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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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FOR THE FISCAL YEAR ENDED MARCH 31, 2001
COMMISSION FILE NUMBER 33-11194
CENTURY PACIFIC HOUSING FUND-I
A CALIFORNIA LIMITED PARTNERSHIP
I.R.S. EMPLOYER IDENTIFICATION NO. 95-3938971
1925 CENTURY PARK EAST, SUITE 1760, LOS ANGELES, CA 90067
REGISTRANT'S TELEPHONE NUMBER: (310) 208-1888
Securities Registered Pursuant to Section 12(b) or 12(g) of the Act:
NONE
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed with the Commission by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding twelve months (or 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
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Check if there is no disclosure of delinquent filers in response to Item 405
of Regulation S-K is not contained in this form and no disclosure will be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference to Part III of this Form
10-K or any amendment to this Form 10-K (X)
No documents are incorporated into the text by reference.
Yes No X
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Exhibit Index is located on Page 16
Registrant's Prospectus dated April 15, 1987, as amended (the Prospectus) and
the Registrant's Supplement No. 3 dated December 21, 1988 to Prospectus dated
April 15, 1987 (Supplement No. 3) but only to the extent expressly
incorporated by reference in Parts I through IV hereof. Capitalized terms
which are not defined herein have the same meaning as in the Prospectus.
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TABLE OF CONTENTS
PART I
ITEM 1 BUSINESS 4
ITEM 2 PROPERTIES 5
ITEM 3 LEGAL PROCEEDINGS 8
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS 8
PART II
ITEM 5 MARKET FOR THE REGISTRANT'S PARTNERSHIP
INTERESTS 9
ITEM 6 SELECTED FINANCIAL DATA 9
ITEM 7 MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS 10
ITEM 7A QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK 13
ITEM 8 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 13
ITEM 9 CHANGES AND DISAGREEMENTS WITH ACCOUNTANTS
ON ACCOUNTING AND FINANCIAL DISCLOSURE 13
PART III
ITEM 10 DIRECTORS AND EXECUTIVE OFFICERS OF THE
REGISTRANT 14
ITEM 11 EXECUTIVE COMPENSATION 15
ITEM 12 PARTNERSHIP INTEREST OWNERSHIP OF CERTAIN
BENEFICIAL OWNERS AND MANAGEMENT 15
ITEM 13 CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS 15
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PART IV
ITEM 14 EXHIBITS, FINANCIAL STATEMENT SCHEDULES 16
EXHIBIT INDEX 16
SIGNATURES 17
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PART I
ITEM 1. BUSINESS
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Century Pacific Housing Fund-I (the Partnership) was formed on October 6,
1986 as a limited partnership under the laws of the State of California to
invest in multi-family housing developments. The Partnership's business is
to invest primarily in other limited partnerships (Operating Partnerships)
that are organized for the purpose of either constructing or acquiring and
operating existing affordable multi-family rental apartments that are
eligible for the Low-Income Housing Tax Credit, or to a lesser extent, the
Rehabilitation Tax Credit, both enacted by the Tax Reform Act of 1986
(sometimes referred to as Credits or Tax Credits). The Partnership invested
in 21 properties (the properties). Each of the properties qualifies for the
Low-Income Housing Tax Credit, and one property, a historic structure,
qualifies for the Rehabilitation Tax Credit. All of these properties receive
one or more forms of assistance from federal, state or local governments. A
summary of the Partnership's objectives and a summary of the Tax Credits are
provided in the Prospectus under "Investment Objectives and Policies" and
"Federal Income Tax Aspects" on pages 45 and 79, respectively, and are
incorporated herein by reference.
In order to stimulate private investment in low and moderate income housing
of the types in which the Partnership has invested, the federal government
has provided investors with significant ownership incentives intended to
reduce the risks and provide investors/owners with certain tax benefits,
limited cash distributions and the possibility of long-term capital gains.
The ownership incentives include interest subsidies, rent subsidies, mortgage
insurance and other measures. However, there remains significant risks
inherent in this type of housing. Long-term investments in real estate limit
the ability of the Partnership to vary its portfolio in response to changing
economic, financial and investment conditions, and such investments are
subject to changes in economic circumstances and housing patterns, rising
operating costs and vacancies, rent controls and collection difficulties,
costs and availability of energy, as well as other factors which normally
affect real estate values. In addition, these properties usually are rent
restricted and are subject to government agency programs which may or may not
require prior consent to transfer ownership.
The Partnership acquired the properties by investing as the limited partner
in Operating Partnerships which own the properties. As a limited partner,
the Partnership's liability for obligations of the Operating Partnerships is
limited to its investment. The Partnership made capital contributions to the
Operating Partnerships in amounts sufficient to pay the Operating
Partnerships' expenses and to reimburse the general partners for their costs
incurred in forming the Operating Partnerships, if any, and acquiring the
properties. For each acquisition, this typically included a cash down
payment (in one or more installments), acceptance of the property's mortgage
indebtedness, and execution of a Purchase Money Note in favor of the seller
of the property. For a summary of the acquisition financing activities for
each property, see the financial information contained under Item 2.
The Partnership's primary objective is to provide Low-Income Housing Tax
Credits to limited partners generally over a 10-year period. Each of the
Partnership's Operating Partnerships has been allocated by the relevant state
tax credit agency an amount of the Low-Income Housing Tax Credit for 10 years
from the date the property is placed-in-service. The required holding period
of the properties is 15 years (the Compliance Period). The properties must
satisfy rent restrictions, tenant income limitations and other requirements
(the Low-Income Housing Tax Credit Requirements) in order to maintain
eligibility for recognition of the Low-Income Housing Tax Credit at all times
during the Compliance Period. Once an Operating Partnership has become
eligible for the Low-Income Housing Tax Credit, it may lose such eligibility
and suffer an event of recapture if its property fails to remain in
compliance with the Low-Income Housing Tax Credit Requirements. To date,
none of the Operating Partnerships have suffered an event of recapture of the
Low-Income Housing Tax Credit.
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Nineteen of the twenty-one Operating Partnerships receive rental subsidy
payments, including payments under Section 8 of Title II of the Housing and
Community Development Act of 1974 ("Section 8"). The subsidy agreements
expire at various times during and after the 15-year compliance period of the
Operating Partnerships. The United States Department of Housing and Urban
Development ("HUD") has issued a notice implementing provisions to renew
expiring Section 8 contracts as requested by an owner, for an additional one
year term at current rent levels. As of June 20, 2001, six of the Operating
Partnerships' Section 8 contracts are due to expire during 2001. The
Operating Partnerships have not yet received HUD's approval of their
extension requests. At the present time, the Partnership cannot reasonably
predict legislative initiatives and government budget negotiations, the
outcome of which could result in a reduction in funds available for the
various federal and state administered housing programs including the Section
8 program. Such changes could adversely affect the future net operating
income and debt structure of any or all Operating Partnerships receiving such
subsidy or similar subsidies.
Employees
- ---------
The Partnership does not employ any persons. Alternatively, the Partnership
reimburses an affiliate for overhead allocation consisting primarily of
payroll costs.
ITEM 2. PROPERTIES
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As of March 31, 2001, the Partnership had acquired equity interests in the
Operating Partnerships set forth in the table below. Each of the properties
acquired by the Operating Partnerships receives benefits under government
assistance programs. The table set forth below summarizes the properties
acquired, and the purchase price, original indebtedness assumed and the
government assistance programs benefitting each property. Further
information concerning these Properties may be found in Supplement No. 3 to
the Prospectus, pages 4 through 66, which information is incorporated herein
by reference and is summarized below.
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PROPERTY NAME, AVERAGE CASH GOVERNMENT
LOCATION AND OCCUPANCY PURCHASE DOWN PURCHASE MORTGAGE RESIDUAL ASSISTANCE
RENTAL UNITS 2001 PRICE PAYMENT NOTE ASSUMED NOTE PROGRAM
- ------------------------------------------------------------------------------------------------------------------------
Century Pacific Housing
Partnership V
(CPHP-V) - Jaycee Towers
Dayton, OH Section 236
204 residential units 97% $ 5,700,000 $ 400,196 $16,500 $ 3,000,123 $ 2,283,181 Section 8
CPHP - VIII -
Sunset Townhomes
Newton, KS
50 residential units 84% 1,225,000 138,000 -- 751,905 335,095 Section 236
CPHP - XI -
Continental Terrace
Fort Worth, TX Section 236
200 residential units 94% 4,600,000 482,883 -- 2,609,991 1,507,126 Section 8
CPHP - XII -
Yale Village
Houston, TX Section 236
180 residential units 99% 5,250,000 530,894 -- 3,075,000 1,644,106 Section 8
CPHP - XIII - Atlantis
Virginia Beach, VA Section 236
208 residential units 99% 6,032,000 801,000 -- 2,678,416 2,552,584 Section 8
CPHP - XIV - Kings Row
Houston, TX Section 236
180 residential units 90% 3,780,000 394,213 -- 1,848,269 1,537,518 Section 8
CPHP - XV -
Castle Gardens
Lubbock, TX Section 236
152 residential units 93% 3,268,000 320,140 -- 1,787,613 1,160,247 Section 8
CPHP - XVI -
Rockwell Villa
Oklahoma City, OK Section 236
60 residential units 90% 1,235,400 129,564 -- 707,207 398,629 Section 8
CPHP - XVII -
London Square Village
Oklahoma City, OK Section 236
200 residential units 92% 4,214,000 414,097 -- 2,820,832 979,071 Section 8
CPHP - XVIII -
Ascension Towers
Memphis, TN
197 residential units 90% 6,727,500 409,094 50,000 3,863,739 2,404,667 Section 236
Coleman Manor
Associates Limited
Partnership Section
Baltimore, MD 221(d)(4)
50 residential units 97% 3,990,000(1) 1,625,000 -- 2,365,000 -- Section 8
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PROPERTY NAME, AVERAGE CASH GOVERNMENT
LOCATION AND OCCUPANCY PURCHASE DOWN PURCHASE MORTGAGE RESIDUAL ASSISTANCE
RENTAL UNITS 2001 PRICE PAYMENT NOTE ASSUMED NOTE PROGRAM
- ------------------------------------------------------------------------------------------------------------------------
CPHP - XX -
Holiday Heights
Fort Worth, TX Section 236
100 residential units 98% $ 2,200,000 $ 191,000 $ -- $ 1,120,000 $ 889,000 Section 8
CPHP - XXII -
Harriet Tubman Terrace
Berkeley, CA Section 236
91 residential units 98% 4,732,000 593,000 -- 1,718,171 2,420,829(2) Section 8
CPHP - I -
Charter House
Dothan, AL
100 residential units 100% 2,146,000 195,000 -- 1,169,000 782,000 Section 236
CPHP II - VOA - Section 236
Sunset Park Section 8
Denver, CO Flexible
242 residential units 94% 6,500,000 956,000 -- 3,081,144 2,462,856 Subsidy Loan
CPHP - III - Section
Highland Park 221(d)(3)
Topeka, KS Section 8
200 residential units 89% 6,900,000 939,000 -- 2,024,000 3,937,000 Flexible
Subsidy Loan
CPHP - IV - Section 236
Forest Glen Estates Section 8
Kansas City, KS Flexible
160 residential units 95% 4,960,000 738,000 -- 2,488,000 1,734,000 Subsidy Loan
CPHP - VI - Edgewood
Danville, IL
150 residential units 71% 3,540,000 680,000 -- 2,359,950 500,050 Section 8
CPHP - VII -
Gulfway Terrace
New Orleans, LA Section 236
206 residential units 97% 5,700,000 683,000 -- 3,301,974 1,715,026 Section 8
Section 236
CPHP - IX - Wind Ridge Section 8
Wichita, KS Flexible
36 residential units 96% 3,500,000 382,000 -- 1,791,936 1,326,064 Subsidy Loan
CPHP - X - Bergen Circle
Springfield, MA Section 236
201 residential units 96% 12,261,000 1,768,000 -- 6,946,158 3.546,842 Section 8
- ------------------------------------------------------------------------------------------------------------------------
$98,460,900 $12,770,081 $66,500 $51,508,428 $34,115,891
=========================================================================================================================
<FN>
(1) This amount represents the development cost and not the purchase price.
(2) This total includes a flex subsidy loan in the amount of $185,000 and
the assumption of a prior residual note in the amount of $200,000.
</FN>
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ITEM 3. LEGAL PROCEEDINGS
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As of June 20, 2001, there were no pending legal proceedings against the
Partnership or any Operating Partnership in which it has invested.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
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There were no submissions of matters to a vote of security holders during the
year ended March 31, 2001.
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PART II
ITEM 5. MARKET FOR THE REGISTRANT'S PARTNERSHIP INTERESTS
-------------------------------------------------
There is at presently no public market for the Units of limited partnership
interests (the Units), and it is unlikely that any public market for the
Units will develop. See the Prospectus under "Transferability of Interests"
on pages 29 and 72 of the Prospectus, which information is incorporated
herein by reference. The number of owners of Units as of May 31, 2001 was
approximately 2,121, holding 22,315 units.
As of June 20, 2001, there were no cash distributions.
ITEM 6. SELECTED FINANCIAL DATA
-----------------------
The following summary of selected financial data should be read in
conjunction with ITEM 14, herein, which also includes a summary of the
Partnership's significant accounting policies.
YEAR ENDED MARCH 31,
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OPERATIONS 2001 2000 1999 1998 1997
- ----------------------------- ----------- ------------ ------------ ------------ ------------
Revenues $ 800 $ 1,000 $ 3,715 $ 1,720 $ 2,100
Operating Expenses (69,421) (87,407) (74,653) (72,591) (73,359)
Equity in Net Losses
of Operating Partnerships (15,633) (122,245) (122,202) (134,311) (136,010)
----------- ------------ ------------ ------------ ------------
Net Loss $(84,254) $(208,652) $(193,140) $(205,182) $(207,269)
=========== ============ ============ ============ ============
Net Loss per Unit of
Limited Partnership
Interest $ (4) $ (9) $ (9) $ (9) $ (9)
=========== ============ ============ ============ ============
March 31,
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FINANCIAL POSITION 2001 2000 1999 1998 1997
- ----------------------------- ----------- ------------ ------------ ------------ ------------
Total Assets $ 9,619 $ 26,456 $ 171,816 $ 277,925 $ 410,633
=========== ============ ============ ============ ============
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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
----------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
The Partnership raised $8,517,000 in equity capital during calendar year 1987
and raised an additional $13,798,000 through April 15, 1988. In late
December 1987, the Partnership invested in eight Operating Partnerships,
which own eight multi-family properties located in various states
representing $45,507,000 of property value. During 1988, the Partnership
invested in an additional 13 properties located in eight states representing
$52,953,900 of property value.
As of March 31, 2001, the Partnership's portfolio consists of 21 properties.
The properties are located in 13 states and contain 3,267 residential units.
The average occupancy level for all properties during calendar year 2000 was
approximately 93% and most properties generated sufficient revenue to cover
operating costs, debt service, and the funding of reserves. For a summary of
the combined financial status of the Operating Partnerships and the
properties, see the financial information contained under Item 14.
Liquidity and Capital Resources
- -------------------------------
The Partnership is currently experiencing a liquidity problem. Under the
Partnership Agreement, the Partnership is entitled to receive distributions
of surplus cash from the Operating Partnerships which is to provide the funds
necessary for the Partnership to meet its operating costs. To date, the
Operating Partnerships have not provided sufficient cash distributions to
enable the Partnership to meet its current obligations. The Partnership has
also incurred allocated losses from all but one of its Operating Partnerships
to the extent of the Partnership's cash contributions and has a negative
working capital. As a result of the foregoing, the Partnership has been
dependent upon its general partners and affiliates for continued financial
support to meet its operating costs. Management maintains that the general
partners and/or affiliates, though not required to do so, will continue to
fund operations of the Partnership by continuing to fund operating costs and
by deferring payment of allocated overhead expenses and repayment of
operating cash advances.
Management believes the possibility exists that one or several Operating
Partnerships may require additional capital, in addition to that previously
contributed by the Partnership, to sustain operations. In such case, the
source of the required capital needs may be from (i) limited reserves from
the Partnership (which may include distributions received from the Operating
Partnerships that would otherwise be available for distribution to partners),
(ii) debt financing at the Operating Partnership level (which may not be
available), or (iii) additional equity contributions from the general partner
of the Operating Partnerships (which may not be available). There can be no
assurance that any of these sources would be readily available to provide for
possible additional capital requirements which may be necessary to sustain
the operations of the Operating Partnerships. However, the Partnership is
under no obligation to fund operating deficits of the Operating Partnerships
in the form of additional contributions or loans.
Due to the uncertainty of the continuation of the Section 8 program,
management has been forced to consider several options to prepare for the
possible lack of subsidy income to the Operating Partnerships. The loss of
subsidy income to the Operating Partnerships will make it more difficult for
the Operating Partnerships to provide sufficient cash distributions to the
Partnership. Management has identified the courses of action they will take
as a result of the potential changes to the Section 8 program.
The plan that the Operating Partnerships follow will depend on the federal
government's decision to implement the decentralization or elimination of
HUD. HUD's proposed Mark-to-Market approach would create an atmosphere where
the Projects would have to compete for residents in the conventional market.
The following alternatives are listed as plans of action that management
plans to pursue in response the HUD's actions:
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1) HUD may transfer project control to a local Housing Authority in the form
of block grants. The Housing Authority would determine the market rents
based on the area market. The projects will respond to the local Housing
Authority and follow their procedures and guidelines.
2) The current tenants may receive a housing voucher administered by the
local Housing Authority. The projects will accept vouchers and actively
seek applicants who have vouchers. The projects will also accept non-
voucher residents who will pay rent amounts not to exceed the maximum
rents for persons at 60% of the median income level as in compliance with
Section 42 of the Internal Revenue Code (IRC).
3) If no subsidies or vouchers are given to the projects or the tenants, all
rents will be raised not to exceed the maximum rents for persons at 60%
of the median income level and in compliance with Section 42 of the IRC.
With rental rate increases, many of the current residents will be unable
to pay the higher rents, thus forcing them to move from the projects and
to seek housing elsewhere. An increase in the move out rate will cause a
severe cash flow strain to the project. To compensate for the loss of
income and increased vacancy turnover costs, the projects will require
effective marketing, competitive rental rates and possible upgrading to
units and/or common areas to attract qualified applicants and maintain a
low vacancy rate.
4) HUD may restructure loans in order to minimize the monthly costs to the
project and reduce the chances for default. Even with reduced or
eliminated payments, the project will be forced to increase rents in
order to operate.
5) The final option is to buy off the HUD insured loan making the complex
free from HUD's or the local Housing Authority's regulations.
Tax Reform Act of 1986, Omnibus Budget Reconciliation Act of 1987, Technical
- ----------------------------------------------------------------------------
and Miscellaneous Revenue Act of 1988, Omnibus Budget Reconciliation Act of
- ---------------------------------------------------------------------------
1989, Omnibus Budget Reconciliation Act of 1990 and all subsequent tax acts.
- ----------------------------------------------------------------------------
The Partnership is organized as a limited partnership and is a "pass through"
tax entity which does not, itself, pay federal income tax. However, the
partners of the Partnership, who are subject to federal income tax, may be
affected by the Tax Reform Act of 1986, the Omnibus Budget Reconciliation Act
of 1987, the Technical and Miscellaneous Revenue Act of 1988, the Omnibus
Budget Reconciliation Act of 1989, the Omnibus Budget Reconciliation Act of
1990 and all subsequent tax acts (collectively the Tax Acts). The
Partnership will consider the effect of certain aspects of the Tax Acts on
the partners when making investment decisions. The Partnership does not
anticipate that the Tax Acts will have a material adverse impact on the
Partnership's business operations, capital resources, plans or liquidity.
Results of Operations
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2001 Compared to 2000
- ---------------------
For the fiscal year ended March 31, 2001, the Partnership recorded a net loss
of approximately $84,000, as compared to a net loss of approximately $209,000
for the prior fiscal year. The decrease in net loss is the result of a
decrease in the Partnership's equity in net losses of the Operating
Partnerships and by a decrease in the Partnership's general and
administrative expenses.
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In accordance with the equity method of accounting for limited partnership
interests, the Partnership does not recognize losses from investment
properties when losses exceed the Partnership's equity method basis in these
properties. All of the Partnership's investments have an equity method basis
of zero at March 31, 2001. The Partnership's recorded share of the Operating
Partnerships' losses in the current fiscal period consists of losses of
approximately $16,000 from the Coleman Manor Associates Limited Partnership.
In the prior fiscal year, losses of approximately $122,000 from the
operations of Coleman Manor Associates Limited Partnership were recorded.
In the aggregate, combined rental revenue of the Operating Partnerships
increased by approximately $81,000 during the current calendar year. The
average occupancy level decreased in fifteen out of the twenty-one Operating
Partnerships. The combined total expenses increased by approximately
$802,000 in the current year primarily due to an increase in utilities,
repairs and maintenance, and interest expense.
2000 Compared to 1999
- ---------------------
For the fiscal year ended March 31, 2000, the Partnership recorded a net loss
of approximately $209,000, as compared to a net loss of approximately
$193,000 for the prior fiscal year. The increase in net loss is a result of
an increase in the Partnership's general and administrative expenses.
In accordance with the equity method of accounting for limited partnership
interests, the Partnership does not recognize losses from investment
properties when losses exceed the Partnership's equity method basis in these
properties. Twenty of the twenty-one investments have an equity method basis
of zero at March 31, 2000. The Partnership's recorded share of the Operating
Partnerships' losses in the current fiscal period consists of losses of
approximately $122,000 from the Coleman Manor Associates Limited Partnership.
In the prior fiscal year, losses of approximately $122,000 from the
operations of Coleman Manor Associates Limited Partnership were recorded.
In the aggregate, combined rental revenue of the Operating Partnerships
decrease by approximately $209,000 during the current calendar year. The
average occupancy level increased in twelve out of the twenty-one Operating
Partnerships. The combined total expenses increased by approximately
$140,000 in the current year primarily due to an increase in operating
expenses.
1999 Compared To 1998
- ---------------------
For the fiscal year ended March 31, 1999, the Partnership recorded a net loss
of approximately $193,000, as compared to a net loss of approximately
$205,000 for the prior fiscal year. The decrease in net loss is a direct
result of a decrease in the Partnership's equity in net losses of the
Operating Partnerships.
In accordance with the equity method of accounting for limited partnership
interests, the Partnership does not recognize losses from investment
properties when losses exceed the Partnership's equity method basis in these
properties. Twenty of the twenty-one investments have an equity method basis
of zero at March 31, 1999. The Partnership's recorded share of the Operating
Partnerships' losses in the current fiscal period consists of losses of
approximately $122,000 from the Coleman Manor Associates Limited Partnership.
In the prior fiscal year, losses of approximately $134,000 from the
operations of Coleman Manor Associates Limited Partnership were recorded.
In the aggregate, combined rental revenue of the Operating Partnerships
decreased by approximately $29,000 during the current calendar year. The
average occupancy level decreased in twelve out of twenty-one Operating
Partnerships. The combined total expenses increased by approximately
$718,000 in the current year primarily due to increases in repair and
maintenance, interest and also depreciation and amortization.
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Inflation
- ---------
Inflation is not expected to have a material adverse impact on the
Partnership's operations during its period of ownership of the Properties.
Other
- -----
The Partnership's operations are not subject to any significant seasonal
fluctuations. The Partnership believes it is in compliance with
environmental regulations and does not anticipate material effects of
continued compliance.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
----------------------------------------------------------
Not applicable.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
-------------------------------------------
The financial statements together with the report of the independent auditors
thereon are incorporated by reference from the Registrants Financial
Statements on the pages indicated in ITEM 14.
ITEM 9. CHANGES AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
------------------------------------------------------------
FINANCIAL DISCLOSURE
--------------------
Not applicable.
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PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
--------------------------------------------------
The Partnership has no officers or directors. Management of the Partnership
is vested in Irwin Jay Deutch and Century Pacific Capital Corporation (CPCC)
(the general partners). The general partners will involve themselves in the
day-to-day affairs of the Partnership as required to protect the limited
partners' investment and advance the Partnership's tax investment objectives.
Mr. Deutch, the managing general partner, has the overall responsibility for
the preparation and transmittal of periodic reports to the limited partners,
preparation and filing of the Partnership's tax returns with the IRS and the
appropriate state tax authorities, and the preparation and filing of reports
to HUD and other government agencies.
Following is biographical information on Mr. Deutch and the Executive
Officers of CPCC:
IRWIN JAY DEUTCH
Irwin Jay Deutch, age 60, is Chairman of the Board, President, and Chief
Executive Officer of Century Pacific Realty Corporation (CPRC), a general
partner of the Operating Partnerships that own the Properties in which CPHF-I
has invested, and its Affiliates. Mr. Deutch has been involved with
low-income housing investments since 1968. He is the individual general
partner in 62 private limited partnerships and two public limited partnerships
investing in 209 properties, including 196 multifamily properties with 33,700
apartment units, 10 commercial projects, and 3 hotel properties. Fifty-eight
of the 62 private limited partnerships have invested in affordable housing.
In his capacity as general partner and officer of CPRC, he oversees the
management of these partnerships and assumes overall responsibility for the
development, direction, and operation of all affiliated CPRC companies. Mr.
Deutch is recognized as an expert in the field of affordable housing and
frequently addresses professional groups on topics of real estate investment,
syndication, tax law, and the Low-Income Housing Tax Credit program.
Mr. Deutch received a B.B.A. with distinction from the University of Michigan
School of Business Administration in 1962 and a Juris Doctor degree with
honors from the University of Michigan Law School in 1965. He is a member of
the Order of the Coif. Mr. Deutch served in the Honors Program in the Office
of the Chief Counsel of the Internal Revenue Service from 1965 to 1967, where
he was assigned to the Interpretative Division in Washington, D.C. He
attended Georgetown Law Center and received his Master of Laws degree in
taxation in 1967. Mr. Deutch is a member of the State Bars of Michigan and
California, as well as the American, Federal, Los Angeles, and Beverly Hills
Bar Associations.
KEY OFFICERS OF CPCC AND AFFILIATES
ESSIE SAFAIE, age 51, is Chief Financial Officer and Chief Operating Officer
of CPRC. Prior to joining CPRC in 1988, from 1985-88, he was Vice President
and Chief Financial Officer of Sunrise Investments, Inc., a real estate
syndication firm with $450 million of real estate under management. During
this period, Mr. Safaie was also President of an affiliated property
management firm, S&L Property Management, Inc., with over 12,000 residential
units and 800,000 square feet of commercial office space under direct
management. From 1982 to 1985, Mr. Safaie was assistant controller of
Standard Management Company, builders and managers of luxury hotels,
commercial offices and residential units. From 1980-1982, he served as
financial officer of Diamond "M" Drilling Company. Mr. Safaie received a BA
degree in Business Administration from California State University with a
major in accounting.
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CHARLES L. SCHWENNESEN, age 55, is Vice President of Acquisition Finance for
CPRC and is responsible for financial analysis and "due diligence" reviews of
all properties acquired by CPRC. Prior to joining CPRC in 1987, he was a
consultant to companies which provided investment opportunities through
private placements. From 1984 to 1985, Mr. Schwennesen was Vice President of
Cranston Securities Company and was responsible for the structuring of more
than $30 million of mortgage revenue bond financing for affordable housing
projects. From 1977 to 1984, Mr. Schwennesen was a manager with the
accounting firm of Price Waterhouse where he specialized in providing
auditing and consulting services to publicly held California real estate
development companies involved in the affordable housing industry. Mr.
Schwennesen is a Certified Public Accountant and holds a Masters degree in
Business Administration from the UCLA Graduate School of Management and a
B.A. degree in Mathematics from UCLA.
ITEM 11. EXECUTIVE COMPENSATION
----------------------
The Partnership has no officers or directors. However, in connection with
the operations of the Partnership and the Operating Partnerships, the general
partners and their affiliates will or may receive certain fees, compensation,
income and other payments which are described in the Prospectus under
"Compensation, Fees and Reimbursements" on page 17, the terms of which are
incorporated herein by reference.
During the fiscal years ended March 31, 2001, 2000, and 1999, CPCC, a general
partner of the Partnership, and CPRC, a general partner of the Operating
Partnerships, earned $526,524, $522,326 and $535,596, respectively, in
compensation from the Operating Partnerships and $60,000 was accrued for each
fiscal year for the reimbursement for overhead allocation from Century
Pacific Equity Corporation (CPEC). During fiscal year 2001, the general
partners received no payments from the Operating Partnerships.
ITEM 12. PARTNERSHIP INTEREST OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
---------------------------------------------------------------
MANAGEMENT
----------
No partner in the Partnership owns more than 5% of the total number of
partnership interests outstanding. Irwin J. Deutch, the managing general
partner, holds a one-half percent general partnership interest and C.P.
Westwood Associates holds a one percent limited partnership interest.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
----------------------------------------------
Irwin J. Deutch is the managing general partner of the Partnership, and CPCC
is also a general partner. Irwin J. Deutch is the sole Director and
President of CPCC, and the stock of CPCC is solely owned by the Deutch Family
Trust. Mr. Deutch is also the President, sole Director and the Deutch Family
Trust is the sole stockholder of Century Pacific Realty Corporation (CPRC),
the general partner of the Operating Partnerships that own the properties in
which the Partnership has invested. The general partners were allocated
their proportionate share of the Partnership's tax losses and allocated tax
credits. CPCC and CPRC accrued certain fees for their services in managing
and advising the Partnership and its business. Century Pacific Equity
Corporation (CPEC), an affiliate, provides all the services and materials
necessary for the operation of the Partnership and is reimbursed for actual
costs. These transactions are more particularly set forth in the financial
statements found under ITEM 14.
15
16
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
---------------------------------------------------------------
(a) (1) Financial Statements:
Independent Auditors' Reports F-1
Balance Sheet as of March 31, 2001 and 2000 F-2
Statement of Operations for the Years Ended
March 31, 2001, 2000, and 1999 F-3
Statement Of Partners' Equity (Deficit) for the
Years Ended March 31, 2001, 2000, and 1999 F-4
Statement of Cash Flows for the Years Ended March 31,
2001, 2000, and 1999 F-5
Notes to Financial Statements F-6
(2) Financial Statement Schedules:
Schedule III - Real Estate and Accumulated
Depreciationof Operating Partnerships in which
CPHF-I has Limited Partnership Interests F-13 and F-14
Notes to Schedule III - Real Estate and Accumulated
Depreciation of Operating Partnerships in which
CPHF-I has Limited Partnership Interest F-15 and F-16
Schedule IV - Mortgage Loans on Real Estate of
OperatingPartnerships in which CPHF-I has Limited
Partnership Interests F-17 thru F-20
Notes to Schedule IV - Mortgage Loans on Real Estate
of Operating Partnerships in which CPHF-I has
Limited Partnership Interests F-21
All other schedules are omitted because they are not
applicable or the required information is shown in
the financialstatements or notes thereto.
(3) Exhibits
Not applicable
(b) Reports on Form 8-K
Not applicable
(c) Exhibits
Not applicable
(d) Financial Statement Schedule
Financial Statements of Coleman Manor for the Years Ended
December 31, 1999, and 1998
16
17
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities and
Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
CENTURY PACIFIC HOUSING FUND - I
By: Irwin Jay Deutch, as Managing
General Partner
Date: June 29, 2001 /s/ Irwin Jay Deutch
--------------------------------------
and
Century Pacific Capital I Corporation,
as Corporate General Partner and as
Attorney-in-Fact for all Investor
Limited Partners
Date: June 29, 2001 /s/ Irwin Jay Deutch
By: Irwin Jay Deutch, President
--------------------------------------
17
18
INDEPENDENT AUDITORS' REPORT
Partners
Century Pacific Housing Fund - I
We have audited the accompanying balance sheet of Century Pacific Housing
Fund - I as of March 31, 2001 and 2000, and the related statements of
operations, partners' equity (deficit) and cash flows for each of the three
years in the period ended March 31, 2001. 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. 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 Century Pacific Housing Fund
- - I as of March 31, 2001 and 2000, and the results of its operations and its
cash flows for each of the three years in the period ended March 31, 2001, 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 Notes 2, 3, 4
and 5 to the financial statements, the Partnership has suffered recurring
losses from operations and has a net capital deficiency that raises
substantial doubt about its ability to continue as a going concern.
Management's plans regarding these matters also are described in Note 3. The
financial statements do not include any adjustments that might result from
the outcome of this uncertainty.
We have also prepared, from information audited by us, the related financial
statement schedules listed in Item 14(a)(2) as of December 31, 2000 and 1999.
In our opinion the financial statement schedules present fairly, in all
material respects, the information required to be set forth therein.
/s/ Rubin, Brown, Gornstein & Co. LLP
St. Louis, Missouri
June 20, 2001
F-1
19
CENTURY PACIFIC HOUSING FUND-1
- ------------------------------------------------------------------------------------------------------------
BALANCE SHEET
ASSETS
MARCH 31,
------------------------------
2001 2000
------------------------------
Cash $ 4,685 $ 5,889
Receivable from related parties (Note 4) 4,934 4,934
Investments in Operating Partnerships (Notes 1 and 5) -- 15,633
- ------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 9,619 $ 26,456
============================================================================================================
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
Accounts payable and accrued expenses $ 7,618 $ 13,769
Advance from affiliate (Note 4) 62,455 62,455
Payable to related parties (Note 4) 1,006,337 932,769
- ------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 1,076,410 1,008,993
- ------------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES (NOTE 6) -- --
- ------------------------------------------------------------------------------------------------------------
PARTNERS' EQUITY (DEFICIT)
General partners (400,058) (398,373)
Limited partners, $1,000 stated value per unit,
50,000 units authorized, 22,315 units issued
and outstanding (Note 2) (666,733) (584,164)
- ------------------------------------------------------------------------------------------------------------
TOTAL PARTNERS' EQUITY (DEFICIT) (1,066,791) (982,537)
- ------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND PARTNERS' EQUITY (DEFICIT) $ 9,619 $ 26,456
============================================================================================================
F-2
- ------------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements.
20
CENTURY PACIFIC HOUSING FUND-1
- ------------------------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE YEARS ENDED MARCH 31,
------------------------------------------------
2001 2000 1999
------------------------------------------------
REVENUES
Transfer fees $ 800 $ 1,000 $ 1,900
Miscellaneous -- -- 1,815
- ------------------------------------------------------------------------------------------------------------
TOTAL REVENUES 800 1,000 3,715
- ------------------------------------------------------------------------------------------------------------
EXPENSES
Allocated overhead expenses - affiliate (Note 4) 60,000 60,000 60,000
Other general and administrative 9,421 27,407 14,653
- ------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 69,421 87,407 74,653
- ------------------------------------------------------------------------------------------------------------
LOSS BEFORE EQUITY IN NET LOSSES OF
OPERATING PARTNERSHIPS (68,621) (86,407) (70,938)
EQUITY IN NET LOSSES OF OPERATING
PARTNERSHIPS (NOTE 5) (15,633) (122,245) (122,202)
- ------------------------------------------------------------------------------------------------------------
NET LOSS $ (84,254) $ (208,652) $ (193,140)
============================================================================================================
ALLOCATION OF NET LOSS
General partners $ (1,685) $ (4,173) $ (3,863)
Limited partners (82,569) (204,479) (189,277)
- ------------------------------------------------------------------------------------------------------------
$ (84,254) $ (208,652) $ (193,140)
============================================================================================================
NET LOSS PER UNIT OF LIMITED PARTNERSHIP
INTEREST (NOTE 1) $ (4) $ (9) $ (9)
============================================================================================================
AVERAGE NUMBER OF OUTSTANDING UNITS 22,315 22,315 22,315
============================================================================================================
F-3
- ------------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements.
21
CENTURY PACIFIC HOUSING FUND-1
- ------------------------------------------------------------------------------------------------------------
STATEMENT OF PARTNERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED MARCH 31, 2001, 2000 AND 1999
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
-----------------------------------------------
PARTNERS' EQUITY (DEFICIT) - MARCH 31, 1998 $(390,037) $(190,408) $ (580,745)
NET LOSS (3,863) (189,277) (193,140)
- ------------------------------------------------------------------------------------------------------------
PARTNERS' EQUITY (DEFICIT) - MARCH 31, 1999 (394,200) (379,685) (773,885)
NET LOSS (4,173) (204,479) (208,652)
- ------------------------------------------------------------------------------------------------------------
PARTNERS' EQUITY (DEFICIT) - MARCH 31, 2000 (398,373) (584,164) (982,537)
NET LOSS (1,685) (82,569) (84,254)
- ------------------------------------------------------------------------------------------------------------
PARTNERS' EQUITY (DEFICIT) - MARCH 31, 2001 $(400,058) $(666,733) $(1,066,791)
============================================================================================================
PERCENTAGE INTEREST - MARCH 31, 2001 2% 98% 100%
============================================================================================================
F-4
- ------------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements.
22
CENTURY PACIFIC HOUSING FUND-1
- ------------------------------------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED MARCH 31,
-----------------------------------------------
2001 2000 1999
-----------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(84,254) $(208,652) $(193,140)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Equity in net losses of Operating Partnerships 15,633 122,245 122,202
(Increase) decrease in receivable from related
parties -- 24,116 (13,500)
Increase (decrease) in accounts payable and
accrued expenses (6,151) (2,032) 5,000
Increase (decrease) in advance from affiliate -- (13,500) 13,500
Increase in payable to related parties 73,568 78,823 68,531
- ------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (1,204) 1,000 2,593
- ------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH (1,204) 1,000 2,593
CASH - BEGINNING OF PERIOD 5,889 4,889 2,296
- ------------------------------------------------------------------------------------------------------------
CASH - END OF PERIOD $ 4,685 $ 5,889 $ 4,889
============================================================================================================
F-5
- ------------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements.
23
CENTURY PACIFIC HOUSING FUND-1
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2001, 2000 AND 1999
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The Partnership maintains its financial records on the tax basis.
Memorandum entries, while not recorded in the records of the
Partnership, have been made in order to prepare the financial statements
in accordance with generally accepted accounting principles.
On August 7, 1991, management of the Partnership changed from a calendar
year end to a fiscal year end of March 31 for financial reporting
purposes. Accordingly, the Partnership's quarterly periods end June 30,
September 30 and December 31. The Operating Partnerships, for financial
reporting purposes, have a calendar year. The Partnership, as well as
the Operating Partnerships, have a calendar year for income tax
purposes.
ESTIMATES AND ASSUMPTIONS
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 disclosure 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.
INVESTMENTS IN OPERATING PARTNERSHIPS
The Partnership uses the equity method to account for its investment in
the Operating Partnerships in which it has invested (Note 5). Under the
equity method of accounting, the investment is carried at cost and
adjusted for the Partnership's share of the Operating Partnerships'
results of operations and by cash distributions received. Equity in the
loss of each Operating Partnership allocated to the Partnership is not
recognized to the extent that the investment balance would become
negative. Costs paid by the Partnership for organization of the
Operating Partnership as well as direct costs of acquiring properties,
including acquisition fees and reimbursable acquisition expenses paid to
the general partner, have been capitalized as investments in Operating
Partnerships.
INCOME TAXES
No provision has been made for income taxes in the accompanying
financial statements since such taxes and/or the recapture of the
Low-Income Housing Tax Credit benefits received, if any, are the
liability of the individual partners. The Partnership uses the accrual
method of accounting for tax purposes.
F-6
- ------------------------------------------------------------------------------
24
CENTURY PACIFIC HOUSING FUND-1
- ------------------------------------------------------------------------------
Notes To Financial Statements (Continued)
NET LOSS PER UNIT OF LIMITED PARTNERSHIP INTEREST
Net loss per unit of limited partnership interest is calculated based
upon the weighted average number of units of limited partnership
interest (units) outstanding.
2. OPERATIONS
Century Pacific Housing Fund-I, a California limited partnership, (the
Partnership), was formed on October 6, 1986 for the purpose of raising
capital by offering and selling limited partnership interests and then
acquiring limited partnership interests in 21 limited partnerships (the
Operating Partnerships), which acquired and operate 21 multi-family
residential apartment properties (the properties).
The general partners of the Partnership are Century Pacific Capital
Corporation, a California corporation (CPCC), and Irwin Jay Deutch, an
individual (collectively, the general partners). The general partners
and affiliates of the general partners (the general partners and
affiliates) have interests in the Partnership and receive compensation
from the Partnership and the Operating Partnerships (Note 4).
The Properties qualify for the Low-Income Housing Tax Credit established
by Section 42 of the Tax Reform Act of 1986 (the Low-Income Housing Tax
Credit) and one property qualifies for Historic Rehabilitation Tax
Credits (collectively the Tax Credits). These properties are leveraged
low-income multi-family residential complexes and receive one or more
forms of assistance from federal, state or local government agencies
(the Government Agencies).
In July 1987, the Partnership began raising capital from sales of
limited partnership interests, at $1,000 per unit, to limited partners.
The Partnership authorized the issuance of a maximum of 50,000
partnership units of which 22,315 were subscribed and issued. The
limited partnership interest offering closed in April 1988.
The Partnership has acquired limited partnership interests ranging from
97% to 99% in the Operating Partnerships, which have invested in rental
property.
F-7
- ------------------------------------------------------------------------------
25
CENTURY PACIFIC HOUSING FUND-1
- ------------------------------------------------------------------------------
Notes To Financial Statements (Continued)
3. REALIZATION OF ASSETS
The accompanying financial statements have been prepared in conformity
with generally accepted accounting principles, which contemplate
continuation of the Partnership as a going concern. The Partnership's
Operating Partnerships have not achieved the operating results required
to provide the Partnership with sufficient cash distributions to fund
the Partnership's administrative costs. Additionally, as of March 31,
2001, the Partnership has incurred allocated losses from all of its
Operating Partnerships to the extent of the Partnership's cash
contributions. As a result of the foregoing, the Partnership is
dependent upon the general partners and affiliates for continued
financial support.
The auditors' report on eight of the Operating Partnerships' financial
statements contained an explanatory paragraph relating to a going
concern issue, of which seven concerned the expiration of the Housing
Assistance Payment Contract and one concerned recurring losses of the
project. These Operating Partnerships have Housing Assistance Payment
Contracts with the U.S. Department of Housing and Urban Development
(HUD) that are due to expire during 2001. Management has requested one
year extensions for these Operating Partnerships; however, as of
June 20, 2001, these extensions have not been granted.
Management maintains that the general partners and affiliates, though
not required to do so, will continue to fund operations by deferring
payment to related parties of allocated overhead expenses, and by
funding any Partnership operating costs. Unpaid allocated overhead
expenses will accrue and become payable when the Operating Partnerships
generate sufficient cash distributions to the Partnership to cover such
expenses. The financial statements do no include any adjustments that
might result from the outcome of this uncertainty.
4. TRANSACTIONS WITH THE GENERAL PARTNERS AND AFFILIATES OF THE
GENERAL PARTNERS
The general partners of the Partnership are CPCC and Irwin Jay Deutch.
The original limited partner of the Partnership is Westwood Associates
which partners are Irwin Jay Deutch and key employees of CPCC. Century
Pacific Placement Corporation (CPPC), an affiliate of the general
partners, served as the broker-dealer-manager for sales of the limited
partnership interests in the Partnership. Century Pacific Realty
Corporation (CPRC), an affiliate of CPCC, is a general partner in each
of the Operating Partnerships.
The general partners have an aggregate one percent interest in the
Partnership, as does the original limited partner. CPRC has a one
percent interest in each of the Operating Partnerships, except for one
Operating Partnership in which it has a one-half percent interest.
F-8
- ------------------------------------------------------------------------------
26
CENTURY PACIFIC HOUSING FUND-1
- ------------------------------------------------------------------------------
Notes To Financial Statements (Continued)
The general partners and affiliates receive compensation and
reimbursement of expenses from the Partnership, as set forth in the
limited partnership agreement, for their services in managing the
Partnership and its business. The general partners and affiliates also
receive compensation and reimbursement of expenses from the Operating
Partnerships. This compensation and reimbursement includes services
provided to the Partnership during its offering stage, acquisition
stage, operational stage, and termination of refinancing stage.
The general partners and affiliates earned the following fees for
services provided to the Partnership and were entitled to reimbursement
for costs incurred by the general partners and affiliates on behalf of
the Partnership and the Operating Partnerships for the years ended
March 31, 2001, 2000 and 1999 as follows:
2001 2000 1999
----------------------------------------------
Fees and reimbursement from the Partnership:
Reimbursement for overhead allocated from
Century Pacific Equity Corporation
(CPEC) $ 60,000 $ 60,000 $ 60,000
-------------------------------------------------------------------------------------------------
Fees and reimbursement from the Operating
Partnerships
Supervisory management fee (CPCC and
CPRC) 152,115 152,115 152,115
Partnership management fee (CPCC and
CPRC) 374,409 370,211 383,681
-------------------------------------------------------------------------------------------------
526,524 522,326 535,796
-------------------------------------------------------------------------------------------------
$586,524 $582,326 $595,796
=================================================================================================
At March 31, 2001 and 2000, payable to related parties totaling
$1,006,337 and $932,769, respectively, consists of fees and certain
general and administrative costs accrued as a non-interest bearing
payable by the Partnership to the general partners and affiliates.
Such fees and allocated costs have been deferred until the Partnership
has sufficient cash to pay them.
Receivable from related parties of $4,934 at March 31, 2001 and 2000
represents cash advances to several of the Operating Partnerships.
At March 31, 2001 and 2000, CPRC was owed $62,455 for non-interest
bearing, demand cash advances to the Partnership.
The general partners may advance funds to the Partnership to fund
operating deficits, but are not obligated to do so. Such advances shall
be evidenced by a promissory note of a term no more than 12 months in
length and at a rate of interest no lower than the prime rate. All such
loans shall be repaid prior to any distributions of net cash flow. At
March 31, 2001 and 2000, the Partnership had no outstanding advances due
to the general partners.
F-9
- ------------------------------------------------------------------------------
27
CENTURY PACIFIC HOUSING FUND-1
- ------------------------------------------------------------------------------
Notes To Financial Statements (Continued)
5. INVESTMENTS IN OPERATING PARTNERSHIPS
At March 31, 2001 and 2000, the Partnership owned limited partnership
interests in 21 Operating Partnerships, each of which has invested in
a multi-family rental property.
Investments in Operating Partnerships consist of the following:
2001 2000
-------------------------------
Cash contributions to Operating Partnerships
to fund purchase of beneficial interests in
properties $ 15,497,467 $ 15,497,467
Cash contributions to Operating Partnerships
to fund operations 6,150 6,150
Cash distribution from Operating Partnership (6,326) (6,326)
Acquisition and organization costs 3,342,778 3,342,778
Equity in net losses of Operating Partnerships (18,840,069) (18,824,436)
---------------------------------------------------------------------------------------------
$ -- $ 15,633
==============================================================================================
A summarized combined balance sheet as of December 31, 2000 and 1999 and
statement of operations for the three years ended December 31, 2000 of
the aforementioned Operating Partnership follows:
COMBINED BALANCE SHEET
ASSETS
2000 1999
-------------------------------
Cash $ 956,612 $ 1,480,035
Reserve for replacements 3,125,100 2,977,765
Land and buildings 56,156,394 59,866,590
Other assets 3,247,235 3,177,215
---------------------------------------------------------------------------------------------
$ 63,485,341 $ 67,501,605
==============================================================================================
LIABILITIES AND PARTNERS' DEFICIT
2000 1999
-------------------------------
Notes payable $133,566,140 $128,346,523
Other liabilities 7,691,137 7,829,867
Partners' deficit (77,771,936) (68,674,785)
---------------------------------------------------------------------------------------------
$ 63,485,341 $ 67,501,605
==============================================================================================
F-10
- ------------------------------------------------------------------------------
28
CENTURY PACIFIC HOUSING FUND-1
- ------------------------------------------------------------------------------
Notes To Financial Statements (Continued)
COMBINED STATEMENT OF OPERATIONS
2000 1999 1998
-------------------------------------------------
REVENUES
Rental income $16,585,661 $16,667,064 $16,457,379
Other income 653,813 817,016 413,609
---------------------------------------------------------------------------------------------------
TOTAL REVENUES 17,239,474 17,484,080 16,870,988
---------------------------------------------------------------------------------------------------
EXPENSES
Utilities 2,869,732 2,630,077 2,718,177
Repairs and maintenance 4,601,575 4,389,890 4,645,192
Management fees 1,313,219 1,320,288 1,287,155
Other operating expenses 5,402,602 5,492,192 4,848,663
Interest 7,625,813 7,179,043 7,339,635
Depreciation and amortization 4,346,112 4,345,497 4,378,554
---------------------------------------------------------------------------------------------------
TOTAL EXPENSES 26,159,053 25,356,987 25,217,376
---------------------------------------------------------------------------------------------------
NET LOSS $(8,919,579) $(7,872,907) $(8,346,388)
===================================================================================================
ALLOCATION OF LOSS
General partners and other limited partners $(8,741,187) $(7,715,449) $(8,179,460)
Century Pacific Housing Fund - I (178,392) (157,458) (166,928)
---------------------------------------------------------------------------------------------------
$(8,919,579) $(7,872,907) $(8,346,388)
===================================================================================================
6. COMMITMENTS AND CONTINGENCIES
The rents of the Operating Partnerships, all of which receive rental
subsidy payments, including payments under Section 8 of Title II of the
Housing and Community Development Act of 1974 ("Section 8") are subject
to specific laws, regulations, and agreements with federal and state
agencies. The subsidy agreements expire at various times during and
after the 15-year compliance period of the Operating Partnerships. The
United States Department of Housing and Urban Development ("HUD") has
issued a notice implementing provisions to renew Section 8 contracts
expiring during HUD's fiscal year 2001, where requested by an owner, for
an additional one year term at current rent levels. As of June 20,
2001, eight of the Operating Partnerships' Section 8 contracts are due
to expire during 2001. The Operating Partnerships have not yet received
HUD's approval of their extension requests. At the present time, the
Partnership cannot reasonably predict legislative initiatives and
governmental budget negotiations, the outcome of which could result in
a reduction in funds available for the various federal and state
administered housing programs including the Section 8 program. Such
changes could adversely affect the future net operating income and debt
structure of any or all Operating Partnerships receiving such subsidy or
similar subsidies.
F-11
- ------------------------------------------------------------------------------
29
CENTURY PACIFIC HOUSING FUND-1
- ------------------------------------------------------------------------------
Notes To Financial Statements (Continued)
7. FAIR VALUE OF FINANCIAL INSTRUMENTS
The following methods and assumptions were used to estimate the fair
value of each class of financial instruments:
CASH
The carrying amount approximates fair value because of the short
maturity of those instruments.
RELATED PARTY RECEIVABLES
The carrying amount approximates fair value because of the short-term
nature of the receivables.
ADVANCE FROM AFFILIATE
The carrying amount approximates fair value because of the short-term
nature of the advance.
PAYABLE TO RELATED PARTIES
The carrying amount approximates fair value because the terms of the
payable are similar to currently available terms and conditions for
similar instruments.
F-12
- ------------------------------------------------------------------------------
30
Schedule III
------------
Page 1 of 2
CENTURY PACIFIC TAX CREDIT HOUSING FUND-I
- ------------------------------------------------------------------------------------------------------------------------
REAL ESTATE AND ACCUMULATED DEPRECIATION OF OPERATING
PARTNERSHIPS IN WHICH CPHF-I HAS LIMITED PARTNERSHIP INTERESTS
DECEMBER 31, 2000
INITIAL COST TO COST CAPITALIZED
OPERATING PARTNERSHIP SUBSEQUENT TO ACQUISITION
------------------------------- -------------------------------
BUILDINGS AND BUILDINGS AND
DESCRIPTION (1) ENCUMBRANCES (2) LAND IMPROVEMENTS LAND IMPROVEMENTS
- ------------------------------------------------------------------------------------------------------------------------
Century Pacific Housing
Partnership I (CPHP-I) -
Charter House
Dothan, Alabama $ 2,455,449 $ 179,578 $ 1,918,124 $ -- $ 168,252
CPHP-II - VOA/
Sunset Park, Ltd. -
Sunset Park
Denver, Colorado 9,604,693 803,595 5,696,405 7,305 948,104
CPHP-III -
Highland Park
Topeka, Kansas 12,314,118 434,475 6,465,525 251 469,561
CPHP-IV -
Forest Glen Estates
Kansas City, Missouri 6,752,218 427,519 4,469,134 292 230,903
CPHP-VI -
Edgewood
Danville, Illinois 3,008,411 223,418 3,316,582 96,407 400,342
CPHP-VII -
Gulfway Terrace
New Orleans, Louisiana 6,557,097 270,343 5,429,657 237 375,578
CPHP-IX -
Wind Ridge
Wichita, Kansas 4,001,314 169,514 3,330,486 146 (3,330,486)
CPHP-X -
Bergen Circle
Springfield,
Massachusetts 16,370,796 901,206 11,359,794 0 1,373,641
CPHP-V -
Jaycee Towers
Dayton, Ohio 8,386,592 599,719 5,096,481 0 419,333
CPHP-VIII -
Sunset Townhouses
Newton, Kansas 1,479,827 50,259 1,174,741 138 140,864
- ------------------------------------------------------------------------------------------------------------------------
BALANCE CARRIED
FORWARD 70,930,515 4,059,626 48,256,929 104,776 1,196,092
- ------------------------------------------------------------------------------------------------------------------------
LIFE UPON
WHICH
GROSS AMOUNT AT WHICH ACCUMULATED DEPRECIATION
CARRIED AT CLOSE OF YEAR DEPRECIATION IN LATEST
--------------------------------------- ------------ INCOME
BUILDINGS AND BUILDINGS AND DATE OF DATE STATEMENT IS
DESCRIPTION (1) LAND IMPROVEMENTS TOTAL IMPROVEMENTS CONSTRUCTION ACQUIRED COMPUTED
- ------------------------------------------------------------------------------------------------------------------------
Century Pacific Housing
Partnership I (CPHP-I) -
Charter House
Dothan, Alabama $ 179,578 $ 2,086,376 $ 2,265,954 $ 1,000,730 1972 12/87 27.5 years
CPHP-II - VOA/
Sunset Park, Ltd. -
Sunset Park
Denver, Colorado 810,900 6,644,509 7,455,409 3,188,634 1971 12/87 10 - 50 years
CPHP-III -
Highland Park
Topeka, Kansas 434,726 6,935,086 7,369,812 4,351,377 1967 12/87 10 - 40 years
CPHP-IV -
Forest Glen Estates
Kansas City, Missouri 427,811 4,700,037 5,127,848 2,550,348 1971 12/87 40 years
CPHP-VI -
Edgewood
Danville, Illinois 319,825 3,716,924 4,036,749 1,725,601 1970 12/87 27.5 years
CPHP-VII -
Gulfway Terrace
New Orleans, Louisiana 270,580 5,805,235 6,075,815 3,072,148 1970 12/87 10 - 40 years
CPHP-IX -
Wind Ridge
Wichita, Kansas 169,660 4,173,109 4,342,769 2,212,993 1969 12/87 10 - 40 years
CPHP-X -
Bergen Circle
Springfield,
Massachusetts 901,206 12,733,435 13,634,641 6,217,675 1976 12/87 10 - 40 years
CPHP-V -
Jaycee Towers
Dayton, Ohio 599,719 5,515,814 6,115,533 2,459,817 1970 12/88 27.5 years
CPHP-VIII -
Sunset Townhouses
Newton, Kansas 50,397 1,315,605 1,366,002 724,623 1971 8/88 10 - 40 years
- ------------------------------------------------------------------------------------------------------------------------
BALANCE CARRIED
FORWARD 4,164,402 53,626,130 57,790,532 27,503,946
- ------------------------------------------------------------------------------------------------------------------------
See notes to schedule
F-13
31
Schedule III
------------
Page 2 of 2
CENTURY PACIFIC HOUSING FUND-I
- ------------------------------------------------------------------------------------------------------------------------
REAL ESTATE AND ACCUMULATED DEPRECIATION OF OPERATING
PARTNERSHIPS IN WHICH CPHF-I HAS LIMITED PARTNERSHIP INTERESTS
DECEMBER 31, 2000
INITIAL COST TO COST CAPITALIZED
OPERATING PARTNERSHIP SUBSEQUENT TO ACQUISITION
------------------------------- -------------------------------
BUILDINGS AND BUILDINGS AND
DESCRIPTION (1) ENCUMBRANCES (2) LAND IMPROVEMENTS LAND IMPROVEMENTS
- ------------------------------------------------------------------------------------------------------------------------
BALANCE CARRIED
FORWARD $ 70,930,515 $4,059,626 $48,256,929 $104,776 $ 5,369,201
CPHP-XI -
Continental Terrace
Fort Worth, Texas 6,227,083 231,946 4,368,054 1,049 760,519
CPHP-XII -
Yale Village
Houston, Texas 8,408,437 299,925 4,950,075 19,874 1,009,224
CPHP-XIII -
Atlantis
Virginia Beach, Virginia 8,825,219 520,607 5,382,387 2,861 875,158
CPHP-XIV -
Kings Row
Houston, Texas 5,909,468 193,458 3,586,542 947 908,573
CPHP-XV -
Castle Gardens
Lubbock, Texas 4,778,920 161,989 3,106,011 821 688,837
CPHP-XVI -
Rockwell Villa
Oklahoma City, Oklahoma 1,586,061 75,255 1,160,145 1,168 280,455
CPHP-XVII -
London Square Village
Oklahoma City, Oklahoma 4,870,221 203,978 4,009,000 0 730,087
CPHP-XVIII -
Ascension Towers
Memphis, Tennessee 9,772,998 176,341 6,551,159 0 846,215
Coleman Manor
Associates Limited
Partnership -
Coleman Manor
Baltimore, Maryland 2,165,519 61,281 3,384,621 0 184,710
CPHP-XX -
Holiday Heights
Fort Worth, Texas 3,216,128 202,445 1,942,864 43,132 150,344
CPHP-XXII -
Harriet Tubman
Terrace - Berkeley,
California 6,875,571 361,275 3,807,339 5,097 460,043
- ------------------------------------------------------------------------------------------------------------------------
$133,566,140 $6,548,126 $90,505,126 $179,725 $12,263,366
========================================================================================================================
LIFE UPON
WHICH
GROSS AMOUNT AT WHICH ACCUMULATED DEPRECIATION
CARRIED AT CLOSE OF YEAR DEPRECIATION IN LATEST
--------------------------------------- ------------ INCOME
BUILDINGS AND BUILDINGS AND DATE OF DATE STATEMENT IS
DESCRIPTION (1) LAND IMPROVEMENTS TOTAL IMPROVEMENTS CONSTRUCTION ACQUIRED COMPUTED
- ------------------------------------------------------------------------------------------------------------------------
BALANCE CARRIED
FORWARD $4,164,402 $ 53,626,130 $ 57,790,532 $27,503,946
CPHP-XI -
Continental Terrace
Fort Worth, Texas 232,995 5,128,573 5,361,568 2,721,212 1971 10/88 20 - 40 years
CPHP-XII -
Yale Village
Houston, Texas 319,799 5,959,299 6,279,098 3,628,862 1970 8/88 20 - 40 years
CPHP-XIII -
Atlantis
Virginia Beach, Virginia 532,468 6,257,545 6,781,013 3,396,571 1970 7/88 20 - 40 years
CPHP-XIV -
Kings Row
Houston, Texas 194,405 4,495,115 4,689,520 2,472,826 1968 8/88 20 - 40 years
CPHP-XV -
Castle Gardens
Lubbock, Texas 162,810 3,794,848 3,957,658 2,041,965 1971 7/88 15 - 40 years
CPHP-XVI -
Rockwell Villa
Oklahoma City, Oklahoma 76,423 1,440,600 1,517,023 678,778 1970 7/88 27.5 years
CPHP-XVII -
London Square Village
Oklahoma City, Oklahoma 203,978 4,739,087 4,943,065 2,673,774 1975 8/88 27.5 years
CPHP-XVIII -
Ascension Towers
Memphis, Tennessee 176,341 7,397,374 7,573,715 3,471,720 1979 8/88 27.5 years
Coleman Manor
Associates Limited
Partnership -
Coleman Manor
Baltimore, Maryland 61,281 3,569,331 3,630,612 1,601,826 1903 8/88 27.5 years
CPHP-XX -
Holiday Heights
Fort Worth, Texas 245,577 2,093,208 2,338,785 1,143,963 1972 10/88 32 years
CPHP-XXII -
Harriet Tubman
Terrace - Berkeley,
California 366,372 4,267,382 4,633,754 2,004,506 1975 8/88 27.5 years
- ------------------------------------------------------------------------------------------------------------------------
$6,727,851 $102,768,492 $109,496,343 $53,339,949
========================================================================================================================
See notes to schedule
F-14
32
CENTURY PACIFIC HOUSING FUND-1
- ------------------------------------------------------------------------------
NOTES TO SCHEDULE III - REAL ESTATE AND ACCUMULATED
DEPRECIATION OF OPERATING PARTNERSHIPS IN WHICH
CPHF-I HAS LIMITED PARTNERSHIP INTERESTS
DECEMBER 31, 2000
NOTE 1 - DESCRIPTION OF PROPERTIES
- ----------------------------------
The Properties held by the Operating Partnerships in which the Partnership
has invested are housing projects, primarily for families and elderly or
handicapped individuals of low and moderate income.
NOTE 2 - SCHEDULE OF ENCUMBRANCES
- ---------------------------------
OPERATING PARTNERSHIP MORTGAGE RESIDUAL PURCHASE OTHER
NAME AND PROPERTY NAME NOTES NOTE NOTE NOTES TOTAL
- -------------------------------------------------------------------------------------------------------------------
CPHP-I Charter House $ 811,662 $ 1,643,787 $ -- $ -- $ 2,455,449
CPHP-II VOA/Sunset Park,
Ltd. Sunset Park 2,262,157 7,310,275 -- 32,261 9,604,693
CPHP-III Highland Park 923,738 11,174,292 -- 216,088 12,314,118
CPHP-IV Forest Glen
Estates 1,763,736 4,939,137 -- 49,345 6,752,218
CPHP-V Jaycee Towers 2,192,832 5,929,057 -- 264,703 8,386,592
CPHP-VI Edgewood 1,764,766 1,057,680 -- 185,965 3,008,411
CPHP-VII Gulfway Terrace 2,457,277 3,812,014 -- 287,806 6,557,097
CPHP-VIII
Sunset Townhouses 540,391 920,565 -- 18,871 1,479,827
CPHP-IX Wind Ridge 3,053,077 865,075 -- 83,162 4,001,314
CPHP-X Bergen Circle 5,560,640 10,057,572 -- 752,584 16,370,796
CPHP-XI Continental Terrace 1,838,355 4,074,791 -- 313,937 6,227,083
CPHP-XII Yale Village 2,144,061 5,037,340 -- 1,227,036 8,408,437
CPHP-XIII Atlantis 1,889,052 6,936,167 -- -- 8,825,219
CPHP-XIV Kings Row 1,224,337 4,169,127 -- 516,004 5,909,468
CPHP-XV Castle Gardens 1,309,058 3,163,460 -- 306,402 4,778,920
CPHP-XVI Rockwell Villa 459,809 1,071,270 -- 54,982 1,586,061
CPHP-XVII London Square
Village 1,935,306 2,934,915 -- -- 4,870,221
CPHP-XVIII Ascension Towers 2,889,611 6,474,361 -- 409,026 9,772,998
Coleman Manor Associates
Limited Partnership
Coleman Manor 2,125,519 -- -- 40,000 2,165,519
CPHP-XX Holiday Heights 808,334 2,407,794 -- -- 3,216,128
CPHP-XXII Harriet Tubman
Terrace 1,293,419 5,360,652 221,500 -- 6,875,571
- -------------------------------------------------------------------------------------------------------------------
$39,247,137 $89,339,331 $221,500 $4,758,172 $133,566,140
===================================================================================================================
F-15
33
CENTURY PACIFIC HOUSING FUND-1
- ------------------------------------------------------------------------------
NOTES TO SCHEDULE III - REAL ESTATE AND
ACCUMULATED DEPRECIATION OF OPERATING PARTNERSHIPS IN
WHICH CPHF-I HAS LIMITED PARTNERSHIP INTERESTS - CONTINUED
DECEMBER 31, 2000
NOTE 3 - RECONCILIATION OF REAL ESTATE AND ACCUMULATED DEPRECIATION
- -------------------------------------------------------------------
ACCUMULATED
COST DEPRECIATION
--------------------------------
Balance at December 31, 1997 $107,207,504 $40,434,942
Additions during year:
Improvements 864,012 --
Depreciation -- 4,318,634
----------------------------------------------------------------------
Balance at December 31, 1998 108,071,516 44,753,576
Additions during year:
Improvements 844,445 --
Depreciation -- 4,295,795
----------------------------------------------------------------------
Balance at December 31, 1999 108,915,961 49,049,371
Additions during year:
Improvements 580,382 --
Depreciation -- 4,290,578
----------------------------------------------------------------------
$109,496,343 $53,339,949
======================================================================
F-16
34
CENTURY PACIFIC HOUSING FUND-1
- -------------------------------------------------------------------------------------------------------------------
MORTGAGE LOANS ON REAL ESTATE OF OPERATING
PARTNERSHIPS IN WHICH CPHF-I HAS
LIMITED PARTNERSHIP INTERESTS
DECEMBER 31, 2000
Schedule IV
-----------
MONTHLY
PAYMENTS ORIGINAL
FINAL TO MATURITY FACE CARRYING
INTEREST MATURITY (NET OF HUD AMOUNT OF AMOUNT OF
DESCRIPTION (1) RATE DATE SUBSIDY) MORTGAGE MORTGAGE (2)
- -------------------------------------------------------------------------------------------------------------------
First mortgages assumed
by Operating Partnerships:
Century Pacific Housing
Partnership-I (CPHP-I)
Charter House
Dothan, Alabama 7% March 2013 $ 8,238 $ 1,325,700 $ 811,662
CPHP-II
VOA/Sunset Park, Ltd.
Sunset Park
Denver, Colorado 7% November 2014 8,736 4,859,300 2,262,157
CPHP-III
Highland Park
Topeka, Kansas 3% December 2008 10,835 2,914,500 923,738
CPHP-IV
Forest Glen Estates
Kansas City, Kansas 7.5% April 2013 6,703 2,787,000 1,763,736
CPHP-VI 3% plus
Edgewood treasury
Danville, Illinois bill rate March 2013 18,928 2,360,000 1,764,766
CPHP-VII
Gulfway Terrace
New Orleans, Louisiana 7% June 2015 8,320 3,616,200 2,457,277
CPHP-IX
Wind Ridge
Wichita, Kansas 8.625% July 2010 23,529 3,060,000 3,053,077
CPHP-X
Bergen Circle
Springfield, Massachusetts 6.92% March 2018 4,818 7,381,100 5,560,640
CPHP-V
Jaycee Towers
Dayton, Ohio 8.5% September 2012 7,648 3,361,200 2,192,832
CPHP-VIII
Sunset Townhouses
Newton, Kansas 8.5% September 2012 1,864 828,300 540,391
- -------------------------------------------------------------------------------------------------------------------
BALANCE BROUGHT FORWARD 62,952 31,444,200 21,330,276
- -------------------------------------------------------------------------------------------------------------------
F-17
35
CENTURY PACIFIC HOUSING FUND-1
- -------------------------------------------------------------------------------------------------------------------
MORTGAGE LOANS ON REAL ESTATE OF OPERATING
PARTNERSHIPS IN WHICH CPHF-I HAS
LIMITED PARTNERSHIP INTERESTS
DECEMBER 31, 2000
Schedule IV
-----------
MONTHLY
PAYMENTS ORIGINAL
FINAL TO MATURITY FACE CARRYING
INTEREST MATURITY (NET OF HUD AMOUNT OF AMOUNT OF
DESCRIPTION (1) RATE DATE SUBSIDY) MORTGAGE MORTGAGE (2)
- -------------------------------------------------------------------------------------------------------------------
BALANCE BROUGHT FORWARD $31,444,200 $21,330,276
CPHP-XI
Continental Terrace
Fort Worth, Texas 7% March 2013 8,636 3,002,600 1,838,355
CPHP-XII
Yale Village
Houston, Texas 7% June 2105 10,470 3,363,300 2,144,061
CPHP-XIII
Atlantis
Virginia Beach, Virginia 8.5% March 2012 7,336 2,946,500 1,889,052
CPHP-XIV
Kings Row
Houston, Texas 7.05% August 2011 13,925 2,116,000 1,224,337
CPHP-XV
Castle Gardens
Lubbock, Texas 8.5% June 2015 4,808 1,949,900 1,309,058
CPHP-XVI
Rockwell Villa
Oklahoma City, Oklahoma 7% September 2013 1,953 812,700 459,809
CPHP-XVII
London Square Village
Oklahoma City, Oklahoma 7.5% June 2012 7,861 3,153,900 1,935,306
CPHP-XVIII
Ascension Towers
Memphis, Tennessee 7% May 2015 9,671 4,290,000 2,889,611
Coleman Manor Associates
Limited Partnership
Coleman Manor
Baltimore, Maryland 10% July 2029 12,545 2,365,000 2,125,519
CPHP-XX
Holiday Heights
Fort Worth, Texas 7% April 2014 3,052 1,252,700 808,334
CPHP-XXII
Harriet Tubman Terrace
Berkeley, California 7% October 2015 4,233 1,882,700 1,293,419
- -------------------------------------------------------------------------------------------------------------------
$70,586 $58,579,500 $39,247,137
===================================================================================================================
See notes to schedule
F-18
36
CENTURY PACIFIC HOUSING FUND-1
- -------------------------------------------------------------------------------------------------------------------
MORTGAGE LOANS ON REAL ESTATE OF OPERATING
PARTNERSHIPS IN WHICH CPHF-I HAS
LIMITED PARTNERSHIP INTERESTS
DECEMBER 31, 2000
Schedule IV
-----------
MONTHLY
PAYMENTS ORIGINAL
FINAL TO MATURITY FACE CARRYING
INTEREST MATURITY (NET OF HUD AMOUNT OF AMOUNT OF
DESCRIPTION (1) RATE DATE SUBSIDY) MORTGAGE MORTGAGE (2)
- -------------------------------------------------------------------------------------------------------------------
Residual notes (second
mortgages):
Century Pacific Housing
Partnership-I (CPHP-I)
Charter House
Dothan, Alabama (1) December 2002 (1) $ 781,581 $ 1,643,787
CPHP-II
VOA/Sunset Park, Ltd.
Sunset Park
Denver, Colorado (1) December 2002 (1) 2,462,936 7,310,275
CPHP-III
Highland Park
Topeka, Kansas (1) December 2002 (1) 3,936,695 11,174,292
CPHP-IV
Forest Glen Estates
Kansas City, Kansas (1) December 2002 (1) 1,733,923 4,939,137
CPHP-VI
Edgewood
Danville, Illinois (1) December 2002 (1) 415,192 1,057,680
CPHP-VII
Gulfway Terrace
New Orleans, Louisiana (1) December 2002 (1) 1,255,000 3,812,014
CPHP-IX
Wind Ridge
Wichita, Kansas (1) December 2003 (1) 1,053,084 865,075
CPHP-X
Bergen Circle
Springfield, Massachusetts (1) July 2013 (1) 3,547,072 10,057,572
CPHP-V
Jaycee Towers
Dayton, Ohio (1) October 2005 (1) 2,245,673 5,929,057
CPHP-VIII
Sunset Townhouses
Newton, Kansas (1) August 2003 (1) 341,229 920,565
- -------------------------------------------------------------------------------------------------------------------
BALANCE BROUGHT FORWARD 17,772,385 47,709,454
- -------------------------------------------------------------------------------------------------------------------
F-19
37
CENTURY PACIFIC HOUSING FUND-1
- -------------------------------------------------------------------------------------------------------------------
MORTGAGE LOANS ON REAL ESTATE OF OPERATING
PARTNERSHIPS IN WHICH CPHF-I HAS
LIMITED PARTNERSHIP INTERESTS
DECEMBER 31, 2000
Schedule IV
-----------
MONTHLY
PAYMENTS ORIGINAL
FINAL TO MATURITY FACE CARRYING
INTEREST MATURITY (NET OF HUD AMOUNT OF AMOUNT OF
DESCRIPTION (1) RATE DATE SUBSIDY) MORTGAGE MORTGAGE (2)
- -------------------------------------------------------------------------------------------------------------------
BALANCE BROUGHT FORWARD $17,772,385 $47,709,454
CPHP-XI
Continental Terrace
Fort Worth, Texas (1) October 2003 (1) 1,595,364 4,074,791
CPHP-XII
Yale Village
Houston, Texas (1) August 2003 (1) 1,255,000 5,037,340
CPHP-XIII
Atlantis
Virginia Beach, Virginia (1) July 2003 (1) 2,552,584 6,936,167
CPHP-XIV
Kings Row
Houston, Texas (1) August 2003 (1) 1,537,518 4,169,127
CPHP-XV
Castle Gardens
Lubbock, Texas (1) July 2003 (1) 1,160,247 3,163,460
CPHP-XVI
Rockwell Villa
Oklahoma City, Oklahoma (1) July 2003 (1) 398,629 1,071,270
CPHP-XVII
London Square Village
Oklahoma City, Oklahoma (1) July 2003 (1) 979,071 2,934,915
CPHP-XVIII
Ascension Towers
Memphis, Tennessee (1) August 2003 (1) 2,404,667 6,474,361
CPHP-XX
Holiday Heights
Fort Worth, Texas (1) October 2004 (1) 909,472 2,407,794
CPHP-XXII
Harriet Tubman Terrace
Berkeley, California (1) December 2003 (1) 2,036,000 5,360,652
- -------------------------------------------------------------------------------------------------------------------
$32,600,937 $89,339,331
===================================================================================================================
See notes to schedule
F-20
38
CENTURY PACIFIC HOUSING FUND-1
- ------------------------------------------------------------------------------
NOTES TO SCHEDULE IV - MORTGAGE LOANS ON REAL
ESTATE OF OPERATING PARTNERSHIPS IN WHICH
CPHF-I HAS LIMITED PARTNERSHIP INTERESTS
DECEMBER 31, 2000
NOTE 1 - DESCRIPTION
-----------
Each Operating Partnership has invested in a Property. The Operating
Partnerships assumed mortgage loan obligations from the sellers of the
properties, and with the exception of two mortgages, all mortgage loan
obligations are insured by the United States Department of Housing and
Urban Development. All mortgages are secured by the land and buildings
of the properties.
In addition, the Operating Partnerships issued residual notes to the
sellers of the properties as partial consideration. The notes bear
interest at the minimum long-term federal rate as announced from
time-to-time pursuant to Section 1274 of the Internal Revenue Code,
provided that such rate shall not be less than 7% nor greater than 15%.
The notes are secured by the land and buildings of the properties. The
notes are repayable out of future cash available for distribution and
unpaid principal and interest are due at maturity.
NOTE 2 - RECONCILIATION OF MORTGAGES AND RESIDUAL NOTES
----------------------------------------------
FOR THE YEAR ENDED
DECEMBER 31, 2000
-------------------------------
MORTGAGE RESIDUAL
LOANS NOTES
-------------------------------
Balance at December 31, 1997 $41,967,937 $71,306,351
Additions during year:
Accrued interest -- 5,929,555
Deductions during year:
Payments (733,082) --
-------------------------------------------------------------------------------
Balance at December 31, 1998 41,234,855 77,235,906
Additions during year:
Accrued interest -- 7,028,848
Deductions during year:
Payments (2,240,789) --
-------------------------------------------------------------------------------
Balance at December 31, 1999 38,994,066 84,264,754
Additions during year:
Accrued interest -- 7,119,427
New mortgage loan 3,060,000 --
Deductions during year:
Payments 2,806,929 2,044,850
-------------------------------------------------------------------------------
$39,247,137 $89,339,331
===============================================================================
F-21
39
S2100-020 INDEPENDENT AUDITORS' REPORT
To The Partners
Coleman Manor Associates Limited Partnership
We have audited the accompanying balance sheet of Coleman Manor Associates
Limited Partnership, Project No. 052-35464, a limited partnership, as of
December 31, 1999 and the related statements of profit and loss, partners'
equity (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 Coleman Manor Associates
Limited Partnership as of December 31, 1999 and the results of its operations
and its cash flows for the year then ended in conformity with generally
accepted accounting principles.
January 27, 2000
40
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
052-35464
- ------------------------------------------------------------------------------------------------------
BALANCE SHEET
PAGE 1 OF 2
DECEMBER 31, 1999
ASSETS
CURRENT ASSETS
1120 Cash - operations $ 6,814
1130 Tenant accounts receivable 1,939
1135 Accounts receivable - HUD 8,345
1200 Miscellaneous prepaid expenses 21,805
------------
1100T TOTAL CURRENT ASSETS $ 38,903
DEPOSITS HELD IN TRUST - FUNDED
1191 Tenant deposits held in trust 6,652
RESTRICTED DEPOSITS AND FUNDED RESERVES
1310 Escrow deposits 28,943
1320 Replacement reserve 40,527
------------
1300T TOTAL DEPOSITS 69,470
FIXED ASSETS
1410 Land 61,281
1420 Buildings 3,426,317
1465 Office furniture and equipment 123,514
------------
1400T Total Fixed Assets 3,611,112
1495 Less: Accumulated depreciation 1,466,857
------------
1400N NET FIXED ASSETS 2,144,255
OTHER ASSETS
1520 Intangible assets - loan costs
1520 Intangible assets - credit application and 97,875
compliance fees 11,844
------------
1500T TOTAL OTHER ASSETS 109,719
------------
1000T TOTAL ASSETS $2,368,999
============
- ------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 2
41
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
052-35464
- ------------------------------------------------------------------------------------------------------
BALANCE SHEET
PAGE 2 OF 2
DECEMBER 31, 1999
LIABILITIES
CURRENT LIABILITIES
2105 Bank overdraft - operations $ 398
2110 Accounts payable - operations 6,366
2120 Accrued wages payable 2,311
2113 Accounts payable - entity 186,454
2123 Accrued management fee payable 1,839
2131 Accrued interest payable - first mortgage 14,889
2170 Mortgage payable - first mortgage (short-term) 8,559
2172 Mortgage payable - second mortgage (short-term) 1,382
2210 Prepaid revenue 1,337
------------
2122T TOTAL CURRENT LIABILITIES $ 223,535
DEPOSIT AND PREPAYMENT LIABILITIES
2191 Tenant deposits held in trust (contra) 6,638
LONG-TERM LIABILITIES
2320 Mortgage payable - first mortgage 1,415,101
2322 Mortgage payable - second mortgage 710,421
2324 Other loans and notes payable 40,000
------------
2300T TOTAL LONG-TERM LIABILITIES 2,165,522
------------
2000T TOTAL LIABILITIES 2,395,695
PARTNERS' EQUITY (DEFICIT)
3130 Partners' equity (deficit) (26,696)
------------
2033T TOTAL LIABILITIES AND PARTNERS' EQUITY (DEFICIT) $2,368,999
============
- ------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 3
42
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
052-35464
- ---------------------------------------------------------------------------------------------------------------------
STATEMENT OF PROFIT AND LOSS
FOR THE YEAR ENDED DECEMBER 31, 1999
- ---------------------------------------------------------------------------------------------------------------------
PART 1 DESCRIPTION OF ACCOUNT ACCT. NO. AMOUNT
- ---------------------------------------------------------------------------------------------------------------------
Rent Revenue - Gross Potential 5120 $ 44,692
--------------------------------------------------------------------------------------------------
Tenant Assistance Payments 5121 $330,202
--------------------------------------------------------------------------------------------------
Rent Revenue - Stores and Commercial 5140 $
--------------------------------------------------------------------------------------------------
Garage and Parking Spaces 5170 $
--------------------------------------------------------------------------------------------------
Flexible Subsidy Revenue 5180 $
RENT --------------------------------------------------------------------------------------------------
REVENUE Miscellaneous Rent Revenue 5190 $
5100 --------------------------------------------------------------------------------------------------
Excess Rent 5191 $
--------------------------------------------------------------------------------------------------
Rent Revenue/Insurance 5192 $
--------------------------------------------------------------------------------------------------
Special Claims Revenue 5193 $
--------------------------------------------------------------------------------------------------
Retained Excess Income 5194 $
--------------------------------------------------------------------------------------------------
TOTAL RENT REVENUE 5100T $ 374,894
- ---------------------------------------------------------------------------------------------------------------------
Apartments 5220 $ 5,983
--------------------------------------------------------------------------------------------------
Stores and Commercial 5240 $
--------------------------------------------------------------------------------------------------
Rental Concessions 5250 $
VACANCIES --------------------------------------------------------------------------------------------------
5200 Garage and Parking Space 5270 $
--------------------------------------------------------------------------------------------------
Miscellaneous 5290 $
--------------------------------------------------------------------------------------------------
TOTAL VACANCIES 5200T $ 5,983
--------------------------------------------------------------------------------------------------
NET RENTAL REVENUE Rent Revenue Less Vacancies 5152N $ 368,911
- ---------------------------------------------------------------------------------------------------------------------
5300 Nursing Homes/Assisted Living/Board and Care/
Other Elderly Care/Coop/ and Other Revenues 5300 $
- ---------------------------------------------------------------------------------------------------------------------
Financial Revenue - Project Operations 5410 $ 446
--------------------------------------------------------------------------------------------------
Revenue from Investments - Residual Receipts 5430 $
FINANCIAL --------------------------------------------------------------------------------------------------
REVENUE Revenue from Investments - Replacement Reserve 5440 $ 797
5400 --------------------------------------------------------------------------------------------------
Revenue from Investments - Miscellaneous 5490 $
--------------------------------------------------------------------------------------------------
TOTAL FINANCIAL REVENUE 5400T $ 1,243
- ---------------------------------------------------------------------------------------------------------------------
Laundry and Vending Revenue 5910 $ 1,627
--------------------------------------------------------------------------------------------------
Tenant Charges 5920 $ 1,316
--------------------------------------------------------------------------------------------------
Interest Reduction Payments Revenue 5945 $
OTHER --------------------------------------------------------------------------------------------------
REVENUE Miscellaneous Revenue (Schedule) 5990 $ 3,789
5900 --------------------------------------------------------------------------------------------------
TOTAL OTHER REVENUE 5900T $ 6,732
--------------------------------------------------------------------------------------------------
TOTAL REVENUE 5000T $ 376,886
- ---------------------------------------------------------------------------------------------------------------------
Conventions and Meetings 6203 $
--------------------------------------------------------------------------------------------------
Management Consultants 6204 $
--------------------------------------------------------------------------------------------------
Advertising and Marketing 6210 $ 93
--------------------------------------------------------------------------------------------------
Other Renting Expenses 6250 $ 4,180
--------------------------------------------------------------------------------------------------
Office Salaries 6310 $ 17,799
--------------------------------------------------------------------------------------------------
Office Expenses 6311 $ 7,368
--------------------------------------------------------------------------------------------------
Office or Model Apartment Rent 6312 $
--------------------------------------------------------------------------------------------------
Management Fee 6320 $ 21,943
ADMINISTRATIVE --------------------------------------------------------------------------------------------------
EXPENSES Manager or Superintendent Salaries 6330 $
6200/6300 --------------------------------------------------------------------------------------------------
Administrative Rent Free Unit 6331 $ 7,477
--------------------------------------------------------------------------------------------------
Legal Expense - Project 6340 $ 174
--------------------------------------------------------------------------------------------------
Audit Expense 6350 $ 6,000
--------------------------------------------------------------------------------------------------
Bookkeeping Fees/Accounting Services 6351 $ 4,925
--------------------------------------------------------------------------------------------------
Bad Debts 6370 $ 243
--------------------------------------------------------------------------------------------------
Miscellaneous Administrative Expenses 6390 $ 1,421
--------------------------------------------------------------------------------------------------
TOTAL ADMINISTRATIVE EXPENSES 6263T $ 71,623
- ---------------------------------------------------------------------------------------------------------------------
Fuel Oil/Coal 6420 $
--------------------------------------------------------------------------------------------------
Electricity 6450 $ 8,104
UTILITIES --------------------------------------------------------------------------------------------------
EXPENSE Water 6451 $ 1,325
6400 --------------------------------------------------------------------------------------------------
Gas 6452 $
--------------------------------------------------------------------------------------------------
Sewer 6453 $ 2,959
--------------------------------------------------------------------------------------------------
TOTAL UTILITIES EXPENSE 6400T $ 12,388
--------------------------------------------------------------------------------------------------
TOTAL EXPENSES (CARRY FORWARD TO PAGE 2) $ 84,011
- ---------------------------------------------------------------------------------------------------------------------
Page 1 of 2
- ---------------------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 4
43
Project Name: Coleman Manor Associates Limited Partnership
- ---------------------------------------------------------------------------------------------------------------------
BALANCE CARRIED FORWARD $ 84,011
- ---------------------------------------------------------------------------------------------------------------------
Payroll 6510 $ 30,806
--------------------------------------------------------------------------------------------------
Supplies 6515 $ 641
--------------------------------------------------------------------------------------------------
Contracts 6520 $ 16,970
--------------------------------------------------------------------------------------------------
Operating and Maintenance Rent Free Unit 6521 $
--------------------------------------------------------------------------------------------------
Garbage and Trash Removal 6525 $ 1,980
OPERATING --------------------------------------------------------------------------------------------------
MAINTENANCE Security Payroll/Contract 6530 $
EXPENSES --------------------------------------------------------------------------------------------------
6500 Security Rent Free Unit 6531 $
--------------------------------------------------------------------------------------------------
Heating/Cooling Repairs and Maintenance 6546 $ 6,760
--------------------------------------------------------------------------------------------------
Snow Removal 6548 $ 150
--------------------------------------------------------------------------------------------------
Vehicle and Maintenance Equipment Operation and Repairs 6570 $
--------------------------------------------------------------------------------------------------
Miscellaneous Operating and Maintenance Expenses 6590 $ 5,992
--------------------------------------------------------------------------------------------------
TOTAL OPERATING AND MAINTENANCE EXPENSES 6500T $ 63,299
- ---------------------------------------------------------------------------------------------------------------------
Real Estate Taxes 6710 $ 34,458
--------------------------------------------------------------------------------------------------
Payroll Taxes (Project's Share) 6711 $ 4,284
--------------------------------------------------------------------------------------------------
Property and Liability Insurance (Hazard) 6720 $ 5,655
--------------------------------------------------------------------------------------------------
TAXES Fidelity Bond Insurance 6721 $
AND --------------------------------------------------------------------------------------------------
INSURANCE Workmen's Compensation 6722 $ 830
6700 --------------------------------------------------------------------------------------------------
Health Insurance and Other Employee Benefits 6723 $ 3,956
--------------------------------------------------------------------------------------------------
Miscellaneous Taxes, Licenses, Permits and Insurance 6790 $ 1,315
--------------------------------------------------------------------------------------------------
TOTAL TAXES AND INSURANCE 6700T $ 50,498
- ---------------------------------------------------------------------------------------------------------------------
Interest on Mortgage Payable 6820 $142,798
--------------------------------------------------------------------------------------------------
Interest on Notes Payable (LongTerm) 6830 $ 7,123
FINANCIAL --------------------------------------------------------------------------------------------------
EXPENSES Interest on Notes Payable (ShortTerm) 6840 $
6800 --------------------------------------------------------------------------------------------------
Mortgage Insurance Premium/Service Charge 6850 $ 7,153
--------------------------------------------------------------------------------------------------
Miscellaneous Financial Expenses 6890 $
--------------------------------------------------------------------------------------------------
TOTAL FINANCIAL EXPENSES 6800T $ 157,074
- ---------------------------------------------------------------------------------------------------------------------
6900 Nursing Homes/ Assisted Living/ Board and Care/
Other Elderly Care Expenses 6900 $
- ---------------------------------------------------------------------------------------------------------------------
TOTAL COST OF OPERATIONS BEFORE
DEPRECIATION AND AMORTIZATION 6000T $ 354,882
--------------------------------------------------------------------------------------------------
PROFIT (LOSS) BEFORE DEPRECIATION AND AMORTIZATION 5060T $ 22,004
--------------------------------------------------------------------------------------------------
Depreciation Expense 6600 $135,085
--------------------------------------------------------------------------------------------------
Amortization Expense 6610 $ 6,580
--------------------------------------------------------------------------------------------------
TOTAL DEPRECIATION AND AMORTIZATION $ 141,665
--------------------------------------------------------------------------------------------------
OPERATING PROFIT OR (LOSS) 5060N $(119,661)
- ---------------------------------------------------------------------------------------------------------------------
Officer's Salaries 7110 $
--------------------------------------------------------------------------------------------------
Legal Expenses 7120 $
--------------------------------------------------------------------------------------------------
Federal, State, and Other Income Taxes 7130 $
--------------------------------------------------------------------------------------------------
CORPORATE OR Interest Income 7140 $
MORTGAGOR --------------------------------------------------------------------------------------------------
ENTITY Interest on Notes Payable 7141 $
EXPENSES --------------------------------------------------------------------------------------------------
7100 Interest on Mortgage Payable 7142 $
--------------------------------------------------------------------------------------------------
Other Expenses (Schedule) 7190 $ 19,800
--------------------------------------------------------------------------------------------------
NET ENTITY EXPENSES 7100T $ 19,800
--------------------------------------------------------------------------------------------------
PROFIT OR LOSS (NET INCOME OR LOSS) 3250 $(139,461)
- ---------------------------------------------------------------------------------------------------------------------
MISCELLANEOUS OR OTHER INCOME AND EXPENSE SUB-ACCOUNT GROUPS. If miscellaneous or other income and/or expense
sub-accounts (5190, 5290, 5490, 5990, 6390, 6590, 6790, 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 mortgage principal payments required during the audit year (12 monthly payments).
This applies to all direct loans and HUD-held and fully insured mortgages.
Any HUD approved second mortgages should be included in the figures. (Account S1000-010) $ 9,120
- ---------------------------------------------------------------------------------------------------------------------
2. Total of 12 monthly deposits in the audit year into the Replacement Reserve account,
as required by the Regulatory Agreement even if payments may be temporarily
suspended or reduced. (Account S1000-020) $ 5,910
- ---------------------------------------------------------------------------------------------------------------------
3. Replacement Reserve or Residual Receipts releases which are included as expense items
on this Profit and Loss Statement. (Account S1000-030) $
- ---------------------------------------------------------------------------------------------------------------------
4. Project Improvement Reserve Releases under the Flexible Subsidy Program that are included
as expense items on this Profit and Loss Statement. (Account S1000-040) $
- ---------------------------------------------------------------------------------------------------------------------
Page 2 of 2
- ---------------------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 5
44
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
052-35464
- ------------------------------------------------------------------------------
SCHEDULE OF SUB-ACCOUNTS
FOR THE YEAR ENDED DECEMBER 31, 1999
5990 - MISCELLANEOUS REVENUE
5990-010 Recovery of bad debts 5990-020 $ 3,500
5990-010 Miscellaneous revenue 5990-020 289
---------
5990 TOTAL MISCELLANEOUS REVENUE $ 3,789
=========
7190 OTHER EXPENSES
7190-010 Supervisory management fee 7190-020 $19,800
=========
- ------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 6a
45
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
052-35464
- ------------------------------------------------------------------------------
STATEMENT OF PARTNERS' EQUITY (DEFICIT)
FOR THE YEAR ENDED DECEMBER 31, 1999
S1100-010 BEGINNING OF YEAR $ 112,765
3250 NET LOSS (139,461)
-----------
3130 END OF YEAR $ (26,696)
===========
- ------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 7
46
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
052-35464
- -----------------------------------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS
PAGE 1 OF 2
FOR THE YEAR ENDED DECEMBER 31, 1999
ACCOUNT AMOUNT
--------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts:
S1200-010 Rental receipts $ 362,437
S1200-020 Interest receipts 1,243
S1200-030 Other operating receipts 6,732
-----------
S1200-040 Total Receipts 370,412
-----------
Disbursements:
S1200-050 Administrative 30,756
S1200-070 Management fee 22,536
S1200-090 Utilities 12,388
S1200-100 Salaries and wages 48,406
S1200-110 Operating and maintenance 32,493
S1200-120 Real estate taxes 32,379
S1200-140 Property insurance 12,134
S1200-150 Miscellaneous taxes and insurance 4,284
S1200-160 Tenant security deposits 287
S1200-180 Interest on mortgages 142,868
S1200-210 Mortgage insurance premium (MIP) 7,130
S1200-220 Miscellaneous financial 7,123
-----------
S1200-230 Total Disbursements 352,784
-----------
S1200-240 NET CASH PROVIDED BY OPERATING ACTIVITIES 17,628
-----------
CASH FLOWS FROM INVESTING ACTIVITIES
S1200-245 Net deposits to the mortgage escrow account (8,534)
S1200-250 Net deposits to the reserve for replacement account (6,707)
S1200-330 Net purchases of fixed assets (4,880)
-----------
S1200-350 NET CASH USED IN INVESTING ACTIVITIES (20,121)
-----------
CASH FLOWS FROM FINANCING ACTIVITIES
S1200-360 Mortgage principal payments (9,120)
S1200-450 Other financing activities 398
S1200-455 Entity/Construction financing activities:
S1200-456 Supervisory management fees S1200-457 (3,000)
-----------
S1200-460 NET CASH USED IN FINANCING ACTIVITIES (11,722)
-----------
S1200-470 NET DECREASE IN CASH (14,215)
S1200-480 BEGINNING OF PERIOD CASH 21,029
-----------
S1200T END OF PERIOD CASH $ 6,814
===========
- -----------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 8
47
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
052-35464
- -----------------------------------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS
PAGE 2 OF 2
FOR THE YEAR ENDED DECEMBER 31, 1999
ACCOUNT AMOUNT
--------------------------
RECONCILIATION OF NET LOSS TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
3250 Net loss $(139,461)
Adjustments to reconcile net loss to net cash
provided by operating activities:
6600 Depreciation 135,085
6610 Amortization 6,580
Change in assets and liabilities:
S1200-490 Increase in tenant accounts receivable (1,573)
S1200-500 Decrease in accounts receivable - other (5,824)
S1200-520 Decrease in prepaid expenses 1,724
S1200-530 Increase in cash restricted for tenant security deposits (270)
S1200-540 Increase in accounts payable 1,125
S1200-560 Decrease in accrued liabilities (394)
S1200-570 Decrease in accrued interest payable (70)
S1200-580 Decrease in tenant security deposits held in trust (17)
S1200-590 Increase in prepaid revenue 923
S1200-605 Increase in entity/construction liability accounts
S1200-606 Management fee expense S1200-607 19,800
-----------
S1200-610 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 17,628
===========
- -----------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 9
48
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
052-35464
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(S3100-010)
The Partnership is organized as a limited partnership formed under
the laws of the State of Maryland on May 16, 1988 to acquire an interest
in .723 acres of land in Baltimore City, Maryland, and to construct and
operate thereon an apartment complex of 50 units under Section 221(d)(3)
of the National Housing Act. Such projects are regulated by the U.S.
Department of Housing and Urban Development (HUD) as to rent charges and
operating methods. The regulatory agreements limit annual distributions
of net operating receipts to "surplus cash" available at the end of each
year. There was no "surplus cash" as of December 31, 1999.
The following significant accounting policies have been followed in the
preparation of the financial statements:
Management uses estimates and assumptions in preparing financial
statements. 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.
The Partnership provides an allowance for doubtful accounts equal
to the estimated collection losses that will be incurred in
collection of all receivables. The estimated losses are based
on a review of the current status of the existing receivables.
No allowance for doubtful accounts was provided for at December 31,
1999 as none was deemed necessary by management.
Depreciation is provided using primarily the straight-line method
over the estimated useful lives of the assets ranging from seven to
twenty-seven years.
The replacement reserve can only be used for improvements to
buildings upon prior approval of HUD.
- ------------------------------------------------------------------------------
Page 10
49
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
- ------------------------------------------------------------------------------
Notes To Financial Statements (Continued)
Deferred loan costs consist of fees for obtaining the HUD insured
mortgage loan and are being amortized using the straight-line
method over the life of the mortgage loan.
The low income credit application fee and the low income credit
compliance fee are being amortized over 15 years, the term of the
credit compliance period.
Income or loss of the Partnership is allocated 2% to the general
partners and 98% to the limited partners. 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 partners on their
respective income tax returns.
2. MORTGAGES PAYABLE (S3100-050)
Permanent financing of the project has been provided by three mortgages.
The related notes are nonrecourse and are secured by the Partnership's
real estate.
The first mortgage is insured by the Federal Housing Administration
(FHA) and collateralized by a deed of trust on the rental property.
The mortgage bears interest at a rate of 10% and is payable in monthly
installments of $12,545 (including principal and interest) through
July 2029.
Under agreements with the mortgage lender and FHA, 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, operating expenditures and
distributions to partners.
The liability of the Partnership under the mortgage note is limited to
the underlying value of the real estate collateral plus other amounts
deposited with the lender.
SUBORDINATED MORTGAGE PAYABLE
The second mortgage, a variable interest loan through Community
Development Administration (CDA) of Maryland, is serviced by Bogman,
Inc. The note matures on July 1, 2029 and is payable as follows:
1. Beginning August 1, 1990, fifteen annual payments of $8,500 are
due, which includes interest at 1% annum.
- ------------------------------------------------------------------------------
Page 11
50
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
- ------------------------------------------------------------------------------
Notes To Financial Statements (Continued)
2. Beginning August 1, 2005, annual payments are due including interest
at 10%, in an amount sufficient to amortize the principal balance
over the remaining term of the loan.
SUBORDINATED PURCHASE MONEY MORTGAGE PAYABLE
This mortgage is with the Mayor and City Council of Baltimore and is
non-interest bearing. The full balance is due on September 1, 2029.
The scheduled maturities of the mortgages payable at December 31, 1999
are as follows: (S3100-x1x)
YEAR ACCOUNT AMOUNT
--------------------------------------------------------------
2000 S3100-060 $ 9,941
2001 S3100-070 10,851
2002 S3100-080 11,855
2003 S3100-090 12,963
2004 S3100-100 14,185
Thereafter S3100-110 2,115,668
--------------------------------------------------------------
$2,175,463
==============================================================
3. COMMITMENTS (S3100-X3X) (S3100-240)
The Partnership has entered into a regulatory agreement with HUD which
regulates, among other things, the rents which may be charged for
apartment units in the project, prohibits the sale of the Project
without HUD consent, limits the annual distribution of cash flow to
the partners and otherwise regulates the relationship between the
Partnership and HUD.
4. RELATED PARTY TRANSACTIONS (S3100-200)
ASSET AND SUPERVISORY MANAGEMENT FEE (S3100-200)
The Project has a management agreement with Century Pacific Realty
Corporation (CPRC), the supervising general partner, which requires
a fee of $19,800 annually. The first portion of the fee ($3,000) is
to be paid out of operations. The second portion ($5,000) is to be paid
out of surplus cash (as defined by HUD). The remaining balance and any
unpaid portions of the above may be paid out of capital transactions.
As of December 31, 1999, $186,454 of this fee remains unpaid.
- ------------------------------------------------------------------------------
Page 12
51
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
- ------------------------------------------------------------------------------
Notes To Financial Statements (Continued)
INCENTIVE MANAGEMENT FEE (S3100-200)
The Project has an incentive management agreement with the managing
general partner. The fee is to be equal to 60% of surplus cash (as
defined by HUD) net of the second portion ($5,000) of the asset and
supervisory management fee. There were no fees charged nor payments
made related to this fee in 1999.
S3100-210 COMPANY NAME Century Pacific Realty Corporation
S3100-220 AMOUNT RECEIVED $3,000
S3100-210 COMPANY NAME Mt. Washington Management Group, Inc.
S3100-220 AMOUNT RECEIVED $27,461
MANAGEMENT FEE (S3100-230)
Mt. Washington Management Group, Inc., an affiliate of the general
partners, is the exclusive agent for the management of the property.
The current management agreement provides for a management fee equal to
6.14% of gross collections. Total management fees incurred during 1999
were $21,943. In addition, Mt. Washington Management Group, Inc.
collects an accounting and bookkeeping fee which amounted to $4,925 in
1999. At December 31, 1999, $1,839 of these amounts are due and
payable.
5. LOW-INCOME HOUSING TAX CREDITS (S3100-240)
The Partnership expects to generate an aggregate of $2,545,410 of
low-income housing tax credits. Generally, such credits are expected
to become available for use by its partners pro rata over a ten-year
period beginning in 1989. In order to qualify for these credits, the
Property must comply with various federal and state requirements. These
requirements, include, but are not limited to, renting to low-income
tenants at rental rates, which do not exceed specified percentages of
area median gross income for the first 15 years of operation.
- ------------------------------------------------------------------------------
Page 13
52
S2300-020 INDEPENDENT AUDITORS' REPORT
To The Partners
Coleman Manor Associates Limited Partnership
We have audited the accompanying balance sheet of Coleman Manor Associates
Limited Partnership, Project No. 052-35464, a limited partnership, as of
December 31, 1998 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 Coleman Manor Associates
Limited Partnership as of December 31, 1998 and the results of its operations
and its cash flows 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 6, the
Partnership's contract with the U.S. Department of Housing and Urban
Development (HUD) for housing assistance payments is due to expire in 1999.
This matter 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.
January 26, 1999
53
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
HUD PROJECT NO. 052-35464
- -------------------------------------------------------------------------------------
BALANCE SHEET
PAGE 1 OF 2
DECEMBER 31, 1998
ASSETS
CURRENT ASSETS
1120 Cash - operations $ 21,029
1130 Tenant accounts receivable 366
1135 Accounts receivable - HUD 2,521
1200 Miscellaneous prepaid expenses 23,529
------------
1100T TOTAL CURRENT ASSETS 47,445
------------
DEPOSITS HELD IN TRUST - FUNDED
1191 Tenant deposits held in trust 6,382
------------
RESTRICTED DEPOSITS AND FUNDED RESERVES
1310 Escrow deposits 20,409
1320 Replacement reserve 33,820
------------
1300T TOTAL DEPOSITS 54,229
------------
FIXED ASSETS
1410 Land 61,281
1420 Buildings 3,426,317
1465 Office furniture and equipment 118,634
------------
1400T Total Fixed Assets 3,606,232
1495 Less: Accumulated depreciation 1,331,772
------------
1400N NET FIXED ASSETS 2,274,460
------------
OTHER ASSETS
1520 Intangible assets - loan costs 101,431
1520 Intangible assets - credit application and ------------
compliance fees 14,869
------------
1500T TOTAL OTHER ASSETS 116,300
------------
1000T TOTAL ASSETS $2,498,816
============
- -------------------------------------------------------------------------------------
See the accompanying report letter and notes to financial statements. Page 2
54
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
HUD PROJECT NO. 052-35464
- -------------------------------------------------------------------------------------
BALANCE SHEET
PAGE 2 OF 2
DECEMBER 31, 1998
LIABILITIES
CURRENT LIABILITIES
2110 Accounts payable - operations $ 7,374
2120 Accrued wages payable 2,112
2113 Accounts payable - entity 169,954
2131 Accrued interest payable - first mortgage 14,959
2170 Mortgage payable - first mortgage (short-term) 8,590
2172 Mortgage payable - second mortgage (short-term) 1,355
2210 Prepaid revenue 414
------------
2122T TOTAL CURRENT LIABILITIES 204,758
------------
DEPOSIT AND PREPAYMENT LIABILITIES
2191 Tenant deposits held in trust (contra) 6,655
------------
LONG-TERM LIABILITIES
2320 Mortgage payable - first mortgage 1,422,822
2322 Mortgage payable - second mortgage 711,816
2324 Other loans and notes payable 40,000
------------
2300T TOTAL LONG-TERM LIABILITIES 2,174,638
------------
2000T TOTAL LIABILITIES 2,386,051
PARTNERS' EQUITY
3130 Partners' equity 112,765
------------
2033T TOTAL LIABILITIES AND PARTNERS' EQUITY $2,498,816
============
- -------------------------------------------------------------------------------------
See the accompanying report letter and notes to financial statements. Page 3
55
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
HUD PROJECT NO. 052-35464
- ---------------------------------------------------------------------------------------------------------------------
STATEMENT OF PROFIT AND LOSS
FOR THE YEAR ENDED DECEMBER 31, 1998
- ---------------------------------------------------------------------------------------------------------------------
PART 1 DESCRIPTION OF ACCOUNT ACCT. NO. AMOUNT
- ---------------------------------------------------------------------------------------------------------------------
Rent Revenue - Gross Potential 5120 $ 47,225
--------------------------------------------------------------------------------------------------
Tenant Assistance Payments 5121 $325,475
--------------------------------------------------------------------------------------------------
Rent Revenue - Stores and Commercial 5140 $
--------------------------------------------------------------------------------------------------
Garage and Parking Spaces 5170 $
--------------------------------------------------------------------------------------------------
Flexible Subsidy Revenue 5180 $
RENT --------------------------------------------------------------------------------------------------
REVENUE Miscellaneous Rent Revenue 5190 $
5100 --------------------------------------------------------------------------------------------------
Excess Rent 5191 $
--------------------------------------------------------------------------------------------------
Rent Revenue/Insurance 5192 $
--------------------------------------------------------------------------------------------------
Special Claims Revenue 5193 $
--------------------------------------------------------------------------------------------------
Retained Excess Income 5194 $
--------------------------------------------------------------------------------------------------
TOTAL RENT REVENUE 5100T $ 372,700
- ---------------------------------------------------------------------------------------------------------------------
Apartments 5220 $ 6,541
--------------------------------------------------------------------------------------------------
Stores and Commercial 5240 $
--------------------------------------------------------------------------------------------------
VACANCIES Rental Concessions 5250 $
5200 --------------------------------------------------------------------------------------------------
Garage and Parking Space 5270 $
--------------------------------------------------------------------------------------------------
Miscellaneous 5290 $
--------------------------------------------------------------------------------------------------
TOTAL VACANCIES 5200T $ 6,541
--------------------------------------------------------------------------------------------------
NET RENTAL REVENUE Rent Revenue Less Vacancies 5152N $ 366,159
- ---------------------------------------------------------------------------------------------------------------------
5300 Nursing Homes/Assisted Living/Board and Care/
Other Elderly Care/Coop/ and Other Revenues 5300 $
- ---------------------------------------------------------------------------------------------------------------------
Financial Revenue - Project Operations 5410 $ 711
--------------------------------------------------------------------------------------------------
Revenue from Investments - Residual Receipts 5430 $
FINANCIAL --------------------------------------------------------------------------------------------------
REVENUE Revenue from Investments - Replacement Reserve 5440 $ 680
5400 --------------------------------------------------------------------------------------------------
Revenue from Investments - Miscellaneous 5490 $
--------------------------------------------------------------------------------------------------
TOTAL FINANCIAL REVENUE 5400T $ 1,391
- ---------------------------------------------------------------------------------------------------------------------
Laundry and Vending Revenue 5910 $ 1,826
--------------------------------------------------------------------------------------------------
Tenant Charges 5920 $ 518
--------------------------------------------------------------------------------------------------
Interest Reduction Payments Revenue 5945 $
OTHER --------------------------------------------------------------------------------------------------
REVENUE Miscellaneous Revenue 5990 $ 250
5900 --------------------------------------------------------------------------------------------------
TOTAL OTHER REVENUE 5900T $ 2,594
--------------------------------------------------------------------------------------------------
TOTAL REVENUE 5000T $ 370,144
- ---------------------------------------------------------------------------------------------------------------------
Conventions and Meetings 6203 $
--------------------------------------------------------------------------------------------------
Management Consultants 6204 $
--------------------------------------------------------------------------------------------------
Advertising and Marketing 6210 $ 100
--------------------------------------------------------------------------------------------------
Other Renting Expenses 6250 $ 100
--------------------------------------------------------------------------------------------------
Office Salaries 6310 $ 17,122
--------------------------------------------------------------------------------------------------
Office Expenses 6311 $ 6,738
--------------------------------------------------------------------------------------------------
Office or Model Apartment Rent 6312 $
--------------------------------------------------------------------------------------------------
Management Fee 6320 $ 20,229
ADMINISTRATIVE --------------------------------------------------------------------------------------------------
EXPENSES Manager or Superintendent Salaries 6330 $
6200/6300 --------------------------------------------------------------------------------------------------
Administrative Rent Free Unit 6331 $ 7,454
--------------------------------------------------------------------------------------------------
Legal Expense - Project 6340 $ 16
--------------------------------------------------------------------------------------------------
Audit Expense 6350 $ 5,000
--------------------------------------------------------------------------------------------------
Bookkeeping Fees/Accounting Services 6351 $ 6,600
--------------------------------------------------------------------------------------------------
Bad Debts 6370 $ 1,030
--------------------------------------------------------------------------------------------------
Miscellaneous Administrative Expenses 6390 $ 1,842
--------------------------------------------------------------------------------------------------
TOTAL ADMINISTRATIVE EXPENSES 6263T $ 66,231
- ---------------------------------------------------------------------------------------------------------------------
Fuel Oil/Coal 6420 $
--------------------------------------------------------------------------------------------------
Electricity 6450 $ 6,820
UTILITIES --------------------------------------------------------------------------------------------------
EXPENSE Water 6451 $ 1,152
6400 --------------------------------------------------------------------------------------------------
Gas 6452 $
--------------------------------------------------------------------------------------------------
Sewer 6453 $ 2,703
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
TOTAL UTILITIES EXPENSE 6400T $ 10,675
- ---------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES (CARRY FORWARD TO PAGE 2) $ 76,906
- ---------------------------------------------------------------------------------------------------------------------
Page 1 of 2
- ---------------------------------------------------------------------------------------------------------------------
See the accompanying report letter and notes to financial statements. Page 4
56
Project Name: Coleman Manor Associates Limited Partnership
- ---------------------------------------------------------------------------------------------------------------------
BALANCE CARRIED FORWARD $ 76,906
- ---------------------------------------------------------------------------------------------------------------------
Payroll 6510 $ 33,596
--------------------------------------------------------------------------------------------------
Supplies 6515 $ 10,748
--------------------------------------------------------------------------------------------------
Contracts 6520 $ 13,316
--------------------------------------------------------------------------------------------------
Operating and Maintenance Rent Free Unit 6521 $
--------------------------------------------------------------------------------------------------
Garbage and Trash Removal 6525 $ 1,650
OPERATING --------------------------------------------------------------------------------------------------
MAINTENANCE Security Payroll/Contract 6530 $
EXPENSES --------------------------------------------------------------------------------------------------
6500 Security Rent Free Unit 6531 $
--------------------------------------------------------------------------------------------------
Heating/Cooling Repairs and Maintenance 6546 $ 3,640
--------------------------------------------------------------------------------------------------
Snow Removal 6548 $
--------------------------------------------------------------------------------------------------
Vehicle and Maintenance Equipment Operation and Repairs 6570 $
--------------------------------------------------------------------------------------------------
Miscellaneous Operating and Maintenance Expenses 6590 $ 2,471
--------------------------------------------------------------------------------------------------
TOTAL OPERATING AND MAINTENANCE EXPENSES 6500T $ 65,421
- ---------------------------------------------------------------------------------------------------------------------
Real Estate Taxes 6710 $ 36,535
--------------------------------------------------------------------------------------------------
Payroll Taxes (Project's Share) 6711 $ 3,972
--------------------------------------------------------------------------------------------------
Property and Liability Insurance (Hazard) 6720 $ 4,271
TAXES --------------------------------------------------------------------------------------------------
AND Fidelity Bond Insurance 6721 $
INSURANCE --------------------------------------------------------------------------------------------------
6700 Workmen's Compensation 6722 $ 1,529
--------------------------------------------------------------------------------------------------
Health Insurance and Other Employee Benefits 6723 $ 4,050
--------------------------------------------------------------------------------------------------
Miscellaneous Taxes, Licenses, Permits and Insurance 6790 $ 1,332
--------------------------------------------------------------------------------------------------
TOTAL TAXES AND INSURANCE 6700T $ 51,689
- ---------------------------------------------------------------------------------------------------------------------
Interest on Mortgage Payable 6820 $142,975
--------------------------------------------------------------------------------------------------
Interest on Notes Payable (LongTerm) 6830 $ 7,140
FINANCIAL --------------------------------------------------------------------------------------------------
EXPENSES Interest on Notes Payable (ShortTerm) 6840 $
6800 --------------------------------------------------------------------------------------------------
Mortgage Insurance Premium/Service Charge 6850 $ 7,186
--------------------------------------------------------------------------------------------------
Miscellaneous Financial Expenses 6890 $
--------------------------------------------------------------------------------------------------
TOTAL FINANCIAL EXPENSES 6800T $ 157,301
- ---------------------------------------------------------------------------------------------------------------------
6900 Nursing Homes/ Assisted Living/ Board and Care/
Other Elderly Care Expenses 6900 $
- ---------------------------------------------------------------------------------------------------------------------
TOTAL COST OF OPERATIONS BEFORE
DEPRECIATION AND AMORTIZATION 6000T $ 351,317
--------------------------------------------------------------------------------------------------
PROFIT (LOSS) BEFORE DEPRECIATION AND AMORTIZATION 5060T $ 18,827
--------------------------------------------------------------------------------------------------
Depreciation Expense 6600 $135,879
--------------------------------------------------------------------------------------------------
Amortization Expense 6610 $ 6,580
--------------------------------------------------------------------------------------------------
TOTAL DEPRECIATION AND AMORTIZATION $ 142,459
--------------------------------------------------------------------------------------------------
OPERATING PROFIT OR (LOSS) 5060N $(123,632)
- ---------------------------------------------------------------------------------------------------------------------
Officer's Salaries 7110 $
--------------------------------------------------------------------------------------------------
Legal Expenses 7120 $
--------------------------------------------------------------------------------------------------
Federal, State, and Other Income Taxes 7130 $
--------------------------------------------------------------------------------------------------
CORPORATE OR Interest Income 7140 $
MORTGAGOR --------------------------------------------------------------------------------------------------
ENTITY Interest on Notes Payable 7141 $
EXPENSES --------------------------------------------------------------------------------------------------
7100 Interest on Mortgage Payable 7142 $
--------------------------------------------------------------------------------------------------
Other Expenses - Asset and supervisory management fee 7190 $ 19,800
--------------------------------------------------------------------------------------------------
NET ENTITY EXPENSES 7100T $ 19,800
--------------------------------------------------------------------------------------------------
PROFIT OR LOSS (NET INCOME OR LOSS) 3250 $(143,432)
- ---------------------------------------------------------------------------------------------------------------------
MISCELLANEOUS OR OTHER INCOME AND EXPENSE SUB-ACCOUNT GROUPS. If miscellaneous or other income and/or expense
sub-accounts (5190, 5290, 5490, 5990, 6390, 6590, 6790, 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 mortgage principal payments required during the audit year (12 monthly payments).
This applies to all direct loans and HUD-held and fully insured mortgages.
Any HUD approved second mortgages should be included in the figures.
(Account S1000-010) $ 7,016
- ---------------------------------------------------------------------------------------------------------------------
2. Total of 12 monthly deposits in the audit year into the Replacement Reserve account,
as required by the Regulatory Agreement even if payments may be temporarily
suspended or reduced. (Account S1000-020) $ 5,910
- ---------------------------------------------------------------------------------------------------------------------
3. Replacement Reserves or Residual Receipts and Releases which are included as expense
items on this Profit and Loss Statement. (Account S1000-030) $
- ---------------------------------------------------------------------------------------------------------------------
4. Project Improvement Reserve Releases under the Flexible Subsidy Program that
are included as expense items on this Profit and Loss Statement. (Account S1000-040) $
- ---------------------------------------------------------------------------------------------------------------------
Page 2 of 2
- ---------------------------------------------------------------------------------------------------------------------
See the accompanying report letter and notes to financial statements. Page 5
57
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
HUD PROJECT NO. 052-35464
- ------------------------------------------------------------------------------
STATEMENT OF PARTNERS' EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1998
S1100-010 BEGINNING OF YEAR $ 256,197
3250 NET INCOME/LOSS (143,432)
------------
3130 END OF YEAR $ 112,765
============
- ------------------------------------------------------------------------------
See the accompanying report letter and notes to financial statements. Page 6
58
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
HUD PROJECT NO. 052-35464
- ------------------------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS
PAGE 1 OF 2
FOR THE YEAR ENDED DECEMBER 31, 1998
ACCOUNT AMOUNT
-------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts:
S1200-010 Rental receipts $ 369,257
S1200-020 Interest receipts 1,391
S1200-030 Other operating receipts 266
----------
S1200-040 Total Receipts 370,914
----------
Disbursements:
S1200-050 Administrative (43,626)
S1200-070 Management fee (20,229)
S1200-090 Utilities (10,675)
S1200-100 Salaries and wages (32,939)
S1200-110 Operating and maintenance (31,825)
S1200-120 Real estate taxes (36,444)
S1200-140 Property insurance (11,796)
S1200-150 Miscellaneous taxes and insurance (3,972)
S1200-160 Tenant security deposits 273
S1200-180 Interest on mortgages (150,579)
S1200-210 Mortgage insurance premium (MIP) (7,186)
----------
S1200-230 Total Disbursements (348,998)
----------
S1200-240 NET CASH PROVIDED BY OPERATING ACTIVITIES 21,916
----------
CASH FLOWS FROM INVESTING ACTIVITIES
S1200-245 Net withdrawal from the mortgage escrow account 921
S1200-250 Net deposits to the reserve for replacement account (6,590)
----------
S1200-350 NET CASH USED IN INVESTING ACTIVITIES (5,669)
----------
CASH FLOWS FROM FINANCING ACTIVITIES
S1200-360 Mortgage principal payments (8,372)
S1200-455 Entity/Construction financing activities:
S1200-456 Management fees paid S1200-457 (3,000)
----------
S1200-460 NET CASH USED IN FINANCING ACTIVITIES (11,372)
----------
S1200-470 NET INCREASE IN CASH 4,875
S1200-480 BEGINNING OF PERIOD CASH 16,154
----------
S1200T END OF PERIOD CASH $ 21,029
==========
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See the accompanying report letter and notes to financial statements. Page 7
59
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
HUD PROJECT NO. 052-35464
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STATEMENT OF CASH FLOWS
PAGE 2 OF 2
FOR THE YEAR ENDED DECEMBER 31, 1998
ACCOUNT AMOUNT
-------------------------
RECONCILIATION OF NET LOSS TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
3250 Net loss $(143,432)
Adjustments to reconcile net loss to net cash
provided by operating activities:
6600 Depreciation 135,879
6610 Amortization 6,580
Change in assets and liabilities:
S1200-490 Increase in tenant accounts receivable (264)
S1200-500 Decrease in accounts receivable - other 2,098
S1200-520 Increase in prepaid expenses (523)
S1200-530 Decrease in cash restricted for tenant security deposits 202
S1200-540 Increase in accounts payable 2,376
S1200-560 Increase in accrued liabilities 193
S1200-580 Increase in tenant security deposits held in trust 71
S1200-590 Decrease in prepaid revenue (1,064)
S1200-605 Increase in entity/construction liability accounts
S1200-606 Management fee expense S1200-607 19,800
----------
S1200-610 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 21,916
==========
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See the accompanying report letter and notes to financial statements. Page 8
60
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
HUD PROJECT NO. 052-35464
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NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(S3100-010)
The Partnership is organized as a limited partnership formed under the
laws of the State of Maryland on May 16, 1988 to acquire an interest
in .723 acres of land in Baltimore City, Maryland, and to construct
and operate thereon an apartment complex of 50 units under Section
221(d)(3) of the National Housing Act. Such projects are regulated by
the U.S. Department of Housing and Urban Development (HUD) as to rent
charges and operating methods. The regulatory agreements limit annual
distributions of net operating receipts to "surplus cash" available at
the end of each year. There was no "surplus cash" as of December 31,
1998.
The following significant accounting policies have been followed in
the preparation of the financial statements:
Management uses estimates and assumptions in preparing financial
statements. 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.
The Partnership provides an allowance for doubtful accounts equal
to the estimated collection losses that will be incurred in
collection of all receivables. The estimated losses are based on
a review of the current status of the existing receivables.
No allowance for doubtful accounts was provided for at December 31,
1998 as none was deemed necessary by management.
Depreciation is provided using primarily the straight-line method
over the estimated useful lives of the assets ranging from seven
to twenty-seven years.
The replacement reserve can only be used for improvements to
buildings upon prior approval of HUD.
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See the accompanying report letter. Page 9
61
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
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Notes To Financial Statements (Continued)
Deferred loan costs consist of fees for obtaining the HUD insured
mortgage loan and are being amortized using the straight-line
method over the life of the mortgage loan.
The low income credit application fee and the low income credit
compliance fee are being amortized over 15 years, the term of the
credit compliance period.
Income or loss of the Partnership is allocated 2% to the general
partners and 98% to the limited partners. 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 partners on their
respective income tax returns.
2. MORTGAGES PAYABLE (S3100-050)
Permanent financing of the project has been provided by three mortgages.
The related notes are nonrecourse and are secured by the Partnership's
real estate.
The first mortgage is insured by the Federal Housing Administration
(FHA) and collateralized by a deed of trust on the rental property.
The mortgage bears interest at a rate of 10% and is payable in monthly
installments of $12,545 (including principal and interest) through
July 2029.
Under agreements with the mortgage lender and FHA, 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, operating expenditures and
distributions to partners.
The liability of the Partnership under the mortgage note is limited
to the underlying value of the real estate collateral plus other amounts
deposited with the lender.
SUBORDINATED MORTGAGE PAYABLE
The second mortgage, a variable interest loan through Community
Development Administration (CDA) of Maryland, is serviced by Bogman,
Inc. The note matures on July 1, 2029 and is payable as follows:
1. Beginning August 1, 1990, fifteen annual payments of $8,500 are
due, which includes interest at 1% annum.
2. Beginning August 1, 2005, annual payments are due including interest
at 10%, in an amount sufficient to amortize the principal balance
over the remaining term of the loan.
SUBORDINATED PURCHASE MONEY MORTGAGE PAYABLE
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See the accompanying report letter. Page 10
62
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
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Notes To Financial Statements (Continued)
This mortgage is with the Mayor and City Council of Baltimore and is
non-interest bearing. The full balance is due on September 1, 2029.
The scheduled maturities of the mortgages payable at December 31, 1998
are as follows: (S3100-x1x)
YEAR ACCOUNT AMOUNT
--------------------------------------------------------------
1999 S3100-060 $ 9,945
2000 S3100-070 10,855
2001 S3100-080 11,860
2002 S3100-090 12,960
2003 S3100-100 14,000
Thereafter S3100-110 2,124,963
--------------------------------------------------------------
$2,184,583
==============================================================
3. COMMITMENTS (S3100-X3X) (S3100-240)
The Partnership has entered into regulatory agreements with HUD which
regulate, among other things, the rents which may be charged for
apartment units in the project, prohibit the sale of the project without
HUD consent, limit the annual distribution of cash flow to the partners
and otherwise regulate the relationship between the Partnership and HUD.
The Department of Housing and Urban Development, under the U.S. Housing
Act of 1937, 42 U.S.C. 1437, and Department of Housing and Urban
Development Act, 42 U.S.C. 3531, has contracted with the Partnership
to make housing assistance payments to the Partnership on behalf of
qualified tenants. The current agreement, dated January 31, 1998, is
for a term of 12 months and covers all 50 units at the Project.
The current agreement expires December 31, 1999. During 1998, the
Partnership received $325,475 in tenant assistance payments under
the agreement.
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See the accompanying report letter. Page 11
63
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
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Notes To Financial Statements (Continued)
4. RELATED PARTY TRANSACTIONS (S3100-200)
ASSET AND SUPERVISORY MANAGEMENT FEE (S3100-200)
The Project has a management agreement with Century Pacific Realty
Corporation (CPRC), the supervising general partner, which requires
a fee of $19,800 annually. The first portion of the fee ($3,000) is
to be paid out of operations. The second portion ($5,000) is to be
paid out of surplus cash (as defined by HUD). The remaining balance
and any unpaid portions of the above may be paid out of capital
transactions. As of December 31, 1998, $169,954 of this fee remains
unpaid.
INCENTIVE MANAGEMENT FEE (S3100-200)
The Project has an incentive management agreement with the managing
general partner. The fee is to be equal to 60% of surplus cash (as
defined by HUD) net of the second portion ($5,000) of the asset and
supervisory management fee. There were no fees charged nor payments
made related to this fee in 1998.
S3100-210 Century Pacific Realty Corporation
S3100-220 $3,000
S3100-210 Mt. Washington Management Group, Inc.
S3100-220 $20,229
MANAGEMENT FEE (S3100-230)
Mt. Washington Management Group, Inc., an affiliate of the general
partners, is the exclusive agent for the management of the property.
The current management agreement provides for a management fee equal
to 6% of gross collections. Total management and bookkeeping fees
incurred during 1998 were $20,229 and $6,600, respectively.
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See the accompanying report letter. Page 12
64
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
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Notes To Financial Statements (Continued)
5. LOW-INCOME HOUSING TAX CREDITS (S3100-240)
The Partnership expects to generate an aggregate of $2,545,410 of
low-income housing tax credits. Generally, such credits are expected
to become available for use by its partners pro rata over a ten-year
period beginning in 1989. In order to qualify for these credits, the
Property must comply with various federal and state requirements. These
requirements, include, but are not limited to, renting to low-income
tenants at rental rates, which do not exceed specified percentages of
area median gross income for the first 15 years of operation.
6. GOING CONCERN (S3100-240)
The accompanying financial statements have been prepared in conformity
with generally accepted accounting principles, which contemplates
continuation of the Partnership as a going concern. However, the
Partnership's Housing Assistance Payments (HAP) contract with HUD is
due to expire in December, 1999 (See Note 3). No extension to the
contract has been granted as of January 26, 1999. Management plans to
begin negotiations with HUD during 1999 with the intention of obtaining
an additional term for the HAP contract. In view of these matters,
realization of a major portion of the assets in the accompanying balance
sheet is dependent upon continued operations of the Partnership, which
in turn is dependent upon the Partnership's ability to renegotiate a new
HAP contract with HUD. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.
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See the accompanying report letter. Page 13