COVE APARTMENTS, LC.
(HUD Protect Number 114-11122-REF)
Financial Statements and Supplemental Supporting Data
For the Year Ended December 31, 1996
COVE APARTMENTS, LC.
(HUD Project Number 114-11122-REF)
Form Year Ended December 31, 1996
Page
Independent Auditors' Report 1
Financial Statements:
Balance Sheet 2 - 3
Statement of Profit and Loss 4 - 5
Statement of Changes in Members' Equity 6
Statement of Cash Flows 7
Notes to Financial Statements 8 - 10
Supplemental Supporting Data Required by HUD 11 - 21
Hidalgo, Banfill, Zlotnik & Kermali, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
(Originally Founded in 1949)
INDEPENDENT AUDITORS REPORT
The Members
Cove Apartments, L.C.
We have audited the accompanying balance sheet of Cove Apartments, L.C. (a Texas
Limited Liability Company), U.S. Department of Housing and Urban Development
("HUD") Project Number 114-1112-REF, as of December 31, 1996 and the related
statements of profit and loss, changes in members' equity and cash flows for the
year ended December 31, 1996. These financial statements are the responsibility
of the company'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 statements
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 a
material respects, the financial position of Cove Apartments, L.C. (the Company)
as of December 31, 1996 and the results of its operations, changes in members'
equity and cash flows for the year then ended in conformity with generally
accepted accounting principles.
In accordance with Government Auditing Standards and the Consolidated Audit
Guide for Audits of HUD Programs issued by the U.S. Department of Housing and
Urban Development, we have also issued a report dated February 7, 1997, on its
compliance and specific requirements applicable to major HUD programs and
specific requirements applicable to Affirmative Fair Housing.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplementary
information shown on pages 11-21 are presented for purposes of additional
analysis and is not a required part of the basic financial statements of the
Company. Such information has been subjected to the auditing procedures applied
in the audit of the basic financial statements and, in our opinion, is fairly
stated in all material in relation to the basic financial statements taken as a
whole.
/s/ Hidalgo, Banfill, Zlotnik & Kermali, P.C.
-------------------------------------------
Certified Public Accounts
February 7, 1997
355 TIMMONS LAND, SUITE 460 - HOUSTON, TEXAS 77027 - (713) 963-8008
COVE APARTMENTS, L.C.
(HUD Project Number 114-11122-REF)
BALANCE SHEET
DECEMBER 31, 1996
ASSETS
CURRENT ASSETS:
1110 Petty Cash $ 300
1120 TCB depository account 167,752
1130 Tenant accounts receivable 109
1140 Accounts receivable -other --
1900 Deposits 200
1240 Prepaid insurance 36,408
1250 Mortgage insurance $ 30,442
-----------
Total current assets $ 235,211
-----------
Deposits Held in Trust - Funded:
1191 Tenant security deposits: 53,529
-----------
Restricted Deposits and Funded Reserves:
1310 Mortgage escrow deposits:
MIP escrow --
FHA repair escrow --
Property tax escrow 202,581
Insurance escrow 11,545
1320 Reserve for replacements - Note 2 117,835
-----------
Total restricted deposits and funded reserves 331,961
-----------
Fixed Assets:
1410 Land 1,354,280
1420 Buildings 5,175,669
1450 Furniture and equipment 352,410
6,882,359
-----------
Less accumulated depreciation (563,373)
-----------
Total fixed assets 6,318,986
-----------
Other Assets:
1800 Financing and organization costs net of
accumulated amortization of $33,167 341.726
-----------
Total Assets $ 7,281,413
===========
See accompanying notes to financial statements.
2
COVE APARTMENTS LC.
(HUD Project Number 114-11122-REF)
BALANCE SHEET
DECEMBER 31, 1996
LIABILITIES AND MEMBERS' EQUITY
Current Liabilities:
2110 Accounts payable $ 59,766
2120 Accrued wages and payroll taxes payable 3,829
2130 Mortgage interest payable 42,402
2150 Accrued property taxes 228,482
2210 Prepaid rents 5,107
2320 Current portion of mortgage loan payable - Note 2 50.395
----------
Total current liabilities 389,981
Deposits Liabilities:
2191 Tenant security deposits: 43,154
Long-Term Liabilities:
2310 Mortgage loan payable, net of current portion - Note 2 6,622,718
----------
Total Liabilities 7,055,853
----------
Members' Equity 225.560
----------
Total Liabilities and Members' Equity $7,281,413
==========
See accompanying notes to financial statements.
3
Statement or U.S. Department of Housing
Profit and Loss and Urban Development
Office of Housing 0MB Approval No.
Federal Housing Commissioner 2502-0052 (Exp. 1/31/95)
- - --------------------------------------------------------------------------------
Public Reporting Burden for this collection of information is estimated to
average 1.0 hours per response, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and
completing and reviewing the collection of information. Send comments regarding
this burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to the Reports Management
Officer, Office of Information Policies and Systems, U.S. Department of Housing
and Urban Development, Washington, D.C. 20410-3600 and to the Office of
Management and Budget, Paperwork Reduction Project (2502-0052), Washington, D.C.
20503. Do not send this completed form to either of these addresses.
- - --------------------------------------------------------------------------------
- - ------------------------------------------------------------------------------------------------------------------------------------
For Monthly Period
Beginning: Ending: Project Number: Project Name;
01/01/96 12/31/96 114-11122-REF COVE APARTMENTS, L.C.
- - ------------------------------------------------------------------------------------------------------------------------------------
Part I Description of Account Acct. No. Amount
- - ------------------------------------------------------------------------------------------------------------------------------------
Apartments or Member Carrying Charges (Coops) 5120 $ 1,944,500
Rental Tenant Assistance Payments 5121 $
Income Furniture and Equipment 5140 $
5100 Garage and Parking Spaces 5170 $
Flexible Subsidy Income 5160 $
Miscellaneous (specify) 5190 $
Total Rent Revenue Potential at 100% Occupancy $ l ,944,500
- - ------------------------------------------------------------------------------------------------------------------------------------
Apartments 5220 (319,453)
Furniture and Equipment 5230 $
Vacancies Stores and Commercial 5240 $
5200 Garage and Parking Spaces 5270 $
Miscellaneous (Specify) 5290 $
Total Vacancies (319,453)
Net Rental Revenue Rent Revenue Less Vacancies $ 1,625,047
Elder and Congregate Services Income_5300 $
Total Service Income (Schedule Attached) 5300
- - ------------------------------------------------------------------------------------------------------------------------------------
Interest Income-Project Operations 5410 $ 1,334
Financial Income from Investments-Residual Receipts 5430 $
Revenue Income from Investments-Reserve for Replacement 5440 $ 7,302
5400 Income from Investments-Miscellaneous 5490 $
Total Financial Revenue $ 8,636
- - ------------------------------------------------------------------------------------------------------------------------------------
Laundry and Vending 5910 34,280
NSF and Late Charges 5920 $ 2,849
Other Damages and Cleaning Fees 5930 $ 8,635
Revenue Forfeited Tenant Security Deposits 5940 $ 12,749
5900 Other Revenue (specify) 5990 $ 4,550
Total Other Revenue $ 63,063
Total Revenue $ l ,696,746
- - ------------------------------------------------------------------------------------------------------------------------------------
Advertising 6210 $ 58,318
Other Administrative Expense 6250 $ 6,780
Office Salaries 6310 $ 87,992
Office Supplies 6311 $ 3,940
Office or Model Apartment Rent 6312 $ 6,240
Administrative Management 6320 $ 67,475
Expenses Manager or Superintendent Salaries 6330 $
6200/6300 Manager or Superintendent Rent Free Unit 6331 $
Legal Expenses (Project) 6340 $ 525
Auditing Expenses (Project) 6350 $ 5,000
Bookkeeping Fees/Accounting Services 6351 $ 1,900
Telephone and Answering Service 6360 $ 6,582
Bad Debts 6370 $
Miscellaneous Administrative Expenses (specify) 6390 $ 5,034
Total Administrative Expenses $ 249,786
- - ------------------------------------------------------------------------------------------------------------------------------------
Utilities Fuel Oil/Coal 6420 $
Expense Electricity (Light and Misc. Power) 6450 $ 30,276
6400 Water 6451 $ 22,176
Gas 6452 $ 28,692
Sewer 6453 $
Total Utilities Expenses $ 81,144
- - ------------------------------------------------------------------------------------------------------------------------------------
* All amounts must be rounded to the nearest dollar; form HUD-92410 (7/91)
$.50 and over, round up - $.49 and below, round down. ref Handbook 4370.2
Page 1 of 2
4
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For Monthly Period
Beginning: Ending: Project Number: Project Name;
01/01/96 12/31/96 114-11122-REF COVE APARTMENTS, L.C.
- - ------------------------------------------------------------------------------------------------------------------------------------
Part I Description of Account Acct. No. Amount
- - ------------------------------------------------------------------------------------------------------------------------------------
Janitor and Cleaning Payroll 6510 $
Janitor and Cleaning Supplies 6515 $ 1,155
Janitor and Cleaning Contract 6517 $
Exterminating Payroll/Contract 6519 $ 4,621
Exterminating Supplies 6520 $
Garbage and Trash Removal 6525 $ 11,750
Security Payroll/Contract 6530 $ 10,272
Grounds Payroll 6535 $
Operating and Grounds Supplies 6536 $
Maintenance Grounds Contract 6537 $ 28,957
Expenses Repairs Payroll 6540 $ 86,366
6500 Repairs Material 6541 $ 49,259
Repairs Contract 6542 $
Elevator Maintenance/Contract 6545 $ 31,572
Heating/Cooling Repairs and Maintenance 6546 $ 8,772
Swimming Pool Maintenance/Contract 6547 2,442
Snow Removal 6548 $
Decorating Payroll/Contract 6560 $
Decorating Supplies 6561 $
Other 6570 $
Miscellaneous Operating and Maintenance Expenses 6590 $ 37
Total Operating and Maintenance Expenses $ 235,203
- - ------------------------------------------------------------------------------------------------------------------------------------
Real Estate Taxes 6710 $ 232,231
Payroll Taxes (FICA) 6711 $ 16,981
Miscellaneous Taxes, Licenses and Permits 6719 $
Taxes Property and Liability Insurance (Hazard) 6720 $ 45,164
and Fidelity Bond Insurance 6721 $
Insurance Workmen's Compensation 6722 $ 15,747
6700 Health Insurance and Other Employee Benefits 6723 $ 14,109
Other Insurance (specify) 6729 $
Total Taxes and Insurance $ 324,232
- - ------------------------------------------------------------------------------------------------------------------------------------
Interest on Bonds Payable 6810 $
Financial Interest on Mortgage Payable 6820 $ 510,480
Expenses Interest on Notes Payable (Long-Term) 6830 $
6800 Interest on Notes Payable (Short Term) 6840 $
Mortgage Insurance Premium/Service Charge 6850 $ 33,454
Miscellaneous Financial Expenses 6890 $
Total Financial Expenses $ 543,934
- - ------------------------------------------------------------------------------------------------------------------------------------
Elderly Total Service Expenses_Schedule Attached 6900 $
Congregate Total Cost of Operations Before Depreciation $ 1,434,299
Service Profit (Loss) Before Depreciation $ 262,447
Expenses Depreciation (Total)_6600 (specify) 6600 $ 206.132
6900 Operating Profit or (Loss) $ 56,315
- - ------------------------------------------------------------------------------------------------------------------------------------
Corporate Officer Salaries 7110 $
Mortgagor Legal Expenses (Entity) 7120 $
Entity Taxes (Federal-State-Entity) 7130-32 $
Expenses Other Expenses (Entity) 7190 $
7100 Total Corporate Expenses $
Net Profit or (Loss) $ 56,315
- - ------------------------------------------------------------------------------------------------------------------------------------
Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001,
1010, 1012; 31 U.S.C. 3729, 3802)
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, 6729, 6890, and 7190) exceed the Account Groupings by 10% or more, attach a separate schedule
describing or explaining the miscellaneous income or expense.
- - ------------------------------------------------------------------------------------------------------------------------------------
Part II
- - ------------------------------------------------------------------------------------------------------------------------------------
1. Total principal payments required under the mortgage, even if payments under a Workout
Agreement are less or more than those required under the mortgage $ 46,707
- - ------------------------------------------------------------------------------------------------------------------------------------
2. Replacenent Reserve deposits required by the Regulatory Agreement or Amendments thereto,
even if payments may be temporarily suspended or waived. $ 37,528
- - ------------------------------------------------------------------------------------------------------------------------------------
3. Replacement or Painting Reserve release which are included as expense items
on this Profit and Loss statement. $ -0-
- - ------------------------------------------------------------------------------------------------------------------------------------
4. Project Improvement Reserve Releases under the Flexible Subsidy Program that
are included as expense items on this Profit and Loss Statement. $ -0-
- - ------------------------------------------------------------------------------------------------------------------------------------
form HUD-92410 (7/91)
ref Handbook 4370.2
Page 2 of 2
5
COVE APARTMENTS, LC.
(HUD Project Number 114-11122-REF)
STATEMENT OF CHANGES IN MEMBERS EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1996
Balance, December 31, 1995 $ 317,134
Contributions -
Distributions (147,889)
Net Profit for the Period 56,315
---------
Balance, December 31, 1996 $ 225,560
=========
See accompanying notes to financial statements.
6
COVE APARTMENTS, L.C.
(HUD Project Number 114-11122-REF)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1996
Cash Flows from Operating Activities:
Net Income (Loss) $ 56,315
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation and amortization 206,132
(Increase) decrease in:
Accounts receivable - tenants 333
Mortgage insurance 599
Prepaid insurance (12,908)
Escrow accounts 177,642
Security deposits (1,191)
Accounts receivable - other -
Increase (decrease) in:
Accounts payable and accrued liabilites 52,242
Accrued interest payable (297)
Accrued taxes payable 7,484
Deposit liabilities (3,490)
Prepaid rents (2.785)
---------
480,076
---------
Cash Flows from Investing Activities:
Property improvements (234,714)
---------
Cash Flows from Financing Activities:
Mortgage principal payments (46,707)
Distributions (147,889)
---------
(194,596)
=========
Increase in Cash 50,766
Cash, Beginning of Year 117,286
---------
Cash, End of Year $ 168,052
=========
Supplemental Disclosures of Cash Flow Information:
Interest Paid During the Year $ 510,480
=========
See accompanying notes to financial statements
7
COVE APARTMENTS, LC.
(HUD Project Number 114-11122-REF)
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1996
Note 1 Organization and Summary of Significant Accounting Policies
Organization
Cove Apartments, L.C. (the "Company") was organized as a Limited
Liability Company on June 25, 1992, under the laws of the State of
Texas, for the purpose of acquiring and operating a housing project or
projects with the assistance of mortgage insurance under the National
Housing Act, Section 223F. Such projects are regulated by the
Department of Housing and Urban Development ("HUD"). The Regulatory
Agreement limits distributions of net operating income to "surplus
cash" available for distribution at the end of a semiannual or annual
fiscal period. The Limited Liability Company will terminate June 24,
2032, according to the terms of the Articles of Organization.
On December 16, 1993, the Members of Cove Apartments, L.C. contributed
a 308 unit multifamily project located at 2000 Bay Area Blvd. in
Houston, Texas known as the Cove Apartments (the "Project') and certain
other assets to the Company. Concurrently, the Company obtained a
mortgage loan in the amount of $6,800,000, collateralized by the
Project and other assets. The Project was recorded by the Company at
the members' net carrying basis of $6,127,303 which represents cost
less accumulated depreciation. The proceeds of the mortgage loan were
used to repay the members' existing debt on the Project, fund escrow
balances and pay closing costs all of which were funded at closing and
did not flow through the cash accounts of the Company. The aggregate
amount of the assets contributed, including the Project and other
assets and escrow balances, in excess of the mortgage loan totaled
$378,206 and was recorded as a capital contribution.
Revenue Recognition
The Company recognizes real estate rental revenue in accordance with
the terms of the respective leases.
Property, Furniture and Equipment
Property, furniture and equipment are carried at cost and are
depreciated using the straight line method over the estimated useful
lives of 5 to 10 years for furniture and equipment and 20 to 40 years
for building and building improvements.
8
COVE APARTMENTS, L.C.
(HUD Project Number 114-11122-REF)
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31,1996
Note 1 Organization and Summary of Significant Accounting Policies
(Continued)
Financing Costs
Financing costs consist principally of fees incurred in conjunction
with obtaining the permanent mortgage loan and are being amortized
over the 35 year term of the mortgage loan using the straight-line
method.
Income Taxes
No provision for Federal income taxes is made in the accounts of the
Company since taxes on its operations are the obligations of
individual members.
Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and 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.
Note 2 Mortgage Loan Payable
The mortgage loan payable to TRI Capital Corporation bears interest at
7.625% and is due in monthly installments of $46,457, including
interest, through January 1, 2029. The Company's property and
equipment and the various funded reserves collateralize the mortgage
loan.
Annual principal payments for years subsequent to December 31, 1996
are as follows:
Years Ending December 31. Amount
------------------------- ------------
1997 $ 50,395
1998 54,375
1999 58,669
2000 63,302
2001 68,301
Thereafter 6,378,071
------------
$ 6.673.113
============
Note 3 Real Estate Leases
At December 31, 1996 approximately 80% of the Projects 308 units were
committed under either month-to-month leases or noncancelable
operating leases with terms varying from-six to twelve months. Future
minimum real estate rental income under the noncancelable operating
leases existing at December 31, 1996, expected during the year ending
December 31, 1997 is approximately $477,933.
9
COVE APARTMENTS,LC.
(HUD Project Number 114-11122-REF)
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1996
Note 4 Related Party Transactions
Operations of the Prided are managed by Bradley Apartment Homes
("BAH"), which is affiliated with the members of the Cove Apartments,
L.C. Management fees paid to BAH are based on four percent of rents
collected. Such fees aggregated $67,475 for the year ended December
31, 1996.
Consulting services related to contracting for repair/replacement
expenditures on the project were provided during the year by Allied
Construction Services, which is also affiliated with the members of
Cove Apartments, L.C. Consulting fees paid to Allied Construction
during the year ended December 31, 1996 aggregated $15,441 and were
calculated on a percentage of the repair/replacement cost basis.
Note 5 Concentration of Credit Risk
The Company maintains unrestricted cash balances at a bank. Cash
accounts at the bank are insured by the FDIC for up to $100,000.
Amounts in excess of the insured limits were $ 67,752 at December 31,
1996.
10
SUPPLEMENTAL SUPPORTING DATA REQUIRED BY HUD
COVE APARTMENTS, LC.
(HUD Protect Number 114-11122-REF)
Supplemental Supporting Data Required by HUD
December 31, 1996
Accounts Receivable (other than from regular [tenants):
None
Delinquent Tenant Accounts Receivable:
1996
-----------------------------
Number of Amount
Tenants Past Due
-------- --------
Delinquent 30 days 1 $ 107
Delinquent 31 to 60 days 0 0
Delinquent 61 to 90 days 0 0
Delinquent over 90 days 0 0
-------- --------
1 $ 107
-------- --------
Mortgage Escrow Deposits:
Estimated amount required as of December 31, 1996 for future payment of:
1996
--------------
Property insurance, 8 months $ 20,794
Mortgage insurance, 11 months 33,209
Real estate taxes, 12 months 228.482
------------
Total 282,485
Amount confirmed by mortgagee 244.567
------------
Amount on deposit in excess (deficient)
of estimated requirements (37,918)
Check in transit at December 31,1996 23,304
------------
Deficiency $ (14,614)
============
An additional escrow check of $15,000 was paid on January 27,1997 to offset the
deficiency.
11
COVE APARTMENTS, L.C.
(HUD Project Number 11-11122-REF)
Supplemental Supporting Data Required by HUD
For the Year Ended December 31, 1996
Reserve for Replacements:
In accordance with the provisions of the Regulatory Agreement restricted
cash is held by the TRI Capital Corporation to be used for replacement of
property with the approval of HUD as follows:
Balance, beginning of period $ 278,250
Deposits made during period 44,830
Withdrawals made during period (205,245)
-----------------
Balance, end of period $ 117,835
=================
The following information pertains to withdrawals made from the Reserve for
Replacements during the year.
Interior
Date Decoration Exterior A/C Misc. Total
---- ---------- ------------ ------------- ---------- ------------
February 13, 1996 $ 29,111 $ 18,980 $ 9,714 $ 4,690 $ 62,495
July 9, 1996 9,746 26,579 3,605 - 39,930
October 1, 1996 66,220 - - 66,220
December 10, 1996 _ 36.600 - - 36.600
----------- ------------ ------------ ---------- -----------
$ 38,857 148,379 13,319 4,690 205,245
=========== ============ ============ ========== ===========
Accounts Payable (other than to trade creditors):
None
Compensation of Partners:
None from Project funds
Changes in Fixed Assets:
Furniture
Land Buildings Equipment Total
-------------- --------------- -------------- ---------------
Cost:
December 31, 1995 $ 1,354,280 $ 4,990,383 $ 302,982 $ 6,647,645
Additions - 185,287 49,427 234,714
-------------- --------------- ------------ ---------------
Dispositions
December 31, 1996 $ 1,354,280 $ 5,175,670 $ 352,409 $ 6,882,359
============== =============== ============ ===============
Accumulated Depreciation:
December 31, 1995 $ 288,142 $ 79,815 $ 367,957
Additions 147,631 47,785 195,416
Dispositions _ _ -
--------------- ------------ --------------
December 31, 1996 $ 435,773 $ 127,600 $ 563 373
=============== ============ ==============
12
COVE APARTMENTS, L.C.
(HUD Project Number 114-11122-REF)
Supplemental Supporting Data Required by HUD
For the Year Ended December 31, 1996
Accrued Taxes:
Description of Basis for Period Amount
Tax Accrual Covered Date Due Accrued
-------------- --------- ------------ ----------- --------
Houston ISD Tax January 1, 1996
Statement though January 31, 1997
December 31, 1996 $ 126,157
City of Houston and Tax January 1, 1996
Hams County Statement though January 31,1997
December 31, 1996 102,325
-----------
Total $ 228,482
===========
Tenant Security Deposits:
Tenant security deposits are held in account # 25526-00219 at Bank of America
Texas NA, Houston, Texas. This federally insured account, in the name of the
Project had a balance of $43,154 at December 31,1996, including earned interest
that does not inure to the tenants.
Schedule of Unauthorized Distributions of Project Income:
None
Changes in Ownership Interests:
No ownership changes occurred during the period covered by the financial
statements.
Distributions paid to the members:
Date Declared and Paid Period Covered Amount Declared and Paid
---------------------- -------------- ------------------------
February 1996 2nd half 1995 $ 32,969
July 1996 1st half 1996 $ 114.920
---------
$ 147,889
=========
13
- - --------------------------------------------------------------------------------
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
HOUSING - FEDERAL HOUSING COMMISSIONER
OFFICE Of MULTIFAMILY HOUSING Management AND OCCUPANCY
COMPUTATION OF SURPLUS CASH, DISTRIBUTIONS AND
RESIDUAL RECEIPTS
- - --------------------------------------------------------------------------------
- - ------------------------------------------------------------------------------------------------------------------------------------
PROJECT NAME FISCAL PERIOD ENDED: PROJECT NUMBER
COVE APARTMENTS, L.C. - 06/60/96 114-11122-REF
- - ------------------------------------------------------------------------------------------------------------------------------------
PART A - COMPUTE SURPLUS CASH
- - ------------------------------------------------------------------------------------------------------------------------------------
1. Cash (Accounts 1110, 1120, 1191, 1192) $ 146,121
Cash 2. Tenant subsidy vouchers due for period covered $
by financial statement
3. Other (describe) Approved Hud Replacement
Reserve Draw Not Received $ 39,929
(a) Total Cash (Add Lines 1, 2, and 3) $ 186,050
- - ------------------------------------------------------------------------------------------------------------------------------------
4. Accrued mortgage interest payable $ _
5. Delinquent mortgage principal payments $ _
Current 6. Delinquent deposits to reserve for replacements $ _
Obliga- 7. Accounts payable (due within 30 days) $ _
tions 8. Loans and nonpayable _
(due within 30 days) $ _
9. Deficient Tax Insurance or MIP Escrow Deposits $ _
10.Accrued expenses (not escrowed) $ 13 079
11.Prepaid Rents (Account 2210) $ 8,484
12.Tenant security deposits liability (Account 2191) $ 49,567
13.Other (Describe) $ _
(b) Less Total Current Obligations (Add Lines 4 through 13) $ 71,130
(c) Surplus Cash (Deficiency) (Line (a) minus Line (b)) $ 114,920
- - ------------------------------------------------------------------------------------------------------------------------------------
PART B - COMPUTE DISTRIBUTIONS TO OWNERS AND REQUIRED DEPOSIT TO
TO RESIDUAL RECEIPTS
- - ------------------------------------------------------------------------------------------------------------------------------------
1. Surplus Cash $ 114,920
2a. Annual Distribution Earned During Fiscal Period
Covered by the Statement $
Limited 2b.Distribution Accrued and Unpaid as of the
Dividend End of the Prior Fiscal Period $
Projects 2c.Distributions Paid During Fiscal Period Covered by Statement $
3. Amount to be Carried on Balance Sheet as Distribution
Earned but Unpaid (Line 2a plus 2b minus 2c) $
4. Amount Available for Distribution During Next Fiscal Period $ 114, 920
5. Deposit Due Residual Receipts (Must be deposited with Mortgagee within
60 days after Fiscal Period ends) $
- - ------------------------------------------------------------------------------------------------------------------------------------
PREPARED BY REVIEWED BY
- - ------------------------------------------------------------------------------------------------------------------------------------
LOAN TECHNICIAN LOAN SERVICER
- - ------------------------------------------------------------------------------------------------------------------------------------
DATE DATE
- - ------------------------------------------------------------------------------------------------------------------------------------
{See Reverse for Instructions) HUD-93486 (12-80)
14
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
HOUSING - FEDERAL HOUSING COMMISSIONER
OFFICE Of MULTIFAMILY HOUSING Management AND OCCUPANCY
COMPUTATION OF SURPLUS CASH, DISTRIBUTIONS AND
RESIDUAL RECEIPTS
- - ------------------------------------------------------------------------------------------------------------------------------------
PROJECT NAME FISCAL PERIOD ENDED: PROJECT NUMBER
COVE APARTMENTS, L.C. - 12/31/96 114-11122-REF
- - ------------------------------------------------------------------------------------------------------------------------------------
PART A - COMPUTE SURPLUS CASH
- - ------------------------------------------------------------------------------------------------------------------------------------
Cash
1. Cash (Accounts 1110, 1120, 1191, 1192) $ 221,581
2. Tenant subsidy vouchers due for period covered $
by financial statement
3. Other (describe) $
(a) Total Cash (Add Lines 1, 2, and 3) $ 221,581
4. Accrued mortgage interest payable $ 42,402
5. Delinquent mortgage principal payments $ _
6. Delinquent deposits to reserve for replacements $ 3,127
7. Accounts payable (due within 30 days) $ _
8. Loans and nonpayable
(due within 30 days) $ 4,055
9. Deficient Tax Insurance or MIP Escrow Deposits $ 37,917
10. Accrued expenses (not escrowed) $ 63,595
11. Prepaid Rents (Account 2210) $ 5,107
12. Tenant security deposits liability (Account 2191) $ 43,154
13. Other (Describe) $ _
(b) Less Total Current Obligations (Add Lines 4 through 13) $ 199,357
(c) Surplus Cash (Deficiency) (Line (a) minus Line (b)) $ 22,224
- - ------------------------------------------------------------------------------------------------------------------------------------
PART B COMPUTE DISTRIBUTIONS TO OWNERS AND REQUIRED DEPOSIT TO
RESIDUAL RECEIPTS
- - ------------------------------------------------------------------------------------------------------------------------------------
1. Surplus Cash $ 137,144
2a. Annual Distribution Earned During Fiscal Period
Limited Covered by the Statement $
Dividend 2b. Distribution Accrued and Unpaid as of the
Projects End of the Prior Fiscal Period $
2c. Distributions Paid During Fiscal Period Covered by Statement $ 114,920
3. Amount to be Carried on Balance Sheet as Distribution
Earned but Unpaid (Line 2a plus 2b minus 2c) $ 22,224
4. Amount Available for Distribution During Next Fiscal Period $ 22,224
5. Deposit Due Residual Receipts (Must be deposited with Mortgagee within 60
days after Fiscal Period ends) $
- - ------------------------------------------------------------------------------------------------------------------------------------
PREPARED BY REVIEWED BY
- - ------------------------------------------------------------------------------------------------------------------------------------
LOAN TECHNICIAN LOAN SERVICER
- - ------------------------------------------------------------------------------------------------------------------------------------
DATE DATE
- - ------------------------------------------------------------------------------------------------------------------------------------
(See Reverse for Instructions) UD-93486 (12-80)
15
COVE APARTMENTS, LC.
(HUD Project Number 114-11122-REF)
Supplemental Supporting Data Required by HUD
For the Year Ended December 31, 1996
Statement of Receipts and Disbursements:
Source of Funds:
Revenues:
Rental income, net 1,625,047
Service commissions --
Financial 8,636
Other income 63,063
---------
1,696,746
---------
Expenses:
Administrative 182,311
Management fees 67,475
Utilities 81,144
Operating 23,177
Maintenance 125,660
Maintenance payroll 86,366
Real estate taxes 232,231
Other taxes 16,981
Insurance 59,273
Workmens' compensation 15,747
Mortgage insurance 33,454
Mortgage interest 510.480
---------
1,434,299
---------
Cash provided by operations before principal
payments and changes in assets and liabilities 262,447
Principal payments 46,707
---------
Cash provided by operations before changes
in assets and liabilities 215,740
---------
16
COVE APARTMENTS, L.C.
(HUD Project Number 114-11122-REF)
Supplemental Supporting Data Required by HUD
For the Year Ended December 31, 1996
Statement of Receipts and Disbursements (Continued)
Application of Funds:
(Increase) decease in:
Accounts receivable - tenants $ 333
Accounts receivable - other --
Prepaid insurance (12,908)
Security deposits (1,191)
Escrow accounts 177,642
Mortgage insurance 599
Increase (decrease) in:
Accounts payable and accrued liabilities 52,242
Accrued interest payable (297)
Accrued taxes payable 7,484
Deposit and prepayment liabilities (6,275)
Additions to Property (234,714)
Surplus Cash Distributions (147,889)
---------
(164,974)
---------
Increase (decrease) in cash 50,766
Unrestricted cash, beginning period 117,286
---------
Unrestricted cash, end of period $ 168,052
=========
17
o
COVE APARTMENTS, LC.
(HUD Project Number 114-11122-REF)
Supplemental Supporting Data Required by HUD
For the Year Ended December 31, 1996
Schedule of Funds in Financial Institutions as of December 31,1996:
Funds Held by Mortgagor, Regular Operating Account
Texas Commerce Bank (checking)(1) $ 167,752
Funds Held by Mortgagor in Trust, Tenant Security Deposits:
Bank of America(2) 53,529
Funds Held by Mortgagee, (in Trust):
Reserve for Replacements(3)
Sanwa Bank, (checking) 1.25% $ 38,113
Bank United (checking) 2.50% 29,722
Treasury Bill, 4.6891% 50,000 117,835
-----------
Mortgage Insurance Escrow,(3) Sanwa Bank 30,442
Property Tax Escrow,(3) Sanwa Bank 202,581
Property Insurance Escrow,(3) Sanwa Bank 11,545
-----------
Funds Held by Mortgagee 362,403
-----------
Total Funds in Financial Institutions $ 583,684
===========
1 Balances Confirmed by Texas Commerce Bank
2 Balances Confirmed by Bank of America
3 Balances Confirmed by TRI
18
COVE APARTMENTS, LC.
(HUD Project Number 114-11122-REF)
Supplemental Supporting Data Required by HUD
For the Year Ended December 31, 1996
Listing of Identity of Interest Companies and Activities
Doing Business with Owner/Agent
during the year ended December 31, 1996
Company Name Type of Service Amount Received
--------------------------- --------------------- ---------------
Bradley Apartment Homes Property Management $ 67,475
Allied Construction Service Consulting Services 15,441
20
COVE APARTMENTS, LC.
(HUD Project Number 114-11122-REF)
Supplemental Supporting Data Required by HUD
For the Year Ended December 31, 1996
Certification of Members
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
We hereby certify that we have examined the foregoing financial statement of
Cove Apartments, L.C. Project Number 11-11122-REF, and, to the best of our
knowledge and belief, the same is complete and accurate.
/s/ Tim Myers /s/ Al Bradley, Jr.
- - ------------------------------------- ------------------------
Tim Myers Al Bradley, Jr.
President Vice President
2/18/97 2/18/97
- - ------------------------------------ --------------------------
Date Date
Limited Liability Company
Identification Number 76-0372786
20
COVE APARTMENTS, L.C.
(HUD Protect Number 114-11122-REF)
Supplemental Supporting Data Required by HUD
For the Year Ended December 31, 1996
Management Agent's Certification
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
We hereby certify that we have examined the foregoing financial statement of
Cove Apartments, L.C. Project Number 11-11122-REF, and, to the best of our
knowledge and belief, the same is complete and accurate.
/s/ Linda handley /s/ Al Bradley, Jr.
- - ------------------------------------ ----------------------------
Linda Handley Al Bradley, Jr.
President Chairman
Allied Development Corporation Allied Development Corporation
dba, Bradley Apartment Homes dba, Bradley Apartment Homes
2/20/97 2/18/97
- - ----------------------------------- -----------------------------
Date Date
Allied Development Corporation
Identification Number 76 0156150
21
Hidalgo, Banfill, Zlotnik & Kermali, P.C
CERTIFIED PUBLIC ACCOUNTANTS
(Originally Founded in 1949)
February 7,1997
To the Department of Housing and Urban Development
Attached is the financial report of Cove Apartments, L.C. (HUD Project No.
11-11122-REF) for the year ended December 31, 1996.
/s/ Hidalgo, Banfill, Zlotnik & Kermali, P.C.
- - ----------------------------------------------
Certified Public Accountants
Houston, Texas
Employer Identification No.: 74-1716599
Engagement Partner: Mr. Naushad Kermali
3555 Timmons Lane, #460
Houston, TX 77027
(713) 963-8008
3555 TIMMONS LANE, SUITE 460 - HOUSTON TEXAS 77027 - (713) 963~8008
Hidalgo, Banfill, Zlotnik & Kermali, P.C
CERTIFIED PUBLIC ACCOUNTANTS
(Originally Founded in 1949)
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC
REQUIREMENTS APPLICABLE TO AFFIRMATIVE FAIR HOUSING
The Members Cove Apartments, LC.
We have audited the financial statements of U.S. Department of Housing and Urban
Development ("HUD") Project No. 114-11122-REF, Cove Apartments, L.C. (the
Company) for the year ended December 31, 1996 and have issued our report thereon
dated February 7, 1997.
We have applied procedures to test the Company's compliance with the Affirmative
Fair Housing requirements applicable to its HUD assisted programs for the year
ended December 31, 1996.
Our procedures were limited to the applicable compliance requirement described
in the Consolidated Audit Guide for Audits of HUD Programs issued by the U.S.
Department of Housing and Urban Development, Office of Inspector General in July
1993. Our procedures were substantially less in scope than an audit the
objective of which would be the expression of an opinion on the Company's
compliance with the Affirmative Fair Housing requirements. Accordingly, we do
not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are
required to be reported herein under the Guide.
This report is intended for the information of management and the U.S.
Department of Housing and Urban Development. However, this report is a matter of
public record and its distribution is not limited.
/S/Hidalgo, Banfill, Zlotnik & Kermali, P.C.
--------------------------------------------
HIDALGO, BANFILL, BEATNIK & KERMALI, P.C.
February 7, 1997
3555 TIMMONS LANE, SUITE ~ HOUSTON TEXAS 77027 - (713) 963-8008
Hidalgo, Banfill, Zlotnik & Kermali, P.C
CERTIFIED PUBLIC ACCOUNTANTS
(Originally Founded in 1949)
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC
REQUIREMENTS APPLICABLE TO MAJOR HUD PROGRAMS
The Members
Cove Apartments, L.C.
We have audited the financial statements of U.S. Department of Housing and Urban
Development ("HUD") Project No. 114-11122-REF, Cove Apartments, L.C. (the
Company) for the year ended December 31, 1996 and have issued our report thereon
dated February 7, 1997. In addition, we have audited the Company's compliance
with the specific program requirements governing mortgage status, replacement
reserve, security deposits and cash receipts and disbursements that are
applicable to each of its major HUD-assisted programs, for the year ended
December 31, 1996. The management of Cove Apartments, L.C. is responsible for
compliance with those requirements. Our responsibility is to express an opinion
on compliance with those requirements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards,
Government Auditing Standards, issued by the Comptroller General of the United
States, and the Consolidated Audit Guide for Audits of HUD Programs (the Guide')
issued by the U.S. Department of Housing and Urban Development, Office of
Inspector General in July 1993. Those standards and the Guide require that we
plan and perform the audit to obtain reasonable assurance about whether material
noncompliance with the requirements referred to above occurred. An audit
includes examining, on a test basis, evidence about the Companies compliance
with those requirements. We believe that our audit provides a reasonable basis
for our opinion.
The results of our audit procedures disclosed no instances of noncompliance with
the requirements referred to above, that are required to be reported herein.
In our opinion, Cove Apartments, L.C. complied in all material respects with the
requirements governing Section 207 pursuant to Section 223(f) of the National
Housing Act that are applicable to each of its HUD assisted programs for the
year ended December 31, 1 996.
This report is intended for the information of management and the U.S.
Department of Housing and Urban Development. However, this report is a matter of
public record and its distribution is not limited.
/S/ Hidalgo, Banfill, Zlotnik & Kermali, P.C.
------------------------------------------------
HIDALGO, BANFILL, ZLOTNIK & KERMALI, P.C.
February 7, 1997
3555 TIMMONS LANE, SUITE 460 - HOUSTON TEXAS 77027 - (713) 963-8008
Hidalgo, Banfill, Zlotnik & Kermali, P.C
CERTIFIED PUBLIC ACCOUNTANTS
(Originally Founded in 1949)
INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL
STRUCTURE (COMBINED REPORT APPLICABLE TO THE
FINANCIAL STATEMENTS AND HUD-ASSISTED PROGRAMS)
The Members
Cove Apartments, L.C.
We have audited the financial statements of U.S. Department of Housing and Urban
Development ("HUD") Project No. 1114-11122-REF Cove Apartments, L.C. (the
Company) as of and for the year ended December 31, 1996 and have issued our
report thereon dated February 7, 1997. We have also audited the Company's
compliance with requirements applicable to major HUD-assisted programs and have
issued our report thereon dated February 7, 1997.
We conducted our audits in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States, and the Consolidated Audit Guide for Audits of HUD Programs (the
Guide ), issued by the U.S. Department of Housing and Urban Development, Office
of the Inspector General, in July 1993. Those standards and the Guide require
that we plan and perform the audits to obtain reasonable assurance about whether
the financial statements are free of material misstatements and about whether
the Company complied with laws and regulations, noncompliance with which would
be material to a major HUD assisted program.
The management of Cove Apartments, L.C. is responsible for establishing and
maintaining an internal control structure. In fulfilling this responsibility,
estimates and judgments by management are required to assess the expected
benefits and related costs of internal control structure policies and
procedures. The objections of an internal control structure are to provide
management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition, that transactions
are executed in accordance with management's authorization and recorded properly
to permit the preparation of financial statements in accordance with generally
accepted accounting principles, and that HUD-assisted programs are managed in
compliance with applicable laws and regulations. Because of inherent limitations
in any internal control structure, errors, irregularities, or instances of
noncompliance may nevertheless occur and not be detected. Also, projection of
any evaluation of the stature to future periods is subject to the risk that
procedures may become inadequate because of changes in conditions or that the
effectiveness of the design and operation of policies and procedures may
deteriorate.
Page 2
In planning and performing an understanding of the design of relevant Optimal
control structure policies and procedures and determined whether they had been
placed in operation, and we assessed control risk in order to determine our
auditing procedures for the purpose of expressing our opinions on the Company's
financial statements and on its compliance with specific requirements applicable
to its major HUD-assisted programs and the report on the Internal control
structure in accordance with the provisions of the Guide and not to provide any
assurance on the Internal control structure.
We performed tests of controls, as required by the Guide, to evaluate the
effectiveness of the design and operation of Internal control structure policies
and procedures that we considered relevant to preventing or detecting material
noncompliance with specific requirements applicable to the major HUD-assisted
programs. Our procedures were less in scope than would be necessary to render an
opinion on such Internal control polices and procedures. Accordingly, we do not
express such an opinion.
Our consideration of the Internal structure would not necessarily disclose all
matters in the Internal control structure that might be material weaknesses
under standards established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which the design or operation
of one or more of the Internal control structure elements does not reduce to a
relatively low level risk that error or irregularities in amounts that would be
material in relation to the financial statements or that noncompliance laws and
regulations that would be material to a HUD-assisted program may occur and not
be detected within a timely period by employees in the nominal course of
performing their assigned functions.. We noted no matters involving the Internal
control structure and its operations that we consider to be material weaknesses
as defined above.
This report is intended for the information of the audit committee, management,
and the Department of Housing and Urban Development. However, this report is a
matter of public record and its distribution is not limited.
/S/ Hidalgo, Banfill, Zlotnik & Kermali, P.C.
----------------------------------------------
HIDALGO, BANFILL, ZLOTNIK KERMALI, P.C.
February 7, 1997
3555 TIMMONS LANE, SUITE 460 - HOUSTON TEXAS 77027 - (713) 963-8008
Hidalgo, Banfill, Zlotnik & Kermali, P. C.
OXFORD APARTMENTS, LC.
(HUD Protect Number 114-11123-REF)
Financial Statements and Supplemental Supporting Data
For the Year Ended December 31, 1996
OXFORD APARTMENTS, L.C.
(HUD Project Number 114-11123-REF)
For the Year Ended December 31, 1996
Page
-------
Independent Auditors' Report 1
Financial Statements
Balance Sheet 2 - 3
Statement of Profit and Loss 4
Statement of Changes in Members' Equity 5 - 6
Statement of Cash Flows 7
Notes to Financial Statements 8 - 10
Supplemental Supporting Data Required by HUD 11 - 21
Hidalgo, Banfill, Zlotnik & Kermali, P.C
CERTIFIED PUBLIC ACCOUNTANTS
(Originally Founded in 1949)
INDEPENDENT AUDITORS REPORT
The Members
Oxford Apartments, L.C.
We have audited the accompanying balance sheet of Oxford Apartments, L.C. (a
Texas Limited Liability Company), U.S. Department of Housing and Urban
Development ("HUD") Project Number 114-1112-REF, as of December 31, 1996 and the
related statements of profit and loss, changes in members' equity and cash flows
for the year ended December 31, 1996. These financial statements are the
responsibility of the company'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 statements
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 a
material respects, the financial position of Cove Apartments, L.C. (the Company)
as of December 31, 1996 and the results of its operations, changes in members'
equity and cash flows for the year then ended in conformity with generally
accepted accounting principles.
In accordance with Government Auditing Standards and the Consolidated Audit
Guide for Audits of HUD Programs issued by the U.S. Department of Housing and
Urban Development, we have also issued a report dated February 7, 1997, on its
compliance and specific requirements applicable to major HUD programs and
specific requirements applicable to Affirmative Fair Housing.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplementary
information shown on pages 11-21 is presented for purposes of additional
analysis and is not a required part of the basic financial statements of the
Company. Such information has been subjected to the auditing procedures applied
in the audit of the basic financial statements and, in our opinion, is fairly
stated in all material in relation to the basic financial statements taken as a
whole.
/s/ Hidalgo, Banfill, Zlotnik & Kermali, P.C.
---------------------------------------------
Certified Public Accounts
February 7, 1997
OXFORD APARTMENTS, L.C.
(HUD Project Number 114-11123-REF)
BALANCE SHEET
DECEMBER 31, 1996
CURRENT ASSETS:
1110 Petty Cash $ 300
1120 TCB depository account 195,296
1130 Tenant accounts receivable 1,447
1900 Deposits 2,057
1240 Prepaid insurance 46,017
1250 Mortgage insurance 41,858
-----------------
Total current assets $ 286,975
-----------------
Deposits Held in Trust - Funded:
1191 Tenant security depot: 69,519
-----------------
Restricted Deposits and Funded Renews:
1310 Mortgage escrow deposits:
MIP escrow
FHA repair escrow
Property tax escrow 232,649
Insurance escrow 3,250
1320 Reserve for replacements - Note 2 359,609
-----------------
Total restricted deposits and funded reserves 595.508
-----------------
Fixed Assets:
1410 Land 2,304,054
1420 Buildings 6,464,316
1450 Furniture and equipment 450,814
-----------------
9,219;184
Less accumulated depreciation (1.369.993)
-----------------
Total fixed assets 7,849,191
-----------------
Over Assets:
1800 Fit and organization costs net of
accumulated amortization of $43,510 455,439
-----------------
Total Assets $ 9,256,632
=================
See accompanying notes to financial statements.
2.
OXFORD APARTMENTS, L.C.
(HUD Protect Number 114~11123-REF)
BALANCE SHEET
DECEMBER 31, 1996
LIABILITIES AND MEMBERS' EQUITY
Current Liabilities ties:
2110 Accounts payable $ 7,987
2120 Accrued wages and payroll taxes payable 4,370
2130 Mortgage interest payable 58,303
2150 Accrued property taxes 256,327
2210 Prepaid rents 4,149
2320 Current portion of mortgage loan payable - Note 2 69,293
--------------
Total Current liabilities 400,429
Deposits Liabilities:
2191 Tenant security deposits: 64,590
Long Term Liabilities:
2310 Mortgage loan payable, net of current portion - Note 2 9,106,238
--------------
Total Liabilities 9,571,257
Members Equity (Deficit) (314.625)
--------------
Total Liabilities and Members Equity $ 9,256,632
==============
See accompanying notes to financial statements.
Statement or U.S. Department of Housing
Profit and Loss and Urban Development
Office of Housing 0MB Approval No. 2502-0052
Federal Housing Commissioner (Exp. 1/31/95)
- - --------------------------------------------------------------------------------
Public Reporting Burden for this collection of information is estimated to
average 1.0 hours per response, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and
completing and reviewing the collection of information. Send comments regarding
this burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to the Reports Management
Officer, Office of Information Policies and Systems, U.S. Department of Housing
and Urban Development, Washington, D.C. 20410-3600 and to the Office of
Management and Budget, Paperwork Reduction Project (2502-0052), Washington, D.C.
20503. Do not send this completed form to either of these addresses.
- - --------------------------------------------------------------------------------
- - -------------------------------------------------------------------------------------------------------------------------------
For Monthly Period
Beginning: Ending: Project Number: Project Name;
01/01/96 12/31/96 114-11123-REF OXFORD APARTMENTS, L.C.
- - -------------------------------------------------------------------------------------------------------------------------------
Part I Description of Account Acct. No. Amount
- - -------------------------------------------------------------------------------------------------------------------------------
Apartments or Member Carrying Charges (Coops) 5120 $ 2,617,040
Rental Tenant Assistance Payments 5121 $
Income Furniture and Equipment 5140 $
5100 Garage and Parking Spaces 5170 $
Flexible Subsidy Income 5160 $
Miscellaneous (specify) 5190 $
Total Rent Revenue Potential at 100% Occupancy $ 2,617,040
- - -------------------------------------------------------------------------------------------------------------------------------
Apartments 5220 ( 393,814)
Furniture and Equipment 5230 ( )
Vacancies Stores and Commercial 5240 ( )
5200 Garage and Parking Spaces 5270 ( )
Miscellaneous (Specify) 5290 ( )
Total Vacancies (393,814)
Net Rental Revenue Rent Revenue Less Vacancies $ 2,223,226
Elder and Congregate Services Income_5300
Total Service Income (Schedule Attached) 5300
- - -------------------------------------------------------------------------------------------------------------------------------
Interest Income_Project Operations 5410 $ 1,732
Financial Income from Investments_Residual Receipts 5430 $
Revenue Income from Investments_Reserve for Replacement 5440 $ 14,818
5400 Income from Investments_Miscellaneous 5490 $
Total Financial Revenue $ 16,550
- - -------------------------------------------------------------------------------------------------------------------------------
Laundry and Vending 5910 30,008
NSF and Late Charges 5920 $ 5,758
Other Damages and Cleaning Fees 5930 $ 12,327
Revenue Forfeited Tenant Security Deposits 5940 $ 12,917
5900 Other Revenue (specify) 5990 $ 5,369
Total Other Revenue $ 66,379
Total Revenue $ 2,306,155
- - -------------------------------------------------------------------------------------------------------------------------------
Advertising 6210 $ 82,280
Other Administrative Expense 6250 $ 6,456
Office Salaries 6310 $ 114,371
Office Supplies 6311 $ 5,242
Office or Model Apartment Rent 6312 $ 20,090
Administrative Management 6320 $ 90,889
Expenses Manager or Superintendent Salaries 6330 $
6200/6300 Manager or Superintendent Rent Free Unit 6331 $
Legal Expenses (Project) 6340 $ 100
Auditing Expenses (Project) 6350 $ 5,000
Bookkeeping Fees/Accounting Services 6351 $ 1,900
Telephone and Answering Service 6360 $ 7,718
Bad Debts 6370 $
Miscellaneous Administrative Expenses (specify) 6390 $ 4,792
Total Administrative Expenses $ 338,838
- - -------------------------------------------------------------------------------------------------------------------------------
Fuel Oil/Coal 6420 $
Electricity (Light and Misc. Power) 6450 $ 50,630
Water 6451 $ 88,881
Gas 6452 $ 26,022
Sewer 6453 $
Total Utilities Expenses $ 165,533
- - -------------------------------------------------------------------------------------------------------------------------------
4
- - -------------------------------------------------------------------------------------------------------------------------------
For Monthly Period
Beginning: Ending: Project Number: Project Name;
01/01/96 12/31/96 114-11123-REF OXFORD APARTMENTS, L.C.
- - -------------------------------------------------------------------------------------------------------------------------------
Part I Description of Account cct. No. Amount
- - -------------------------------------------------------------------------------------------------------------------------------
Janitor and Cleaning Payroll 6510 $
Janitor and Cleaning Supplies 6515 $ 1,813
Janitor and Cleaning Contract 6517 $
Exterminating Payroll/Contract 6519 $ 5,270
Exterminating Supplies 6520 $
Garbage and Trash Removal 6525 $ 10,806
Security Payroll/Contract 6530 $ 24,453
Grounds Payroll 6535 $ 28,603
Operating and Grounds Supplies 6536 $
Maintenance Grounds Contract 6537 $
Expenses Repairs Payroll 6540 $ 121,446
6500 Repairs Material 6541 $ 53,027
Repairs Contract 6542 $ 31,950
Elevator Maintenance/Contract 6545 $
Heating/Cooling Repairs and Maintenance 6546 $ 5,859
Swimming Pool Maintenance/Contract 6547 3,027
Snow Removal 6548 $
Decorating Payroll/Contract 6560 $
Decorating Supplies 6561 $
Other 6570 $
Miscellaneous Operating and Maintenance Expenses 6590 $ 110
Total Operating and Maintenance Expenses $ 286,364
- - -------------------------------------------------------------------------------------------------------------------------------
Real Estate Taxes 6710 $ 256,869
Payroll Taxes (FICA) 6711 $ 23,874
Miscellaneous Taxes, Licenses and Permits 6719 $
Taxes Property and Liability Insurance (Hazard) 6720 $ 48,448
and Fidelity Bond Insurance 6721 $
Insurance Workmen's Compensation 6722 $ 22,130
6700 Health Insurance and Other Employee Benefits 6723 $ 19,708
Other Insurance (specify) 6729 $
Total Taxes and Insurance $ 371,029
- - -------------------------------------------------------------------------------------------------------------------------------
Interest on Bonds Payable 6810 $
Financial Interest on Mortgage Payable 6820 $ 701,909
Expenses Interest on Notes Payable (Long-Term) 6830 $
6800 Interest on Notes Payable (Short Term) 6840 $
Mortgage Insurance Premium/Service Charge 6850 $ 46,000
Miscellaneous Financial Expenses 6890 $
Total Financial Expenses $ 747,909
- - -------------------------------------------------------------------------------------------------------------------------------
Elderly Total Service Expenses_Schedule Attached 6900 $
Congregate Total Cost of Operations Before Depreciation $ 1,910,123
Service Profit (Loss) Before Depreciation $ 396,032
Expenses Depreciation (Total)_6600 (specify) 6600 $ 477,114
6900 Operating Profit or (Loss) $( 81,082)
- - -------------------------------------------------------------------------------------------------------------------------------
Corporate Officer Services 7110 $
Mortgagor Legal Expenses (Entity) 7120 $
Entity Taxes (Federal-State-Entity) 7130-32 $
Expenses Other Expenses (Entity) 7190 $
7100 Total Corporate Expenses $
Net Profit or (Loss) $
- - -------------------------------------------------------------------------------------------------------------------------------
Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or
civil penalties. (18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802)
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, 6729, 6890, and 7190) exceed the
Account Groupings by 10% or more, attach a separate schedule describing or explaining the
miscellaneous income or expense.
- - -------------------------------------------------------------------------------------------------------------------------------
Part II
1. Total principal payments required under the mortgage, even if payments
under a Workout Agreement are less or more than those required under the
mortgage $ 64,222.12
- - -------------------------------------------------------------------------------------------------------------------------------
2. Replacement Reserve deposits required by the
Regulatory Agreement or Amendments thereto, even if payments may be
temporarily suspended or waived. $ 48,892
- - -------------------------------------------------------------------------------------------------------------------------------
3. Replacement or Painting Reserve release which are included as expense items
on this Profit and Loss statement. $ -0-
- - -------------------------------------------------------------------------------------------------------------------------------
4. Project Improvement Reserve Release under the Flexible Subsidy Program that
are included as expense items on this Profit and Loss Statement. $ -0-
- - -------------------------------------------------------------------------------------------------------------------------------
OXFORD APARTMENTS, L.C.
(HUD Project Number 114-11123-REF)
STATEMENT OF CHANGES IN MEMBERS' EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1996
Balance, December 31, 1995 $ (79,826)
Contributions -
Distributions (154,167)
Net Loss for the Period (80.632)
---------------
Balance, December 31, 1996 $ (314,625)
===============
See accompanying notes to financial statements.
OXFORD APARTMENTS, L.C.
(HUD Project Number 114-11123-REF)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1996
Cash Flows from Operating Activities:
Net Income (Loss) $ (80,632)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation and amortization 477,114
(Increase) deal ease in:
Accounts receivable - tenants (346)
Mortgage insurance (22,869)
Prepaid insurance (1,859)
Escrow accounts 140,285
Security deposits (1,550)
Accounts receivable - other
Increase (decrease) in:
Accounts payable and accrued liabilities (603)
Accrued interest payable (408)
Accrued taxes payable 2,528
Deposit liabilities (1,485)
Prepaid rents 3,813
---------
513,988
---------
Cash Flows from Investing Activities:
Property improvements (214,567)
---------
Cash Flows from Financing Activities:
Mortgage principal payments (64,222)
Distributions (154,167)
---------
(218,389)
---------
Increase in Cash 81,032
Cash, Beginning of Year 114,564
---------
Cash, End of Year $ 195,596
---------
Supplemental Disclosures of Cash Flow Information:
Interest Paid During the Year $ 701,909
=========
See accompanying notes to financial statements.
7
OXFORD APARTMENTS, LC.
(HUD Project Number 114~11123-REF)
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1996
Note 1 Organization and Summary of Significant Accounting Policies
Organization
Oxford Apartments, L.C. (the "Company") was organized as a Limited
Liability Company on June 25, 1992, under the laws of the State of
Texas, for the purpose of acquiring and operating a housing project or
projects with the assistance of mortgage insurance under the National
Housing Act, Section 223 F. Such project are regulated by the
Department of Housing and Urban Development ("HUD"). The Regulatory
Agreement limits distributions of net operating income to "surplus
cash" available for distribution at the end of a semiannual or annual
fiscal period. The Limited Liability Company will terminate June 24,
2032, according to the terms of the Articles of Organization.
On December 16, 1993, the Members of Oxford Apartments, L.C.
contributed a 405 unit multifamily project located at 2815 Greenridge
in Houston, Texas, known as the Oxford Apartments (the "Project") and
certain other assets to the Company. Concurrently, the Company
obtained a mortgage loan in the amount of $9,350,000, collateralized
by the Project and other assets. The Project was recorded by the
Company at the members' net carrying basis of $8,614,164 which
represents cost less accumulated depreciation. The proceeds of the
mortgage loan were used to repay the members' existing debt on the
Project, fund escrow balances and pay closing costs all of which were
funded at closing and did not flow through the cash accounts of the
Company. The aggregate amount of the assets contributed, including the
Project and other assets and escrow balances, in excess of the
mortgage loan totaled $484,789 and was recorded as a capital
contribution.
Revenue Recognition
The Company recognizes real estate rental revenue in accordance with
the terms of the respective leases.
Property, Furniture and Equipment
Property, furniture and equipment are carried at cost and are
depreciated using the straight line method over the estimated useful
lives of 5 to 10 years for furniture and equipment and 19 to 40 years
for building and building improvements.
8
OXFORD APARTMENTS, L.C.
(HUD Project Number 114-11123-REF)
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31,1996
Note 1 Organization and Summary of Significant Accounting Policies (Continued)
Financing Costs
Financing costs consist principally of fees incurred in conjunction
with obtaining the permanent mortgage loan and are being amortized
over the 35 year term of the mortgage loan using the straight-line
method.
Income Taxes
No provision for Federal income taxes is made in the accounts of the
Company since taxes on its operations are the obligations of
individual members.
Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and 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.
Note 2 Mortgage Loan Payable
The mortgage loan payable to TRI Capital Corporation bears interest at
7.625% and is due in monthly installments of $63,878, including
interest, through January 1, 2029. The Company's property and
equipment and the various funded reserves collateralize the mortgage
loan.
Annual principal payments for years subsequent to December 31, 1996
are as follows:
Years Ending December 31, Amount
------------------------
1997 $ 69,293
1998 74,765
1999 80,670
2000 87,041
2001 95,108
Thereafter 8,768,654
----------
$9,175,531
==========
Note 3 Real Estate Leases
At December 31, 1996 approximately 92% of the Projects 308 units were
committed under either month-to-month leases or noncancelable
operating leases with terms varying from six to twelve months. Future
minimum real estate rental income under the noncancelable operating
leases existing at December 31, 1996, expected during the year ending
December 31, 1997 is approximately $824,389.
9
OXFORD APARTMENTS, LC.
(HUD Project Number 114-11123-REF)
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31,1996
Note 4 Related Party Transactions
Operations of the Project are managed by Bradley Apartment Homes
("BAH"), which is affiliated with the members of the Oxford
Apartments, L.C. Management fees paid to BAH are based on four percent
of rents collected. Such fees aggregated $90,889 for the year ended
December 31, 1996.
Consulting services related to contracting for repair/replacement
expenditures on the project were provided during the year by Allied
Construction Services, which is also affiliated with the members of
Oxford Apartments, L.C. Consulting fees paid to Allied Construction
during the year ended December 31, 1996 aggregated $15,737 and were
calculated on a percentage of the repair/replacement cost basis.
Note 5 Concentration of Credit Risk
The Company maintains unrestricted cash balances at a bank. Cash
accounts at the bank are insured by the FDIC for up to $100,000.
Amounts in excess of the insured limits were $95,596 at December 31,
1996.
10
SUPPLEMENTAL SUPPORTING DATA REQUIRED BY HUD
OXFORD APARTMENTS, L.C.
(HUD Project Number 114-11123-REF)
Supplemental Supporting Data Required by HUD
December 31, 1998
Accounts Receivable (other than from regular tenants):
None
Delinquent Tenant Accounts Receivable:
1996
-------------------------
Number of Amount
Tenants Past Due
-------- --------
Delinquent 30 days 5 $ 1,447
Delinquent 31 to 60 days 0 0
Delinquent 61 to 90 days 0 0
Delinquent over 90 days 0 0
5 $ 1,447
Mortgage Escrow Deposits:
Estimated amount required as of December 31, 1996 for future payment of:
1996
---------
Property insurance, 2 months $ 8,367
Mortgage insurance, 12 months 45,663
Real estate taxes, 12 months 256,327
---------
Total 310,357
Amount confirmed by mortgage 277,757
---------
Amount on deposit in excess (deficient)
of estimated requirements (32,600)
Check in transit at December 31, 1996 30,234
---------
Deficiency $ (2,366)
========
An additional escrow checks of $2,500 was paid on January 27, 1997 to offset the
deficiency.
11
OXFORD APARTMENTS,
(HUD Project Number 114-11123-REF)
Supplemental Supporting Data Required by HUD
For the Year Ended December 31, 1996
Reserve for Replacements:
In accordance with the provisions of the Regulatory Agreement, restricted
cash is held by the TRI Capital Corporation to be used for replacement of
property with the approval of HUD as follows:
Balance, beginning of period $ 486,862
Deposits made during period 63,710
Withdrawals made during period (190,963)
----------
Balance, end of period $ 359,609
==========
The following information pertains to withdrawals made from the Reserve for
Replacements during the year:
Interior Hot Water
Date Decoration Exterior A/C System Misc Total
---- ---------- ---------- --------- --------- --------- ---------
January 22, 1996 $ 48,497 $ 43,188 $ 5,361 $ 6,141 $ 6,440 $ 109,627
July 9,1996 19,629 57,283 4,424 - - 81,336
-------- --------- --------- -------- -------- ---------
$ 68,126 $ 100,471 $ 9,785 $ 6,141 $ 6,440 $ 190,963
======== ========= ========= ======== ======== =========
Accounts Payable (other than to trade creditors):
None
Compensation of Partners:
None from Project funds
Changes in Fixed Assets:
Furniture &
Land Buildings Equipment Total
--------------- -------------- ----------- ---------------
Cost:
December 31, 1995 $ 2,304,054 $ 6,313,187 $ 387,374 $ 9,004,615
Additions - 151,129 63,440 214,569
Dispositions - . - - -
---------------- --------------- ---------- ----------------
December 31, 1996 $ 2,304,054 $ 6,464,316 $ 450,814 $ 9,219,184
================ =============== ========== ================
Accumulated Depreciation:
December 31, 1995 $ 796,175 $ 110,959 $ 907,134
Additions 395,390 67,469 462,859
Dispositions _ _ _
---------------- --------------- ---------- ----------------
December 31,1996 $ 1,191,565 $ 178,428 $ 1,369,993
================ =============== ========== ================
12
OXFORD APARTMENTS,. L.C.
(HUD Project Number 114-11123-REF)
Supplemental Supporting Data Required by HUD
For the Year Ended December 31, 1996
Accrued Taxes:
Description of Basis for Period Amount
Tax Accrual Covered Date Due Accrued
-------------- --------- ---------------- --------------- --------------
Houstonn ISD Tax January 1, 1996
Statement through January 31,1997
December 31, 1996 $ 128,557
City of Houston and Tax January 1,1996
Harris County Statement through January 31, 1997
December 31, 1996 127,770
-----------
Total $ 256,327
===========
Tenant Security Deposits:
Tenant security deposits are held in account # 25523-00220 at Bank of America
Texas NA, Houston, Texas. The federally insured account, in the name of the
Project, had a balance of $69,519 at December 31, 1996, including earned
interest that does not inure to the tenants.
Schedule of Unauthorized Distributions of Project Income:
None
Changes in Ownership interests:
No ownership changes occurred during the period covers by the financial
statements. Distributions paid to the members:
Date Declared and Paid Period Covered Amount Declared and Paid
February 1996 2nd half 1995 $ 113,906
July 1996 1st half 1996 $ 40,261
---------
$ 154,167
=========
13
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
HOUSING - FEDERAL HOUSING COMMISSIONER
OFFICE Of MULTIFAMILY HOUSING management AND OCCUPANCY
COMPUTATION OF SURPLUS CASH, DISTRIBUTIONS AND
RESIDUAL RECEIPTS
- - ------------------------------------------------------------------------------------------------------------------------------------
PROJECT NAME FISCAL PERIOD ENDED: PROJECT NUMBER
OXFORD APARTMENTS, L.C. 06/30/96 114-11123-REF
- - ------------------------------------------------------------------------------------------------------------------------------------
PART A - COMPUTE SURPLUS CASH
- - ------------------------------------------------------------------------------------------------------------------------------------
1. Cash (Accounts 1110, 1120, 1191, 1192) $ 44,786
2. Tenant subsidy vouchers due for period covered $
by financial statement
3. Other (describe) Approved Hud Replacement
Reserve Draw Not Received $ 81,336
(a) Total Cash (Add Lines 1, 2, and 3) $ 126,122
4. Accrued mortgage interest payable $ _
5. Delinquent mortgage principal payments $ _
6. Delinquent deposits to reserve for replacements $ _
7. Accounts payable (due within 30 days) $ _
8. Loans and nonpayable _
(due within 30 days) $ _
9. Deficient Tax Insurance or MIP Escrow Deposits $ _
10. Accrued expenses (not escrowed) $ 12,182
11. Prepaid Rents (Account 2210) $ 6,786
12. Tenant security deposits liability (Account 2191) $ 66,894
13. Other (Describe) $ _
(b) Less Total Current Obligations (Add Lines 4 through 13) $ 85,862
(c) Surplus Cash (Deficiency) (Line (a) minus Line (b)) $ 40,260
- - ------------------------------------------------------------------------------------------------------------------------------------
PART B - COMPUTE DISTRIBUTIONS TO OWNERS AND REQUIRED DEPOSIT TO REQUIRED
DEPOSIT TO RESIDUAL RECEIPTS
- - ------------------------------------------------------------------------------------------------------------------------------------
1. Surplus Cash $ 40,260
2a. Annual Distribution Earned During Fiscal Period $
Covered by the Statement
2b. Distribution Accrued and Unpaid as of the $
End of the Prior Fiscal Period
2c. Distributions Paid During Fiscal Period Covered by Statement $
3. Amount to be Carried on Balance Sheet as Distribution
Earned but Unpaid (Line 2a plus 2b minus 2c) $
4. Amount Available for Distribution During Next Fiscal Period $ 40,260
5. Deposit Due Residual Receipts (Must be deposited with Mortgagee within 60
days after Fiscal Period ends)
- - ------------------------------------------------------------------------------------------------------------------------------------
PREPARED BY REVIEWED BY
- - ------------------------------------------------------------------------------------------------------------------------------------
LOAN TECHNICIAN LOAN SERVICER
- - ------------------------------------------------------------------------------------------------------------------------------------
DATE DATE
- - ------------------------------------------------------------------------------------------------------------------------------------
(See Reverse for Instructions) HUD-93486 (12-80)
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
HOUSING - FEDERAL HOUSING COMMISSIONER
OFFICE Of MULTIFAMILY HOUSING Management AND OCCUPANCY
COMPUTATION OF SURPLUS CASH, DISTRIBUTIONS AND
RESIDUAL RECEIPTS
- - ------------------------------------------------------------------------------------------------------------------------------------
PROJECT NAME FISCAL PERIOD ENDED: PROJECT NUMBER
OXFORD APARTMENTS, L.C. 06/60/96 114-11123-REF
- - ------------------------------------------------------------------------------------------------------------------------------------
PART A - COMPUTE SURPLUS CASH
- - ------------------------------------------------------------------------------------------------------------------------------------
1. Cash (Accounts 1110, 1120, 1191, 1192) $ 265,115
2. Tenant subsidy vouchers due for period covered $
by financial statement
3. Other (describe)(Approved HUD replacement reserve draw not received) $ 55,682
(a) Total Cash (Add Lines 1, 2, and 3) $ 320,797
4. Accrued mortgage interest payable $ 58,303
5. Delinquent mortgage principal payments $ 4,074
6. Delinquent deposits to reserve for replacements $
7. Accounts payable (due within 30 days) $
8. Loans and nonpayable
(due within 30 days) $ 5,575
9. Deficient Tax Insurance or MIP Escrow Deposits $ 32,600
10. Accrued expenses (not escrowed) $ 12,357
11. Prepaid Rents (Account 2210) $ 4,149
12. Tenant security deposits liability (Account 2191) $ 64,590
13. Other (Describe) $ _
(b) Less Total Current Obligations (Add Lines 4 through 13) $ 181,648
(c) Surplus Cash (Deficiency) (Line (a) minus Line (b)) $ 139,149
- - ------------------------------------------------------------------------------------------------------------------------------------
PART B - COMPUTE DISTRIBUTIONS TO OWNERS AND REQUIRED DEPOSIT TO REQUIRED
DEPOSIT TO RESIDUAL RECEIPTS
- - ------------------------------------------------------------------------------------------------------------------------------------
1. Surplus Cash $179,409
2a. Annual Distribution Earned During Fiscal Period
Covered by the Statement $
2b. Distribution Accrued and Unpaid as of the
End of the Prior Fiscal Period $
2c. Distributions Paid During Fiscal Period Covered by Statement $ 40,260
3. Amount to be Carried on Balance Sheet as Distribution
Earned but Unpaid (Line 2a plus 2b minus 2c) $ 139,149
4. ~ Amount Available for Distribution During Next Fiscal Period
$ 139,149
5. Deposit Due Residual Receipts
(Must be deposited with Mortgagee within 60 days after Fiscal Period ends) $
- - ------------------------------------------------------------------------------------------------------------------------------------
PREPARED BY REVIEWED BY
- - ------------------------------------------------------------------------------------------------------------------------------------
LOAN TECHNICIAN LOAN SERVICER
- - ------------------------------------------------------------------------------------------------------------------------------------
DATE DATE
- - ------------------------------------------------------------------------------------------------------------------------------------
(See Reverse for Instructions) HUD-93486 (12-80)
OXFORD APARTMENTS, L.C.
(HUD Project Number 114-11123-REF)
Supplemental Supporting Data Required by HUD
For the Year Ended December 31, 1996
Statement of Receipts and Disbursements:
Source of Funds:
Revenues:
Rental income, net $ 2,223,226
Service commissions -
Financial 16,550
Other income 66,379
-----------
2,306,155
-----------
Expenses:
Administrative: 247,949
Management fees 90,889
Utilities 165,533
Operating 37,073
Maintenance 127,845
Maintenance payroll 121,446
Real estate taxes 256,869
Other taxes 23,874
Insurance 68,156
Workmens' compensation 22,130
Mortgage insurance 46,000
Mortgage interest 701,909
----------
1,909,673
----------
Cash prodded by operations before principal
payments and changes in assets and liabilities 396,482
Principal payments 64,222
----------
Cash provided by operations before changes
in assets and liabilities 332;260
16
OXFORD APARTMENTS, L.C.
(HUD Protect Number 114-11123-REF)
Supplemental Supporting Data Required by HUD
For the Year Ended December 31, 1996
Statement of Receipts and Disbursements (Continued)
Application of Funds:
(Increase) decrease in:
Accounts receivable - tenants $ (346)
Prepaid insurance (1,859)
Security deposits (1,550)
Escrow accounts 140,285
Mortgage insurance (22,869)
Increase (decrease) in:
Accounts payable and accrued liabilities (603)
Accrued interest payable (408)
Accrued taxes payable 2,528
Deposit and prepayment liabilities 2,328
Additions to Property (214,567)
Surplus Cash Distributions (154,167)
------------
Increase in cash 81,032
Unrestricted cash, beginning period 114,564
------------
Unrestricted cash, end of period $ 195,596
============
17
OXFORD APARTMENTS, L.C.
(HUD Project Number 114-11123-REF)
Supplemental Supporting Data Required by HUD
December 31,1996
Schedule of Funds in Financial Institutions as of December 31, 1996:
Funds Held by Mortgagor, Regular Operating Account:
Texas Commerce Bank, (checking)(1) $ 195,296
Funds Held by Mortgagor in Trust, Tenant Security Deposits:
Bank of America)(2) 69,519
Funds Held by Mortgagee, (in Trust):
Reserve for Replacements(3)
Sanwa Bank, (checking) 1.25% $ 64,641
Bank United, (checking) 2.50% 44,968
Treasury Bill, 4.689% 250.000 359,609
----------
Mortgage Insurance Escrow,(3) Sanwa Bank 41,858
Property Tax Escrow,(3) Sanwa Bank 232,649
Property Insurance Escrow,(3) Sanwa Bank 3,250
---------
Funds Held by Mortgagee 637,366
---------
Total Funds in Financial Institutions $ 902,181
=========
1 Balance Confirmed by Texas Commerce Bank
2 Balance Confirmed by Bank of America
3 Balance Confirmed by TRI
18
OXFORD APARTMENTS
(HUD Project Number 114-11123-REF)
Supplemental Supporting Data Required by HUD
Form the Year Ended December 31, 1996
Listing of Identity of Interest Companies and Activities
Doing Business with Owner/Agent
doing the year ended Decanter 31, 1996
Company Name Type of Service Amount Received'
--------------------- ------------------- ----------------
Bradley Apartment Homes Property Management $ 90,889
Allied Construction Service Consulting Services 15,737
19
OXFORD APARTMENTS, LC.
(HUD Project Number 114-11123-REF)
Supplemental Supporting Data Required by HUD
For the Year Ended December 31, 1996
Certification of Members
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
We hereby certify that we have examined the foregoing financial statement of
Oxford Apartments, L.C. Project Number 114-11123-REF, and, to the best of our
knowledge and belief, the same is complete and accurate.
/s/ Tim Myers /s/ Al Bradely, Jr.
- - --------------------------- ---------------------------
Tim Myers Al Bradley, Jr.
President Vice President
2/18/97 2/18/97
- - ---------------------------- ---------------------------
Date Date
Limited Liability Company
Identification Number 76-0372784
20
OXFORD APARTMENTS, L.C.
(HUD Project Number 114-11123-REF)
Supplemental Supporting Data Required by HUD
For the Year Ended December 31, 1996
Management Agent's Certification
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
We hereby certify that we have examined the foregoing financial statement of
Oxford Apartments, L.C. Project Number 114-11123-REF, and, to the best of our
knowledge and belief, the same is complete and accurate.
/s/ Linda Handley /s/ Al Bradley, Jr.
---------------------------------- --------------------------------
Linda Handley Al Bradley, Jr.
President Chairman
Allied Development Corporation Allied Development Capaabon
dba, Bradley Apartment Homes dba, Bradley Apartment Homes
2/20/97 2/20/97
- - ----------------------------------- ---------------------------------
Date Date
Allied Development Corporation
Identification Number 76-0156150
21
Hidalgo, Banfi11, Zlotnik & Kermali, P. C
CERTIFIED PUBLIC ACCOUNTS
(Originally Founded in 1949)
February 7,1997
To the Department of Housing and Urban Development
Attached is the financial report of Oxford Apartments, L.C. (HUD Project No.
114-11123-REF) for the year ended December 31, 1996.
/s/ Hidalgo, Banfill, Zlotnik & Kermali, P.C.
- - --------------------------------------------
Certified Public Accountants
Houston, Texas
Employer Identification No.: 74-1716599
Engagement Partner Mr. Naushad Kermali
3555 Timmons Lane, #460
Houston, TX 77027
(713) 963 8008
3555 TIMMONS LANE. SUITE 460 - HOUSTON TEXAS 77027- (713) 963-8008
Hidalgo, Banfill, Zlotnik & Kermali, P.C
CERTIFIED PUBLIC ACCOUNTANTS
(Originally Founded in 1949)
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC
REQUIREMENTS APPLICABLE TO AFFIRMATIVE FAIR HOUSING
The Members
Oxford Apartments, LC.
We have audited the financial statements of U.S. Department of Housing and Urban
Development ("HUD") Project No. 114-11123-REF, Oxford Apartments, L.C. (the
Company) for the year ended December 31, 1996 and have issued our report thereon
dated February 7, 1997.
We have applied procedures to test the Company's compliance with the Affirmative
Fair Housing requirements applicable to its HUD-assisted programs for the year
ended December 31, 1996.
Our procedures were limited to the applicable compliance requirement described
in the Consolidated Audit Guide for Audits of HUD Programs issued by the U.S.
Department of Housing and Urban Development, Office of Inspector General in July
1993. Our procedures were substantially less in scope than an audit the
objective of which would be the expression of an opinion on the Company's
compliance with the Affirmative Fair Housing requirements. Accordingly, we do
not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are
required to be reported herein under the Guide.
This report is intended for the information of management and the U.S.
Department of Housing and Urban Development. However, this report is a matter of
public record and as distribution is not limited.
/S/ Hidalgo, Banfill, Zlotnik & Kermali, P.C.
------------------------------------------------
HIDALGO, BANFILL, BEATNIK & KERMALI, P.C.
February 7, 1997
3555 TIMMONS LANE, SUITE ~ HOUSTON TEXAS 77027 - (713) 963-8008
Hidalgo, Banfill, Zlotnik & Kermali, P.C
CERTIFIED PUBLIC ACCOUNTANTS
(Originally Founded in 1949)
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC
REQUIREMENTS APPLICABLE TO MAJOR HUD PROGRAMS
The Members
Oxford Apartments, L.C.
We have audited the financial statements of U.S. Department of Housing and Urban
Development (-HUD') Project No. 114-11122-REF, Oxford Apartments, L.C. (the
Company) for the year ended December 31, 1996 and have issued our report thereon
dated February 7, 1997. In addition, we have audited the Company's compliance
with the specific program requirements governing mortgage status, replacement
reserve, security deposits and cash receipts and disbursements that are
applicable to each of its major HUD-assisted programs, for the year ended
December 31, 1996. The management of Cove Apartments, L.C. is responsible for
compliance with those requirements. Our responsibility is to express an opinion
on compliance with those requirements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards,
Government Auditing Standards, issued by the Comptroller General of the United
States, and the Consolidated Audit Guide for Audits of HUD Programs (the Guide')
issued by the U.S. Department of Housing and Urban Development, Office of
Inspector General in July 1993. Those standards and the Guide require that we
plan and perform the audit to obtain reasonable assurance about whether material
noncompliance with the requirements referred to above occurred. An audit
includes examining, on a test basis, evidence about the Companys compliance with
those requirements. We believe that our audit provides a reasonable basis for
our opinion.
The results of our audit procedures disclosed no instances of noncompliance with
the requirements referred to above, that are required to be reported herein.
In our opinion, Oxford Apartments, L.C. complied in all material respects with
the requirements governing Section 207 pursuant to Section 223(f) of the
National Housing Act that are applicable to each of its HUD assisted programs
for the year ended December 31, 1996.
This report is intended for the information of management and the U.S.
Department of Housing and Urban Development. However, this report is a matter of
public record and its distribution is not limited.
/S/ Hidalgo, Banfill, Zlotnik & Kermali, P.C.
---------------------------------------------
HIDALGO, BANFILL, ZLOTNIK & KERMALI, P.C.
February 7, 1997
3555 TIMMONS LANE, SUITE 460 - HOUSTON TEXAS 77027 - (713) 963-8008
Hidalgo, Banfill, Zlotnik & Kermali, P.C
CERTIFIED PUBLIC ACCOUNTANTS
(Originally Founded in 1949)
INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL
STRUCTURE (COMBINED REPORT APPLICABLE TO THE
FINANCIAL STATEMENTS AND HUD^SSISTED PROGRAMS)
The Members
Oxford Apartments, L.C.
We have audited the financial statements of U.S. Department of Housing and Urban
Development ("HUD") Project No. 114-11123-REF Oxford Apartments, L.C. (the
Company) as of and for the year ended December 31, 1996 and have issued our
report thereon dated February 7, 1997. We have also audited the Companies
compliance with requirements applicable to major HUD-assisted programs and have
issued our report thereon dated February 7, 1997.
We conducted our audits in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States, and the Consolidated Audit Guide for Audits of HUD Programs (the
Guide ), issued by the U.S. Department of Housing and Urban Development, Office
of the Inspector General, in July 1993. Those standards and the Guide require
that we plan and perform the audits to obtain reasonable assurance about whether
the financial statements are free of material misstatements and about whether
the Company complied with laws and regulations, noncompliance with which would
be material to a major HUD assisted program.
The management of Cove Apartments, L.C. is responsible for establishing and
maintaining an internal control structure. In fulfilling this responsibility,
estimates and judgments by management are required to assess the expected
benefits and related costs of internal control structure policies and
procedures. The objections of an internal control structure are to provide
management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition, that transactions
are executed in accordance with managements authorization and recorded properly
to permit the preparation of financial statements in accordance with generally
accepted accounting principles, and that HUD-assisted programs are managed in
compliance with applicable laws and regulations. Because of inherent limitations
in any internal control structure, errors, irregularities, or instances of
noncompliance may nevertheless occur and not be detected. Also, projection of
any evaluation of the stature to future periods is subject to the risk that
procedures may become inadequate because of changes in conditions or that the
effectiveness of the design and operation of policies and procedures may
deteriorate.
Page 2
In planning and performing an understanding of the design of relevant Optimal
control structure policies and procedures and determined whether they had been
placed in operation, and we assessed contra risk in order to determine our
auditing procedures for the purpose of expressing our opinions on the Company's
financial statements and on its compliance with specific requirements applicable
to its major HUD-assisted programs and the report on the internal control
structure in accordance with the provisions of the Guide and not to provide any
assurance on the internal control structure.
We performed tests of controls, as required by the Guide, to evaluate the
effectiveness of the design and operation of internal control structure policies
and procedures that we considered relevant to preventing or detecting material
noncompliance with specific requirements applicable to the major HUD-assisted
programs. Our procedures were less in scope than would be necessary to render an
opinion on such Internal control polices and procedures. Accordingly, we do not
express such an opinion.
Our consideration of the Internal structure would not necessarily disclose all
matters in the internal control structure that might be material weaknesses
under standards established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which the design or operation
of one or more of the Internal control structure elements does not reduce to a
relatively low level risk that error or irregularities in amounts that would be
material in relation to the financial statements or that noncompliance laws and
regulations that would be material to a HUD-assisted program may occur and not
be detected within a timely period by employees in the nominal course of
performing their assigned functions.. We noted no matters involving the internal
control structure and its operations that we consider to be material weaknesses
as defined above.
This report is intended for the information of the audit committee, management,
and the Department of Housing and Urban Development. However, this report is a
matter of public record and its distribution is not limited.
/S/ Hidalgo, Banfill, Zlotnik, Kermali, P.C.
------------------------------------------
HIDALGO, BANFILL, ZLOTNIK & KERMALI, P.C.
February 7, 1997
3555 TIMMONS LANE, SUITE 460 - HOUSTON TEXAS 77027 - (713) 963-8008