August 13, 1997
Securities and Exchange Commission
Filer Support, Edgar
Operation Center, Stop 0-7
6432 General Green Way
Alexandria, VA 22312
Boston Financial Tax Credit Fund VIII, A Limited Partnership
Report on Form 10-Q for Quarter Ended June 30, 1997
File No. 0-26522
Gentlemen:
Pursuant to the requirements of Section 15(d) of the Securities Exchange Act
of 1934, filed herewith is a copy of subject report.
Very truly yours,
/s/Veronica J. Curioso
Veronica J. Curioso
Assistant Controller
TC8-Q1.DOC
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of
1934
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997
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OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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For Quarter Ended June 30, 1997 Commission file number 0-26522
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Boston Financial Tax Credit Fund VIII, A Limited
Partnership (Exact name of registrant as specified
in its charter)
Massachusetts 04-3205879
(State or other jurisdiction of (I.R.S.Employer Identification No.)
incorporation or organization)
101 Arch Street, Boston, Massachusetts 02110-1106
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617) 439-3911
------------------
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No .
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION Page No.
-------
Item 1. Financial Statements
Balance Sheets - June 30, 1997 (Unaudited)
and March 31, 1997 1
Statements of Operations (Unaudited) - For the Three
Months Ended June 30, 1997 and 1996 2
Statement of Changes in Partners' Equity (Deficiency) (Unaudited) -
For the Three Months Ended June 30, 1997 3
Statements of Cash Flows (Unaudited) - For the Three
Months Ended June 30, 1997 and 1996 4
Notes to Financial Statements (Unaudited) 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6
PART II - OTHER INFORMATION
Items 1-6 8
SIGNATURE 9
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
BALANCE SHEETS
June 30, March 31,
1997 1997
(Unaudited)
Assets
Cash and cash equivalents $ 330,437 $ 273,412
Investments in Local Limited Partnerships (Note 1) 26,273,333 26,813,245
Restricted cash 509,093 503,031
Marketable securities, at fair value 1,388,157 1,442,676
Organization costs, net of accumulated
amortization of $33,333 and $30,833, respectively 16,667 19,167
Other assets 31,617 26,727
------------ ------------
Total Assets $ 28,549,304 $ 29,078,258
============ ============
Liabilities and Partners' Equity
Accounts payable to affiliate $ 168,861 $ 128,791
Accrued expenses 34,981 38,729
------------ ------------
Total Liabilities 203,842 167,520
------------ ------------
Commitments
General, Initial and Investor Limited Partners' Equity 28,356,008 28,927,578
Net unrealized losses on marketable securities (10,546) (16,840)
------------ ------------
Total Partners' Equity 28,345,462 28,910,738
------------ ------------
Total Liabilities and Partners' Equity $ 28,549,304 $ 29,078,258
============ ============
The accompanying notes are an integral part of these financial statements.
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
(Unaudited)
For the Three Months Ended June 30, 1997 and 1996
1997 1996
--------------- ---------
Revenue:
Investment $ 26,319 $ 1,886
Other 725 16,734
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Total Revenue 27,044 18,620
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Expenses:
Asset management fees, related party 49,609 48,071
General and administrative (includes reimbursements
to an affiliate in the amounts of $29,402 and
$31,685 in 1997 and 1996, respectively) 46,904 70,091
Amortization 9,984 9,987
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Total Expenses 106,497 128,149
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Loss before equity in losses
of Local Limited Partnerships (79,453) (109,529)
Equity in losses of Local Limited Partnerships (492,117) (174,210)
---------- ---------
Net Loss $ (571,570) $(283,739)
========== =========
Net Loss allocated:
To General Partners $ (5,716) $ (2,837)
To Limited Partners (565,854) (280,902)
----------- ---------
$ (571,570) $(283,739)
========== =========
Net Loss per Limited Partnership Unit
(36,497 Units) $ (15.50) $ (7.70)
========= ==========
The accompanying notes are an integral part of these financial statements.
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
(Unaudited)
For the Three Months Ended June 30, 1997
Initial Investor Net
General Limited Limited Unrealized
Partners Partners Partners Losses Total
Balance at March 31, 1997 $(27,071) $ 100 $ 28,954,549 $(16,840) $ 28,910,738
Net change in unrealized losses
on marketable securities
available for sale - - - 6,294 6,294
Net Loss (5,716) - (565,854) - (571,570)
-------- -------- ------------- --------- -------------
Balance at June 30, 1997 $(32,787) $ 100 $ 28,388,695 $ (10,546) $ 28,345,462
======== ======== ============= ========= =============
The accompanying notes are an integral part of these financial statements.
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
(Unaudited)
For the Three Months Ended June 30, 1997 and 1996
1997 1996
-------------- ----------
Net cash used for operating activities $ (38,185) $ (64,003)
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Cash flows from investing activities:
Investment in Local Limited Partnerships - (2,422,771)
Restricted cash (6,062) 885,163
Cash distributions received from
Local Limited Partnerships 40,311 4,409
Purchases of marketable securities (99,875) (3,424,134)
Proceeds from sales and maturities of
marketable securities 160,836 5,051,646
------------ ------------
Net cash provided by investing activities 95,210 94,313
------------ ------------
Net increase in cash and cash equivalents 57,025 30,310
Cash and cash equivalents, beginning of period 273,412 71,715
------------ ------------
Cash and cash equivalents, end of period $ 330,437 $ 102,025
============ ============
The accompanying notes are an integral part of these financial statements.
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
Notes to Financial Statements
(Unaudited)
The unaudited financial statements presented herein have been prepared in
accordance with the instructions to Form 10-Q and do not include all of the
information and note disclosures required by generally accepted accounting
principles. These statements should be read in conjunction with the financial
statements and notes thereto included with the Fund's 10-K for the year ended
March 31, 1997. In the opinion of management, these financial statements include
all adjustments, consisting only of normal recurring adjustments, necessary to
present fairly the Fund's financial position and results of operations. The
results of operations for the periods may not be indicative of the results to be
expected for the year.
1. Investments in Local Limited Partnerships
The Fund has acquired an interest in ten Local Limited Partnerships which own
and operate multi-family housing complexes. The Fund, as Investor Limited
Partner, pursuant to the Local Limited Partnership Agreements, has generally
acquired a 99% interest in the profits, losses, tax credits and cash flows from
operations of the Local Limited Partnerships, with the exception of Springwood,
Hemlock Ridge, Pike Place and West End Place, which are 79.20%, 77%, 90% and
90%, respectively. Another partnership sponsored by an affiliate of the General
Partner owns the remaining 19.80% Limited Partner interest in Springwood. Upon
dissolution, proceeds will be distributed according to the partnership
agreements.
The following is a summary of Investments in Local Limited Partnerships at June
30, 1997:
Capital Contributions paid to Local Limited
Partnerships $ 28,813,499
Cumulative equity in losses of Local Limited Partnerships (3,457,381)
Cumulative cash distributions received from Local
Limited Partnerships (72,309)
---------
Investment in Local Limited Partnerships before adjustment 25,283,809
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 1,048,010
Accumulated amortization of acquisition fees and expenses (58,486)
-------------
Investment in Local Limited Partnerships $ 26,273,333
=============
The Partnership's share of net losses of the Local Limited Partnerships for
the three months ended June 30, 1997 is $492,117.
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
At June 30, 1997, the Fund had cash and cash equivalents of $330,437 as compared
to $273,412 at March 31, 1997. This increase is primarily attributable to
proceeds from the sale of marketable securities and cash distributions received
from Local Limited Partnerships, offset by purchase of marketable securities and
net cash used for operations.
The Fund also has restricted cash of $509,093 at June 30, 1997. These funds
represent escrowed funds to be applied to future capital contributions to be
made to one of the Local Limited Partnerships in which the Fund has invested.
The funds are scheduled to be released on July 31, 1997.
As of June 30, 1997, approximately $1,515,000 of cash and marketable securities
has been designated as Reserves. The Reserves are established to be used for
working capital of the Fund and contingencies related to the ownership of Local
Limited Partnership interests. Management believes that the interest income
earned on Reserves, along with cash distributions received from Local Limited
Partnerships, to the extent available, will be sufficient to fund the Fund's
ongoing operations. Reserves may be used to fund operating deficits, if the
Managing General Partner deems funding appropriate.
At June 30, 1997, the Fund has committed to make future capital contributions
and pay future purchase price installments on its investments in Local Limited
Partnerships. These future payments are contingent upon the achievement of
certain criteria as set forth in the Local Limited Partnership Agreement and
total approximately $457,000.
Since the Fund invests as a limited partner, the Fund has no contractual duty to
provide additional funds to Local Limited Partnerships beyond its specified
investment. Thus, as of June 30, 1997, the Fund had no contractual or other
obligation to any Local Limited Partnership, which had not been paid or provided
for, except as disclosed above.
In the event a Local Limited Partnership encounters operating difficulties
requiring additional funds, the Fund might deem it in its best interest to
voluntarily provide such funds, in order to protect its investment. No such
event has occurred to date.
Cash Distributions
No cash distributions were made during the three months ended June 30, 1997.
Results of Operations
For the three months ended June 30, 1997, the Fund's operations resulted in a
net loss of $571,570, as compared to of $283,739 for the three months ended June
30, 1996. The increase in net loss is primarily attributable to an increase in
equity in losses of Local Limited Partnerships.
The increase in equity in losses of Local Limited Partnerships for the three
months ended June 30, 1997, as compared to the same period in 1996, is primarily
attributable to the timing of construction completion. Since many of the
properties completed construction late in 1995, the results of operations for
the three months ended June 30, 1996 were not indicative of the results to be
expected for the future, nor are they comparable.
Property Discussions
The Fund is invested in ten Local Limited Partnerships which own ten properties
located in eight states. Two properties, representing 356 units, underwent
rehabilitation, and eight properties, representing 1001 units, are new
construction. All of the ten properties are complete, through initial lease-up
and operating satisfactorily.
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
PART II OTHER INFORMATION
Items 1-5 Not applicable
Item 6 Exhibits and reports on Form 8-K
(a) Exhibits - None
(b) Reports on Form 8-K - No reports on Form 8-K were filed
during the quarter ended June 30, 1997.
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
DATED: August 13, 1997 BOSTON FINANCIAL TAX CREDIT FUND VIII,
A LIMITED PARTNERSHIP
By: Arch Street VIII Limited Partnership,
its General Partner
/s/Vincent J. Costantini
Vincent J. Costantini
Treasurer and Chief Financial Officer