressed or implied by such forward-
looking statements. Such forward-looking statements speak only as of the date
of this quarterly report. The Partnership expressly disclaims any obligation or
undertaking to release publicly any updates of revisions to any forward-looking
statements contained herein to reflect any change in the Partnership's
expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDING
In March 1998, several putative unit holders of limited partnership units of the
Partnership commenced an action entitled ROSALIE NUANES, ET AL. V. INSIGNIA
FINANCIAL GROUP, INC., ET AL. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs named as defendants, among others,
the Partnership, the Corporate General Partner and several of their affiliated
partnerships and corporate entities. The complaint purports to assert claims on
behalf of a class of limited partners and derivatively on behalf of a number of
limited partnerships (including the Partnership) which are named as nominal
defendants, challenging the acquisition by Insignia Financial Group, Inc. and
entities which were, at the time, affiliates of Insignia ("Insignia Affiliates")
of interests in certain general partner entities, past tender offers by Insignia
Affiliates to acquire limited partnership units, the management of partnerships
by Insignia Affiliates as well as a recently announced agreement between
Insignia and Apartment Investment and Management Company. The complaint seeks
monetary damages and equitable relief, including judicial dissolution of the
Partnership. On June 25, 1998, the Corporate General Partner filed a motion
seeking dismissal of the action. In lieu of responding to the motion, plaintiffs
have recently filed an amended complaint. The Corporate General Partner has
filed demurrers to the amended complaint which are scheduled to be heard on
January 8, 1999. The Corporate General Partner believes the action to be
without merit and intends to vigorously defend it.
On July 30, 1998, certain entities claiming to own limited partnership interests
in certain limited partnerships whose general partners were, at the time,
affiliates of Insignia filed a complaint entitled EVEREST PROPERTIES LLC. V.
INSIGNIA FINANCIAL GROUP, INC. in the Superior Court of the State of California,
County of Los Angeles. The action involves 44 real estate limited partnerships
(including the Partnership) in which the plaintiffs allegedly own interests and
which Insignia Affiliates allegedly manage or control (the "Subject
Partnerships"). The complaint names as defendants Insignia, several Insignia
Affiliates alleged to be managing partners of the Subject Partnerships, the
Partnership and the Corporate General Partner. Plaintiffs allege that they have
requested from, but have been denied by each of the Subject Partnerships, lists
of their respective limited partners for the purpose of making tender offers to
purchase up to 4.9% of the limited partner units of each of the Subject
Partnerships. The complaint also alleges that certain of the defendants made
tender offers to purchase limited partner units in many of the Subject
Partnerships, with the alleged result that plaintiffs have been deprived of the
benefits they would have realized from ownership of the additional units. The
plaintiffs assert eleven causes of action, including breach of contract, unfair
business practices, and violations of the partnership statutes of the states in
which the Subject Partnerships are organized. Plaintiffs seek compensatory,
punitive and treble damages. The Corporate General Partner filed an answer to
the complaint on September 15, 1998. The Corporate General Partner believes the
claims to be without merit and intends to defend the action vigorously.
The Partnership is unaware of any other pending or outstanding litigation that
is not of a routine nature. The Corporate General Partner believes that all
such pending or outstanding litigation will be resolved without a material
adverse effect upon the business, financial condition or operations of the
Partnership.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits:
Exhibit 27, Financial Data Schedule, is filed as an exhibit to this
report.
b) Reports on Form 8-K:
None filed during the quarter ended September 30, 1998.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
SHELTER PROPERTIES I LIMITED PARTNERSHIP
By: Shelter Realty I Corporation
Corporate General Partner
By: /s/Patrick Foye
Patrick Foye
Executive Vice President
By: /s/Timothy R. Garrick
Timothy R. Garrick
Vice President - Accounting
(Duly Authorized Officer)
Date: November 12, 1998